You are on page 1of 119

A

PROJECT REPORT
ON

”Study of awareness about insurance products
introduced by Birla & ICICI Prudential”

Submitted by:
Gaurav Sharma
MBA – IV Semester

POORNIMA COLLEGE OF ENGINEERING
ISI – 2, RIICO Institutional Area, Goner Road, Sitapura, Jaipur

POORNIMA COLLEGE OF ENGINEERING
(ISI – 2, Goner Road, Sitapura, Jaipur)

CERTIFICATE OF
Project Report during IV semester of M.B.A. Session 2009-2011

Certified that Mr. GAURAV SHARMA , student of Master of Business Administration, IV
Semester has submitted his report on “Study of awareness about insurance

products introduced by Birla & ICICI Prudential” after successfully completing
the project, towards fulfillment of the syllabus requirement prescribed by Rajasthan
technical University, Kota, for MBA IV semester Paper.

Dr. R. P. Rajoria
Campus Director

ACKNOWLEDGEMENT

This project has given me immense insights about the practical aspect of Insurance
industry and its working. I got to learn a lot about the insurance and the different kind of
insurance products available in the market from different insurance companies. This
project also helped me to improve my report making skills and the true meaning of
Insurance.
At the outset, I would like to thank Birla SunLife and ICICI Prudential agents and various
clients for giving me the opportunity to work on this project, by providing me the required
information in an environment which was stimulating and charged with the excitement to
do something productive.
I would like to express my sincere gratitude to Mr. …………………..(…………………..)
and Mr. ………………… (…………………..), my mentor for his valuable inputs and
support throughout the project.
Further I express sincere thanks to Mr. ……………………… (………………) and
……………. (…………………) for their valuable guidance & constant encouragement
which inspired me to complete this project successfully.
Lastly, I would like to thank all my colleagues in the Office who assisted me day in and
day out and made me feel like one of them. It was truly a delightful experience working
with all of them.

Gaurav Sharma
MBA – IV Sem.

CONTENTS Introduction to the Industry Introduction to the Organization Research Methodology • Title of the Study • Duration of the Project • Objective of Study • Type of Research • Sample Size and method of selecting sample • Scope of Study • Limitation of Study Facts and Findings Analysis and Interpretation SWOT Conclusion Recommendation and Suggestions Appendix Bibliography .

During the project study period. So it is the necessity that the student could know and take opportunity for practical exposures of the business world. the real situation of the corporate world and put his/her theoretical knowledge into practice. It is true that working live on any topic is a great experience and adds an extensive knowledge and exposure to the individual. As a part of course curriculum. It makes one realize that not only the theory but also the knowledge of the market is as important as the former. project report is compulsory for all the student of MBA. The overall experience. PREFACE Theoretical study combined with practical knowledge makes the learning meaningful and enables the individual to develop self-confidence because theoretical knowledge is always incomplete without its practical implication like gun without bullet. . The practical exposure makes the individual learn about the actual fieldwork. I realized that there no other and better way to learn the thing expect practical experience. This experience is valuable for the student and plays a leading and an important role in his career. knowledge and teamwork were a great satisfaction for me. the student learns through his/her own experience. At this point (after the completion of the project study). exposure.

returns and growth. . This research suggests that people are reluctant while investing in the insurance products due to lack of knowledge. For any customer it is always difficult to decide which insurance company’s product to choose. Through this research I came to know what are positive and strong points of the Birla SunLife and ICICI Prudential. EXECUTIVE SUMMARY There is growing needs of insurance and various kind of innovative insurance products are introduced by different insurance companies in India. on the basis of which SWOT Analysis (Strengths. Main purpose of insurance is safety. weakness. The major findings of this study are that people are interested to invest in insurance but they lack knowledge which results to negligence toward the need. Research was carried out to find which insurance company people prefer and to figure out what people prefer while investing in insurance product. opportunities & threat) is done.

It promises to pay to the owner. Insurance is a mechanism that helps to reduce the effects of such adverse situations. INTRODUCTION TO THE INDUSTRY ABOUT INSURANCE INDUSTRY What is INSURANCE? Insurance is related to the protection of the economic values of the assets. After that the benefit may not be available.Usually the contracts provide for the payment if an amount on the date of maturity or at unfortunate death . lawsuits. The contracts also provide for payment of premium periodically to the corporation by the assured. Insurance is a legal contract that protects people from the financials costs those results from loses of life. Life insurance is a contracts for payment of a sum of money to the person assured on the happening of the event insured against . called a policy.time. because he expect to get some benefit from it to meet some of his needs. There is an adverse or unpleasant situation. or property damage. from various insurance companies. loss of health. The owner is aware of this and he can so manage his affairs that by the end of that period or life. Every asset is expected to last for a certain period of time. The benefit may be an income or in some other form. But an accident or some other unfortunate event may destroy it before life-time and the owner not get the benefits and that time substitute have not been ready. Insurance provide a means for individuals & society to cope up with some of the risks faced in every day life by everybody. a certain sum if the loss occurs. . People purchase contracts of insurance. Evert asset has a value. a substitute is made available. The asset is valuable to the owner.

Insurance can be divided into three categories: 1) Life Insurance 2) General Insurance 3) Health Insurance Life insurance is a contract for payment of a sum of money to the person assured on the happening of the event insured against. in car insurance. exposed to similar risks. Usually the contract provides for the payment of an amount on the date of maturity or at specified intervals or at unfortunate death. etc. Similarly. The contract also provides for payment of premium periodically to the corporation by the assured. the insured receives the compensation to the extent of damage. motor. The contract provides for the payment of an amount on the happening of some contingency. It is a system by which the losses suffered by a few are spread over many. Insurance companies collect premiums to provide for this protection. . in a Life Policy. For Example. to pay the other party called insured a fixed amount of money on the happening of a certain event. in the event of the car meeting with an accident. General insurance includes many areas of insurance like marine. fire. health."Insurance is a contract between two parties whereby one party called insurer undertakes in exchange for a fixed sum called premiums.” Insurance is a protection against financial loss arising on the happening of an unexpected event. A loss is paid out of the premiums collected from the insuring public and the Insurance Companies act as trustees to the amount collected. the family of the insured person receives a fixed compensation on the death of the insured. by paying a premium to the Insurer. These types of contracts are annual in nature. engineering.

Insurance companies collect premiums to provide for this protection.Logic of insurance It is a system by which the losses suffered by a few are spread over many. If there is no uncertainty about the occurrence of an event it cannot be insured against. not fully. wherein a person using or to carrying hazardous substances (as defined in the Act) must hold a valid public liability (Act) policy. For example. Insurance is relevant only if there are uncertainties. Insurance only compensates for the losses. Insurance does not protect the asset. Motor Vehicles Act 1988. because they are likely to be destroyed or made non-functional before the expected life time. Insurance is done against the possibility that the damage may happen. By taking life insurance a person can have peace of mind and need not worry about the financial consequences in case of any untimely death. Certain Insurance contracts are also made compulsory by legislation. The word ‘possibility’ implies uncertainty. stipulates that a person driving a vehicle in a public place should hold a valid insurance policy covering “Act" risks. Insurance only tries to reduce the impact of the risk on the owner of the asset and those who depend on the asset. It does not prevent its loss due to the peril. There has to be an uncertainty about the risk. through accidental occurrences. The peril cannot be avoided through insurance. exposed to similar risks. Only economic . Another example of compulsory insurance pertains the Environmental Protection Act.and that too. Assets are insured. Need of insurance Insurance is desired to safeguard oneself and one's family against possible losses on account of risks and perils. It provides financial compensation for the losses suffered due to the happening of any unforeseen events. Insurance is a protection against financial loss arising on the happening of an unexpected event. A loss is paid out of the amount premiums collected from the insuring public and the Insurance Companies act as trustees to the collected.

The policy owner is the guarantee and he or she will be the person who will pay for the policy. that beneficiary must agree to any beneficiary changes. If thee loss is not financial. Difference between the policy owner and insured There is a difference between the insured and the policy owner (policy holder).consequence can be insured. buys a policy on Joe's life. for example. his wife. With an irrevocable beneficiary. if Joe buys a policy on his own life. insurance may not be possible. but the beneficiary is not a party to the policy. . The insured is a participant in the contract. The beneficiary receives policy proceeds upon the insured's death. she is the owner and he is the insured. For example. But if Jane. Jane or Joe. or cash value borrowing. although the owner and the insured are often the same person. The owner can change the beneficiary unless the policy has an irrevocable beneficiary designation. "insurable interest" is required to limit an unrelated party from taking life insurance on. policy assignments. he is both the owner and the insured. However. but not necessarily a party to it. The owner designates the beneficiary.

of India in 1999 opened up the insurance sector by allowing private companies to solicit insurance and also allowing FDI up to 26%. Currently.5% of the country's GDP while general insurance premiums to 0. And this part of the population is also subject to weak social security and pension systems with hardly any old age income security. it adds about 7 per cent to the country’s GDP. The Insurance sector in India has gone through a number of phases and changes. Insurance happens to be a mega opportunity in India. INSURANCE IN INDIA Insurance is a federal subject in India and has a history dating back to 1818. . particularly in the recent years when the Govt. the largest life insurance company in India is still owned by the government. A well-developed and evolved insurance sector is needed for economic development as it provides long term funds for infrastructure development and at the same time strengthens the risk taking ability. Ever since. the Indian insurance sector is considered as a booming market with every other global insurance company wanting to have a lion's share. It’s a business growing at the rate of 15-20 per cent annually and presently is of the order of Rs 450 billion. The Insurance sector. It is estimated that over the next ten years India would require investments of the order of one trillion US dollar. Together with banking services. This itself is an indicator that growth potential for the insurance sector is immense. Gross premium collection is nearly 2 per cent of GDP and funds available with LIC for investments are 8 per cent of GDP. can enable investments in infrastructure development to sustain economic growth of the country. nearly 80 per cent of Indian population is without life insurance cover while health insurance and non-life insurance continues to be below international standards. With largest number of life insurance policies in force in the world. Yet. to some extent.65% of India's GDP. Life and general insurance in India is still a nascent sector with huge potential for various global players with the life insurance premiums accounting to 2.

1938 and the IRDA Act. The insurance sector in India has come a full circle from being an open competitive market to nationalization and back to a liberalized market again.Insurance is a federal subject in India. . There are two legislations that govern the sector- The Insurance Act.1999. Tracing the developments in the Indian insurance sector reveals the 360 degree turn witnessed over a period of almost two centuries.

the disparage still existed as discrimination between Indian and foreign companies.e. General Insurance Corporation of India (GIC). insurance companies started mushrooming up. It was only in the year 1870. and the Provident Fund Act were passed to regulate the insurance business. Pre-independent era in India saw discrimination among the life of foreigners and Indians with higher premiums being charged for the latter. However. . • Ever-growing middle-class component in population. The oldest existing insurance company in India is National Insurance Company Ltd. In the year 1912. The Insurance industry earlier consisted of only two state insurers: Life Insurers i. With effect from December 2000. when Oriental Life Insurance Company was started by Europeans in Kolkata to cater to the needs of European community. New India Assurance Company Limited. Life Insurance Corporation of India (LIC) and General Insurers i. GIC had four subsidiary companies. FEATURES OF INDIAN INSURANCE INDUSTRY: • Low market penetration. Bombay Mutual Life Assurance Society. At the dawn of the twentieth century. these subsidiaries have been de-linked from parent company and made as independent insurance companies: Oriental Insurance Company Limited. the Life Insurance Companies Act. The Life Insurance Companies Act. 1912 made it necessary that the premium rate tables and periodical valuations of companies should be certified by an actuary. which was founded in 1906 and is doing business even today.e. • Growth of consumer movement with an increasing demand for better insurance products. HISTORY OF INSURANCE IN INDIA Insurance in India has its history dating back till 1818. National Insurance Company Limited and United India Insurance Company Limited. • Inadequate application of information technology for business. the first Indian insurance company covered Indian lives at normal rates.

Those who are not satisfied said that the commission provided is very low as compared other players in the industry. and emergence of nuclear families. N. .  Costs of Education. The reforms were aimed at “creating a more efficient and competitive financial system suitable for the requirements of the economy keeping in mind the structural changes currently underway and recognizing that insurance is an important part of the overall financial system where it was necessary to address the need for similar reforms…” In 1994.  Mortgage and Debt protection. Malhotra. was formed to evaluate the Indian insurance industry and recommend its future direction. The Malhotra committee was set up with the objective of complementing the reforms initiated in the financial sector. Following are the reasons:  Lifestyle Maintenance. headed by former Finance Secretary and RBI Governor R.  Hardships Protection. The need to protect your family’s ever growing needs is why you need Life Insurance. • Adequate fillip from the Govt. in the form of tax incentives to the insured. INSURANCE SECTOR REFORMS In 1993.  Replacement of Income. the committee submitted the report and some of the key recommendations included. In 1997 Insurance regulator IRDA set up. This need has become even more important due to steady disintegration of the prevalent joint family system. 59% of the advisors are satisfied by the commission provided by the co.  Retirement Expenses. Most of the advisors are satisfied by the working conditions. Malhotra Committee.

Life Insurance Corporation Act. Nationalization was accomplished by the govt. 1956 effective from 1. inter-alia. 1956 Even though the first legislation was enacted in 1938. the Life Insurance Corporation Act. and United India Insurance which were headquartered in each of the four metropolitan cities. 1999 Till 1999. All the companies were amalgamated into National Insurance.2 % of total population of 1 billion). form LIFE INSURANCE CORPORATION after nationalization of the 245 companies into one entity. whereas in . that life insurance in India was completely nationalized. acquisition of the management of the companies. thereby de-regulating the insurance sector and allowing private companies into the insurance. 1972 was enacted to nationalize the 100 odd general insurance companies and subsequently merging them into four companies. through a Government ordinance. Companies with equal strength started competing in the Indian insurance market. Further. New India Assurance. 1956.1956 was enacted in the same year to. 1972 The General Insurance Business (Nationalization) Act. are covered under Medical-claim. The Life Insurance Corporation of India was created on 1 September.9. of India then introduced the Insurance Regulatory and Development Authority Act in 1999. there were not any private insurance companies in Indian insurance sector. as a result and has grown to be the largest insurance company in India as of 2006. it was only in 19 January 1956. in India only 2 million people (0. Currently. Insurance Regulatory and Development Authority (IRDA) Act. Oriental Insurance. There were 245 insurance companies of both Indian and foreign origin in 1956. The Govt. General Insurance Business (Nationalization) Act. In recent years many private players entered in the Insurance sector of India. foreign investment was also allowed and capped at 26% holding in the Indian insurance companies.

After the entry of these private players. Birla Sun Life Insurance Co. Ltd 4. 8. With more and more private players in the sector this scenario may change at a rapid pace DIFFERENT INSURANCE COMPANIES Insurance is an upcoming sector. Ltd 7. ICICI Prudential Life Insurance Co. Max New York Life Insurance Co. Ltd. Met Life India Insurance Company Ltd. Insurance sector was once a monopoly. in this year the life insurance industry was liberalized after more than fifty years. in India the year 2000 was a landmark year for life insurance industry. 5. But nowadays the market opened up and there are many private players competing in the market. agent training and customer services etc. SBI Life Insurance Co. HDFC Standard life Insurance Co. Kotak Mahindra Old Mutual Life Insurance Limited 9. Ltd 3. There are fifteen private life insurance companies has entered the industry. Bajaj Allianz Life Insurance Company Limited 2. 6. a public sector enterprise. with LIC as the only company. In the last five years the private players is able to expand the market (growing at 30% per annum) and also has improved their market share to 18%. the market share of LIC has been considerably reduced. Ltd . market channels and advertisement of products. The various life insurers entered India:- 1. ING Vysya Life Insurance Company Ltd. For the past five years private players have launched many innovations in the industry in terms of products.developed nations like USA about 75 % of the total population are covered under some insurance scheme.

New India Assurance Company Ltd. 4. 17. 6. 20. Star Health Plus Insurance. Future General Life Insurance Company Ltd. Bajaj Allianz General Insurance Company Ltd. 14. 21. 10. 15. 18. 2. Tata AIG Life Insurance Company Limited 11. Star Union Dai-ichi Life Insurance Comp. Shriram Life Insurance Co. Aviva Life Insurance Co. Ltd. Universal Sompo Insurance Company Ltd. 5. 3. 9. DLF Pramerica Life Insurance Co. Reliance Life Insurance Company Limited. Ltd. Sahara India Life Insurance Co. ICICI Lombard General Insurance Ltd . Canara HSBC Oriental Bank of Commerce Life Insurance Co. Ltd. Ltd. Oriental Insurance Company. 7. National Insurance Company Limited. 16. Reliance General Insurance. The various other general Insurance Companies are as under:- 1. India Pvt. IDBI Fortis Life Insurance Company Ltd. Ltd. AEGON Religare Life Insurance Company Limited. 12. Future General Insurance Company Ltd.10. Bharti AXA Life Insurance Company Ltd. United India Insurance Company Ltd. 13. 8. Ltd 19.

The insurance act has strict provisions to ensure that insurance funds are invested in safe avenues. particularly from the middle and lower income groups. like Government bonds. companies with record of profits and so on. investments are necessary. A life insurance company’s funds are collected by way of premiums. A life insurance company is a major instrument for the mobilization of savings of people. These savings are channeled into investments for economic growth. (iii) Long term funds for infrastructure (iv)Strong positive correlation between development of capital markets and insurance/pension sector (v) Employment generation . Contribution of Life Insurance Sector in the Economy ➢Flow of Insurance Industry in India ➢Aggregation of Long Term Savings ➢Spread of financial services in rural Areas ➢Long term funds for infrastructure Development of Capital Markets/ Economic Growth ➢Employment generation ➢Special Futures ➢Growth Potential ➢Phase of transition CONTRIBUTION TO THE INDIAN ECONOMY (i) Life Insurance is the only sector which garners long term savings (ii) Spread of financial services in rural areas and amongst socially less privileged. Every premium represents a risk that is covered by that premium. ROLE OF INSURANCE IN ECONOMIC DVELOPMENT For economic development. Investments are made out of savings.

• Policies sold in the rural areas (2004-05): Number of the policies: 55 lakhs Sum assured 46.000 crores • Social security . 40.1 lakhs Long term funds for infrastructure • For GDP to grow at 8 to 10%. (Mark to Market basis around 80. qualitative improvement in infrastructure is essential.Spread of financial services in rural areas and amongst socially underprivileged • IRDA Regulations provide certain minimum business to be done:- (i) In rural areas (ii) In the socially weaker sections • Life Insurance offices are spread over nearly 1400 centers • Presence of representative in every tensile – deeper penetration in rural areas. .4 lakhs 2004-05 42. • Estimates of funds required for development of infrastructure vary widely. 19.24 lakhs in rural areas.000 crore. • An investment of 6.Number of lives covered 2003-04 17.600 crore is anticipated in the next 5 years (Source : SSKI India) • Tenure of funding required for infrastructure normally ranges from 10 to 20 years. • Annual Investment of around 9000 Crores in capital markets. Present level of investments is over Rs.000 Crores). • Major portion of these funds are routed through debt/private equity participation Development of Capital Markets/Economic Growth • Industry also contributes in economic development through investments in capital market. • Insurance agents numbering over 6.

59 lakhs. the total accumulated savings alone will be available. More prone to inflationary pressures • Long term savings more than 10 years deserve special consideration in tax.) Protection against risk of untimely death Life insurance is a product. training establishments provide extra employment opportunities. which in addition to life cover also provide the means . • Distinction between the short term savings and long term savings is critical from investor’s point of view. • Many of these openings are in rural sectors .) Protection during old age Life insurance can also be used as a means of saving for one’s future. Special Features • Tax clubbing of various savings short term and long term into same bracket have a bias towards short term savings. Advantages of Life Insurance 1. There are a number of life insurance policies. of agents on 31st March 2004– 15. 30. 2. • Many agents depend on insurance for their Livelihood–No. whereas under other savings schemes. which offers protection against the risk of death the full sum assured is made available under a life assurance policy. Benefits to Policy Holders Employment Generation • Life insurance industry provides increased employment opportunities. • Employees in insurance sector as on 31st March. 70. •Brokers. 2005 is around 2 lakhs.900 Crores Last Two Years 1. • Contribution to Five Year Plans9th Plan 2.900 Crores • Helps inculcate a sense of security by protecting earning of people in case of untimely death. corporate agents.

) Educational requirements and charity The object of insurance may be to serve as a security to educational funds in respect of loans advanced for educational purpose or to provide donations to charitable institutions like hospital and school.) Forced savings Payment of life insurance premiums is compulsory and becomes a habit.) Loans from the insurance company A policy holder can take a loan from his insurance company against the Security of his life insurance policy provided the terms of the terms of his policy allow such a loan. This loan can be taken usually after a period of 3 years from commencement of the policy and is a percentage of its surrender value.) Nomination and assignment The life insured can name the person or persons to whom the policy money would be payable in the event of his death . 4. This amount thus provides for the old age. One is thus encouraged to save and keep one’s policy alive. 6. Savings in other scheme can be easily withdrawn and may be used for less worthy purpose.of investing one’s income.the proceeds of a life insurance policy can be protected against the claims of the creditors of the life insured by effecting a valid assignment of the policy. 3. Termination of a life insurance policy by the policyholder usually results in substantial loss in benefits under the policy to the policyholder. . 5. After 3 years. The sum as per the policy will be received only after a period of time. The beneficiaries are fully protected from creditors expect to the extent of any interest in the policy retained by the insured. if the policyholder finds that he is unable to continue payment of premiums he can surrender a policy for a cash sum. A life insurance policy is accepted as a security for a commercial loan.

Under sec 88 the tax benefits on premium paid by an individual for life insurance policies on his own life\on the life of spouse \children minor or major. In a volatile market conditions it is possible to secure both as one can hedge the investment with saver investment vehicles that provide a diversified portfolio. According to the interest so expressed and shall not so long as any object of trust remains be subject to the control of the husband or to his creditors or form part of his estate. including married daughters.) Investment options The unit link products gives comprehensive insurance solutions that cater to an individual’s dual need of earning potentially high returns as well as stay for life.7. then it shall be deemed to be a trust for the benefit of his wife and children or any of them. An insurance policy taken by a married man in the above manner is ideal way to protect the interest of his wife and children. even after his untimely death. Thus there is an option to invest money in the products that combine the best of insurance and investment. Under sec 6 of the married women’s property act if a married man takes a policy of life insurance on his own life and expenses on the face of it to be for the benefit of his wife or of his wife and children or any of them. . 8.) Tax benefits The Indian income tax act provides tax concessions to the policyholder both on payment of premium and on the maturity amount.

whenever it may occur. Similarly. • Whole Life Policy.A term assurance plan along with a pure endowment plan . Plans of insurance that provide only death cover are called “Term Assurance” plans. it provides both life cover (in the event of death of life insured) or maturity benefits if he/she survives the policy term. These plans have two basic elements. when offered as a single product is called an Endowment Assurance Plan.A term assurance plan with a pure endowment plan of double the value is called a Double Endowment Assurance Plan under which the amount payable on survival is double the amount payable on death. The other is the ‘Survival Benefit’ providing for the benefit being paid on survival of a specified person. • Double Endowment Assurance Plan. no payment is made under a Pure Endowment plan. Therefore it makes sense for you to remain in the policy for at least 12-15 years. In other words. if the insure dies within the specified period. Endowment plans are typically frontloaded. Those that provide only survival benefits are called “Pure Endowment” plans. no payment is made under a term assurance plan. One is the ‘Death cover’ providing for the benefit being paid on the death of the insured person within a specified period. • Endowment Assurance plan. . All traditional life insurance plans are combinations of these two basic plans. TYPES OF INSURANCE PRODUCTS Life Insurance Products:- Life insurance products are usually referred to as ‘plans’ of insurance.A term assurance plan with an unspecified period under which the sum assured is paid on death. It is a traditional investment-cum-insurance plan. If the insured does not die within the specified period. under which the sum assured is paid on survival of the specified period or on earlier death.

2. On the other hand. The policy cannot be canceled by the insurer for any reason except fraud in the application. The policy does not accumulate cash value.All insurers do not offer all the plans. In case of your untimely death. Term is generally considered "pure" insurance. Permanent insurance builds a cash value that reduces the amount at risk to the insurance company and thus the insurance expense over time. there is no survival benefits if you survive the policy term. and 3. and that cancellation must occur within a period of time defined by law (usually two years). Term Assurance Plan: In insurance language this is a “pure risk cover” and can be described as an insurance or risk management product in its purest and simplest form. your dependents will receive the risk-cover amount or the ‘sum assured’. Premium to be paid (cost to the insured). This means that a policy with a million dollar face value can be relatively expensive to a 70 year old. Term assurance provides life insurance coverage for a specified term of years in exchange for a specified premium. The same plan may be called by different names be different insurers. There are three key factors to be considered in term insurance: 1. where the premium buys protection in the event of death and nothing else. and you also do not get back the premiums paid. unless the owner fails to pay the premium when due (the policy expires OR policies lapse). Also insurers make changes in their offers or practices from time to time. Face amount (protection or death benefit). Length of coverage (term). The owner can access the money in the cash value by . Permanent Life Insurance: Permanent life insurance is life insurance that remains in force (in-line) until the policy matures (pays out).

and the policy is terminated. and the sum assured is paid to your nominee in the event of your death. this is equivalent to a term plan over your lifetime. universal life and limited pay Whole life coverage: Whole life insurance provides for a level premium. Universal life coverage: Universal life insurance (UL) is a relatively new insurance product intended to provide permanent insurance coverage with greater flexibility in premium payment and the potential for a higher internal rate of return. fixed and known annual premiums. Common limited pay periods include 10-year. and a cash value table included in the policy guaranteed by the company. in which all the premiums are paid over a specified period after which no additional premiums are due to keep the policy in force. Limited-pay: Another type of permanent insurance is Limited-pay life insurance. The sum assured is paid to you once you reach this age. . 20-year. and mortality. borrowing the cash value. or surrendering the policy and receiving the surrender value. In this payment of premium is for whole life. The three basic types of permanent insurance are whole life. guaranteed cash values. In other words. and paid-up at age 65. The primary advantages of whole life are guaranteed death benefits.withdrawing money. This policy provides the life assurance cover for almost the entire life. Most of the insurance companies provide protection up to the age of 100 years.

life is full of Uncertainties and even the best-laid plans can go wrong. In case of early death of the parent. As a child is a minor. Here’s how you can give your child a 100% safe and assured tomorrow. however. Smart Kid is especially designed to provide flexibility and safeguard your child’s future education and lifestyle. Child Plans: As a responsible parent. . taking all possibilities into account. The sum assured is paid on the death of any of the insured persons during the term or at the end of the term. The beneficiary for the policy. The goal can be higher education. • In case of partnership insurance. Some plans also provide payment of sum assured on the death of one life and the policy is continued to cover the second life till maturity.Joint life policies: Two or more lives can be covered under one policy. financial help in establishing a business or profession. It basically aims at ensuring the achievement of life goals of your child. without payment of further premium. the life insurance contract is between the parent and the insurance company. is the child. • Each life will be underwritten separately. the premium payment is waived off by the insurance company and the policy continues as originally planned. Such policies usually cover married couples or partners. or even marriage. In the case of joint life insurances: • A joint life declaration is necessary to create a joint interest in the policy. However. In a child plan. • Bonuses will accrue on the single basic sum assured only. the partnership deed will be examined to ascertain the nature of financial interest of each partner. you will always strive to ensure a hassle-free. successful life for your child. the life assured can be the parent or the child. whatever the uncertainties.

ensuring that your child can realize his or her dreams without any hassles. BSLI Retirement Solutions that combine the best of . The Income Benefit Rider takes care of this through an annual payment of 10% of the sum assured. even in your absence. Retirement Plans: Retirement solutions Life Expectancy has been rising rapidly and today you can expect to live longer than your earlier generations. to your child. and a Waiver of Premium Rider (WOP)to Smart Kid unit-linked regular premium policy.  All future premiums are waived: Ensuring that your family is not financially burdened in your absence.  All Smart Kid plans can be enhanced with the Accident & disability benefit rider and income benefit rider. till the maturity of the policy.  You can also an Accident Benefit Rider to a Smart Kid Regular Premium policy. Graduation and Post-graduation. this increase will mean a longer retirement life. in the unfortunate event of the death of the parent.  Policy benefits continue: The educational benefits of the policy continue.Some plans are: • Smart Kid regular premium • Smart Kid unit-linked regular premium All these plans offer you:  Financial Benefits: Regular payments at critical stages in your child’s life. stretching into a couple of decades.  Development Allowance: Smart Kid guarantees regular income to secure your child’s educational career and also ensures his or her all-round development.  Total peace of mind. for a nominal additional amount. like Board examinations. even if you are not around  Sum Assured is paid immediately: Ensures that your loved ones stay financially secure. For you.

A prudent plan will ensure that increasing life expectancy. Why plan for retirement? For too many people. Also referred to as retirement plans. higher inflation and increasing taxes do not eat away into your hard earned savings. Despite all the planning and saving. these are designed to ensure that you are financially independent during your retirement years. BSLI Group Solutions Advantage: • An integrated basket of employee benefits solutions that offer incomparable flexible benefits. . the only asset that makes a decisive difference between corporate success and failure is the quality of human capital. Retirement planning offers a way to ensure a more enjoyable. the joy of retirement after years of hard work is eclipsed by the financial uncertainties that it brings. you can never sure whether your money will last a lifetime. Employee benefits have proven to be an excellent tool to optimize the retention of talent and improve an organization’s bottom-line. Pension plan: A pension plan can be looked as more of an investment product offered by insurers to cater to the “golden” retirement years of an individual. These solutions are developed to ensure your peace of mind for the years to come. The quality of an organization’s employee benefits establishes and maintains a company's image as a caring employer. stress free tomorrow.insurance and investment. Group Solutions: In an era of competitive parity. Optimum care of employees is a long-term investment that results in a sustained competitive advantage for an organization in the times to come. Most of the pension plans also provide an optional life assurance cover in them.

• Personalized financial planning for your employee that takes care of his/her changing financial needs at every stage of life. Money-back policy: It is a variant of the endowment assurance policy. In case of untimely death the nominee will receive the entire sum assured without considering the payouts already made to you before the unfortunate death. BSLI has a range of solutions that can be customized to meet your needs. stability and profitability of the portfolio. it takes care of one’s lump-sum monetary requirements to enable him to meet his financial goals and major commitments. Unit Linked Insurance Plan: ULIPs have been the darling of insurance companies. The main reason for this popularity is the twin advantage of a pure life cover (insurance component) and a range of investment funds or options (savings component) to match your risk profile. In fact. whether its your dream to retire in your hometown. or to build assets. promising superlative operational efficiency. Thus. The maturity benefit is the sum assured value less the survival benefits already paid under the policy. your savings from your time overseas can be easily canalized to meet your family's needs . So. While the pure life cover provides the much needed financial security to your dependents in the event of your . intermediaries and the insured population alike over the last five years. plus bonuses accrued. if any. • Quality service initiatives and transparency across all operations. • Sound investment management that focuses on safety. Plans for NRIs: Being away from India doesn't mean you have to compromise the safety and security of your loved ones. to secure funds for your children's education.now and in the future. the difference is that you get the survival benefits intermittently over the life of the policy.

. Indian insurance industry can be featured by: • Low market penetration. It will secure for India larger inflows of foreign capital needed to sustain our GDP growth. insurance. It will enhance the saving rate. The customer will get quicker servicing. Long-term funds for infrastructure development will be available to the country. India stands to gain the following major advantages: 1. Globalization is the new economic reality. Changing face of Indian insurance industry Indian life-insurance market is the target market of all the companies who either want to extend or diversify their business. which is here to stay heralding a new era of insurance in India. markets have been opened up. PRESENT SCENARIO OF INSURANCE SECTOR Liberalization commitments of the country to help in disciplining future economic policies will include the insurance reforms. 5. 4. 3. The government of India has set up rules that no foreign insurance company can setup their business individually here and they have to tie up with an Indian company and this foreign insurance company can have an investment of only 24% of the total start-up investment. When the word over. Wit the opening of the insurance industry.untimely death. the savings component allows you to participate in the capital markets and build wealth over the long-term tenure of the policy. with more reasonable and affordable pricing. 2. To tap the Indian market there has been tie-ups between the major Indian companies with other International insurance companies to start up their business. Globalization will provide improved opportunities to the customers for better products. India cannot remain in isolation.

 Dynamic risks are caused by perils which have national consequence. • Growth of customer’s interest with an increasing demand for better insurance products.  Particular risks affect only specific persons. political etc. calamities. like inflation.  Financial risks are those which may lead to the loss of the assets and life which by the owner earn the profits or get some benefits. introducing innovative products and increasing the penetration of life insurance in the vastly underinsured country.  Static risks are caused by perils which have no consequence on the national economy. each of which are making strides in raising awareness levels.  Fundamental risks are those that affect the large populations. • Application of information technology for business. • Rebate from government in the form of tax incentives to be insured. • Ever growing middle class component in population. Today. the Indian life insurance industry has a dozen private players. technology. . Several of private insurers have introduced attractive products to meet the needs of their target customers and in line with their business objectives Classification of Risk  Critical or Catastrophic risks are those which may lead to the bankruptcy of the owner. like a fire or theft or misappropriation. It would happen if the loss is total.

71 billion. Between 2000 and 2007.96% and the CAGR growth during this time frame has been 11.96%. . INDIA: THE NEXT INSURANCE GIANT Market Performance & Forecast: In 2000. total premiums maintained an average growth rate of 11. Between 2000 and 2007. Indian insurance market size was $21. It was one of the most consistent growth patterns we have noticed in any other emerging economies in Asian as well as Global markets. it had an increase of 120% and reached $47.89 billion.

They selectively invest in shares also but the percentage is very small 4-5%. The heavy hand of government still dominates the market. With factors like a stable 8-9 per cent annual growth. it is on the fulcrum of an ever increasing growth curve. Indian insurance market has become more vibrant. Competition in this market is increasing with company’s continuous effort to lure the customers with new product offerings.25 trillion and 3rd largest in terms of purchasing power parity. Even to this day.Indian Insurance Market Indian economy is the 12th largest in the world. with price controls. And this part of the population is also subjected to weak social security and pension systems with hardly any old age income security. According to the latest research findings. limits on ownership. insurance in India is primarily used as a means to improve personal finances and for income tax planning. As per our findings. nearly 80% of Indian population are without life insurance cover while health insurance and non-life insurance continues to be below international standards. This in itself is an indicator that growth potential for the insurance sector is immense. With the entry of private sector players backed by foreign expertise. with a GDP of $1. the market share of private insurance companies remains very low -. India is a vast market for life insurance that is directly proportional to the growth in premiums and an increase in life density. Taking into account the huge population and growing per capita income besides several other driving factors. a huge opportunity is in store for the insurance companies in India. Insurance is one major sector which has been on a continuous growth curve since the revival of Indian economy. It’s a business growing at the rate of 15-20% per annum and presently is of the order of $47. rising foreign exchange reserves. Major Driving Factors • Growing demand from semi-urban population . a booming capital market and a rapidly expanding FDI inflows. However. Indians have a tendency to invest in properties and gold followed by bank deposits.9 billion. Life Insurance Corporation (LIC) of India dominates Indian insurance sector. and other restraints.in the 10-15% range.

better tax rebates. and spreading • Affluence • Growing consumer class and increase in spending & saving capacity • Public private partnerships infrastructure development • Dearth of innovative & buyer-friendly insurance products • Success of Auto insurance sector Emerging Areas • Healthcare Insurance & Pension Plans • Mutual fund linked insurance products • Multiple Distribution Networks . and the failure to .e.i.. decrease in death rate and unemployment. This year saw initiation of an era of economic liberalization and globalization in the Indian economy followed by several reforms and long-term policies that created a perfect roadmap for the success of Indian financial markets. • Entry of private players following the deregulation • Rising demand for retirement provision in the ageing population • The opening of the pension sector and the establishment of the new pension regulator • Rising per capita incomes among the strong middle class. Bank assurance The upward growth trend started from 2000 was mainly due to economic policies adopted by the then Indian government. On the basis of several macroeconomic factors like increase in literacy rate & per capita income.44% and a growth of 59. growing GDP etc. Valuing the invaluable Both under insurance and over insurance can often be attributed to the lack of proper understanding of the exact insurance needs for oneself and the family. we estimate that the Indian insurance sector will grow by $28.82%.54 billion by 2011 with a CAGR (compounded annual growth rate) of 12.65 billion and reach $76.

his financial liabilities would obviously fall on his dependents. This is a classic case of over insurance. leaving them in a state of financial distress that could threaten their need of sustenance. thus allowing the need to take a life cover. Over Insurance Conversely. The table below provides an insight into the various life stages and events when life insurance cover usually requires a revision. . leaving you much poorer. if your parents are dependents then you need to take appropriate life cover on their behalf. there are also instances where individuals indulge in life insurance covers that far exceed in value than what is actually required. You should take a suitable insurance cover so that in the event of your untimely death. or being over-conservative in this regard. Life stage requirement for a life insurance cover start work life An individual usually does not have any dependent like spouse or children. Moreover. the burden of EMI payments does not pass to your parents or other members of the family. Under Insurance Under insurance. However. typically occurs when the existing financial liabilities and insurance needs are fully taken care of. which leads to an unnecessarily higher premium payment. The need for an adequate insurance cover is never static and keeps on varying with changes in the life stages and important events of an individual.spot and cover all liabilities properly and adequately. In the event of the untimely death of the only (or the main earning) member of the family. you may have taken a loan to finance your higher education or professional studies or purchase a car. It results in unnecessary expenditure that could otherwise be wisely invested elsewhere.

can be considered. At this stage. However.) Loan taken for business/profession The loan taken to set up or enhance your profession or business should be fully covered.) Purchase of a house. a revision of insurance needs is based mainly on securing the financial needs of the child up to the time he/she has grown up and settled in life. Purchasing a car through a vehicle loan. taking into considerations an expected increase in expenses and repayment of liabilities. This can take a form of increase in life cover.) Recently married Marriage requires a revision of your insurance needs. Also. if any.) Birth of children The arrival of a child brings with it a great amount of responsibility. etc Purchasing a house is a major financial decision not only on regard to the choice of property but also in regard to the commitment for repayment of the loan availed to finance the property. if both the husband and the wife are working. an insurance cover on the life of the spouse. too. the extent and value of life insurance coverage on both lives will depend on their respective remuneration packages. 4. 2. personal liabilities. Therefore. The same holds good for any other asset or event which has been financed by a loan. although for a lesser amount. you should take out a mortgage redemption plan to the extent of the outstanding loan amount.1. 3. car. calls for a life cover of the borrower to the extent of the outstanding loan. . as well as extent of financial dependence on one another.

3.) I don’t want to put my hard-earned money into a pure term assurance plan if I don’t even get back all the premiums paid on survival of the term. • While the main breadwinner should take out a life insurance policy on a priority basis. • You couldn’t be more wrong! You only get back the “surrender value”. 2.) It would be enough if only the main breadwinner of the family takes life insurance.Busting some insurance myths With a range of products flooding the market. in form of household services. then she should be covered to the extent of loss of income to the family in the event of her untimely death. Here are a bagful of myths floating around and I have made an effort to bust a few of the significant ones. albeit for a smaller sum. On the other hand. which is based on the “paid-up value” is a proportion of the original “sum assured” based on the number of years for which premium was paid against the total premium- . In the event of your untimely death during the policy term. from the date of its commencement. because her contribution to the family. you only need to pay a premium amount that is a fraction of the “sum assured”.) I will get back all my premiums when I surrender my endowment policy prematurely. in the event of your untimely death. even if she is not working. the “sum assured” on your insurance policy is payable. has monetary value. Moreover unlike investments. If the wife is working. she should be covered. where it takes years to build a suitable corpus. people today are more confused about insurance than ever. the other members of the family should also be covered. • A pure term assurance plan is a risk mitigation tool and not an investment product. To achieve this. repay loan liabilities and meet long-term financial goals. your dependents get a “sum assured” to enable them to continue living their existing lifestyle. 1.

paying years. The paid-up value of the policy is also calculated and available as
per the policy conditions.

4.) Insurance is primarily useful as a tax-saving instrument.
• Again, this is a huge misconception! While you do get attractive tax breaks, the
primary objective of insurance is risk mitigations followed by wealth creation for
the long term. Many people end up taking this myth too seriously, particularly
without considering the costs and benefits involved.

5.) After three years, I can walk away from any ULIP, along with the accrued investment
or the fund value.
• Sure, you can do that! However, you need to remember that a ULIP, at least in
the initial years, is very different from a mutual fund. While a mutual fund only
charges o nominal fund management charge every year, a ULIP is front loaded.
That means a significant chunk of your premium is allocated across various
charges in the initial years of the policy and only the balance gets invested in a
fund of your choice. As these charges taper off and average over time, it makes
sense to stay in a ULIP for at least 15 years. Therefore, if your investment
horizon is just 3-5 years, you better off in a mutual fund, and you can take out a
separate term assurance plan for the required risk cover.

COMPANY PROFILE

Overview

ICICI Bank is India's second-largest bank with total assets of Rs. 3,744.10 billion (US$
77 billion) at December 31, 2008 and profit after tax Rs. 30.14 billion for the nine
months ended December 31, 2008. The Bank has a network of 1,438 branches and
about 4,644 ATMs in India and presence in 18 countries. ICICI Bank offers a wide range
of banking products and financial services to corporate and retail customers through a
variety of delivery channels and through its specialized subsidiaries and affiliates in the
areas of investment banking, life and non-life insurance, venture capital and asset
management. The Bank currently has subsidiaries in the United Kingdom, Russia and
Canada, branches in United States, Singapore, Bahrain, Hong Kong, Sri Lanka, Qatar
and Dubai International Finance Centre and representative offices in United Arab
Emirates, China, South Africa, Bangladesh, Thailand, Malaysia and Indonesia. Our UK
subsidiary has established branches in Belgium and Germany.

ICICI Bank's equity shares are listed in India on Bombay Stock Exchange and the
National Stock Exchange of India Limited and its American Depositary Receipts (ADRs)
are listed on the New York Stock Exchange (NYSE). 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 equity base stands at Rs. 925 crores with ICICI Bank and Prudential
policy holding 74% and 26% stake respectively. In the period April- December 2004, the
company garnered Rs 860 crores of new business premiums for a total sum assured of
over Rs 7,360 crores and wrote nearly 345,000 policies. Today the company is the No.
1 private life insurer in the country.

History
ICICI Bank was originally promoted in 1994 by ICICI Limited, an Indian financial
institution, and was its wholly-owned subsidiary. ICICI's shareholding in ICICI Bank was
reduced to 46% through a public offering of shares in India in fiscal 1998, an equity
offering in the form of ADRs listed on the NYSE in fiscal 2000, ICICI Bank's acquisition
of Bank of Madura Limited in an all-stock amalgamation in fiscal 2001, and secondary
market sales by ICICI to institutional investors in fiscal 2001 and fiscal 2002. ICICI was
formed in 1955 at the initiative of the World Bank, the Government of India and
representatives of Indian industry. The principal objective was to create a development
financial institution for providing medium-term and long-term project financing to Indian
businesses. In the 1990s, ICICI transformed its business from a development financial
institution offering only project finance to a diversified financial services group offering a
wide variety of products and services, both directly and through a number of
subsidiaries and affiliates like ICICI Bank. In 1999, ICICI become the first Indian
company and the first bank or financial institution from non-Japan Asia to be listed on
the NYSE.
After consideration of various corporate structuring alternatives in the context of the
emerging competitive scenario in the Indian banking industry, and the move towards
universal banking, the managements of ICICI and ICICI Bank formed the view that the
merger of ICICI with ICICI Bank would be the optimal strategic alternative for both
entities, and would create the optimal legal structure for the ICICI group's universal
banking strategy. The merger would enhance value for ICICI shareholders through the
merged entity’s access to low-cost deposits, greater opportunities for earning fee-based

ICICI Prudential Life Insurance Company is a joint venture between ICICI Bank. particularly fee-based services. ICICI Prudential had issued over 7. and access to the vast talent pool of ICICI and its subsidiaries. In October 2001.K. the Government of India and representatives of Indian industry. have been integrated in a single entity. the Boards of Directors of ICICI and ICICI Bank approved the merger of ICICI and two of its wholly- owned retail finance subsidiaries. for a total sum assured of over 16000 crores and premium collection is over 951 crores. with the objective of creating a development . by the High Court of Gujarat at Ahmadabad in March 2002.75 Bn with ICICI Bank & Prudential Policy In the end of year 2003-04. ICICI Personal Financial Services Limited and ICICI Capital Services Limited. entry into new business segments. Foundation of ICICI • 1955 The Industrial Credit and Investment Corporation of India Limited (ICICI) was incorporated at the initiative of World Bank.8 lackhs policies. and Prudential Policy. seamless access to ICICI's strong corporate relationships built up over five decades. both wholesale and retail. ICICI Bank has formulated a Code of Business Conduct and Ethics for its directors and employees.income and the ability to participate in the payments system and provide transaction- banking services. Consequent to the merger. The merger was approved by shareholders of ICICI and ICICI Bank in January 2002. the ICICI group's financing and banking operations. a leading international financial services group which has its headquarters in U. Today the company stands first in private life insurance in India with a market share of nearly 40%. and by the High Court of Judicature at Mumbai and the Reserve Bank of India in April 2002. The merger would enhance value for ICICI Bank shareholders through a large capital base and scale of operations.ICICI Prudential was amongst the first private sector companies to begin operation in December 2000 after receiving approval from Insurance Regulatory Development Authority (IRDA). higher market share in various business segments. with ICICI Bank. ICICI Prudential total equity is 6. The company has a network of about 33000 advisors: as well as 12 banc assurance tie- ups.

into a single entity. Later. credit cards. Also in 2002. both wholesale and retail. ICICI Banking Corporation was renamed as 'ICICI Bank Limited'. ICICI Bank. and had acquired Chettinad Mercantile Bank (est. Bank of Madura was a Chettiar bank. and with a branch in Moscow. ICICI Bank bought the Shimla and Darjeeling branches that Standard Chartered Bank had inherited when it acquired Grind lays Bank. • 2005 ICICI acquired Investitsionno-Kreditny Bank (IKB). • 2003 ICICI opened subsidiaries in Canada and the United Kingdom (UK). car loans etc. Also. ICICI established a branch in Dubai International Financial Centre and in Hong Kong. 1933) and Illanji Bank (established 1904) in the 1960s. ICICI started its international expansion by opening representative offices in New York and London. and in the UK it established an alliance with Lloyds TSB. ICICI founded a separate legal entity. • 2002 The Boards of Directors of ICICI and ICICI Bank approved the reverse merger of ICICI. • 2001 ICICI acquired Bank of Madura (est. 1943). to undertake normal banking operations . ICICI integrated the group's financing and banking operations. financial institution for providing medium-term and long-term project financing to Indian businesses. . • 1994 ICICI established Banking Corporation as a banking subsidiary. • 2004 ICICI opens a rep office in Bangladesh to tap the extensive trade between that country. It also opened an Offshore Banking Unit (OBU) in Singapore and representative offices in Dubai and Shanghai. a Russia bank with about US$4mn in assets. head office in Balabanovo in the Kaluga region.taking deposits. India and South Africa.formerly Industrial Credit and Investment Corporation of India. ICICI Personal Financial Services Limited and ICICI Capital Services Limited. into ICICI Bank. ICICI renamed the bank ICICI Bank Eurasia. After receiving all necessary regulatory approvals.

Sangli Bank had been founded in 1916 and was particularly strong in rural areas • . ICICI opened representative offices in Bangkok. which was headquartered in Sangli. ICICI Group . in Maharashtra State.ICICI also received permission from the government of Qatar to open a branch in Doha. and Kuala Lumpur. in Belgium. Petersburg. and which had 158 branches in Maharashtra and another 31 in Karnataka State. this time in St.• 2006 ICICI Bank UK opened a branch in Antwerp. Jakarta. ICICI Bank Eurasia opened a second branch. • 2007 ICICI amalgamated Sangli Bank. • 2008 The US Federal Reserve permitted ICICI to convert its representative office in New York into a branch. ICICI also established a branch in Frankfurt.

The company has presence in various businesses in the financial sector. Due to the increase competition in the financial markets and fund-based business getting affected by lower margins and higher level of NPAs. It has launched a number of portals and has also entered into alliances with other major portals in the market. which the company has floated and through expansion of the distribution network. in World Bank and a steering committee of 5 prominent businessmen and other to cater to private sector needs of longs-term finance promoted ICICI. In the last fiscal. Canada and Russia Bank Profile:- In 1955. The prominent ones are Infrastructure Finance. Structured Finance. Since then. The company had realized the growing importance of technology revolution in the market and has taken major initiatives to enter the e-commerce segment in the year 1999-2000. Over the year. ICICI has gained prominence in most of the segments in financial sector through its various subsidiaries. Corporate Finance. the Government. Advisory services. Some of the important ones are: ICICI Bank ICICI Securities ICICI Personal financial Services . the capital structure of the company has undergone significant changes with that role of the government getting minimized. Treasury Services. Project Finance. the company is typing to get a major possible through the various subsidiaries. ICICI Bank also has banking subsidiaries in UK. Demat Services etc. the company created history by becoming the first Indian Company to list it shares on NYSE.

ICICI Bank has over 746 branches and extension counters and over 2270 ATM’s spread across the country. which comprises mortgages. Kolkata and Vadodara. venture capital. two wheeler. so as to gain competitive advantages. the Stock Exchange. Mumbai and the National Stock Exchange of India Limited and its . It offers individuals a broad spectrum of deposit. The bank is often credited for bringing in the retail finance phenomenon to India by pioneering the effort to make retail loans much more accessible and affordable enabling the rising Indian middle class to fund their lifestyle requirements across the country. ICICI Bank uses IT as a strategic tool in all the business operation. TDICI etc.5 million customers’ accounts through a multi-channel delivery network of branches. personal loans etc. investment and credit policies.icicibank. ICICI Bank offers a comprehensive range of deposit and loan products at its branches to cater to different customer profiles and needs. 2416. ICICI Bank is also India’s foremost technology bank. The bank has market leadership in retail credit. The bank services its large customer base of more than 17. life and non-life insurance. ICICI Bank offers a wide range of baking products and financial services to corporate and retail customers through a variety of delivery channels and through its specialized subsidiaries and affiliates in the areas of investment banking.79 Billions as on July 31. CRISIL. ATM’s call centers and Internet Banking (www.ICICI Infotech ICICI Web Trade Over the years ICICI promoted a number of specialized Financial Institutions like HDFC.com) to ensure that customers have access to its services at all times. 2007. ICICI Bank’s equity shares are listed in India on stock exchanges at Chennai. ICICI Bank has emerged as India’s fastest growing retail bank. car loans. ICICI Bank is India’s second largest bank and largest private sector bank with over 50 years of financial experience and with assets of Rs. asset management and information technology. credit cards. Delhi.

having agreements with ICICI Bank. an equity offering in the form of ADRs listed on the NYSE in fiscal 2000. the Government of India and representatives of Indian industry. Federal Bank.American Depositary Receipts (ADRs) are listed on the New York Stock Exchange (NYSE). After consideration of various corporate structuring alternatives in the context of the emerging competitive scenario in the Indian banking industry. ICICI Bank’s acquisition of Bank of Madura Limited in an all-stock amalgamation in fiscal 2001. In 1999. Lord Krishna Bank and some co- operative banks. a policy for the socially and economically underprivileged sections of society. ICICI transformed its business from a diversified financial services group offering a wide variety of products and services. and secondary market sales by ICICI to institutional investors in fiscal 2001 and fiscal 2002. ICICI Bank was originally promoted in 1994 by ICICI Limited.000 insurance advisors to interface with and advise customers. Further. The principal objective was to create a development financial institution offering only project financing to Indian businesses.ICICI (Industrial Credit and Investment Corporation of India): . the management of ICICI and ICICI Bank formed the view that the merger of ICICI with ICICI Bank would be the optimal strategic alternative for 0both entities. South Indian Bank. It has also tied up with Specialized like Dhan for distribution of Salaam Zindagi. The company has seven ban assurance tie-ups. both directly and through a number of subsidiaries and affiliates like ICICI Bank. ICICI Prudential has recruited and trained about 50. and the move towards universal banking. Bank of India. ICICI become the first Indian company and the first bank or financial institution from non-Japan Asia to be listed on the NYSE. an Indian financial institution and was reduce to 46% through a public offering of shares in India in fiscal 1998. and banking strategy. In the 1990s. as well as over 160 corporate agents and brokers. ICICI was formed in 1955 at the initiative of the World Bank. it leverages its state-of-the-art IT infrastructure to provide superior quality of service to customers.

 Leveraging technology to device customers quickly. since inception. • Ownership. 2000.” They hope to achieve this by:  Understanding the needs of customers and offering them superior products and service.  Providing an enabling environment to foster growth and learning for their employees.  Developing and implementing superior risk management and investment strategies to offer sustainable and stable returns to their policyholders.070 crores.848 companies and 16. building transparency in all their dealings. 1. ICICI has thus far financed all the major sectors of the economy. to promote industrial development of India by providing project and corporate finance to Indian industry. covering 6. the Government of India and the Indian Industry.  And above all. In 1955. . The success of the company is due to its unflinching commitment to 5 core values- • Integrity. The World Bank. VISION The company’s vision is “to make ICICI Prudential the dominant Life and Pensions player built on trust by world-class people and service. 13. • Passion.851 projects As of March 31st. efficiently and conveniently. established ICICI Ltd. • Customer First. ICICI had disbursed a total of Rs.

2008. 30. its American Depositary Receipts (ADRs) are listed on the New York Stock Exchange (NYSE). • To leverage technology in order to overcome constraints and enhance the Present Scenario ICICI Bank has its equity shares listed in India on Bombay Stock Exchange and the National Stock Exchange of India Limited. that ended on December 31. 2008..10 billion and profit after tax Rs. 3. capable of large-scale replication and should have the potential for both near and long-term impact. As of December 31. ICICI is India's second-largest bank. MISSION OF THE ICICI BANK • To identify and support initiatives.744. which are. designed to improve the capacity of the poorest of the poor to participate in the larger economy. • These initiatives must be cost effective. SALES DISTRIBUTION . Overseas. Find out more about how each of the functions contribution growing business. FUNCTION  ICICI Prudential offers exciting career opportunities for people from a variety of streams. for the nine months.14 billion. boasting an asset value of Rs.

Employee Deposit Linked Insurance (EDLI). We offer the entire gamut of products including Gratuity. BANK ASSURANCE AND ALLIANCES  ICICI Prudential was a pioneer in offering life insurance solutions through banks and alliances. the Operations department interfaces between the . GROUP  The Group Business of ICICI Prudential has been in existence for over 2 years. we are the Number 1 player among private life insurance companies in Group Business excluding Mortgage Reducing Term Assurance (MRTA) with a market share of 26 %( FY 2004-2005). Flexibility. Mortgage Reducing Term Assurance (MRTA) & Informal Group Term covers. tied agency has emerged as a robust. Tied Agency is the largest distribution channel of ICICI Prudential. and with nearly a large number of partners. predictable and sustainable business model. B & A has emerged as a vital component of the company's sales and distribution strategy. comprising a large advisor force that targets various customer segments. CUSTOMER SERVICE & OPERATIONS  The Operations department oils the work processes between the customer and the company to ensure consistent and quality service to the customer. Leave Encashment. The business philosophy at B&A is to leverage distribution synergies with our partners and add value to its customers as well as the partners. adaptation and experimenting with new ideas are the hallmarks of this channel. Within a short span of two years. With focus on sales & people development. To streamline the operations. The strength of tied agency lies in an aggressive strategy of expanding and procuring quality business. Today. contributing to approximately one third of company's total business. Superannuation Term Insurance.

MARKETING  The Marketing function at ICICI Prudential covers an array of activities . This group runs the 'Digital Nervous System' of the Enterprise at the highest levels of efficiency and provide robust. This team works as an in house R&D Solution Group. Units such as the 9 to 9 contact centre. The Brand and Communications team is in charge of advertising.brand and media management. Channel marketing provides support to the sales force by streamlining the design and . The Vision at Customer Service is to deliver 'World Class Service' at every opportunity. the branches and the underwriters. Outbound Call Centre. direct marketing and corporate communications. and manages work processes.Web that provides real-time information to customers and is responsible for customer relationship management. scalable and highly available platform for deployment of business application. the Solutions Group. that helps develop and nurture ICICI Prudential's corporate identity while effectively communicating its varied product offerings to the customer. clients and the agents. IT Infrastructure group is responsible for providing hardware. consumer research. media planning & buying and Public Relations. IT Architecture & Corporate Solutions Group is in charge of developing and maintaining a blueprint for the IT architecture for the enterprise as a whole. Customer Care and Query Resolution Unit are all committed to providing effective solutions to over lakhes of customers across the country. network services to the whole organization. software. It is segmented into 4 groups to enable highest levels of delivery to the customers: Life Asia Solutions Group that provides flexibility in designing better product offerings to end-users. channel support. exploring new technological initiatives and also caters to information needs of corporate functions in the organization. INFORMATION TECHNOLOGY  The Information Technology function at ICICI Prudential is committed to enable business through the use of technology.

compensation system and a segmented training architecture enable it to deliver value to the organization. BUSINESS . With its initial focus on operational excellence to deliver benefits and services to staff members. The Accounts function includes preparation and maintenance of financial records. learning and growth. The Direct marketing team was set up to generate high quality leads for profitable business. funds management. providing strategic inputs for decision-making and management reporting and analysis. Internal audit provides assurance to the management over the organizations' control framework and includes process risk management. The team achieves this through target database acquisition and communicating customized product information through e-mailers. The Human Resource Function at ICICI Prudential drives the people strategy of the business. telemarketing and innovative direct mailers. A robust performance management system. HUMANRE SOURCE  The people strategy of ICICI Prudential is "To build a committed team with a culture of innovation. Compliance ensures that every action is within the regulatory framework. . Corporate Planning and MIS provide feedback on business strategies. FINANCE  Finance function in ICICI Prudential is committed to create an infrastructure that is aligned to shareholder expectations. development of collaterals and sales tools across distribution channels. Finance basically comprises of four functions. This includes driving the budgeting process. and expense processing and treasury operations. information security assessment and business continuity assessment. This includes reviewing compliance requirements and supporting the ethical framework of ICICI Prudential life. HR is now committed to building capability through state of the art processes.

3.000 (ADR.scale and measurable – impact • are replicable in a cost effective manner.1. and providing platforms for an Business Overview Assets Globally held > Rs. 25. Contribute towards improving the efficacy of assisted organizations through: • capacity building • providing access to research and information. Identify and support pilot projects within its focus areas. FII Crores Second largest stake) Bank in India First Indian Bank to be listed on NYSE .  Excellence the Business Excellence function is committed to building a quality mindset across the organization. • have a large. and • are time –bound. The team is also driving the Malcolm Baldrige framework across the organization. Identify and support projects and programmes that are within its focus areas and. ICICI Prudential is the first organization in the Insurance Industry that has adopted the Six Sigma Methodology for process efficiency and measurement. Strategy- 1. 2. an intervention that examines management of key inputs for Business Excellence.

Rated by Moody’s above sovereign rating ICICI Bank is India's second-largest bank with total assets of about Rs. life and non-life insurance.1. China. venture capital and asset management. 2006 ICICI Bank. ICICI Bank currently has subsidiaries in the United Kingdom. with free float market capitalization* of about Rs. 308. ICICI Bank has a network of about 570 branches and extension counters and over 2200 ATMs. Bangladesh and South Africa. Canada and Russia.00 billion (US$ 7. As required by the stock exchanges. ICICI Bank has formulated a Code of Business Conduct and Ethics for its directors and employees.659 crore at March 31. 2006 and profit after tax of Rs. ICICI Bank's equity shares are listed in India on the Stock Exchange. 2. Mumbai and the National Stock Exchange of India Limited and its American Depositary Receipts (ADRs) are listed on the New York Stock Exchange (NYSE). ICICI Bank offers a wide range of banking products and financial services to corporate and retail customers through a variety of delivery channels and through its specialised subsidiaries and affiliates in the areas of investment banking. At April 4. United Arab Emirates.00 billion) ranked third amongst all the companies listed on the Indian stock exchanges.005 crore for the year ended March 31. ICICI Bank set up its international banking group in fiscal 2002 to cater to the cross border needs of clients and leverage on its domestic banking strengths to offer products internationally. 2006 (Rs. . 1740 crore in fiscal 2004).67. branches in Singapore and Bahrain and representative offices in the United States.

000 on payment of yearly premium of Rs 60. 70000 in each financial year. . ICICI transformed its business from a development financial institution offering Insurance serves as an excellent tax saving mechanism too. The principal objective was to create a development financial institution for providing medium-term and long-term project financing to Indian businesses.000 a year. The rebate is deductible from the tax payable by an individual or a Hindu Undivided Family.000 tax benefit.000. an individual is entitled to a rebate of 20 per cent on the annual premium payable on his/her life and life of his/her children or adult children. FAQS ON TAXATION: What are the tax rebates available to an individual in respect of premium paid on life insurance policies? Life insurance premium paid by an individual qualifies for rebate under section 88 of income tax act. The rebate is deductible from tax payable by the individual or a Hindu Undivided Family. an equity offering in the form of ADRs listed on the NYSE in fiscal 2000. and was its wholly-owned subsidiary. By paying Rs 60. The Government of India has offered tax incentives to life insurance products in order to facilitate the flow of funds into productive assets. In the 1990s. ICICI was formed in 1955 at the initiative of the World Bank. and secondary market sales by ICICI to institutional investors in fiscal 2001 and fiscal 2002. ICICI Bank was originally promoted in 1994 by ICICI Limited. you can buy anything upwards of Rs 10 lakh in sum assured. This rebate is can be availed upto a maximum of Rs 12. an Indian financial institution. An individual can claim rebate on premium paid for a maximum of Rs. ICICI Bank's acquisition of Bank of Madura Limited in an all-stock amalgamation in fiscal 2001. (depending upon the age of the insured and term of the policy) This means that you get a Rs 12. ICICI's shareholding in ICICI Bank was reduced to 46% through a public offering of shares in India in fiscal 1998. Under Section 88 of Income Tax Act 1961. the Government of India and representatives of Indian industry.

any amount received on surrender of the plan shall be deemed to be the assessed income and taxed accordingly. 150000 rebate is calculated at 20% of the premium paid towards life insurance. • Greater than Rs.How is tax rebate under section 88 calculated? Calculation of tax rebate under section 88 depends on the individual’s gross total income and contribution made towards life insurance premium. . rebate is computed at 15% of the premium paid. 150000 the individual is not eligible to claim any tax benefit on the Life insurance premium paid. An individual can make payment on his/her spouse’s policy and the premium paid will qualify for rebate under section 88. What are the tax benefits available under plans? Under section 88CC where an assess has paid/deposited any amount towards any annuity plan receiving pension fund. Thus if the gross total income is: • Less than Rs. Are maturity life insurance and pension policies taxable? The maturity process of life insurance policies is not taxable. 100 from the total income. 500000. Where the amount paid/deposited into consideration for the purpose of claming deduction a rebate where reference to shall not be allowed under section 88. Can a tax rebate to be calculated of the premium is paid by an individual on his/her spouses polices. • Greater than Rs. 150000 but less than Rs. he/she will be allowed deduction up to Rs. However under pension plans.

the maturity proceeds of UTI ULIP scheme are exempt from tax under section 10(33) subject to the same being received on or after April. 10000 whichever is lower. • The aforesaid limit is Rs. no tax deduction is allowed is respect of any premium paid on that policy in the year in which the policy s terminated. one who is resident in India and who is at least 65 years of age at any time during the previous years). he will no be entitled to claim ant rebate. If a tax payer discontinues the life insurance policy before premiums have been paid of a period of 2 years from the commencement of the policy. 15000. hence he is not entitled to claim any tax benefits.If a person discontinues premium on his insurance or a pension policy. where the individual or his spouse of dependent parent’s or any member of the family (for whom such premium is paid is a senior citizen (i. What are the deductions is available in respect of medical insurance premium? The premium paid under financial insurance premium qualifies for rebate under section 80D as follows: • Insurance premium paid or Rs. 2002. If a person participating in a unit linked insurance plan (ULIP) terminates his policy. it amounts to discontinues of the policy. and he claim any rebate on the same? If a person participates as unit linked plan (ULIP) and terminates his participation. . Further the amount of tax deduction allowed for the premium paid in the preceding year is also treated as the tax payable for the year in which the policy is terminated.e. Is the amount received on maturity of UTI ULIP scheme taxable? No. does he get tax benefit If a person stops paying premium amount on his/her life insurance policy.

The merger would enhance value for ICICI Bank shareholders through a large capital base and scale of operations. particularly fee-based services. The rebate is deductible from tax payable by the individual or a Hindu Undivided Family. After consideration of various corporate structuring alternatives in the context of the emerging competitive scenario in the Indian banking industry. the Boards of Directors of ICICI and ICICI Bank approved the merger of ICICI and two of its wholly- owned retail financ Insurance serves as an excellent tax saving mechanism too.000 tax benefit. The rebate is deductible from the tax payable by an individual or a Hindu Undivided Family. The merger would enhance value for ICICI shareholders through the merged entity's access to low-cost deposits. and the move towards universal banking.000 on payment of yearly premium of Rs 60. and access to the vast talent pool of ICICI and its subsidiaries.only project finance to a diversified financial services group offering a wide variety of products and services. This rebate is can be availed upto a maximum of Rs 12. an individual is entitled to a rebate of 20 per cent on the annual premium payable on his/her life and life of his/her children or adult children. seamless access to ICICI's strong corporate relationships built up over five decades. and would create the optimal legal structure for the ICICI group's universal banking strategy. entry into new business segments. higher market share in various business segments.000 a year. (depending upon the age of the insured and term of the policy) This means that you get a Rs 12.000. Under Section 88 of Income Tax Act 1961. . you can buy anything upwards of Rs 10 lakh in sum assured. The Government of India has offered tax incentives to life insurance products in order to facilitate the flow of funds into productive assets. In 1999. ICICI become the first Indian company and the first bank or financial institution from non-Japan Asia to be listed on the NYSE. the managements of ICICI and ICICI Bank formed the view that the merger of ICICI with ICICI Bank would be the optimal strategic alternative for both entities. In October 2001. By paying Rs 60. both directly and through a number of subsidiaries and affiliates like ICICI Bank. greater opportunities for earning fee-based income and the ability to participate in the payments system and provide transaction- banking services.

any amount received on surrender of the plan shall be deemed to be the assessed income and taxed accordingly. • Greater than Rs. How is tax rebate under section 88 calculated? Calculation of tax rebate under section 88 depends on the individual’s gross total income and contribution made towards life insurance premium. 150000 but less than Rs. 150000 the individual is not eligible to claim any tax benefit on the Life insurance premium paid. Are maturity life insurance and pension policies taxable? The maturity process of life insurance policies is not taxable. An individual can claim rebate on premium paid for a maximum of Rs.FAQS ON TAXATION: What are the tax rebates available to an individual in respect of premium paid on life insurance policies? Life insurance premium paid by an individual qualifies for rebate under section 88 of income tax act. rebate is computed at 15% of the premium paid. Thus if the gross total income is: • Less than Rs. However under pension plans. 500000. • Greater than Rs. . 70000 in each financial year. 150000 rebate is calculated at 20% of the premium paid towards life insurance.

If a person participating in a unit linked insurance plan (ULIP) terminates his policy. Is the amount received on maturity of UTI ULIP scheme taxable? . If a person discontinues premium on his insurance or a pension policy. hence he is not entitled to claim any tax benefits. does he get tax benefit If a person stops paying premium amount on his/her life insurance policy. What are the tax benefits available under plans? Under section 88CC where an assess has paid/deposited any amount towards any annuity plan receiving pension fund. it amounts to discontinues of the policy. no tax deduction is allowed is respect of any premium paid on that policy in the year in which the policy s terminated. Further the amount of tax deduction allowed for the premium paid in the preceding year is also treated as the tax payable for the year in which the policy is terminated.Can a tax rebate to be calculated of the premium is paid by an individual on his/her spouses polices. If a tax payer discontinues the life insurance policy before premiums have been paid of a period of 2 years from the commencement of the policy. 100 from the total income. he will no be entitled to claim ant rebate. An individual can make payment on his/her spouse’s policy and the premium paid will qualify for rebate under section 88. and he claim any rebate on the same? If a person participates as unit linked plan (ULIP) and terminates his participation. he/she will be allowed deduction up to Rs. Where the amount paid/deposited into consideration for the purpose of claming deduction a rebate where reference to shall not be allowed under section 88.

where the individual or his spouse of dependent parent’s or any member of the family (for whom such premium is paid is a senior citizen (i. one who is resident in India and who is at least 65 years of age at any time during the previous yea . 2002. • The aforesaid limit is Rs. 15000. 10000 whichever is lower.e.No. the maturity proceeds of UTI ULIP scheme are exempt from tax under section 10(33) subject to the same being received on or after April. What are the deductions is available in respect of medical insurance premium? The premium paid under financial insurance premium qualifies for rebate under section 80D as follows: • Insurance premium paid or Rs.

JOINT VENTURE . security based lending. Sun Life Financial Inc is one of the leading financial services organization in the world. the Aditya Birla Group is in league of Fortune 500 worldwide. Hong Kong. • Domestic market leaders in most of our product areas.00. Indonesia. It has a strong presence across various financial services verticals that include life insurance. Sun Life Financial and its partners today have operations in key markets world wide. distribution and wealth management. private equity and retail broking. • Trusted by 8. the Philippines. including Canada. Japan. • Operation across 18 countries. China and Bermuda. the United Kingdom. United States.. COMPANY PROFILE ABOUT ADITYA BIRLA GROUP A US $28 billion corporation. insurance broking. ABOUT SUN LIFE FINANCIAL Inc. • Amongst the largest and most reputed industrial houses in India. Ireland. fund management. India.000 share holders. Charted in 1865.

Unit-Linked Solutions – a marriage between the life insurance and investment. Established in 2000. offers a formidable protection for its customer’s future. reach and ears on ground. product range. a well known and trusted name globally amongst Indian conglomerates and Sun Life Financial Inc. its core strategy since inception has been to create value for its stakeholders. Birla Sun Life Insurance Company Limited(BSLI) is a joint venture between Aditya Birla Group. The company started its operation with the launch of Unit-Linked Insurance Plans. This impressive combination of domain expertise. This has been driven through innovative and customer-focused products and multi-channel distribution capabilities in individual and group insurance. BSLI also enjoys the prestige to be the originator of practice to disclose portfolio on monthly basis.000 advisors.. the extensive reach through its network of 600 branches and 1. It was first Indian insurance company to introduce “free look period” and the same was made mandatory by IRDA for all other Life Insurance Companies. Add to this.  About Birla Sun life Insurance Company  Vision  Mission . being the first private Life Insurance Corporation in India to do so. The local knowledge of Aditya Birla Group combined with the domain expertise of the Sun Life financial Inc. helped BSLI cover more than 2 million lives since it commenced operations and establish a customer base spread across more than 1500 towns and cities in India. is a leading international financial service organization providing a diverse range of wealth accumulation and protection products and services to individuals and corporate customers. after receiving its registration license from IRDA in January 2001. leading international financial services organization from Canada for asset management life insurance and wealth management business.75. Sun Life Financial Inc. BSLI started its operations in march 2001.

supported with protection products to maintain leadership in product innovation. MISSION: - To be the first preference of our customers by providing innovative.  Within 4 years of its launch.  Strong fundamentals based on the Aditya Birla group's local insight and Sun Life Financials global expertise.  Multi Distribution Channels. Well-trained professionals through a multi channel distribution network and superior technology will make these solutions available. We will provide career development opportunities to our employees and the highest possible returns to our shareholders. Alternate Channels and Group offering convenient channels of purchase to customers.  Corporate governance and a high degree of transparency in all business practices and procedures. .Direct Sales Force.  First to have issued policies over the Internet. within the regulatory framework. Our endeavor will be to provide constant value addition to customers throughout their relationship with us. VISION: - To be a world-class provider of financial security to individuals and corporate and to be amongst the top three private sector life insurance companies in India.  Values ABOUT BIRLA SUN LIFE INSURANCE:  Birla Sun Life Insurance pioneered the unique Unit Linked Life Insurance Solutions in India. need based life insurance and retirement solutions to individuals as well as corporate.  Web-enabled IT systems for superior customer services. BSLI has cemented its position as a leading player in the Private Life Insurance Industry  There has been focus on Investment Linked Insurance Products.  First to have an operational Business Continuity Plan.

01 billion).VALUES: -  Integrity  Passion  Speed  Seamless ness  Commitment BSLI is the only insurance company to feature in the top 25 of ‘Hewitt’ best employer in India-2004 survey. • Turnover of over Rs 280 billion (US $6. (A JOINT VENTURE) COMPANIES EQUITY SHARE Aditya Birla Group 74% + Sun Life Financial Canada 26% --------------------------------------------------------------------------------- = BSLI 100% Aditya Birla Group • The group is India’s leading business house.  To gain the practical knowledge. best employers are organizations that run their business with people in mind. • Fixed assets worth Rs 265. BSLI has figured for two consecutive years in the top 20 list of ‘Grow Talent-Great Places to work’ throughout. According to Hewitt. OBJECTIVES  To know about the working structure of the organization. .

 Proper understanding and analysis of the perspective investor about this financial product OUR BRANCHES CEO HEAD OF SALES ZONAL MANAGER REGIONAL MANAGER TERRITORY MANAGER BRANCH HEAD BRANCH MANAGER AGENCY MANAGER INSURANCE ADVISOR .

Co.Few Brands Companies of Aditya Birla Group-:  Grasim  Ultra Tech. Ltd  PSI Data System  Indo Gulf fertilizers Ltd. Ltd.  Birla Sun Life Distribution Co. Co. ltd.  Birla Sun Life Assets Mgmt. Cement  Hindalco  Indian Aluminum co.  Aditya Birla Nuvo  Idea Cellular Ltd.  Birla Sun Life Ins.  Birla Global Finance Ltd. Ltd. .

AWARDS AND RECOGINITIONS It was ranked in the “top 25” best places to work for among all industries in the “Grow Talent. Awaaz Consumer Award 2006 Readers Digest Trusted Brand Asia 2005 . BSLI was ranked as 3rd amongst private life insurance company in a survey done by “Cirrus and ORG Media Survey”.Great Places to Work”.

Outlook Money Awards 2004 BSLI . . Awarded a Silver Shield in the Insurance category by the Institute of Chartered Accountants of India (ICAI) for the financial year ended 31st March.Best Life Insurer (Runner Up) 2004 TROPHY. 2009 Recruiting and Staffing Best in Class Awards. ICAI Awards for Excellence in Financial Reporting.

The Indo-Canadian Business Chamber.Birla Sun Life Insurance was among the top five nominees in the category. The 8th Asia Insurance Industry Awards 2004 .Outlook Money Awards 2004 BSLI .Best Life Insurer (Runner Up) 2004 CERTIFICATE.BSLI awarded for its 'Successful Performance' for 4 years April 2005 .

Birla Sun Life Insurance was presented 'The Hewitt Best Employers In India Awards
2004' Trophy..

Birla Sun Life Insurance was awarded 'The Great Place to Work Seminar Series 2007’
Presented by Anil Sachdev (Chairman & MD of Grow Talent Company Ltd) Robert
Levering (Co-founder Great Place to Work Institute) and Jehangir Pocha (Business
World Magazine).

The Bhartiya Shiromani Puraskar awarded to BSLI at the seminar on "Economic
Development” New Delhi, on February 13, 2006. This is a Certificate of Excellence for
Enhancing the image of India presented by Dr. Bhishma Narain Singh (Former
Governor of Tamil Nadu & Assam) in association with the "Institute of Economic Studies
(IES)".

A letter sent to BSLI - A Message from the Mayor, David Miller - Toronto, December
2005.

Hewitt Best Employers in India 2004.

Sponsorship Acknowledgement for - The Asia Insurance Review.

PRODUCTS OF BSLI

• Birla Sun life term plan
• Premium back term plan
• Birla sun life insurance gold-1
• Supreme life plan
• Dream plan
• Saral Health Plan
• Simply life
• Prime life premier
• Prime life
• Saral Children’s Plan
• Bachat (endowment) plan
• Platinum Premier Plan

• BSLI Dream Retirement Plan • BSLI Health Plan • Saral Wealth Plan • Children’s dream plan • Bima kavach yojana • Accidental Death and Dismemberment Rider • Term Rider • Critical lllness Rider • Waiver .

.

keeping this view I choose this topic. the per capital income. ULIP provides for wealth with protection solutions. • To determine and analyze the Market Potential of the Birla Sun Life Insurance Company in Sriganganagar City.objectives: • How can ULIP be beneficial then other plans. • To study the overall scenario currently prevailing in the market. • In business management . occupation. • To study and determine the competitor position in the market. • In capital market :. • How it can contribute to economic development. • To do a performance evaluation of Birla Sun Life Insurance products in comparison on with other insurance companies Scope: • Investment management: . . So I can learned the aspects of the plan. etc.As ULIP is majorly for investment in mutual funds but it also deals in capital market to earn higher returns and for the purpose of security. • People are concern about their hard earned money they prefer to use their funds in ways that help them to participate in the boom in the capital market so they can earn more and more profit. literacy rate. • In our life. namely. purchasing power.ULIP provides the opportunity to invest in the safest avenue like mutual funds as well as the most risky avenue like stokes. So this study covers all the aspects related to investment management according to the prevailing conditions in the market.Being a long tem investment it provides security against miss happenings of life.

The term of the policy is also specified it should not be less than 5 years or age 70 for whole life plans. In the case of ULIP the proposer offer to pay a certain some of money towards premium. The minimum sum assured . Rs 5000 or Rs 10. Some charges are not levied in every year. The death benefit is fixed and the maturity benefit depends on . both in income tax and in capital LINKED LIFE INSURANCE PRODUCTS ULIP is a monetary product which can provide you life insurance and also at the same time investments options like a mutual fund. Insurers insist that this amount should be in multiples of say Rs 500 or Rs 1000 with in a minimum of say.PURPOSE: • For telling how insurance is important in our life • For telling by insurance we get security for our assets for future and at present also. It could be equity or fixed return or a mixture of both. usually as a multiple like 5 times the annual premium or 1. Such plans are called linked life insurance plans. ULIPs contribute nearly 50% of premium for some insurers and more than 85% of the premium for some others. is related to this premium.5 times the single premium. payable in the event of death during the term. The sum assured death cover. according to IRDA guidelines. has to be 1.000. They are also called ULIP or Unit Linked Insurance Plans which provides a combination of life insurance protection and investment. • How people can use their hard earned money in profitable area? • To know tax benefit. Insurers have developed plans that combine the benefits of life insurance as well as giving various options of participating in the growth of capital market.25times a single premium or 5times the annual premium. Some of the amount paid as premium would be accounted for the amount promised under insurance policy and the rest would be put in whichever investment is preferred by you.

the investment may be more in short-term money market instruments such as treasury bills. is payable.market conditions and the fund in which the premium has been invested. also called Growth Funds.where the main objective is to facilitate the growth of capital by regular or single premiums. the investment are primarily in Government and Government guaranteed securities and such safe debts and other high investment grade corporate bonds. • Balanced funds: Investment are in both equity as well as debt. In LINKED policies. whichever is higher. the sum assured or the value of the unit in the fund. typically a lump sum payment. the sum assured may be expressed as an integrated benefit. • Investment policies .designed to provide a benefit in the event of specified event. which means that on the happening of the event. • Money market funds: In this type of funds also called liquid funds. Life-based contracts tend to fall into two major categories: • Protection policies . This price called the NAV. • Debt funds: In this type of fund also called Bond Funds. commercial paper etc. A common form of this design is term insurance. which varies every day. The allocated premium [annual premium-cost of insurance(death)cover-administrative charges] is invested in a fund that the proposer chooses from among a set of options. there would be more investments in equities which are shares /stocks traded in the stock market. In this case the life cover will reduce as the value of the units . The allocated premium is used to buy a certain number of units in the chosen fund at the price at which the units are being offered on that day. on the date of maturity. OPTION OF FUNDS • Equity funds: In this type of fund.

Some insurers charge a fee for every such switch. charge a redemption fee in such cases. is to pay a fixed sum assured as an additional benefit on death. The alternative to the integrated benefit. Some others allow a certain number of switches free and then charge a fee for every switch thereafter. Some of the other features offered by insurers along with ULIP’s are the following. FLEXIBILITY • Option of switching is one provision that gives a flexibility. • Partial or total withdrawal is allowed. in addition to the value of units in the fund means charge for the risk cover will increase and allocation to the fund will decrease every year. One fund may have more of debt instruments. which may appreciate in value more than instruments. • These policies will not be entitled to any bonus. • There is no annual bonus. . Sometimes there are conditions attached. These are not offered by all insurers. but there may be a loyalty bonus paid at the end. sometimes called ‘Double Death Benefit’. Insurers allow policyholders to switch their moneys from one fund to another during the term of the policy. Some insurers. not all. increases. which guarantee a certain fixed return. while another will fund have a larger proportion of equity shares. • The policyholder can pay additional premium for investment at any time.

• Lump-sum additional contribution at any time rather risk cover will remain the same. Sometimes both are same. Top-up is the expression used to increasing the contribution for investment. LOCK IN PERIOD: The period in which withdrawal is not allowed. OF UNITS NAV used at the time of entry. It is 3 years according to IRDA guidelines. NET ASSETS VALUE The total market value of the shares and other instrument on any day. additional benefits are made available through riders. The difference between the two prices is called the bid – offer spread and is normally around 0.5%. Usually riders provide for a) Accident benefit b) Disability benefit . • Some units will be reduced to pay for the annual charges(for cover. administration and fund management) if in any condition policyholder has not paid the premium in a year. • This facility allows the policyholder to take advantage of the market conditions. NAV = MARKET VALUE OF THE FUND ÷ NO. divided by the units in that equity fund would be the NAV for that day which keeps varying from day to day. in spite of the earlier premium have been invested into another option. The surrender value will be allowed only after 3 years. RIDERS: As in traditional policies. called the Offer price while existing called the bid price. there could be a top-up charge.

guaranteed benefit(bonus) depend on the performance of insurer. . is invested as desired by fund and are invested at the the policyholder insurer’s discretion Investment return may vary For guaranteed benefits insurer depend on the market bears the investment risk. The difference between traditional plans and ULIPs plans are: ULIPS TRADITIONAL PLANS The premiums in excess of risk All the premium go into a common cover. non- movements. Benefits are variable Benefits are predetermined Loss is likely Loss is unlikely Charges: a) Fixed charges are the fees for administration of the plan. Additional premium will have to be paid for these riders benefits. c) Increase/decrease benefits d) Critical illness riders e) Major surgical assistance benefits f) Hospital cash benefit g) Spouse insurance benefit etc.

• Death benefits to be guaranteed. surrender value to be paid at the end of 3 rd policy anniversary or end of revival period. • No risk cover after policy term. IRDA GUIDELINES FOR ULIP • Surrender benefit only after 3rd policy anniversary. • Opportunity to be given to revive lapsed policy. for partial withdrawal. d) Surrender charge for encashing of units before a certain period of time. • Lock-in period for each top-up amount. • First partial withdrawal only after 3rd policy anniversary. if there is default in premium after 3 years.04. • Maturity benefits may be guaranteed. • Ways of calculating various charges are stipulated. • If policy is not revived. • Auto cover facility allowed for full sum assured for limited period. except during last three years of contact. whichever is later. c) Service tax.2010)these companies can not collect Premium on sale on ULIP as companies . • Policy to become paid up. Main issue of IRDA and SEBI SEBI has issued a directive to 14 private leading companies that from now onwards (09. at levels reasonable in relation to current and long term interest rates scenario. • Sum assured can be reduced up to the extent of partial withdrawals during two years prior to death and after age 60. b) Fund switching charges when there is a switch from one fund to another. • No auto cover facility if at least 3 yeas premium not paid. usually on a monthly basis.

. These guidelines are applicable to all ULIPs from July 1. 2010. It also states that pension/ annuity products must have insurance coverage. a partial withdrawal will be allowed for pension/ annuity products.insurance companies should continue to sell ULIP to public and SEBI has no authority to issue Ban on sale of ULIPS The fight between Sebi and IRDA was basically on the issue whether Ulips are investment product or insurance schemes. the insurance watchdog IRDA tightened the norms for these schemes by raising the lock-in period and raising the insurance cover on them.has not obtained approval to issue such products from SEBI. According to the new rules all ULIPs must have an insurance cover payable on death. So as per New instruction issued by the IRDA .has issued a press release that all ULIP are save and public should not panic . Ulips are those insurance products the value of which are linked to market price of the stocks in which a part of those money is invested.IRDA presently regulated insurance companies . IRDA new guidelines for ULIP after issue has been solved A new set of guidelines are issued by the Insurance Regulatory and Development Authority (IRDA) on Unit-Linked Insurance Products. No loans will be granted under ULIPs. After winning the turf war with the markets regulator SEBI over control over Ulips. However SEBI ban on ULIP by these companies . However. The discussions between the insurance regulator and the capital markets regulator on initial public offering (IPO) guidelines for insurance companies appear to have got stuck in the regulatory turf war that has broken out between them over unit-linked insurance policies (Ulips). It fixes the minimum term for policy as five years.Further in new directive IRDA Directed all these Insurance companies to work as usual even after the Notice of BAN By SEBI.

• The regulations have also been amended to ensure that there is no scope for any kind of remuneration other than commission where sale has been effected. • By this new guidelines expected commission and expenses have been reduced by evenly distributing it through out the lock-in period. thereby increasing the risk cover component on them. • This will protect the life time savings of pensioners from any adverse market fluctuations at the time of maturity. other than pension and annuity products.• The lock-in period for all unit-linked products (Ulips) has been increased from three years to five years. all UIP pension or annuity products will offer a minimum guaranteed return of 4.5 per cent per annum or as specified by the IRDA from time to time. thereby making them long-term financial instruments. • The regulator said that insurers shall will provide a mortality cover or a health cover to all Ulips. the premium has also gone up to 10 times of the first-year premium compared to existing five times. • As per the new guideline. • Insurance cover on such products. ADVANTAGES OF ULIPs NEW GUIDLINES . including the top-up premiums.

B. CONCLUSION After a heated debate between SEBI and IRDA regarding Unit Linked Insurance Policy (ULIP) when SEBI challenged the notion of combining investment and insurance as one single instrument and took up the affair to the Supreme Court of India. SECURITY EXCHANGE BOARD OF INDIA SEBI is the regulator for the securities market in India. thus a large proportion of people who are paying premium of less than Rs 15. the courts have decided that investments in ULIP which were covered under Section 80C of Income Tax act were now to be placed under the governance of the IRDA. this measure will reduce the expenses of the insurer. Bhave. • there is no scope for any kind of remuneration other than commission where sale has been effected.000 or so a year will suffer badly. It was formed officially by the Government of India in 1992 with SEBI Act 1992 being passed by the Indian Parliament. • Comprehensive guideline will make Ulips more attractive and help in nation- building as the fund will be with insurers for longer period now. SEBI is headquartered in the popular business district of Bandra-Kurla complex in Mumbai. thereby lowering premiums to be paid by the policyholder. . DISADVANTAGES Small regular premium policies will become unviable. industry players. • The step has made Ulips a long-term investment vehicle and will insurers increased time horizon for the investment. • Long-term interest of the customer as well as the industry. Chaired by C. • IRDA has also amended regulations to further tighten the code of conduct of corporate agents to ensure that a customer does not deal with any unlicensed person.

Builder e.No limit[minimum 25000]  2nd year . BIRLA SUN LIFE INSURANCE PRODUCTS WEALTH WITH PROTECTION SOLUTIONS Platinum premier plan A plan that protects the NAV with the flexibility to manage investment.  BSLI platinum premier plan also comes with complete range of ten well established investment funds under the self managed –option offering the entire range from 100% equity to suit individual need and risk appetite. Creator g. Income advantage b. Magnifier h. Maximiser i.Same as first year .  Each platinum premier fund series comes with a guaranteed unit price of 10 or the highest unit price recorded on a daily basis during the 1 st seven years and 3 months of that series. Super 20 INVESTMENT  1st year . a.  Guarantee of highest daily NAV over 7 years with life cover. Multiplier j. Enhancer f. Assure c. Protector d.

of the units Tax benefit: Under section 80c .Same as first year  4th year .  3rd year .………amt.It’s having a 10 year policy plan.1lakh Under section 80d . the units in your platinum premier fund will be redeemed at the then prevailing unit price or the guaranteed unit price(NAV) whichever is higher. 1st year premium will be invested so desired. . Note. NAV = Maturity value of the fund No.15thousand BACHAT(ENDOWMENT)PLAN • Protect your family’s future through regular savings. The next two year premium will also be invested in the same fund.  Till 10th year – maturity 5% loyalty addition of yearly premium paid. in the latest platinum premier fund. At the point of maturity.

2% 4% rebate RESEARCH METHODOLOGY .) Bachat addition rate 5% 5. Annually Payment annually frequency Premium ------. semi- annually or annually.50% If you choose to pay semi-annually or annually then as follows. • Choose to pay premiums either monthly. INVESTMENT Policy term: 20 year Monthly base premium: 400-5000 Band 1st 2nd 3rd For policies with 400 to 599 600 to 899 900+ MBP(in rs. Premium Monthly Quarterly Semi. quarterly. -------.25% 5.

• To study and determine the competitor position in the market.Title of the study:- Duration of the project:- Objective of study • Consumer perception about various life insurance products available in India. • To find out what respondents expect from life insurance. • To find out how people think about private life insurance. • To determine and analyze the Market Potential Insurance Company in Jaipur City. • To analyze the life insurance product of ICICI & BIRLA prudencial life insurance company & compare of both player in life insurance segment. purchasing power. • To study the overall scenario currently prevailing in the market. . occupation. the per capital income. etc. namely. • To understand the consumer buying behavior. literacy rate. • Studying the marketing strategies of ICICI & BIRLA prudencial life insurance.

organizing and evaluating data. formulating hypothesis or suggested solutions.Definition & Meaning of Research: - Research methodology is a way to systematically solve the research problem. making deductions and reaching conclusions. Research comprises defining and redefining problems. collecting. Process of research Define the Research Problem Review Concept and Theories Review Previous Research Finings Formulate Hypotheses Design Research (Including sample design) Collect Data (Execution) Analysis Data (Test Hypotheses if any) Interpret and Report .

It may be understood as a science of studying how research is done. 4 The researcher should report with complete frankness. collecting the facts or data. formulating a hypothesis. keeping the continuity of what has already been attained. analyzing the facts and reaching certain conclusion either in the form of solution towards the concerned problem or in certain generalization for some theoretical formulations. 3 The procedural design of the research should be carefully planned to yield result that are as objective as possible. The validity and reliability of the data should be checked carefully 6 Conclusion should be confined to those justified by the data of the research and limited to those which the data provide and adequate basis. Research methodology is a way to systematically solve the research problem.Criteria of good research Whatever may be the types of the research works . Research refers to the systematic method consisting of enunciating the problem. . flaws in procedural design and estimate that effects upon the findings 5 The analysis data should be sufficiently adequate to reveal its significance and the method of analysis used should be appropriate.one thing that is important is that they all meet on the Common ground of scientific method employed them 1 The purpose of research should be clearly defined and common concept be used. 2 The research procedure used should be described in sufficient detail to permit another researcher to repeat the research for further advancement. 7 Greater confidence in research is warranted if the researcher is experienced has a good reputation in research and is a person of integrity.

 Sampling units – the portion of the population that researchers need to target and that represents the whole or entire population. collected as a representation of it.  Sampling procedure – sampling procedure is the way in which we select a sample.  Questionnaires – questionnaires are formal set of questions prepared to collect the required information.  Sample size – as a size of sample increases accuracy and reliability of the research result also increase.The marketing research process that will be adopted in the present study will consist of the following stages:-  Research instruments – the research instruments generally used to collect the primary data are questionnaires and mechanical instruments.  Developing the research plans. It includes: • Probability sampling • Non probability sampling The marketing research process that will be adopted in the present study will consist of follows stages:-  Defining the problems.  Sampling – the sample is a subset of a unit of a population. .

Qualitative research 3. Descriptive research 6.  Analyze the collected information – this involves converting raw data into useful information it involves tabulation of data using statistical measures on them for developing and calculating the averages.e. my problem was to do in comparative study of Insurance products in context to ICICI Prudential Life Insurance Company Preparing the research Design: .  Collection & source of data – marketing research requires two kinds of data i. Experimental research I used the descriptive type of research design to face the problem. Because if it is not formulated rightly than it reaches on the wrong solution. In this step. . Empirical research 8. Report research finding & presentation – the report with research findings is a formal written document.There are many types of research design. Investigative research 9. which are in the following manner: - 1.’ primary data and secondary data. Simple/objective research 5. In my summer project study. Procedure of Research Methodology Formulating the problem: . problem is identified and formulated properly. Scientific research 4. Analytical research 7. Quantitative research 2. Informative research 10.This is the most important step in the research methodology. Primary data are direct or first hand data where as secondary data are already published data.

I used the descriptive type of research design. And in .Descriptive research: . The design in such studies must be rigid and not flexible and must focus attention on the following.what I wants to measure and must find adequate method for measuring it along with a clear cut definition of population I wants to studies. In this research those project which are concerned with describing the characteristics of a particular individual or group of people. It includes different kind of surveys and fact-findings enquiries. Since the aim is to obtain complete and accurate information in the said studies the procedures to be used must be carefully planned. (a) Formulating the objective of the studies (what the studies is about and why is it being made ) (b) Designing the method of data collection ( what techniques of gathering data will be adopted ) (c) Selecting the sample (how much material will be needed ) (d) Collecting the data (where can the data required be found and with what time period should the data be relegated) (e) Processing and analyzing the data. the descriptive as well as diagnostic project studies in descriptive as well as in diagnostic studies the researcher must be able to define clearly . Determine the frequency with which something occurs or its associations with something else. Whereas diagnostic research. From this point of view the research design. In my case. with the concern for the economical completion of the research study. (f) Reporting the findings. The major purpose of descriptive research is description of the present existence of the state of affairs. The research design must make enough provision for protection against bias and must maximize reliability. Most of the insurance product and services type research comes under this category. because I wanted to get the detail information about the Insurance Product and services of ICICI PruLife Co.

Determining the Sample Design: - There are many types of sample designs that are follows such as: - 1. this type of research design provide for the maximum collection of relevant evidence with minimal expenditure of effort. questionnaires. Deliberate sampling 2. Systematic sampling 4 Stratified sampling 5 Quota sampling . and Others Company. interviewing. They people are different type of companies policy purchase and also claimed influencer. those are also holding insurance polices. time and money.this task. I survey the so much type of area in not only Jaipur city but also some village and meet some people who have insurance policy of ICICI PurLife Co. I survey 50 people for study the product and services. examination of records etc. If this is not carefully done the research and market survey may not provide the desired information. In second step.) Population and Sample size: - The population of Jaipur is approximately 55 lakhs and where I studied on comparative products and services in ICICI PruLife Co. In other words techniques for collecting the information must be devised. In this research there are several methods (Observations. it comes the questions of selecting the method by which the data are to be obtained. Simple random sampling 3. In descriptive/diagnostic research the first step is to specify the objective with sufficient precision to ensure that the data collected are relevant. and in this.

In order to understand the performance of different companies in the market. This type of sampling is also known as choice sampling or probability sampling where each and every item in the population has an equal choice of inclusion in the sample and each one of the possible samples. Secondary data would help us in knowing the trends prevailing in the insurance market and would help us in analyzing and interpretation of the primary data. we did two types of surveys. I used the simple random sampling. in case of finite universe has the same probability of being selected. Collection of data is an important work in project work. In village random sampling I selected because of there are so much people and give different – different ideas and views. There are mainly two types of data are as follows: - 1. Cluster/Area sampling From the above various types of sampling. I meet to this type people who are not only policy holders but also a common man. an intensive study of the market is absolutely necessary. and is able to provide proper solutions to them. so. Primary data . I selected the different plans holders of policy and different . 6. it becomes very essential to collect data that are appropriate. Sources The success of any Insurance company depends on how well they are able to align with the objectives and needs of individual customers. To know how a company is performing and whether they have any cutting edge advantage over competitors. primary survey and secondary survey. Dealing with any real life problem is often found that data at hand are inadequate.different companies So much people are interest in the insurance and awareness about the company growth & companies spectrum. Data Collection The research would be conducted from the source of primary data collection.

District Consultative 6. Credit Plans 4. Seminar interviews 5. I also used primary data collection tools and in Jaipur city I used both type of data collection tools. Personal Contact 3. Tools of Data Collection Primary data collection: Conducting a market survey is collecting primary data required into carry out the study. Journals 9. Telephonic Contact 4. A survey provides data about customers view for the Insurance Product & Services of ICICI PruLife Co. Proceedings of 5. 1. and thus happen to be original in character. Annual District 2. Books/Internet .Primary data are those which are collected afresh and for the first time. Questionnaires 6. Company past records 3. Survey 2. Observation Secondary data collection: Secondary data are those which have already been collected by someone else and which have already been passed through the statistical process 1. Secondary data I use the both kind of data to conduct the project. Newspaper & yellow pages books 8. Committee Meeting 7. 2.

We targeted this group of population because these populations are the potential customers of insurance. Secondary survey Secondary survey included of consulting books. internet and also taking reference from:- Library.Primary survey Primary survey included:- ➢ Visiting websites and fixing appointments with their agents. ➢ Creation of database of prospective clients from different sources calling them up to fix appointment and then visiting them. The research would be done from primary data. . ICICI & Birla SunLife Methodology We would go in for a qualitative research as our objective is to judge the perception and preference of different insurance products. journals. Internet. magazines. perception and preference of different insurance companies. ➢ Meeting different people to know their views. Sample Design Target population: The target population for the research would be people who are in the age group beyond 40 and age group between 25 to 40. ➢ Prepare a questionnaire for the market survey.

have an equal chance of getting selected. That means every unit of the population who is more is in the above mentioned age group. Sample Size: I did a survey among 100 people by taking two categories in consideration of 50 each.) Age group beyond 40 2) Age group between 25 to 40 SCOPE OF STUDY:- When it comes to investing for the future most people miss the boat simply because the put off doing the essential to get started.Sampling Frame: The research would be conducted in Jaipur. . Sampling Technique: The sampling technique that is adopted is the simple random sampling wherein every element in the target population has an equal chance or probability of getting selected in the sample. The survey has been conducted among the potential customers of ICICI Prulife and Birla Sunlife from different sectors as they deal in many sectors of business. that is 1.

They procrastinate usually because they that investing is too hard or for same really not possible for them because they are intimidated by the financial work. So this study covers all the aspects related to investment management according to the prevailing conditions in the market. LIMITATION OF STUDY:- . It is majorly for investment in mutual funds but it also deals in capital market to earn higher returns and for the purpose of security. Being a long tem investment it provides security against miss happenings of life. To create a financially secure future it is imperative to start with a can do attitude become a good investor you will also need to acquire knowledge of the financial world & the various type of investments that are out there to create lasting wealth you invest your money in solid investment that will compound on themselves & grow your investment capital year after year Insurance provides the opportunity to invest in the safest avenue like mutual funds as well as the most risky avenue like stokes. The aim of this study is to provide enough information & strategies to help you decide which investment may suit you.

• In this study. as I know that in Jaipur there is high literacy level. there were few uncontrollable factors that might have had their influence on the final report. not many people actually have Knowledge about the ICICI and Birla Polices and Services which are Provide by ICICI Prudential and Birla SunLife. Also the major part of the data collect is primary in nature and hence the data may be subject to some human errors.Though every effort was put in to make this report authentic in every respect. • In society the People are not prevail proper information about their Living Standard • Today’s in village only the Villagers know about the LIFE INSURANCE CORPORATION. In village There are no so much Information Convey to the People about the ICICI new product and Services • In village so much scope of insurance like (Life and General Insurance) but the Education level is very low. This has rendered minor impact on the conclusion of the report. Thus some individuals were tentative in giving such kind of information. • Since the basic objective of the project is to find out the better insurance Products and Services of ICICI PruLife and Birla SunLife Company. they don’t know about the Private Insurance Companies behind reason is this lack of Publicity of Company and Advertisement . but in case of insurance public is not much aware about the same. The various limiting factors are-: • While making this report few typing and compilation result may have crept in which have not been able get rectified. As a result of this conclusion with regards to the claim settlement has not bee able to serve its purpose. or It involved collection of the information that is confidential from the point of view of interviewee. • Also.

facsimile. email. Some persons I had contacted is very brand loyal and is not interested in investing in any other company beside the company in which they had already invested mainly LIC CUSTOMER. What’s more. and of course snail-mail – which enable the customer to get in touch with insurance companies quickly easily and directly. Locating the prospective client for making Locating the prospective client for making advisor is very time consuming. giving us a platform. he or she is in control of the process – response time has come down dramatically and information availability has become immediately FACTS AND FINDINGS . websites. the reach and the ability to service each customer seamlessly: multiple touch points have emerged – contact centers. Some clients have already taken the policies of ICICI PRUDENTIAL or any other competitor companies and they are not interested in taking more. Limited data availability Technology has come to our aid.

 A large number of potential customers are available in this industry. .  Lots of awareness is still needed in the general public about insurance products. This suggests that there are certain pockets of markets in Jaipur.  The major part is of LIC and TATA AIG than other competitors.Till date we have observed the following points:  In Jaipur ICICI Prudential and Birla SunLife combinely holds around 20-25% of the market while 75% all other insurance companies have hold. ANALYSIS AND INTERPRETATIONS .

We have presented below the findings and analysis of the questionnaire addressed to the respondents to gauge the attitude and perception of the people towards insurance. Q. Q. Insurance policy taken from which company? . Does the Respondent have life Insurance? The question was asked to the respondents to know how many of the respondents had a life insurance policy. From the survey it was found out that 85% of the respondents had a life insurance policy whereas 15% of the respondents didn’t had a life insurance policy.

From whose suggestion have the respondents taken a policy? . People prefer to buy insurance from LIC because of the security being one of the prime factors. LIC is the most preferred brand in the insurance industry because it is the only government company which offers insurance. In the figure we can also see that nowadays people mindset have changed towards insurance and are opting for private company for insurance cover or policy.The question was asked to the respondents so as to get to know from which insurance company they have bought the policy The finding which came out from the survey was that 40% of the respondents who have a life insurance cover bought life insurance from Life Insurance Corporation of India (LIC). Q.

And only 23 respondents took policy on the recommendation of the agents. play a minute role in reaching out people for insurance policies.It was asked to gain an insight from the respondents that on whose suggestion did they opt for a life insurance cover or policy. . corporate tie- ups and etc. After the survey it was found that most of the respondents took policy or life insurance cover from the suggestions of their friends or family. Q. Type of plan? The respondents were asked which type of plan they go in for when they take up insurance cover or policy. Other sources like banks.

Pension plan and health plan are the least preferred by customers. Next on the list was endowment plan. Preference of insurance sector according to age group:- Age group beyond 40 .After the survey it was found that term plan was the most preferred plan.

Pie – Chart .

Age Group Between 25 – 40 .

Pie-chart .

Have you heard about insurance products of ICICI Prudential and Birla SunLife? .Q.

With which one company out of Birla SunLife and ICICI Prudential would you like to get insured? .Q.

Major part of respondents has chosen ICICI for insurance plans out of the given choices. Results After the survey it was found that still major portion of customers go for public insurance .

More returns. Regular follow up. but with the entry of more and more private companies the scenario is changing rapidly. and this can be justified by the increasing market share of private companies in the Indian insurance sector. 4. Efficient fund managers. 5. 3. 2. Quicker settlement CONCLUSION . people with a need of more and better returns are opting for private companies. 6. There are various ways in which private companies are found much more lucrative than public companies and the facts which support this statement are as follows:- 1. Better customer services. Versatility of products.companies.

The industry has to convince people to park their hard earned money in long-term insurance and not just look at it as a tax saving instrument. First. The insurance sector is likely to attain a size of Rs. The sector alone employs close to 30 lakh people (including agents and direct employees). • Due to time constraint sufficient research on all the investment tools is difficult. The challenge is to spread awareness about life insurance and it true benefits. it provides a safety net to rural and urban enterprise and productive individuals. • There might have been tendencies among the respondents to amplify or filter their responses under the testing conditions • The research is confined to Kolkata and does not necessarily shows a pattern applicable to other parts of the country. In life insurance.2 billion) in 2009-10. A well-functioning insurance market plays an important role in economic development and financial stability of developing economies such as India’s. The life insurance market in India is on a growth path.000 crore ($ 51. In spite of this.3% to Rs. . • Due to recession there is liquidity crunch in the market. the country lags far behind the others in awareness about life insurance. 93. the business grew by 23. 2. • The survey sample is not very large for analysis • Properly convincing people to invest in insurance products is challenging. it inculcates and encourages the habit of saving.Insurance is one sector that witnessed continuous growth owing to the reforms in 2000. Limitations • Useful Financial insights are not easily available. Second.000 crore in 2007-08 (Source:Assocham). 00.

Most of them know only one company which provides life insurance i. not as an investment avenue. Companies should not primarily focus on the agents for their business. awareness campaign should be run so that people are aware of different life insurance companies in India. QUESTIONNAIRE . LIC. Life Insurance companies need to advertise in such a manner that people start investing in life insurance like the way they invest in the stock market ✔ Now at the time of global turmoil insurance company had to hold on to the policyholders trust which might lead the company to the path of success ✔ Insurance companies should try to adopt different strategies to market their products or plan. SUGGESTIONS AND RECOMMENDATIONS ✔ People are not aware of the life insurance. Most of them don’t know much of the different types of plan or products. So. ✔ It was felt that most of the people took life for tax savings or just to cover up their life. ✔ People should be educated about the different types of products or plans offered by the life insurance companies.e.

Q1. Phone No.. From which company you have taken the policy? Ans. If No.. Office – Record Name of respondent:.. We would appreciate if you could participate and contribute your valuable insight. We are doing survey on the different kinds of insurance services offered by the Birla SunLife and ICICI Prudential in India. Public sector employee Other Q2. Email-Id:. Which type of insurance plan have you taken? Ans. From whose suggestion have the respondents taken a policy? Family Agent Friends Others Q5. What is your Occupation? Business Private Sector Employee c.Dear Sir/Madam. :. then why? Lack of Knowledge Income Problem . Have you taken any life insurance policy? Yes No Q3.. ……………………………………………………. ……………………………………………………………………………………………… Q6. …………………………………………………………………………………………… Q4. ……………………………………………………. …………………………………………………….

……………………………………………………. Different modes of payment provided by your company? Home collection Payment at Branch Offices E-Payments Others Q13. ………………………………………………………………………………………. Afraid of Risk Q7. Legal Formalities:-…………………………………………………………………… 3. Q12. What charges are being charged by your company for the following? 1.. 2. …………………………………. Does your company offer the following features? Price alert Research Reports SMS Services Technical Tools News alert . Q11. What returns do you expect after investing your money in insurance? Ans. Agents Commission:-………………………………………………………………. Premium:-……………………………………………………………………………. How much can you invest in the insurance out of your annual income? 05-10 % 10-15% Above 15% Q9. Q10. What are the criteria of selecting Insurance Company? Company Image Products Range Advisory Services All Q8.. Name of the Insurance Company in which you hold any policy? Ans.

…………………………………………. …………………………………………………………………………………………………… …………………………………………………………………………………………………… …………………………………………………………………………………………………… ………………………………………………………….Q14. Thank you for your participation! . then what are the reasons? Ans... If no. Any Specific Reasons:- Ans. With which one company out of Birla SunLife and ICICI Prudential would you like to get insured? Birla SunLife ICICI Prudential Q17. Q15. ………………………………………………………………………………………. Are you satisfied with your company services? Yes No Q13.. Have you ever heard about insurance products of Birla SunLife and ICICI Prudential? Birla SunLife ICICI Prudential Both None Q16..

irdaindia.com • www.ss WEBSITES: • www. o Business world.org • www.lifeinsurance.com .birlasunlife. o Business today.Bibliography Books: • Marketing Management by Philip Kolter.google. • Fact sheet of ICICI standard life company.iciciprulife. Journals: o IRDA Journal.com • www.com • www. • Newspaper and Business Magzines. • ICICI Prudential Company Magazines.