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Comparative study-of-ulip-plans-offered-by-icici-prudential-and-other-life-insurance-companies

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  • 1. A PROJECT REPORT ON “A COMPARATIVE STUDY OF ULIP PLANS OFFERED BY ICICI PRUDENTIAL AND OTHER LIFE INSURANCE COMPANIES” Submitted To: PUNJAB TECHNICAL UNIVERSITY, JALANDHAR FOR THE PARTIAL FULFILLMENT OF THE AWARD OF DEGREE OF MASTER OF BUSINESS ADMINISTRATION (Session 2008-10)UNDER GUIDANCE OF: SUBMITTED BY;Mrs. Sukhmeet kaur Dixit Kumar Roll No. : 80906317020 SVIET Contact no. - 09017076571 SWAMI VIVEKNAND INSTITUTE OF ENGINEERING AND TECHNOLOGY PUNJAB TECHNICAL UNIVERSITY, JALANDHAR
  • 2. www.final-yearprojects.co.cc | www.troubleshoot4free.com/fyp/Final Year Projects is One place for all Engineering Projects, Presentation, seminar,summer training report and lot more.NOTE:-This work is copyright to its Authors. This is only for Educational Purpose. PrefaceMBA is a stepping-stone to the Management carrier and to develop good Managers isnecessary that the theoretical must be supplement with exposure to the realenvironment.Theoretical knowledge just provides the base and it’s not sufficient to produce a goodManager that’s why the practical knowledge is needed.Therefore the Research Project is an essential requirement for the student of MBA.This research project not only helps the students to utilize his skills properly and learnfield realities but also provides a chance to the organization to find out talent amongthe building Managers in the very beginning.In accordance with the requirement of MBA course I have done my research projecton the topic “COMPARATIVE STUDY OF ULIP PLANS OFFERED BY ICICIPUDENTIAL AND OTHER LIFE INSURANCE COMPANIES” with specialreference to ICICI Prudential. 2www.final-yearprojects.co.cc | www.troubleshoot4free.com/fyp/
  • 3. www.final-yearprojects.co.cc | www.troubleshoot4free.com/fyp/Final Year Projects is One place for all Engineering Projects, Presentation, seminar,summer training report and lot more.NOTE:-This work is copyright to its Authors. This is only for Educational Purpose. Certificate by the Faculty Guide GUIDE’S CERTIFICATEThis is to certify that Mr. /Ms. __________________bearing the Reg.No. ____________ currently undergoing IVth Semester MBA in SwamiVivekanand Institute of Engineering and Technology affiliated to PunjabTechnical University, Jalandhar he carried out a project on “ACOMPARATIVE STUDY OF ULIP PLANS OFFERED BY ICICI PRUDENTIALAND OTHER LIFE INSURANCE COMPANIES” under my guidance andsupervision and the work done by her is original and outcome of hersincere efforts. Mrs. Sukhmeet Kaur Date: ---------- (PROJECT GUIDE) 3www.final-yearprojects.co.cc | www.troubleshoot4free.com/fyp/
  • 4. www.final-yearprojects.co.cc | www.troubleshoot4free.com/fyp/Final Year Projects is One place for all Engineering Projects, Presentation, seminar,summer training report and lot more.NOTE:-This work is copyright to its Authors. This is only for Educational Purpose. INDEX I. PREFACE II. CERTIFICATE III. EXECUTIVE SUMMARY IV. LITERATURE REVIEWSr.no TitleChapter-1 INTRODUCTION  Introduction - basics of insurance  Need of life of insurance  Roles of insurance  Types of life insuranceChapter-2 INDUSTY PROFILEChapter-3 COMPANY PROFILEChapter-4 RESEARCH METHODOLOGYChapter-5 COMPARATIVE STUDYChapter-6 DATA ANALYSIS & INTERPRETATIONSChapter-7 LIMITATIONS (i) RECOMMENDATIONS (ii) CONCLUSION (iii) BIBLIOGRAPHY (iv) ANNEXURE 4www.final-yearprojects.co.cc | www.troubleshoot4free.com/fyp/
  • 5. www.final-yearprojects.co.cc | www.troubleshoot4free.com/fyp/Final Year Projects is One place for all Engineering Projects, Presentation, seminar,summer training report and lot more.NOTE:-This work is copyright to its Authors. This is only for Educational Purpose. 5www.final-yearprojects.co.cc | www.troubleshoot4free.com/fyp/
  • 6. www.final-yearprojects.co.cc | www.troubleshoot4free.com/fyp/Final Year Projects is One place for all Engineering Projects, Presentation, seminar,summer training report and lot more.NOTE:-This work is copyright to its Authors. This is only for Educational Purpose. Literature ReviewHow a company does announced a name change especially when the old name waswell known? How does the company explain itself to constituents who may haveknown the company quite well in an earlier incarnation but may be struggling tofigure out what the new organization stands for? How can the company create a newimage while retaining the strengths of the old one? And what role might corporateadvertising play in all this? Corporate advertising can tell a story about a company asa whole, large organizations may need to use corporate ads to simplify their image inthe minds of key constituents and to show what unifies the company, despite thegeographical spread and variety of its businesses.We can very well understand the concept of corporate advertising by taking theexample of ICICI Prudential communication. When Company first began operations,the task was to present the visiting card of the company to the public at large andbuild credibility and stature and to give the consumer the confidence that here is acompany that can be trusted to invest funds with.This required a corporate campaign - to establish the brand, build awareness and givethe brand a larger-than-life image.The advertising idea, which was encapsulated in symbols of protection from the initialprint campaign, culminated in the corporate film where sindhoor was used as anendearing and lasting symbol of protection. Once the corporate image and brandidentity were established, and as the company expanded and its product range grew,the next phase of communication was to give theconsumer a rational and tangible reason to buy - first of all insurance and secondlyfrom ICICI Prudential Life. This was tackled through product-specific advertising,such as for ICICI Pru Smart Kid, retirement solutions or LifeTime. Key Summery  Create a good citizen image through consistent & dedicated effort.  Convey the organizations commitment to the concerned publics as well as to the masses & eliminate prejudices, if any held by opinion leaders in particular & by the public in general. 6www.final-yearprojects.co.cc | www.troubleshoot4free.com/fyp/
  • 7. www.final-yearprojects.co.cc | www.troubleshoot4free.com/fyp/Final Year Projects is One place for all Engineering Projects, Presentation, seminar,summer training report and lot more.NOTE:-This work is copyright to its Authors. This is only for Educational Purpose.  Boost both employee management relation & employee morale enabling all  Members of the internal public to discover a new vitality. EXECUTIVE SUMMARYTitle of the project:Study ULIP in current market scenario/ Study customer response towards ULIPObjectives:  Working of the unit linked insurance plans  Swot analysis of the product  Comparative study of the competition  Study tax planning solutions available in the market  Study asset allocation through insurance plans  Market interfaceComparative analysis done on:  Life insurance corporation  HDFC Stan Life  Birla Sun Life  Bajaj AllianzResearch Methodology: 7www.final-yearprojects.co.cc | www.troubleshoot4free.com/fyp/
  • 8. www.final-yearprojects.co.cc | www.troubleshoot4free.com/fyp/Final Year Projects is One place for all Engineering Projects, Presentation, seminar,summer training report and lot more.NOTE:-This work is copyright to its Authors. This is only for Educational Purpose.Primary data collected by personally visiting these leading insurance players. Eg:LIC, Max New York Life Insurance, Bajaj Alliance, Birla Sunlife, HDFC Stan life.Data Collection:  Primary data collected through direct intrection with customer.  Sample size 100 people.  Secondary database from different magazines.  First and foremost, accumulating information from newspapers , Journals, Magazines, and company webside.  Secondly, taking a sample size and doing a market survey by filling up questionnaires from customers to find out what different companies are offering in the ULIP section and how are they similar/different from ICICI PRUDENTIAL products. Also keeping a track and taking down the feedback regarding perception, attitude, taste and preferences of the customer.  Thirdly, analyzing the data collected. Comparing the ULIP products offered by other insurance players.  Critical analysis of consumer perception; their choice and preferences.  Eventually, deciding on how to familiarize ULIP products in the market and what all safeguards need to be taken while approaching the customers. 8www.final-yearprojects.co.cc | www.troubleshoot4free.com/fyp/
  • 9. www.final-yearprojects.co.cc | www.troubleshoot4free.com/fyp/Final Year Projects is One place for all Engineering Projects, Presentation, seminar,summer training report and lot more.NOTE:-This work is copyright to its Authors. This is only for Educational Purpose. CHAPTER-1 9www.final-yearprojects.co.cc | www.troubleshoot4free.com/fyp/
  • 10. www.final-yearprojects.co.cc | www.troubleshoot4free.com/fyp/Final Year Projects is One place for all Engineering Projects, Presentation, seminar,summer training report and lot more.NOTE:-This work is copyright to its Authors. This is only for Educational Purpose. INTRODUCTION TO INSURANCE LIFE INSURANCE GENERALInsurance is a system to alleviate financial losses by transferring risk of loss fromone entity to another.‘Insurance’ is basically a sharing device. The losses to assets resulting from naturalcalamities like fire, flood, earthquake, accidents, etc. are met out of the common poolcontributed by large number of persons who are exposed to similar risks. Thiscontribution of many is used to pay the losses suffered by unfortunate few. Howeverthe basic principle is that loss should occur as a result of natural calamities orunexpected events which are beyond the human control. Secondly insured personshould not make any gains out of insurance.It is natural to think of insurance of physical assets such as motor car insurance or fireinsurance but often we forget that creator of all these assets is the human being whoseefforts have gone a long way in building up the assets. In that sense, human life is aunique income generating assets. Unlike the physical assets, which decrease in valuewith passage of time, the individual becomes more experienced and more matured as 10www.final-yearprojects.co.cc | www.troubleshoot4free.com/fyp/
  • 11. www.final-yearprojects.co.cc | www.troubleshoot4free.com/fyp/Final Year Projects is One place for all Engineering Projects, Presentation, seminar,summer training report and lot more.NOTE:-This work is copyright to its Authors. This is only for Educational Purpose.he advances in age. This raises his earning capacity and the purpose of life insuranceis to protect the income in the event of his premature death. The individual himselfalso needs financial security for the old age or on his becoming permanently disabledwhen his income will stop. Insurance also has an element of savings in certain cases.How insurance works?Suppose there are 1000 persons all aged 35 years and healthy lives. They are insuredfor one year against the risk of death. Each person is insured for Rs. 50,000. If thepast experience indicated that 4 out of 1000 persons, at this age are expected to dieduring the year, expected amount of death claim to be paid to the family of fourpersons would come to Rs. 2,00,000. The contribution to be paid by each of the 1000persons will come to Rs. 200 per year. Thus, all the 1000 persons share loss caused tothe 4 unfortunate families. 996 persons who survived till one year have not lostanything as they secured peace of mind and a feeling of security of their family.While insurance cannot prevent accidents or premature death, it can help protect thefamily of the decreased against the loss of income caused by the death of the mainbreadwinner. In return for specified payments, insurance will provide protectionagainst the incidence of an uncertain event- such as premature death. The business ofinsurance company called insurer is to bring together persons who are exposed tosimilar risks, collect contribution (premium) from them on some equitable basis andpay the losses (claims) to the unfortunate few who suffer.Classification of InsuranceInsurance business can be divided into two broad categories, life and non-life. Lifeinsurance is concerned with making provision for a specific event happing to theindividual, such as death whereas non life (or general insurance) is more commonlyconcerned with the provision for a specific event which affects a property, such asfire, flood, theft etc. In this course we will only cover life insurance. So, let us nowmove on to the definition of life insurance. 11www.final-yearprojects.co.cc | www.troubleshoot4free.com/fyp/
  • 12. www.final-yearprojects.co.cc | www.troubleshoot4free.com/fyp/Final Year Projects is One place for all Engineering Projects, Presentation, seminar,summer training report and lot more.NOTE:-This work is copyright to its Authors. This is only for Educational Purpose.Definition of Life InsuranceAccording to the U.S. Life Office Management Association Inc. (LOMA), lifeinsurance is defined as follows: ‘Life insurance provides a sum of money if the personwho is insured dies whilst the policy is in effect”. NEED FOR LIFE INSURANCERisks and uncertainties are part of lifes great adventure -- accident, illness, theft,natural disaster - theyre all built into the workings of the Universe, waiting to happen.Insurance then is mans answer to the vagaries of life. If you cannot beat man-madeand natural calamities, well, at least be prepared for them and their aftermath.Insurance is a contract between two parties - the insurer (the insurance company) andthe insured (the person or entity seeking the cover) - wherein the insurer agrees to paythe insured for financial losses arising out of any unforeseen events in return for aregular payment of "premium".These unforeseen events are defined as "risk" and that is why insurance is called arisk cover. Hence, insurance is essentially the means to financially compensate forlosses that life throws at people - corporate and otherwise.The principle of insurance works on the concept of a large number of people exposedto a similar risk making a contribution to a common fund. Those who suffer lossesdue to the occurrence of these events are compensated for them from this fund. 12www.final-yearprojects.co.cc | www.troubleshoot4free.com/fyp/
  • 13. www.final-yearprojects.co.cc | www.troubleshoot4free.com/fyp/Final Year Projects is One place for all Engineering Projects, Presentation, seminar,summer training report and lot more.NOTE:-This work is copyright to its Authors. This is only for Educational Purpose. ROLE OF LIFE INSURANCELife Insurance As An Investment: -Insurance is an attractive option for investment. While most people recognize the riskhedging and tax saving potential of insurance, many are not aware of its advantages asan investment option as well. Insurance products yield more compared to regularinvestment options, and this is besides the added incentives offered by insurers.You cannot compare an insurance product with other investment schemes for thesimple reason that it offers financial protection from risks, something that is missingin non-insurance products. In fact, the premium you pay for an insurance policy is aninvestment against risk. Thus, before comparing with other schemes, you must acceptthat a part of the total amount invested in life insurance goes towards providing forthe risk cover, while the rest is used for savings.In life insurance, unlike non-life products, you get maturity benefits on survival at theend of the term. In other words, if you take a life insurance policy for 20 years andsurvive the term, the amount invested as premium in the policy will come back to youwith added returns. In the unfortunate event of death within the tenure of the policy,the family of the deceased will receive the sum assured.Now, let us compare insurance as an investment options. If you invest Rs 10,000 inPPF, your money grows to Rs 10,950 at 9.5 per cent interest over a year. But in thiscase, the access to your funds will be limited. One can withdraw 50 per cent of theinitial deposit only after 4 years.The same amount of Rs 10,000 can give you an insurance cover of up toapproximately Rs 5-12 lakh (depending upon the plan, age and medical condition ofthe life insured, etc) and this amount can become immediately available to thenominee of the policyholder on death. Thus insurance is a unique investment avenuethat delivers sound returns in addition to protection. 13www.final-yearprojects.co.cc | www.troubleshoot4free.com/fyp/
  • 14. www.final-yearprojects.co.cc | www.troubleshoot4free.com/fyp/Final Year Projects is One place for all Engineering Projects, Presentation, seminar,summer training report and lot more.NOTE:-This work is copyright to its Authors. This is only for Educational Purpose. TYPES OF LIFE INSURANCE PLANSLife Insurance Plans:Under Life insurance plans, ICICI Prudential offers plans under the following majorneed categories: Education Insurance Plans Wealth Creation Plans Premium Guarantee plans Protection PlansEducation Insurance PlansOne of your most important responsibilities as a parent is to ensure that your childgets the best possible education that can be provided.ICICI Prudential offers a wide portfolio of education insurance plans that are designedto provide peace of mind to you, as a parent, that your childs education will besecure. These plans ensure that money is made available at the crucial junctures in achilds education - Class X, Class XII, graduation and post-graduation - to fundcrucial commitments for the childs future.Importantly, education insurance plans ensure that in the unfortunate event of thedeath of a parent, the childs education continues unhampered.Under the education insurance plans platform, ICICI Prudential brings the followingproducts to you. Please click on the product name to know more about the plans. Plan Name Plan Type SmartKid New Unit-linked Unit Linked Regular Premium SmartKid New Unit-linked Unit Linked Single Premium SmartKid Regular Premium Traditional 14www.final-yearprojects.co.cc | www.troubleshoot4free.com/fyp/
  • 15. www.final-yearprojects.co.cc | www.troubleshoot4free.com/fyp/Final Year Projects is One place for all Engineering Projects, Presentation, seminar,summer training report and lot more.NOTE:-This work is copyright to its Authors. This is only for Educational Purpose.Wealth Creation PlansWealth Creation Plans give the customer the dual benefit of protection along with thepotentially higher returns of market-linked instruments. The most important benefit ofULIPs is the flexibility they give the customer in choosing the premium amount andalso choosing the underlying fund in which this money is to be invested. Wealthcreation plans also offer the customer more liquidity options as compared totraditional plans. As such, ULIPs are ideal for customers who want the protection of alife cover to be allied to the returns of market linked instrument – giving them anunmatched combination of benefits.Under the wealth creation platform, ICICI Prudential brings the following products toyou. Please click on the product name to know more about the plans.Plan Name Plan TypeLifeTime Super Unit LinkedLifeLink Super Unit LinkedPremierLife Gold Unit LinkedLifeTime Plus Unit LinkedPremium Guarantee Plans 15www.final-yearprojects.co.cc | www.troubleshoot4free.com/fyp/
  • 16. www.final-yearprojects.co.cc | www.troubleshoot4free.com/fyp/Final Year Projects is One place for all Engineering Projects, Presentation, seminar,summer training report and lot more.NOTE:-This work is copyright to its Authors. This is only for Educational Purpose.The latest addition to the life insurance product portfolio of ICICI Prudential is thePremium Guarantee plan - InvestShield Life New. Premium Guarantee plans are theideal insurance-cum-investment option for customers who want to enjoy thepotentially higher returns of a market linked instrument, but without taking anymarket risk.Under the Premium Guarantee Plans platform, ICICI Prudential brings to you thefollowing products: Plan Name Plan Type InvestShield Life New Unit Linked InvestShield CashBak Unit LinkedProtection PlansThe sole objective of these plans, as their name indicates, is to serve the protectionneeds of the customer and by doing so, safeguard one’s family from the financialimplications of unfortunate circumstances than one cannot foresee.Under the Protection Plans platform, ICICI Prudential brings to you the followingproducts: Plan Name Plan Type LifeGuard Traditional SavenProtect Traditional CashBak Traditional Home Assure Traditional 16www.final-yearprojects.co.cc | www.troubleshoot4free.com/fyp/
  • 17. www.final-yearprojects.co.cc | www.troubleshoot4free.com/fyp/Final Year Projects is One place for all Engineering Projects, Presentation, seminar,summer training report and lot more.NOTE:-This work is copyright to its Authors. This is only for Educational Purpose. THE INSURANCE REGULATORY AND DEVELOPMENT AUTHORITY (IRDA)Reforms in the Insurance sector were initiated with the passage of the IRDA Bill inParliament in December 1999. The IRDA since its incorporation as a statutory bodyin April 2000 has fastidiously stuck to its schedule of framing regulations andregistering the private sector insurance companies.The other decision taken simultaneously to provide the supporting systems to theinsurance sector and in particular the life insurance companies was the launch of theIRDA’s online service for issue and renewal of licenses to agents.The approval of institutions for imparting training to agents has also ensured that theinsurance companies would have a trained workforce of insurance agents in place tosell their products, which are expected to be introduced by early next year. Sincebeing set up as an independent statutory body the IRDA has put in a framework ofglobally compatible regulations. In the private sector 12 life insurance and 6 generalinsurance companies have been registered. 17www.final-yearprojects.co.cc | www.troubleshoot4free.com/fyp/
  • 18. www.final-yearprojects.co.cc | www.troubleshoot4free.com/fyp/Final Year Projects is One place for all Engineering Projects, Presentation, seminar,summer training report and lot more.NOTE:-This work is copyright to its Authors. This is only for Educational Purpose. WHY PRIVATE INSURANCE?• All the private companies have a lock in period of 3 yrs hence no disinvestments possible.• Minimum net worth of 500 Cr required for acquiring license with a minimum paid up capital of 100 Cr in their insurance venture.• Commitment to increase the paid up capital manifold in next five years.• Re insurance for all its policies worth more than 5 lakhs. Reinsurance partners, best and the largest in the world – general cologne and Swiss reinsurance.• Audit of accounts by at least 2 independent approved auditors each year.• Products and pricing are cleared by IRDA, which looks into the financial visibility of the product and the financial implication.• IRDA is now proposing a Pvt. Policy Protection fund.• Funds to be invested in only regulated and controlled areas with close to 80%being pumped into only gilts thereby assuring safety of funds. 18www.final-yearprojects.co.cc | www.troubleshoot4free.com/fyp/
  • 19. www.final-yearprojects.co.cc | www.troubleshoot4free.com/fyp/Final Year Projects is One place for all Engineering Projects, Presentation, seminar,summer training report and lot more.NOTE:-This work is copyright to its Authors. This is only for Educational Purpose. CHAPTER-2 19www.final-yearprojects.co.cc | www.troubleshoot4free.com/fyp/
  • 20. www.final-yearprojects.co.cc | www.troubleshoot4free.com/fyp/Final Year Projects is One place for all Engineering Projects, Presentation, seminar,summer training report and lot more.NOTE:-This work is copyright to its Authors. This is only for Educational Purpose. INDUSTRY PROFILEBackgroundIn 1912, the Indian life insurance companies Act was passed . This was the firstcomprehensive legislation in India to regulate the business of insurance. it had beenobserved that the provisions of Indian Company’s Act did not meet the purpose. Afurther legislation was passed in 1928, But a comprehensive legislation was passed in1938. The amendments in the act were made in 1956 when insurance was nationalizedand LIC and GIC were formed. Life insurance business was nationalized with effect from 19 January 1956and 256 companies were merged. Insurance Act was further amended in 1999 andIRDA was formed in view of the circumstances arising out of opening up of insuranceindustry in 2000.IRDA authority to protect the interest of the holders of insurancepolicies, to regulate , promote and ensure the working of all companies. As we enter into the new millennium, economies of the world over are gettingredefined and remodeled with the new mindsets, new technologies, new riles and newdirections. Financial sector reforms received top priority ever since the Govt. of Indiainitiated the process of economic liberalization. These reforms are extending thehorizons of the financial services sector and have been transforming our capitalmarkets , banking and financial services industries. In the last four decades , after nationalization of the insurance industry ,certain socio-economic objectives were achieved through public ownership of theinsurance business. Yet, market oriented dynamism was missing as evidenced by thelack of product innovations, high premium rates and limited use of informationtechnology. 20www.final-yearprojects.co.cc | www.troubleshoot4free.com/fyp/
  • 21. www.final-yearprojects.co.cc | www.troubleshoot4free.com/fyp/Final Year Projects is One place for all Engineering Projects, Presentation, seminar,summer training report and lot more.NOTE:-This work is copyright to its Authors. This is only for Educational Purpose.The insurance sector reforms have encouraged Blue-Bloods of Indian corporate sectorTATA,ICICI,HDFC,BIRLA,SBI,RELIANCE,KOTAK etc to tie up with world’slargest insurance majors to capture slice of the country’s potential insurance market.This has brought abuzz activities in insurance business. New players are wooing thecustomer with promises of better services and customized products. The LIC and GICare countering the competition on the strength of their track records, distributionnetworks and so on. This new scenario will witness financially sound and experienced playerstransforming the industry with best products in service and product development ,operational efficiency, marketing capability, service plus and tech-savvy orientation.As a result, the insurance business can become global with e-business applications. It is awkward business playing value figures on people’s lives. It is almost asawkward as selling the likelihood of an event people do not want crossing their minds. in India, it is rather a shrub. For this reason alone life insurance is no ordinarymarket. Under the pressure of competitors differentiate their offerings, insurers nolonger sell life insurance as a product that meets a basic need , many of them sellthough the appeal of a wide variety of add on benefits ranging from tax saving toinvestment return, sometimes pitying more emphasis on these basic benefits. This assumes significance because India is witnessing foreign competition in this sector after a long monopoly period. There is consensus on success becoming a function of market strategy. So far the market has been shaped by LIC . it is only recently that private insurers with 74:26 joint ventures between Indian and foreign companies have been formed under the watch of IRDA. ICICI prudential, HDFC slandered life and Max New York Life were first off the block, followed by Kotak 21www.final-yearprojects.co.cc | www.troubleshoot4free.com/fyp/
  • 22. www.final-yearprojects.co.cc | www.troubleshoot4free.com/fyp/Final Year Projects is One place for all Engineering Projects, Presentation, seminar,summer training report and lot more.NOTE:-This work is copyright to its Authors. This is only for Educational Purpose. Mahindra, Royal Sundram,TATA Aig,Birla Sunlife,SBI Life and ING Vyasa which were started later. Sudden burst of competition itself is a unique occurrence. The Indian market distinguishes itself in other ways too, most notably in the areas of consumer perception and investment option. So it is worth which will the market move and what could be the winning strategies. Basic premise is clear that “life insurance is a specialized business”. 22www.final-yearprojects.co.cc | www.troubleshoot4free.com/fyp/
  • 23. www.final-yearprojects.co.cc | www.troubleshoot4free.com/fyp/Final Year Projects is One place for all Engineering Projects, Presentation, seminar,summer training report and lot more.NOTE:-This work is copyright to its Authors. This is only for Educational Purpose. LIFE INSURERS 1. BAJAJ ALLIANZ LIFE INSURANCE CO.LTD. 2. BIRLA SUNLIFE INSURANCE CO. LTD. 3. HDFC STANDARD LIFE INSURANCE CO. LTD. 4. ICICI PRUDENTIAL LIFE INSURANCE CO. LTD. 5. ING VYSYA LIFE INSURANCE CO.PVT.LTD. 6. LIFE INSURANCE CORPORATION OF INDIA. 7. MAX NEWYORK LIFE INSURANCE CO. LTD. 8. METLIFE INDIA INSURANCE CO. PVT.LTD. 9. KOTAK MAHINDRA OLD MUTUAL LIFE INSURANCE CO. LTD. 10. SBI LIFE INSURANCE CO.LTD. 11. TATA AIG LIFE INSURANCE CO.LTD. 12. AVIVA LIFE INSURANCE CO. LTD. 13. SAHARA LIFE INSURANCE CO. LTD. 23www.final-yearprojects.co.cc | www.troubleshoot4free.com/fyp/
  • 24. www.final-yearprojects.co.cc | www.troubleshoot4free.com/fyp/Final Year Projects is One place for all Engineering Projects, Presentation, seminar,summer training report and lot more.NOTE:-This work is copyright to its Authors. This is only for Educational Purpose. Life Insurance Companies ICICI Prudential Life Insurance Company Limited ICICI Prudential Life Insurance Company Limited was incorporated on July 20,2000.The authorized capital of the company is Rs 2300 million and the paid up capital is Rs 1500 million. The Company is joint of ICICI (74%) and Prudential plc UK (26%) The company was granted certificate of registration for carrying out life insurance business, by the insurance regulatory and development Authority on November 24,2000.it commenced commercial operations on December 19, 2000,becoming one of the first few private sector players to enter the liberalized arena. ICICI Prudential collected Rs.1584 corers as their premium during 2004-05 & the market share of ICICI pru. as per their premium is 5.63% as a whole but in the pvt .co .ICICI hold 40% of market share. ING VYSYA LIFE INSURANCE COMPANY PVT. LTD. ING Vysya Life Insurance is a joint venture between three pioneers, ING Insurance Vysya Bank. ING Group: Over the last 150 years, ING Group has grown to become one of the largest life insurance organizations in the world. Today it touches the lives of over 50 millions people across 65 countries. It offers a range of financial services including insurance, pensions, banking and asset management. In the year 2000,total assets of the group stood at over INR 28,42000 corers. 24www.final-yearprojects.co.cc | www.troubleshoot4free.com/fyp/
  • 25. www.final-yearprojects.co.cc | www.troubleshoot4free.com/fyp/Final Year Projects is One place for all Engineering Projects, Presentation, seminar,summer training report and lot more.NOTE:-This work is copyright to its Authors. This is only for Educational Purpose. KOTAK MAHINDRA LIFE INSURANCE COMPANY LTD. Kotak Mahindra life Insurance Company Limited is a joint venture between Kotak Mahindra Finance Ltd and Old Mutual. Kotak Mahindra Finance Ltd. Kotak Mahindra is one of the India’s leading financial institutions, offering complete financial solution that encompasses every sphere of life. From Banking, to stock Broking, to Mutual Funds, to Life Insurance, to Investment Banking, the company caters to the financial needs of individuals and corporates. Old Mutual Old Mutual, a company with over 157 years of experience in life insurance business, has the largest financial services business in South Africa, through its life assurance, asset management, banking and general insurance operations. Being listed in London Stock Exchange and included in FTSE 100 list of companies, old Mutual’s assets under management are worth $208 billion.Tata AIG Life Insurance Company:Tata AIG General Insurance Company Ltd and Tata AIG Life Insurance CompanyLtd (collectively “Tata AIG”) are joint venture companies between the Tata groupIndia’s most trusted industrial house and American International grouping (AIG), theleading U.S based international insurance and financial services organization.Both promoters have a deep and abiding interest in India’s Insurance sector. Prior tonationalization, the Tanta’s pioneered private insurance in India when Sir Dorab Tataset 25www.final-yearprojects.co.cc | www.troubleshoot4free.com/fyp/
  • 26. www.final-yearprojects.co.cc | www.troubleshoot4free.com/fyp/Final Year Projects is One place for all Engineering Projects, Presentation, seminar,summer training report and lot more.NOTE:-This work is copyright to its Authors. This is only for Educational Purpose. up new India assurance in 1919.By 1973,when General Insurance was nationalizedthe Tata company had a global presence with 56 overseas offices. Aig too has alwaysconsidered the Indian insurance sector to be of significance. The AIG companiesentered India in 1954 and had offices in several Indian cities prior to nationalization.HDFC –Standard Life: HDFC Standard Life Insurance company is a joint venture between India’slargest housing finance provider, HDFC and Europe’s largest mutual life assurancecompany The Standard Life Assurance Company (UK). HDFC Standard LifeInsurance Company Limited is the first private sector life insurance company to begranted a license. Standard Life, UK, found in 1825. The UK insurance industry for 175 yearsby combining sound financial judgment with integrity and reliability. It is the largestmutual life company in Europe and has total assets of Rs.5,50,000 crore sit is one ofthe very few insurance companies in the world to have ‘AAA’ rating from two of theleading international credit rating agencies, Moody and Standard and Poor’s. StandardLife was recently voted ‘company of the decade’ in UK by the independent Brokerscalled IFAs.LIFE INSURANCE CORPORATION OF INDIA (LIC) The Life Insurance Corporation (LIC) was established about 49 (in1956) years ago with a view to provide an insurance cover against various risks in life .A monolith then, the corporation, enjoyed a monopoly status and become synonymous with life insurance.Its main asset is its staff strength of 1.24 lakhs employees and 2048 branches and over six-lakh agency force. LIC has hundred divisional offices and has established extensive training facilities at all levels .At 26www.final-yearprojects.co.cc | www.troubleshoot4free.com/fyp/
  • 27. www.final-yearprojects.co.cc | www.troubleshoot4free.com/fyp/Final Year Projects is One place for all Engineering Projects, Presentation, seminar,summer training report and lot more.NOTE:-This work is copyright to its Authors. This is only for Educational Purpose. the apex, is the Management Development Institute, Seven Zonal Training centers and 35 Sales Training Centers. At the industry level, along with the Government and GIC, it has helped established the National Insurance Academy. It presently transacts individual life insurance businesses, group insurance businesses, social security schemes and pensions, grants housing loans through its subsidiary; and markets saving and investment products through its mutual fund. It payoff about Rs 6000 crore annually to 5.6 million policyholders. Market share of LIC which is 82.3%.By the LIC 1.09 crores policies has been sold that was in the 2004-05 & the total premium that are collected by LIC in 2004-05 was Rs.9007 crores.ALLIANZ BAZAZ LIFE INSURANCE COMPANY Allianz AG with over 110 years of experience in over 70 countries and Bajaj Auto, trusted for over 55 years in the Indian market ,together are committed to offering financial solutions. Characterized by global presence with a local focus and driven by customer orientation to establish high earnings potential and financial strength, Allianz Bajaj Life Insurance Co Ltd was incorporated on 12th March 2001.The company received the insurance regulatory and development Authority (IRDA) Certificate of Registration on 3rd August 2001 to conduct Life Insurance business in India. The Market share of Bajaj Allianz in 2003-04 was .95% which has been increases in 2004-05 and it is know 2.03% which depicts the financial position of the co. 27www.final-yearprojects.co.cc | www.troubleshoot4free.com/fyp/
  • 28. www.final-yearprojects.co.cc | www.troubleshoot4free.com/fyp/Final Year Projects is One place for all Engineering Projects, Presentation, seminar,summer training report and lot more.NOTE:-This work is copyright to its Authors. This is only for Educational Purpose. CHAPTER-3 28www.final-yearprojects.co.cc | www.troubleshoot4free.com/fyp/
  • 29. www.final-yearprojects.co.cc | www.troubleshoot4free.com/fyp/ Final Year Projects is One place for all Engineering Projects, Presentation, seminar, summer training report and lot more. NOTE:-This work is copyright to its Authors. This is only for Educational Purpose. COMPANY PROFILEOverviewIndia’s Number One private life insurer, ICICI Prudential Life Insurance Company is a jointventure between ICICI Bank-one of India’s foremost financial services companies-andPrudential plc- a leading international financial services group headquartered in the UnitedKingdom. Total capital infusion stands at Rs. 20.60 billion, with ICICI Bank holding a stakeof 74% and Prudential plc holding 26%.We began our operations in December 2000 after receiving approval from InsuranceRegulatory Development Authority (IRDA). Today, our nation-wide team comprises of over580 offices, over 234,000 advisors; and 22 bancassurance partners.ICICI Prudential was the first life insurer in India to receive a National Insurer FinancialStrength rating of AAA (Ind) from Fitch ratings. For three years in a row, ICICI Prudentialhas been voted as India’s Most Trusted Private Life Insurer, by The Economic Times – ACNielsen ORG Marg survey of ‘Most Trusted Brands’. As we grow our distribution, productrange and customer base, we continue to tirelessly uphold our commitment to deliver world-class financial solutions to customers all over India. 29 www.final-yearprojects.co.cc | www.troubleshoot4free.com/fyp/
  • 30. www.final-yearprojects.co.cc | www.troubleshoot4free.com/fyp/ Final Year Projects is One place for all Engineering Projects, Presentation, seminar, summer training report and lot more. NOTE:-This work is copyright to its Authors. This is only for Educational Purpose.Vision & ValuesOur vision:To make ICICI Prudential the dominant Life and Pensions player built on trust by world-classpeople and service.This we hope to achieve by: Understanding the needs of customers and offering them superior products and service Leveraging technology to service customers quickly, efficiently and conveniently Developing and implementing superior risk management and investment strategies to offer sustainable and stable returns to our policyholders Providing an enabling environment to foster growth and learning for our employees And above all, building transparency in all our dealings.The success of the company will be founded in its unflinching commitment to 5 core values –Integrity, Customer First, Boundary less, Ownership and Passion. Each of the values describewhat the company stands for, the qualities of our people and the way we work.We do believe that we are on the threshold of an exciting new opportunity, where we can playa significant role in redefining and reshaping the sector. Given the quality of our parentageand the commitment of our team, there are no limits to our growth.Our values :Every member of the ICICI Prudential team is committed to 5 core values: Integrity,Customer First, Boundary less, Ownership, and Passion. These values shine forth in all we do,and have become the keystones of our success. 30 www.final-yearprojects.co.cc | www.troubleshoot4free.com/fyp/
  • 31. www.final-yearprojects.co.cc | www.troubleshoot4free.com/fyp/ Final Year Projects is One place for all Engineering Projects, Presentation, seminar, summer training report and lot more. NOTE:-This work is copyright to its Authors. This is only for Educational Purpose.The ICICI Prudential edge comes from our commitment to our customers, in all that we do –be it product development, distribution, the sales process or servicing. Here’s a peek into whatmakes us leaders.1. Our products have been developed after a clear and thorough understanding of customers’needs. It is this research that helps us develop Education plans that offer the ideal way to trulyguarantee your child’s education, Retirement solutions that are a hedge against inflation andyet promise a fixed income after you retire, or Health insurance that arms you with the fundsyou might need to recover from a dreaded disease.2. Having the right products is the first step, but it’s equally important to ensure that ourcustomers can access them easily and quickly. To this end, ICICI Prudential has an advisorbase across the length and breadth of the country, and also partners with leading banks,corporate agents and brokers to distribute our products3. Robust risk management and underwriting practices form the core of our business. Withclear guidelines in place, we ensure equitable costing of risks, and thereby ensure a smoothand hassle-free claims process.4. Entrusted with helping our customers meet their long-term goals, we adopt an investmentphilosophy that aims to achieve risk adjusted returns over the long-term.5. Last but definitely not the least, our 16,000 plus strong team is given the opportunity tolearn and grow, every day in a multitude of ways. We believe this keeps them engaged andenthusiastic, so that they can deliver on our promise to cover you, at every step in life.Promoters 31 www.final-yearprojects.co.cc | www.troubleshoot4free.com/fyp/
  • 32. www.final-yearprojects.co.cc | www.troubleshoot4free.com/fyp/ Final Year Projects is One place for all Engineering Projects, Presentation, seminar, summer training report and lot more. NOTE:-This work is copyright to its Authors. This is only for Educational Purpose. ICICI Bank ICICI Bank (NYSE:IBN) is India’s second largest bank and largest private sector bank with over 50 years presence in financial services and with assets of over Rs 3446.58 bn (USD 79 billion) as on March 31, 2007. The 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 32pecialized subsidiaries in the areas of investment banking, life and non-life insurance, private equity and asset management. ICICI Bank is a leading player in the retail banking market and services its large customer base through a network of over 950 branches and extension counters, 3300 ATMs, call centers and internet banking (www.icicibank.com) to ensure that customers have access to its services at all times. Prudential Plc Established in London in 1848, Prudential plc, through its businesses in the UK and Europe, the US and Asia, provides retail financial services products and services to more than 20 million customers, policyholder and unit holders and manages over £251 billion of funds worldwide (as of 31 December 2006). In Asia, Prudential is the leading European life insurance company with life operations in China, Hong Kong, India, Indonesia, Japan, Korea, Malaysia, the Philippines, Singapore, Taiwan, Thailand, Vietnam. Prudential is the second largest retail fund manager for Asian sourced assets ex-Japan as at June 2006. Its fund management business has expanded into a total of ten markets : China, Hong Kong, India, Japan, Korea, Malaysia, Singapore, Taiwan, Vietnam and United Arab Emirates.Fact Sheet 32 www.final-yearprojects.co.cc | www.troubleshoot4free.com/fyp/
  • 33. www.final-yearprojects.co.cc | www.troubleshoot4free.com/fyp/Final Year Projects is One place for all Engineering Projects, Presentation, seminar,summer training report and lot more.NOTE:-This work is copyright to its Authors. This is only for Educational Purpose. THE Company 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 Prudentials capital stands at Rs. 20.60 billion with ICICI Bank and Prudential plc holding 74% and 26% stake respectively. As of March 31, 2007, the company garnered Rs. 4,843 crore of weighted retail + group new business premiums and wrote over 1.96 million retail policies. The company has assets held to the tune of over Rs. 15,000 crore. ICICI Prudential is also the only private life insurer in India to receive a National Insurer Financial Strength rating of AAA (Ind) from Fitch ratings. The AAA (Ind) rating is the highest rating, and is a clear assurance of ICICI Prudentials ability to meet its obligations to customers at the time of maturity or claims. For the past six years, ICICI Prudential has retained its position as the No. 1 private life insurer in the country, with a wide range of flexible products that meet the needs of the Indian customer at every step in life. To know more about the company, please visit Distribution ICICI Prudential has one of the largest distribution networks amongst private life insurers in India. As of March 31, 2007 the company has over 580 offices across the country and over 234,000 advisors. The company has over 22 bancassurnace partners, having tie-ups with ICICI Bank, Federal Bank, South Indian Bank, Bank of India, Lord Krishna Bank, Idukki District Co-operative Bank, Jalgaon Peoples Co-operative Bank, Shamrao Vithal Co-op Bank, Ernakulam Bank, 9 Bank of India sponsored Regional Rural Banks (RRBs), Sangli Urban Co-operative Bank, Baramati Co-operative Bank, Ballia Kshetriya Gramin Bank, The Haryana State Co-operative Bank. Flexible Rider Options 33www.final-yearprojects.co.cc | www.troubleshoot4free.com/fyp/
  • 34. www.final-yearprojects.co.cc | www.troubleshoot4free.com/fyp/ Final Year Projects is One place for all Engineering Projects, Presentation, seminar, summer training report and lot more. NOTE:-This work is copyright to its Authors. This is only for Educational Purpose.The ICICI Prudential Life Insurance Company Limited Management team comprisesreputed people from the finance industry both from India and abroad.Ms. Shikha Sharma, Managing Director & CEOMr. N. S. Kannan, Executive DirectorMr. Bhargav Dasgupta, Executive DirectorMs. Anita Pai, EVP – Customer Service & TechnologyMr. Azim Mithani, Chief ActuaryMr. Puneet Nanda, Chief Investments OfficerMr. Binayak Dutta, Chief – Sales and distribution Mr. N. S. Kannan Executive Director ICICI Prudential Life Insurance Company LimitedN. S. Kannan joined ICICI Prudential Life Insurance Company Ltd as Executive Directorin August 2005, where he has overall responsibility for sales, marketing, investments,group business and business intelligence. Prior to joining ICICI Prudential, Kannan wasthe Chief Financial Officer and Treasurer of ICICI Bank Limited where he wasresponsible for investor relations and for the finance, performance management, accounts,taxation, risk management, secretarial and credit middle office functions. The treasuryoperations of ICICI Bank include Balance Sheet Management and Asset and LiabilityManagement. ICICI Bank is the second largest bank in India with an asset base of aboutUS$ 55 billion. The bank is listed on Indian national stock exchanges and the New Yorkstock exchange. Kannan joined ICICI group in 1991 as a project officer. During histenure at ICICI group, he has handled project finance operations, infrastructure financing,structured finance and treasury operations. Prior to his current assignment, he has headedthe Telecom & Transportation group and Structured Finance group of the bank.Kannan isa postgraduate in management from the Indian Institute of Management, Bangalore with agold medal for best all-round performance. He is also a Chartered Financial Analyst fromthe Institute of Chartered Financial Analysts of India and an Honours graduate inMechanical Engineering. His work experience includes 3 years of industrial experience34 www.final-yearprojects.co.cc | www.troubleshoot4free.com/fyp/
  • 35. www.final-yearprojects.co.cc | www.troubleshoot4free.com/fyp/Final Year Projects is One place for all Engineering Projects, Presentation, seminar,summer training report and lot more.NOTE:-This work is copyright to its Authors. This is only for Educational Purpose.SWOT ANALYSIS OF ICICI PRUDENTIALSTRENGTHS • ICICI PRUDENTIAL is the largest private player in the insurance industry in India, with a market share of around 36% amongst the private players. • ICICI PRUDENTIAL has deposited a paid up capital of Rs. 925 crores with IRDA as a caution deposit, the highest amongst all the life insurance companies in India whereas LIC has deposited only 60 crores so far. • ICICI PRUDENTIAL is the first life insurance company to offer ECS debit facility. • ICICI PRUDENTIAL is the first company to introduce unit linked life insurance and pension products. Presently the maximum numbers of ranges are under ULIP like life insurance, investment as well as pension plans. • Its Venture funds management co. Ltd is India’s largest venture capital company. • PRODUCTS:  Flexibility to switch your fund value at your own discretion 4 times a year Viz Maximiser, Protector, Balancer, Preserver.  Greater transparency- policyholder knows what is happening to his money and where the company has invested the money.  Liquidity option: you can make partial or complete withdrawals anytime after 3 years.  Life insurance plans are eligible for deduction under Sec. 80C.  The proceeds or withdrawals of life insurance policies are exempt under Sec 10(10D), subject to norms prescribed in that section.  Riders are provided to give the policyholder the additional protection at marginal cost- Accident and Disability rider, Critical Illness Rider, Accidental benefit rider. 35www.final-yearprojects.co.cc | www.troubleshoot4free.com/fyp/
  • 36. www.final-yearprojects.co.cc | www.troubleshoot4free.com/fyp/Final Year Projects is One place for all Engineering Projects, Presentation, seminar,summer training report and lot more.NOTE:-This work is copyright to its Authors. This is only for Educational Purpose.  Loan against the policy: After the policy has acquired a surrender value one can avail loan against the policy.WEAKNESSES • Industry in nascent stage. • Rural areas still not covered. • Not very well known among the Indian population. • Lack of credibility in the public because ICICI being a private player. • Premiums are high as compared to its competitors. • Very few branches in the country. • PRODUCTS:  The policy doesn’t have the surrender option before the 3rd year.  Plan do not offer any guarantee or assured return  The product profile is not very comprehensive.  Mortality, management and administrative charges are sky-scraping as compared to its competitors.OPPORTUNITIES • Liberalization of Indian economy. • As the industry is growing the whole market is virgin. • The whole private sector is open to be tapped even though the competition is fierce from government owned insurance companies. • It’s a volume business that is even if the company has few good corporates the turnover ceases to increase by manifold. • PRODUCTS:  Preserver fund looks good due to comfortable liquidity in the economy and there is little chance of any hike in short-term rates by RBI.  Finance minister unveiled a budget-favoring consumer spending, boosting demand and therefore higher economic growth 36www.final-yearprojects.co.cc | www.troubleshoot4free.com/fyp/
  • 37. www.final-yearprojects.co.cc | www.troubleshoot4free.com/fyp/Final Year Projects is One place for all Engineering Projects, Presentation, seminar,summer training report and lot more.NOTE:-This work is copyright to its Authors. This is only for Educational Purpose.THREATS • The Govt. players will become aggressive thus growth is going to be tough. • Entry of other new players is not ruled out • Apprehension towards ICICI PRUDENTIAL being a private life insurance company. • We expect the industry to rationalize in future that is mergers and acquisitions will happen which will impact the industry and ICICI PRUDENTIAL fortunes. • PRODUCTS:  Past performance of these plans is not indicative of the future performance of the plan  The sum invested in the funds is subject to market risks and there can be no assurance that the objective of the plans will be achieved.  All benefits payable under the policy are subject to the tax laws and other financial enactment, as they exist from time to time MEANING OF ULIP 37www.final-yearprojects.co.cc | www.troubleshoot4free.com/fyp/
  • 38. www.final-yearprojects.co.cc | www.troubleshoot4free.com/fyp/Final Year Projects is One place for all Engineering Projects, Presentation, seminar,summer training report and lot more.NOTE:-This work is copyright to its Authors. This is only for Educational Purpose.A policy, which provides for life insurance where the policy value at any time variesaccording to the value of the underlying assets at the time. ULIP is life insurancesolution that provides for the benefits of protection and flexibility in investment. Theinvestment is denoted as units and is represented by the value that it has attainedcalled as Net Asset Value (NAV). Unit linked Units in insurance Underlying funds plans investmentA ULIP structure looks like as follows: Contribution Less charge Investment represented as Life cover units FEATURES OF ULIP 38www.final-yearprojects.co.cc | www.troubleshoot4free.com/fyp/
  • 39. www.final-yearprojects.co.cc | www.troubleshoot4free.com/fyp/Final Year Projects is One place for all Engineering Projects, Presentation, seminar,summer training report and lot more.NOTE:-This work is copyright to its Authors. This is only for Educational Purpose.ULIP distinguishes itself through the multiple benefits that it provides to theconsumer. The plan is a one-stop solution providing:· Life protection· Investment and Savings· Flexibility- Adjustable Life Cover- Investment Options· Transparency· Options to take additional cover against- Death due to accident- Disability- Critical Illness- Surgeries· Liquidity· Tax planningThe two strong arguments in favour of unit-linked plans are: • Firstly, the investor knows exactly what is happening to his money • Secondly it allows the investor to choose the assets into which he wants his funds invested.An investor in a ULIP knows how much he is paying towards mortality, managementand administration charges. He also knows where the insurance company has investedhis money.The investor gets exactly the same returns that the fund earns but he also bears theinvestment risk. The transparency makes the product more competitive. So if you arewilling to bear the investment risks in order to generate a higher return on yourretirement funds ULIPs are for you. Traditional ‘with profits’ policies too invest inthe market andgenerate the same returns prevailing in the market. But here the insurance companyevens out returns to ensure that policyholders do not hold money in a bad year. In thatsense they are safer. ULIPs also offer flexibility. For instance a policyholder can askthe insurance company to liquidate units in his account to meet to mortality charges if 39www.final-yearprojects.co.cc | www.troubleshoot4free.com/fyp/
  • 40. www.final-yearprojects.co.cc | www.troubleshoot4free.com/fyp/Final Year Projects is One place for all Engineering Projects, Presentation, seminar,summer training report and lot more.NOTE:-This work is copyright to its Authors. This is only for Educational Purpose.he is unable to pay any premium installment. This eats into savings but ensures thatthe policy will continue to cover his life.ULIP came into play in the 1960s and became very popular in Western Europe andAmericas. The reason that is attributed to the wide spread popularity of ULIP isbecause of the transparency and the flexibility which it offers. Unit- linked plans are acontemporary product: transparent and flexible. Individuals have greater control overtheir investments. The popularity of ULIPS stems from the fact that they offercustomers “integrated financial solutions with a transparent charge structure”. Intoday’s times, ULIP provides solutions for insurance planning, financial needs,financial planning for children’s future and retirement planning. Unit-linked insuranceplans (ULIPs) have become something of a rage with their promise of market-linkedreturns combined with the dual benefit of insuring your life from eventualities.Why do insurers prefer ULIPs?Insurers love ULIPs for several reasons. Most important of all, insurers can sell thesepolicies with lesser capital of their own than what would be required if they soldtraditional policies. In traditional ‘with profits’ policies the insurance company bearsthe investment risk to the extent of insured amount. In ULIPs the policyholder bearsmost of the investment risk. Since ULIPs are designed to mobilize savings, they giveinsurance companies an opportunity to get a large chunk of asset managementbusiness which has been traditionally dominated by mutual funds. ULIPs are suitablefor individuals who are already adequately insured and are reasonably well-informedand savvy to take active investment decisions by using the `switch option that isprovided to a ULIP policyholder. Also policyholders with regular endowment planswho are not satisfied with the 4-6% returns can consider taking a ULIP with a lowerequity component. It is best if insurance-seekers tread the middle path and choosebalanced plans (with about 50-60% equitycomponent). Ideally they need to avoid taking the aggressive 100% equity ULIP,which could needlessly expose their assets to market volatility. So if insurances-seekers/investors play their cards right, they can make this marriage work.WORKING OF UNIT LINKED INSURANCE PLANS 40www.final-yearprojects.co.cc | www.troubleshoot4free.com/fyp/
  • 41. www.final-yearprojects.co.cc | www.troubleshoot4free.com/fyp/Final Year Projects is One place for all Engineering Projects, Presentation, seminar,summer training report and lot more.NOTE:-This work is copyright to its Authors. This is only for Educational Purpose. UNIT LINKED PLANSSUPER SMART KID 41www.final-yearprojects.co.cc | www.troubleshoot4free.com/fyp/
  • 42. www.final-yearprojects.co.cc | www.troubleshoot4free.com/fyp/Final Year Projects is One place for all Engineering Projects, Presentation, seminar,summer training report and lot more.NOTE:-This work is copyright to its Authors. This is only for Educational Purpose.SmartKid offers an exclusive choice of 3 education insurance plans: SmartKid NewUnit-linked Regular Premium, SmartKid New Unit-linked Single Premium andSmartKid Regular Premium. Take a look at the features and benefits of each plan:1. SmartKid New Unit-linked Regular PremiumSmartKid New Unit-linked Regular Premium is a unit-linked plan, which enables youand your child to accumulate wealth by virtue of the performance of the underlyingmarket-linked instrument. Take a look at the features of the plan:Premium: The minimum premium to be invested is Rs. 10,000 per annum. Afterdeducting premium allocation charges from the premium, the remaining amount willbe invested in a fund of your choice.Sum Assured: The minimum Sum Assured that the policyholder can opt for is Term* Annual Premium/2, subject to a minimum of Rs 1 LacPolicy term: The term of the policy will be calculated as the difference between yourchilds current age and the age of your child when the policy matures.Mortality, Policy Administration charges: These and other charges will bededucted from the units in the fund.2. SmartKid New Unit-linked Single PremiumSmartKid New Unit-linked Single Premium works in much the same way asSmartKid New Unit-linked Regular Premium policy mentioned above. The onlydifferent feature is the premium amount-you will be required to pay only a singlepremium, which starts at as low as Rs. 50,000.Additional Features and Benefits Common to All 3 PlansRegular payouts: As your child approaches key educational milestones such as 12thstandard or graduation exams, he or she will receive regular payouts, guaranteeing heor she continues to study, no matter what the circumstance.Death Benefit: Your child will receive the Sum Assured immediately, shouldsomething happen to you. ICICI Prudential will pay the remaining premiums,ensuring your child continues to receive policy benefits, as always.Income Benefit Rider: You can choose to add the benefits of this rider to your childseducation plan. Should you depart before your sons or daughters education iscomplete, you child will receive 10% of Rider Sum Assured, for the balance term ofthe policy.Add-on riders: Accidental Death and Disability Rider and Waiver of PremiumRider ensure your child stays doubly protected, at all times. You can choose to addthese to your childs education policy.Tax benefits: Premiums you pay for a SmartKid policy are eligible for tax savings [u/ 42www.final-yearprojects.co.cc | www.troubleshoot4free.com/fyp/
  • 43. www.final-yearprojects.co.cc | www.troubleshoot4free.com/fyp/Final Year Projects is One place for all Engineering Projects, Presentation, seminar,summer training report and lot more.NOTE:-This work is copyright to its Authors. This is only for Educational Purpose. LifeLink SuperWell-deserved financial incentives, rewarding business profits and even ancestralmoney are precious amounts that you should invest immediately so they earn youpotentially higher returns in the long run.Invest in ICICI Prudentials LifeLink Super policy-a single-premium unit-linkedpolicythat works best for investors who have in mind long-term financial goals, such as theeducation of a child or the purchase of a larger home.Apart from the potentially higher returns that you can earn, LifeLink Super insuresyour family against misfortunes with its protective insurance cover.Read more about the features and benefits of this plan, right away.LifeLink Super at a glance Minimum/Maximum Entry Age 0 years to 65 years Maximum Age at Policy Maturity 70 years Minimum Policy Term 5 years Minimum Single Premium Up to age 44: Rs. 25,000, age 45 and above: Rs. 50,000 Annual Premium x Term/2. Subject to a Minimum Sum Assured minimum of Rs. 1,00,000 Tax Benefit Premium payment up to 20% of the Sum Assured is eligible for benefit under Sec. 80C. Any amount paid to you will be eligible for tax benefits under Sec. 10 (10D) exemption, if premium paid in any year does not exceed 20% of the Sum Assured. 43www.final-yearprojects.co.cc | www.troubleshoot4free.com/fyp/
  • 44. www.final-yearprojects.co.cc | www.troubleshoot4free.com/fyp/Final Year Projects is One place for all Engineering Projects, Presentation, seminar,summer training report and lot more.NOTE:-This work is copyright to its Authors. This is only for Educational Purpose.Features and benefits of LifeLink Super2 options of Sum Assured: Choose to receive either 125% or 500% of the singlepremium amount.Flexible policy term: Decide how long you wish to invest in this policy. You caninvest for a minimum of 5 years and keep your investment growing for as long as youwish after that.Partial withdrawal of money: Withdraw funds in installments from the 4th yearonwards.Attractive premium allocation rates: Enjoy 100% allocation for premium amountsequal to or greater than Rs. 5 lacs.6 investment funds: Select among Flexi-Growth, Maximiser, Flexi-Balanced,Balancer,Protector, and Preserver, based on your financial goals and risk profile.Switch benefit: Switch between funds anytime to maximize on market movements.You can switch funds 4 times a year, at no cost. For subsequent switches, you will berequired to pay a switch fee of Rs. 100.Maturity benefit: Receive the Fund Value when your policy matures. Choose to takethis value as a single lump-sum amount or in monthly, bi-annual or annualinstallments spread over 1 to 5 years.Death benefit: Your family receives the higher of Fund Value or Sum Assuredshould something happen to you.Why LifeTime Super 44www.final-yearprojects.co.cc | www.troubleshoot4free.com/fyp/
  • 45. www.final-yearprojects.co.cc | www.troubleshoot4free.com/fyp/Final Year Projects is One place for all Engineering Projects, Presentation, seminar,summer training report and lot more.NOTE:-This work is copyright to its Authors. This is only for Educational Purpose.As an individual who desires a lot from life-a car, a beautiful home and of course, thecomfort and contentment of your family-you would undoubtedly want to plan yourfinances such that you can take care of all your requirements.Invest in ICICI Prudentials LifeTime Super policy-a regular-premium unit-linkedpolicy, which offers potentially higher returns that systematically enable you to meetyour long-term financial objectives. In addition, LifeTime Super also provides theprotective benefit of an insurance cover, which keeps your family secure, always.Read more about the features and benefits of this plan.LifeTime Super at a glance Minimum/Maximum Entry Age 0 years to 65 years Maximum Age at Policy Maturity 75 years Minimum/Maximum Policy Term 10 years to 75 years Premium Payment Frequency Monthly, half-yearly, yearly Minimum Premium Rs. 18,000 per annum Annual Premium x Term/2. Subject to a Minimum Sum Assured minimum of Rs. 1,00,000 Tax Benefit (8) Premium paid for the policy and critical illness benefit rider will be eligible for tax benefit under Sec. 80C and 80D respectively. Any amount paid to you will be eligible for tax benefits under Sec. 10 (10D) as per prevailing Income Tax laws.Features and benefits of LifeTime Super 45www.final-yearprojects.co.cc | www.troubleshoot4free.com/fyp/
  • 46. www.final-yearprojects.co.cc | www.troubleshoot4free.com/fyp/Final Year Projects is One place for all Engineering Projects, Presentation, seminar,summer training report and lot more.NOTE:-This work is copyright to its Authors. This is only for Educational Purpose.Flexible policy term: Decide for how long you want your policy. You can invest fora minimum of 10 years and a maximum of 75 years.3 choices of premium payment: Opt to pay the premium on a monthly, bi-annual oran annual basis.6 investment funds: Select among Flexi-Growth, Maximiser, Flexi-Balanced,Balancer, Protector, and Preserver, based on your financial goals and risk profile.Systematic withdrawal of money: Withdraw money in installments from the 4thyear onwards.Maturity benefit: Receive the Fund Value when your policy matures. Choose to takethis value as a single lump-sum amount or in monthly, bi-annual or annualinstallments.Death benefit: Your family receives the higher of Fund Value or Sum Assuredshould something happen to you.Switch benefit: Switch between funds anytime to adjust your portfolio, based on yourgoals and risk profiles. You can switch funds 4 times a year, at no cost. Forsubsequent switches, you will be required to pay a switch fee of Rs. 100.ROLE OF AN ADVISOR IN UNIT LINKED INVESTMENTPLANSIt is important for us to know that what is the role that an advisor will play. At ICICIPrudential, you are an advisor is to 1. Provide ongoing financial advice for his/her clients: You are an advisor and just like a lawyer or a doctor you advice the client about insurance and finance. 2. Identify future clients: Life insurance is a business of contacts an the advisor constantly need to know people so that his business expands. 3. Constantly make appointments: Just making contacts will not be enough to develop a good life insurance business. 4. Advisor needs to meet these contacts and thus should make appointments on constantly. 5. Conduct financial review meetings with prospects/ clients: As an advisor it is necessary to meet with client not only for the purpose of selling but also to review the need of the client and prospects. Many people would not be in for life insurance today but as time moves they can be requiring one. Similarly an 46www.final-yearprojects.co.cc | www.troubleshoot4free.com/fyp/
  • 47. www.final-yearprojects.co.cc | www.troubleshoot4free.com/fyp/Final Year Projects is One place for all Engineering Projects, Presentation, seminar,summer training report and lot more.NOTE:-This work is copyright to its Authors. This is only for Educational Purpose. existing client may also be in need of more insurance as responsibilities and liabilities increase. Close sale: Ultimately success is defined as sales. The advisor should lead each appointment towards a sale and close it effectively where in the client is happy on purchasing the insurance solution and feels satisfied with it. CHAPTER-4 47www.final-yearprojects.co.cc | www.troubleshoot4free.com/fyp/
  • 48. www.final-yearprojects.co.cc | www.troubleshoot4free.com/fyp/Final Year Projects is One place for all Engineering Projects, Presentation, seminar,summer training report and lot more.NOTE:-This work is copyright to its Authors. This is only for Educational Purpose. RESEARCH METHODOLOGY Research Methodology has many dimensions, it include not only researchmethods but also considers the logic behind the methods used in the context of thestudy and explains why only a particular method of technique had been used so thatresearch lend themselves to p[roper evaluations. Thus in a way it is a written gameplan for concluding research therefore in order to solve research problem it isnecessary to design a research methodology for the problem as the same may differfrom problem to problem. Research design is the conceptual structure within whichthe research is conducted. Its functions are to provide for the collection of relevantevidence with minimum expenditure of effort, time and money. But, how this can beachieved depends on the research purpose. In my study the research purpose isexploratory study i.e. to gain familiarity with phenomena or to achieve new insights init.MARKET RESEARCH DESIGN : Descriptive typeDATA SOURCES : Primary sourceRESEARCH APPROACH : Survey methodRESEARCH INSTRUMENT : QuestionnaireTYPE OF QUESTIONS : Close-endedSAMPLE SIZE : 100 samplesMODE OF COLLECTING DATA: Respondents to be chosen randomly.SAMPLE DESIGN:Social phenomenon being very vast, it becomes impossible to contact each and everyindividual of population due to limitation of essential resources like time and money.Therefore, the study is preferably narrowed down to a representative sample to make 48www.final-yearprojects.co.cc | www.troubleshoot4free.com/fyp/
  • 49. www.final-yearprojects.co.cc | www.troubleshoot4free.com/fyp/Final Year Projects is One place for all Engineering Projects, Presentation, seminar,summer training report and lot more.NOTE:-This work is copyright to its Authors. This is only for Educational Purpose.the study more manageable. Quota sampling is adopted in the exploratory study. It isa non-probability study in which various insurance players are taken.SAMPLING UNIT:The data can be collected from primary sources. The basic premises of my study areprimary data but at the same time it is supplemented with the secondary data.Sampling unit is a unit which would be considered for the purpose of study to conductthe comparative study of the ICICI Prudential and other insurance companies withspecial reference to Unit Link Plans.SAMPLING SIZE:It refers to the number of items to be selected from the universal, to constitute asample. To commence the study various insurance players are taken.HOW DID I GO ABOUT THE PROJECT:-SAMPLE SIZEA sample size of 100 customers was selected to do this project, which was randomsampling keeping in mind the basic criteria.FIELD WORKThe research was done for a period of 2 months in (students, government employee &other) ambala. I started with MY MARKET 100 and thereafter I used to give coldcalls from the company’s database and if seemed interested I take along with me therepresentatives of the company for further information gathering.1) Study of Secondary Data: The quickest and the most economical way for researchers to find possible hypothesis is to take the advantage of the work done earlier and thus utilize their efforts.2) In-depth Interviews: I used in-depth interviews because it attempts to influence respondents to talk freely about their subject of interest .A formal questionnaire was made and according to which the questions were asked to the respondents.Basic methods of collecting Primary Data: 49www.final-yearprojects.co.cc | www.troubleshoot4free.com/fyp/
  • 50. www.final-yearprojects.co.cc | www.troubleshoot4free.com/fyp/Final Year Projects is One place for all Engineering Projects, Presentation, seminar,summer training report and lot more.NOTE:-This work is copyright to its Authors. This is only for Educational Purpose.1) Questionnaire Method: The questionnaire used by me for the purpose of data collection were of structured type (Non-disguised).2) Contact Method: In order to derive information from the intended organization, it was elementary for me to search for a link which could enable me to conduct a research in that organization.OBJECTIVE OF THE STUDYThe project undertaken by me as a part of my Summar Training of M.B.A.course is aneffort made to study the ULIP policies and activities in ICICI PRUDENTIAL withspecial emphasis on unit linked products of the company.In this era of cut throat competition, any organization needs to select and retain thebest talent. People selected should have positive attitude, ability to inspire others andmust be dynamic.The main objectives of this study are: • Working of Unit linked Insurance Plans • SWOT analysis of the product sold • Comparative study with the competitor. • Study tax planning solutions available in the market. • Study asset allocation through insurance plans. • Market interphase. 50www.final-yearprojects.co.cc | www.troubleshoot4free.com/fyp/
  • 51. www.final-yearprojects.co.cc | www.troubleshoot4free.com/fyp/Final Year Projects is One place for all Engineering Projects, Presentation, seminar,summer training report and lot more.NOTE:-This work is copyright to its Authors. This is only for Educational Purpose. CHAPTER-5 51www.final-yearprojects.co.cc | www.troubleshoot4free.com/fyp/
  • 52. www.final-yearprojects.co.cc | www.troubleshoot4free.com/fyp/Final Year Projects is One place for all Engineering Projects, Presentation, seminar,summer training report and lot more.NOTE:-This work is copyright to its Authors. This is only for Educational Purpose. COMPARATIVE STUDY WITH THE COMPETITORS LIST: • LifeTime Super Vs LIC BimaPlus • LifeTime Super Vs Birla SunLife Classic Life • LifeTime Super Vs HDFC Linked • PremierLife Vs Bajaj Allianz Unitgain Plus 52www.final-yearprojects.co.cc | www.troubleshoot4free.com/fyp/
  • 53. www.final-yearprojects.co.cc | www.troubleshoot4free.com/fyp/Final Year Projects is One place for all Engineering Projects, Presentation, seminar,summer training report and lot more.NOTE:-This work is copyright to its Authors. This is only for Educational Purpose. LIFETIME SUPER VS LIC BIMAPLUSFeatures LifeTime Super LIC BimaPlusAge 0 – 60 years 12 - 55 yearsTerm Minimum premium payment term of 3years 10 yearsSum Assured Choose your sum assured, subject to Maximum limit upto Rs. 2 lakhs a minimum sum assured of Rs. 1 lakhSurvival benefit Value of units (3rd year onwards) Bid Value of the fund units along with maturity bonus at 5% of the Sum AssuredDeath benefit Higher of Sum Assured or value of Death during the first 6 months - units. 30% of SA + value of units, next 6 months - 60% of SA + value of units. Death after 1st year - SA + value of units. Death during the 10th year - 105% of SA + value of units.Withdrawal benefit Partial or complete withdrawals are Premature withdrawal allowed available from the 3rd year onwards after one year (after applying bid-offer spread.Contribution Minimum: Rs. 18,000 p.a. Not specified 53www.final-yearprojects.co.cc | www.troubleshoot4free.com/fyp/
  • 54. www.final-yearprojects.co.cc | www.troubleshoot4free.com/fyp/Final Year Projects is One place for all Engineering Projects, Presentation, seminar,summer training report and lot more.NOTE:-This work is copyright to its Authors. This is only for Educational Purpose.Flexible Flexibility to increase or decrease incontribution contribution Not availableInvestment options Maximiser, Balancer, Protector & Preserver. Balanced, Secured & RiskIncrease / Decrease Available. Not availableof death benefitBonus units Available Not Available.Top-up Available. Minimum top-up of Rs. Available (Charges: 1.5% of the 5000. Charges - 1% of top-up. top-up) 4 free switches a year, with the No free switches. Cost of minimum switch amount being Rs. switching is 2% of the fundSwitch 2000. value.Surrender value The policy will acquire a surrender Partial surrender up to 50% of value after 3 complete premium- bid value of units allowed after 3 paying years. The surrender value is years from date of 100% of the value of investments. commencementInitial Charge % Allocation of the premium Not Disclosed 18000- 49,999: 1st year - 80%; 2nd year - 92.5% ; 3rd year onwards - 96%. 50000 and above: 1st year - 82%; 2nd year - 92.5%; 3rd year onwards - 96%.Admin Charge None Not applicableOther Charges Not applicable Not applicable The annual administrative and fund management charge is 2.25% for Maximiser, 2.25% for Balancer,Fund Management 1.50% for Protector & 0.75% forCharges Preserver. 1% of the fund per annum 54www.final-yearprojects.co.cc | www.troubleshoot4free.com/fyp/
  • 55. www.final-yearprojects.co.cc | www.troubleshoot4free.com/fyp/Final Year Projects is One place for all Engineering Projects, Presentation, seminar,summer training report and lot more.NOTE:-This work is copyright to its Authors. This is only for Educational Purpose. IFETIME SUPER VS HDFC LINKEDFeatures LifeTime Super HDFC LinkedAge 0 - 60 years 18 - 60 yearsTerm Minimum premium payment term of 10 - 30 years 3yearsSum Assured Choose your sum assured, subject to Only 5,10, 20 (age-based) a minimum sum assured of Rs. 1 multiples are allowed as Sum lakh Assured.Survival benefit Value of units (3rd year onwards) Value of unitsDeath benefit Higher of Sum Assured or value of Higher of Sum Assured or value units. of units.Withdrawal benefit Partial or complete withdrawals are Partial withdrawal available available from the 3rd year onwards from the 3rd year onwards, provided that the Value of Units does not go below the Sum Assured.Contribution Minimum: Rs. 18,000 p.a. Minimum: Rs. 10,000 p.a.Flexible Flexibility to increase or decrease in Availablecontribution contribution.Investment options Maximiser, Balancer, Protector & 5 Fund Options- Balancer, Preserver. Defensive Managed, Safe Managed, Liquid & GrowthIncrease / Decrease Available. Not availableof death benefitBonus units Available Not availableTop-up Available. Minimum top-up of Rs. Available 5000. Charges - 1% of top-up.Switch 4 free switches a year, with the Switches are free as of now. But minimum switch amount being Rs. the company reserves the right 2000. to put a charge on the switches.Surrender value The policy will acquire a surrender The surrender charge is 25% of value after 3 complete premium- 3 years outstanding regular paying years. premium. No charges after 3 55www.final-yearprojects.co.cc | www.troubleshoot4free.com/fyp/
  • 56. www.final-yearprojects.co.cc | www.troubleshoot4free.com/fyp/Final Year Projects is One place for all Engineering Projects, Presentation, seminar,summer training report and lot more.NOTE:-This work is copyright to its Authors. This is only for Educational Purpose. yearsInitial Charge % Allocation of the premium Charges 18000- 49,999: 1st year - 80%; 2nd 1st yr-27%, 2nd yr- 27%, 3rd yr year - 92.5%; 3rd year onwards - onwards- 1% 96%. 50000 and above: 1st year - 82%; 2nd year - 92.5%; 3rd year onwards - 96%.Admin Charge None Admin charges of Rs.180 fixed charge per annum.Other Charges Not applicable Not applicableFund Management The annual administrative and fund Investment charge of 0.80% ofCharges management charge is 2.25% for the Fund Value across all the Maximiser, 2.25% for Balancer, funds. 1.50% for Protector & 0.75% for Preserver.Rider ADBR, CIBR & MSAR ABR & CIBR SUPER PREMIER LIFE VS BAJAJ ALLIANZ UNITGAIN PLUSFeatures Super Premier Life Bajaj Allianz Unitgain PlusAge 18 - 60 years 0 - 60 yearsTerm Premium paying term of 3 years, 5 Minimum premium payment years, 7 years or 10 years. term of 3 yearsSum Assured Sum Assured multiple is 1 - 25 times Minimum Sum Assured is 5 56www.final-yearprojects.co.cc | www.troubleshoot4free.com/fyp/
  • 57. www.final-yearprojects.co.cc | www.troubleshoot4free.com/fyp/Final Year Projects is One place for all Engineering Projects, Presentation, seminar,summer training report and lot more.NOTE:-This work is copyright to its Authors. This is only for Educational Purpose. the annual premium times the premium paid.Survival benefit Value of units Anytime after payment of 3 full years premiums.Death benefit Higher of Sum Assured decreased by the amount of withdrawals made or Higher of Sum Assured or value of units. value of unitsWithdrawal benefit Partial withdrawals are available after Partial or complete the 3rd policy year and after payment withdrawals are available after of 3 years premiums. Complete the 3rd years contribution withdrawals are available after the 1st year premium. However surrender penalties will apply.Contribution Minimum: Rs. 60,000 p.a. Minimum: Rs. 10,000 p.a.Flexible Availablecontribution AvailableInvestment options Maximiser, Balancer, Protector & Equity Index Fund, Equity Plus Preserver. Fund, Debt Fund, Balanced Fund, Cash FundDecrease in death Available. AvailablebenefitBonus units Available. Not availableTop-up Available. Minimum top-up of Rs. Available. Charge are 2% of 5000. Charges - 1% of top-up. the top-up amountSwitch 4 free switches a year. Three free switches every year.Surrender value The policy will acquire a surrender Withdrawals are only allowed value from the 1st year onwards. after payment of 3 full years premiumsInitial Charges % Allocation of the premium % Allocation of the premium 3 year premium paying term 1st year - 76%; 97% from year 2 onwards Rs. 60.000 - Rs. 4,99,999: 1st year: 87%; 2nd and 3rd year: 96% Rs. 5,00,000 and above: 1st year: 89%; 2nd and 3rd year: 96% 5, 7 and 10 year premium paying term Rs. 60.000 - Rs. 4,99,999: 1st year: 88%; 2nd and 3rd year: 97%; 4th and 5th year: 98%;6th year onwards: 100% Rs. 5,00,000 and above: 1st year: 90%; 57www.final-yearprojects.co.cc | www.troubleshoot4free.com/fyp/
  • 58. www.final-yearprojects.co.cc | www.troubleshoot4free.com/fyp/Final Year Projects is One place for all Engineering Projects, Presentation, seminar,summer training report and lot more.NOTE:-This work is copyright to its Authors. This is only for Educational Purpose. 2nd and 3rd year: 97%; 4th and 5th year: 98%; 6th year onwards: 100%Admin Charge Admin charge of Rs. 60 / month Annual admin charges of Rs. 20Fund Management The annual investment charge is 1.50% 1.5% p.a. for a Equity PlusCharges for Maximiser, 1.00% for Balancer, Fund, 1% p.a. for Equity Index 0.75% for Protector & Preserver. Fund, No specific charges in case of Balanced Fund, 0.7% p.a. for Debt Plus Fund and 0.7% in case of Cash Plus Fund.Rider ADBR & CIBR ABR, ADBR, CI & Hospital Cash Benefit STUDY TAX PLANNING SOLUTIONS AVAILABLE IN THE MARKETTAX BENEFITS ON INSURANCE AND PENSIONLife insurance and retirement plans are effective ways of saving taxes. The tax breaksthat are available under various insurance and pension policies are described below: • Life insurance plans are eligible for deduction under Sec. 80C • Pension plans are eligible for a deduction under Sec. 80CCC • Health riders are eligible for deduction under Sec. 80D • The proceeds or withdrawals of life insurance policies are exempt under Sec 10(10D), subject to norms prescribed in that section. 58www.final-yearprojects.co.cc | www.troubleshoot4free.com/fyp/
  • 59. www.final-yearprojects.co.cc | www.troubleshoot4free.com/fyp/Final Year Projects is One place for all Engineering Projects, Presentation, seminar,summer training report and lot more.NOTE:-This work is copyright to its Authors. This is only for Educational Purpose.Tax Rates for IndividualsThe rates of income tax for FY 2007-08 are as follows: Rate of tax Total Income (Rs.) Senior citizen Women below 65 Others yearsUpto Rs 1,00,000/- Nil Nil NilAbove Rs 100,000/- to 145,000/- Nil Nil 10%Above Rs 145,000/- to 150,000/- Nil 10% 10%Above Rs 150,000/- to 195,000/- Nil 20% 20%Above Rs 195,000/- to 250,000/- 20% 20% 20%Above Rs 250,000/- 30% 30% 30%Surcharge on Income Tax: In case where the Total Income exceeds Rs 10,00,000,there would be a surcharge @ 10%.Education Cess on Income Tax: Education Cess @2% will be payable on theamount of income tax (including surcharge).Benefits under insurance policy - Section 10(10D)As per Section 10(10D) of Income tax Act, 1961, any sum received under a lifeinsurance policy, including the sum allocated by way of bonus on such policy isexempt from tax. However, this rule does not apply to following amounts:Sum received under Section 80DD (3), orAny sum received under a Keyman Insurance Policy, orAny sum received other than as death benefit under an insurance policy which hasbeen issued on or after April 1 2003 and if the premium paid in any of the yearsduring the term of the policy is more than 20% of the sum assured. 59www.final-yearprojects.co.cc | www.troubleshoot4free.com/fyp/
  • 60. www.final-yearprojects.co.cc | www.troubleshoot4free.com/fyp/Final Year Projects is One place for all Engineering Projects, Presentation, seminar,summer training report and lot more.NOTE:-This work is copyright to its Authors. This is only for Educational Purpose. CHAPTER-6 60www.final-yearprojects.co.cc | www.troubleshoot4free.com/fyp/
  • 61. www.final-yearprojects.co.cc | www.troubleshoot4free.com/fyp/Final Year Projects is One place for all Engineering Projects, Presentation, seminar,summer training report and lot more.NOTE:-This work is copyright to its Authors. This is only for Educational Purpose. 61www.final-yearprojects.co.cc | www.troubleshoot4free.com/fyp/
  • 62. www.final-yearprojects.co.cc | www.troubleshoot4free.com/fyp/Final Year Projects is One place for all Engineering Projects, Presentation, seminar,summer training report and lot more.NOTE:-This work is copyright to its Authors. This is only for Educational Purpose. DATA ANALYSIS & FINDINGS1). Are you interested in products offered by the ICICI PRUDENTIAL?Yes 61%No 22%Will think 17% 17% Yes No 22% Will think 61%INTERPRETATIONThe good thing is that atleast the corporates were quite eager to find out what ICICIPRUDENTIAL has to offer whereas the major 39 % of the corporates were not eveninterested in the products as they are quite satisfied by the LIC and they are not inbreaking their long relationship with them. The private players will have to play along battle in order to ensure that they are serious player in the market. Basicallycorporates think that its too early to invest in private companies as they have justentered the scene and they are unsure of the security they will have about theirinvestment. 62www.final-yearprojects.co.cc | www.troubleshoot4free.com/fyp/
  • 63. www.final-yearprojects.co.cc | www.troubleshoot4free.com/fyp/Final Year Projects is One place for all Engineering Projects, Presentation, seminar,summer training report and lot more.NOTE:-This work is copyright to its Authors. This is only for Educational Purpose.2). Are you satisfied with your present insurer?YES 65%No 35% 35% Yes No 65%INTERPRETATIONHere is where the challenge is. Inevitably most of the players are very satisfied withtheir present insurer which makes it more tough for the private players to attract thecorporates. The remaining 35 % are also not very dissatisfied by the services but theyare just open to new avenues and are looking forward that private companies comewith good offers so that they may shift to them. Thus private players will have to bevery proactive and in this regard since LIC is the leader and ICICI PRUDENTIAL islagging behind its competitors in terms of competition.3). Where would you like to insure if given chance? 63www.final-yearprojects.co.cc | www.troubleshoot4free.com/fyp/
  • 64. www.final-yearprojects.co.cc | www.troubleshoot4free.com/fyp/ Final Year Projects is One place for all Engineering Projects, Presentation, seminar, summer training report and lot more. NOTE:-This work is copyright to its Authors. This is only for Educational Purpose. LIC - 60 ICICI - 10 BAJAJ ALLIANZ - 5 TATA AIG - 15 SBI - 8 KOTAK MAHINDRA - 2 60 60 50 NO 40 OF PEOPLE 30 15 20 10 8 5 10 2 0 LIC SBI TATA AIG ICICI BAJAJ KOTAK MAHINDRACOMPANIES INTERPRETATION Thus we see that the companies are comfortable in having business with govt. owned companies as they feel its safe & secure to have business with them which is followed by SBI as it is the biggest bank and then followed by TATA AIG as the name TATA is associated with it which commands huge premium in the market . Whereas in the case of ICICI PRUDENTIAL the figures represent mediocre performance after compelling and coxing the corporates and creating a strong impression whether they feel interested in doing business with the company. 64 www.final-yearprojects.co.cc | www.troubleshoot4free.com/fyp/
  • 65. www.final-yearprojects.co.cc | www.troubleshoot4free.com/fyp/Final Year Projects is One place for all Engineering Projects, Presentation, seminar,summer training report and lot more.NOTE:-This work is copyright to its Authors. This is only for Educational Purpose.4). What is people’s main concern while taking a insurance policy (ULIP)? A) Security 40% B) Returns 28% C) Tax rebate 32% 50% 40% %AGE 30% Series1 20% 10% 0% SECURITY RETURNS TAX REBATE FACTORINTERPRETATIONPeople invest in insurance mainly because of security concern. 65www.final-yearprojects.co.cc | www.troubleshoot4free.com/fyp/
  • 66. www.final-yearprojects.co.cc | www.troubleshoot4free.com/fyp/Final Year Projects is One place for all Engineering Projects, Presentation, seminar,summer training report and lot more.NOTE:-This work is copyright to its Authors. This is only for Educational Purpose.5). Are you aware of LifetimeSuper introduced by ICICI Prudential limited?Yes 58%No 42% %AGE OF PEOPLE 80% 60% 40% Series1 20% 0% YES NO RESPONSEINTERPRETATIONThe awareness level among the corporate about ICICI PRUDENTIAL offeringservices is very low and the company needs to work on it. Today is the world ofmarketing thus it is recommended that company should become more media friendlyby advertising more through television channels, radio, newspapers, magazines,journals &editorials. 66www.final-yearprojects.co.cc | www.troubleshoot4free.com/fyp/
  • 67. www.final-yearprojects.co.cc | www.troubleshoot4free.com/fyp/Final Year Projects is One place for all Engineering Projects, Presentation, seminar,summer training report and lot more.NOTE:-This work is copyright to its Authors. This is only for Educational Purpose. CHAPTER-7 67www.final-yearprojects.co.cc | www.troubleshoot4free.com/fyp/
  • 68. www.final-yearprojects.co.cc | www.troubleshoot4free.com/fyp/Final Year Projects is One place for all Engineering Projects, Presentation, seminar,summer training report and lot more.NOTE:-This work is copyright to its Authors. This is only for Educational Purpose. LIMITATIONS • The geographical area was very much limited to residential area & so the results are not particularly reflection of the current behavior. • Biases and non-cooperation of the respondents. • Due to limited time period and constrained working hours for most of the respondents, the answers at times were vague enough to be ignored. • Most of the people in India take their policies in the period preceeding March(for tax saving purposes) & so the response to initial contacts were not all encouraging and that has been the primary reason in the inability to quantify the results large enough so as to reduce any relevant outcomes. • Most of the results that are spelt out have been of qualitative aspects. • People are not interested in giving personal opinion. 68www.final-yearprojects.co.cc | www.troubleshoot4free.com/fyp/
  • 69. www.final-yearprojects.co.cc | www.troubleshoot4free.com/fyp/Final Year Projects is One place for all Engineering Projects, Presentation, seminar,summer training report and lot more.NOTE:-This work is copyright to its Authors. This is only for Educational Purpose. 69www.final-yearprojects.co.cc | www.troubleshoot4free.com/fyp/
  • 70. www.final-yearprojects.co.cc | www.troubleshoot4free.com/fyp/Final Year Projects is One place for all Engineering Projects, Presentation, seminar,summer training report and lot more.NOTE:-This work is copyright to its Authors. This is only for Educational Purpose. RECOMMENDATIONS • More emphasis should be on promotional activities. • Plenty of advertisement should be done through T.V, Newspaper and Radio as these media’s are having maximum recall value. • Total financial planning and advice should be given to every customer. • More business opportunity seminars should be conducted to make people aware of the offer given. • The company should quite frequently send their agent to the customer so that they should be aware of the latest offer. • The company should attempt to open more and more of its branches in the country so as to promote their product publicity. 70www.final-yearprojects.co.cc | www.troubleshoot4free.com/fyp/
  • 71. www.final-yearprojects.co.cc | www.troubleshoot4free.com/fyp/Final Year Projects is One place for all Engineering Projects, Presentation, seminar,summer training report and lot more.NOTE:-This work is copyright to its Authors. This is only for Educational Purpose. 71www.final-yearprojects.co.cc | www.troubleshoot4free.com/fyp/
  • 72. www.final-yearprojects.co.cc | www.troubleshoot4free.com/fyp/Final Year Projects is One place for all Engineering Projects, Presentation, seminar,summer training report and lot more.NOTE:-This work is copyright to its Authors. This is only for Educational Purpose. CONCLUSION LIC enjoys credibility over other private players in the industry People look for security over returns in market linked plans .Lifetime is the most popular product among the people who are aware about ICICI Prudential’s products. People are now showing more interest in ULIP as compared to some of the traditional plans. ICICI PRUDENTIAL has to counter the distribution network of LIC .The product profile of ICICI PRUDENTIAL is not very comprehensive 72www.final-yearprojects.co.cc | www.troubleshoot4free.com/fyp/
  • 73. www.final-yearprojects.co.cc | www.troubleshoot4free.com/fyp/Final Year Projects is One place for all Engineering Projects, Presentation, seminar,summer training report and lot more.NOTE:-This work is copyright to its Authors. This is only for Educational Purpose. 73www.final-yearprojects.co.cc | www.troubleshoot4free.com/fyp/
  • 74. www.final-yearprojects.co.cc | www.troubleshoot4free.com/fyp/Final Year Projects is One place for all Engineering Projects, Presentation, seminar,summer training report and lot more.NOTE:-This work is copyright to its Authors. This is only for Educational Purpose. BIBLOGRAPHY • www.iciciresearchcenter.org • www.tata-aig.com • www.iciciprulife.com • www.personalfn.com 74www.final-yearprojects.co.cc | www.troubleshoot4free.com/fyp/
  • 75. www.final-yearprojects.co.cc | www.troubleshoot4free.com/fyp/Final Year Projects is One place for all Engineering Projects, Presentation, seminar,summer training report and lot more.NOTE:-This work is copyright to its Authors. This is only for Educational Purpose. 75www.final-yearprojects.co.cc | www.troubleshoot4free.com/fyp/
  • 76. www.final-yearprojects.co.cc | www.troubleshoot4free.com/fyp/Final Year Projects is One place for all Engineering Projects, Presentation, seminar,summer training report and lot more.NOTE:-This work is copyright to its Authors. This is only for Educational Purpose. ANNEXURE 1. Do you have any life insurance policies? Yes No If Yes: - Name of the Company ________________ Name of the plan _________________ Annual Amount of premium _________________ Term of plan _________________ 1. Are you satisfied with present insurer? A) YES B) NO 2. Which are the main issues that you take into consideration while purchasing any life insurance policy? A) Security B) Returns C) Tax saving D) Others please specify_________ 3. Are you aware of Unit Linked Insurance Plans offered by various companies in India? A) ICICI B) OM KOTAK MAHINDRA C) TATA AIG D) BAJAJ ALLIANZ E) LIC F) SBI G) MAX NEW YORK H) BIRLA SUNLIFE 76www.final-yearprojects.co.cc | www.troubleshoot4free.com/fyp/
  • 77. www.final-yearprojects.co.cc | www.troubleshoot4free.com/fyp/Final Year Projects is One place for all Engineering Projects, Presentation, seminar,summer training report and lot more.NOTE:-This work is copyright to its Authors. This is only for Educational Purpose. 4. Do you know how a Unit Linked Insurance Plan works? A) YES B) NO 5. Can you please highlight risk attached with them? A) HIGH B) MODERATE C) LOW 6. What is your perception about the Unit link insurance plans, are they give you a sense of security? A) YES B) NO 7. Are you aware of Lifetime pension plan introduced by ICICI Prudential limited? A) YES B) NO 8. If you are given a choice, which one you take: A) ICICI B) OM KOTAK MAHINDRA C) TATA AIG D) BAJAJ ALLIANZ E) LIC F) SBI 9. What other plans or flexibility you expect from Insurance companies? A) Fewer premiums B) More returns C) Complementary gifts 10. Are you interested in buying products of ICICI Prudential? A) YES B) NO 77www.final-yearprojects.co.cc | www.troubleshoot4free.com/fyp/

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