Hr practices and polices of ICICI Bank

A PROJECT ON
A COMPARATIVE STUDY OF HR PRACTICES AND
POLICES OF ICICI PRUDENTIAL LIFE INSURANCE
COMPANY LTD (DIST PATIALA)
A project report submitted in partial fulfillment of the requirement for the degree of
MASTER OF BUSINESS ADMINISTRATION, DISTANCE EDUCATION
GURU JAMBHESHWAR UNIVERSITY OF SCIENCE & TECHNOLOGY,
HISAR (2008-2010)
RESEARCH SUPERVISOR SUBMITTED
BY:
DR N. K SAHNI Name
BHARAT BHUSHAN
ROLL
NUMBER 2020
DIRECTORATE OF DISTANCE EDUCATION
GURU JAMBHESHWAR UNIVERSITY OF SCIENCE & TECHNOLOGY HISAR
(INDIA)
1

CERTIFICATE
This is to certify that the project report entitled “COMPARATIVE STUDY OF HR
PRATICES AND POLICES OF ICICI PRUDENTIAL LIFE INSURANCE CO LTD
(DIST PATIALA) submitted by Mr. BHARAT BHUSHAN of the DIRECTORATE OF
DISTANCE EDUCATION GURU JAMBHESHWAR UN IVERSITY OF SCIENCE &
TECHNOLOGY HISAR (INDIA) in partial fulfillment of the requirement for the degree
of Master of Business Administration (MBA) is a bonafide research work completed
under my guidance and supervision. No part of this project report has ever been
submitted for any other degree or diploma. The assistance rendered during the course of
the study has been duly acknowledged.
DR. N K
SAHNI
HOD
Post Graduate dept of Commerce
& Management S.D.
college
Chandigarh
DECLARATION
2

Certified that I BHARAT BHUSHAN of Master of Business Administration
(MBA) have prepared report titled “ COMPATATIVE STUDY OF HR PRACTICES
AND POLICES OF ICICI PRUDENTIAL LIFE INSURANCE COMPANY LTD. (DIST
PATIALA) under the guidance of Dr N.N. SAHNI Designation HOD in POST
GRADUATE DEPT OF COMMERCE & MANAGEMENT S.D COLLEGE
CHANDIGARH, in the partial fulfillment of the requirement for the degree of Master of
Business Administration. There by certify that no part of this report has been submitted
for any other degree.
BHARAT BHUSHAN
ROLL NUMBER 2020
MBA 2ND
Year
ACNKOWLEDGEMENT
3

This humble endeavor bears the imprint of many persons who were in ony way of
the other helpful in the completion of my final research project. I would life to take this
opportunity to present my vote of thanks to my guides who acted as lighting pillars to
enlighten my way through out this project. This project would not have been possible
without the kind assistance and guidance of many people who indeed were helpful,
cooperative and kind during the entire course of my project.
The acknowledgment would not be complete without expressing my indebtedness
to my Hon’ble Dr N.K. SAHNI who guides me in this project and was the constant
source of reference for me and showed full interest at each and every step of my project.
(BHARAT BHUSHAN)
4

TABLE OF CONTENT
Chapter. No CONTENTS Page
No.
EXECUTIVE SUMMARY 1
1. INTRODUCTION 2
2. INSURANCE INDUSTRY 19
3. PROFILE OF ICICI PRUDENTIAL LIFE INSURANCE CO.LTD. 33
4. IMPLEMENTING HR PRACTICES AND POLICES IN ICICI
PRUDENTIAL LIFE INSURANCE CO.LTD
51
5. RESEARCH OBJECTIVES 65
6. RESEARCH METHODOLOGY 66
7. DATA ANALYSIS AND INTERPRETATION 68
8. SUGGESTION 83
9. CONCLUSION 92
10. LIMITATIONS 93
11. BIBLIOGRAPHY
12. ANNEXTURE
EXECUTIVE SUMMARY
5

ICICI Prudential Life Insurance Life Insurance is one of the largest Insurance
networks in the country, and 2nd
Life Insurance Company in India. The ICICI Group has
been in existence since 1955 when ICICI Ltd., was created. ICICI Prudential Life
Insurance started in 2002 as subsidiary of ICICI Ltd., Today ICICI Life Insurance has a
customer base of 4 million with total assets exceeding Rs.1, 00,000 Cr. making it the 2nd
largest life insurance company in the country, next only to LIC.
The Insurance sector, after the opening up, provides greater opportunities. Several
global players have emerged and the market has changed significantly. In the changed
scenario, the expectation is that the low Insurance premium as a percentage of GDP
prevailing in India will improve and will offer better opportunities to the insurance
players.
Life Insurance sector is one of the key areas where enormous business potential
exists. In India currently the life insurance premium as a percentage of GDP is 1.3 per
cent against 5.2 per cent in the US, but in the liberalized scenario, the life insurance
premiums were projected to grow at around 18% to 20% from Rs 215 billion in 1998- 99
to Rs 592 billion in 2004-05 and to Rs 1450 billion by 2009-10. Corporate non-life
premium was projected to grow from Rs 84 billion in 1998-99 to Rs 386 billion in 2009-
10 and personal line non-life from Rs 4 billion to Rs 51 billion.
In the life Insurance segment the Life Insurance Corporation of India (LIC) is the
major player. The LIC has 2050 branches. It is constituted in to seven Zones. Currently
there are 5, 60,000 LIC agents in India. General Insurance is another segment, which has
been growing at a faster pace.
Though it all can happen with good HR policies and practices that has been a part
of ICICI Prudential Life Insurance.
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1. INTRODUCTION
The role of Human Resources is changing as fast as technology and the global
marketplace. Historically, the HR Department was viewed as administration, kept
personal files and other records, managed the hiring process, and provided other
administrative support to the business. Those times have changed.
The positive result of these changes is that HR professionals have the opportunity to play
a more strategic role in the business. The challenge for HR managers is to keep up to date
with the latest HR innovations—technological, legal, and otherwise.
This special report will discuss the best practices in HR management for 2010—in other
words, how HR managers can anticipate and address some of the most challenging HR
issues this year. This report will give you the information you need to know about these
current HR challenges and how to most effectively manage them in your workplace.
Human resources is an increasingly broadening term with which an organization, or
other human system describes the combination of traditionally administrative personnel
functions with acquisition and application of skills, knowledge and experience, Employee
Relations and resource planning at various levels. The field draws upon concepts
developed in Industrial/Organizational Psychology and System Theory. Human resources
has at least two related interpretations depending on context. The original usage derives
from political economy and economics, where it was traditionally called labor, one of
four factors of production although this perspective is changing as a function of new and
ongoing research into more strategic approaches at national levels. This first usage is
used more in terms of `human resources development', and can go beyond just
organizations to the level of nations. The more traditional usage within corporations and
businesses refers to the individuals within a firm or agency, and to the portion of the
organization that deals with hiring, firing, training, and other personnel issues, typically
referred to as `human resources management'. This article addresses both definitions.
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The objective of human resource’s' development (the `s' is important in human
resource`s' in that it underscores indiduality/variability) is to foster human
resourcefulness through enlightened and cohesive policies in education, training, health
and employment at all levels, from corporate to national (Lawrence 2000) Human
resource management's objective, on the other hand, is to maximize the return on
investment from the organization's human capital and minimize financial risk. It is the
responsibility of human resource managers in a corporate context to conduct these
activities in an effective, legal, fair, and consistent manner.
Human resource management serves these key functions:
1. Recruitment & Selection
2. Training and Development
3. Performance Evaluation and Management
4. Promotions
5. Redundancy
6. Industrial and Employee Relations
7. Record keeping of all personal data.
8. Compensation, pensions, bonuses etc in liaison with Payroll
9. Confidential advice to internal 'customers' in relation to problems at work
10. Career development
Modern analysis emphasizes that human beings are not "commodities" or "resources",
but are creative and social beings in a productive enterprise. The 2000 revision of ISO
9001 in contrast requires to identify the processes, their sequence and interaction, and to
define and communicate responsibilities and authorities. In general, heavily unionized
nations such as France and Germany have adopted and encouraged such job descriptions
especially within trade unions. The International Labour Organization also in 2001
decided to revisit, and revise its 1975 Recommendation 150 on Human Resources
Development. One view of these trends is that a strong social consensus on political
economy and a good social welfare system facilitates labor mobility and tends to make
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the entire economy more productive, as labor can develop skills and experience in
various ways, and move from one enterprise to another with little controversy or
difficulty in adapting. Another view is that governments should become more aware of
their national role in facilitating human resources development across all sectors.
An important controversy regarding labor mobility illustrates the broader philosophical
issue with usage of the phrase "human resources": governments of developing nations
often regard developed nations that encourage immigration or "guest workers" as
appropriating human capital that is rightfully part of the developing nation and required
to further its growth as a civilization. They argue that this appropriation is similar to
colonial commodity fiat wherein a colonizing European power would define an arbitrary
price for natural resources, extracting which diminished national natural capital.
The debate regarding "human resources" versus human capital thus in many ways echoes
the debate regarding natural resources versus natural capital. Over time the United
Nations have come to more generally support the developing nations' point of view, and
have requested significant offsetting "foreign aid" contributions so that a developing
nation losing human capital does not lose the capacity to continue to train new people in
trades, professions, and the arts.
An extreme version of this view is that historical inequities such as African slavery must
be compensated by current developed nations, which benefited from stolen "human
resources" as they were developing. This is an extremely controversial view, but it echoes
the general theme of converting human capital to "human resources" and thus greatly
diminishing its value to the host society, i.e. "Africa", as it is put to narrow imitative use
as "labor" in the using society.
In a series of reports of the UN Secretary-General to the General Assembly, a broad inter-
sectoral approach to developing human resourcefulness has been outlined as a priority for
socio-economic development and particularly anti-poverty strategies. This calls for
strategic and integrated public policies, for example in education, health, and
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employment sectors that promote occupational skills, knowledge and performance
enhancement (Lawrence, J.E.S. 2000).
In the very narrow context of corporate "human resources" management, there is a
contrasting pull to reflect and require workplace diversity that echoes the diversity of a
global customer base. Foreign language and culture skills, ingenuity, humor, and careful
listening, are examples of traits that such programs typically require. It would appear that
these evidence a general shift through the human capital point of view to an
acknowledgment that human beings do contribute much more to a productive enterprise
than "work": they bring their character, their ethics, their creativity, their social
connections, and in some cases even their pets and children, and alter the character of a
workplace. The term corporate culture is used to characterize such processes at the
organizational level.
The traditional but extremely narrow context of hiring, firing, and job description is
considered a 20th century anachronism. Most corporate organizations that compete in the
modern global economy have adopted a view of human capital that mirrors the modern
consensus as above. Some of these, in turn, deprecate the term "human resources" as
useless. Yet the term survives, and if related to `resourcefulness', has continued and
emerging relevance to public policy.
In general the abstractions of macro-economics treat it this way - as it characterizes no
mechanisms to represent choice or ingenuity. So one interpretation is that "firm-specific
human capital" as defined in macro-economics is the modern and correct definition of
"human resources" - and that this is inadequate to represent the contributions of "human
resources" in any modern theory of political economy.
1.1 HUMAN RESOURCES DEVELOPMENT
In organizations, in terms of sex and selection it is important to consider carrying out a
thorough job analysis to determine the level of skills/technical abilities, competencies,
flexibility of the employee required etc. At this point it is important to consider both the
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internal and external factors that can have an effect on the recruitment of employees. The
external factors are those out-with the powers of the organization and include issues such
as current and future trends of the labor market e.g. skills, education level, government
investment into industries etc. On the other hand internal influences are easier to control,
predict and monitor, for example management styles or even the organizational culture.
In order to know the business environment in which any organization operates, three
major trends should be considered:
• Demographics – the characteristics of a population/workforce, for example, age,
gender or social class. This type of trend may have an effect in relation to pension
offerings, insurance packages etc.
• Diversity – the variation within the population/workplace. Changes in society
now mean that a larger proportion of organizations are made up of "baby-
boomers" or older employees in comparison to thirty years ago. Traditional
advocates of "workplace diversity" simply advocate an employee base that is a
mirror reflection of the make-up of society insofar as race, gender, sexual
orientation, etc.
• Skills and qualifications – as industries move from manual to a more managerial
professions so does the need for more highly skilled graduates. If the market is
"tight" (i.e. not enough staff for the jobs), employers will have to compete for
employees by offering financial rewards, community investment, etc.
In regard to how individuals respond to the changes in a labour market the following
should be understood:
• Geographical spread – how far is the job from the individual? The distance to
travel to work should be in line with the pay offered by the organization and the
transportation and infrastructure of the area will also be an influencing factor in
deciding who will apply for a post.
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• Occupational structure – the norms and values of the different careers within an
organization. Mahoney 1989 developed 3 different types of occupational structure
namely craft (loyalty to the profession), organization career (promotion through
the firm) and unstructured (lower/unskilled workers who work when needed).
• Generational difference –different age categories of employees have certain
characteristics, for example their behavior and their expectations of the
organization.
While recruitment methods are wide and varied, it is important that the job is described
correctly and that any personal specifications are stated. Job recruitment methods can be
through job centres, employment agencies/consultants, headhunting, and local/national
newspapers. It is important that the correct media is chosen to ensure an appropriate
response to the advertised post.
Human Resources Development is a framework for the expansion of human capital
within an organization or (in new approaches) a municipalty, region, or nation. Human
Resources Development is a combination of Training and Education, in a broad context
of adequate health and employment policies, that ensures the continual improvement and
growth of both the individual, the organisation, and the national human resourcefulnes.
Adam Smith states,“The capacities of individuals depended on their access to
education”.Kelly D, 2001Human Resources Development is the medium that drives the
process between training and learning in a broadly fostering environment. Human
Resources Development is not a defined object, but a series of organised processes, “with
a specific learning objective” (Nadler,1984) Within a national context, it becoms a
strategic approach to intersectoral linkages between health, education and employment
Human Resources Development is the structure that allows for individual development,
potentially satisfying the organization’s, or the nation's goals. The development of the
individual will benefit both the individual, the organization, or the nation and its citizens.
In the corporate vision, the Human Resources Development framework views employees,
as an asset to the enterprise whose value will be enhanced by development, “Its primary
focus is on growth and employee development…it emphasises developing individual
12

potential and skills” (Elwood, olton and Trott 1996) Human Resources Development in
this treatment can be in-room group training, tertiary or vocational courses or mentoring
and coaching by senior employees with the aim for a desired outcome that will develop
the individual’s performance. At the level of a national strategy, it can be a broad
intersectoral approach to fostering creative contributions to national productivity
At the organizational level, a successful Human Resources Development program will
prepare the individual to undertake a higher level of work, “organized learning over a
given period of time, to provide the possibility of performance change” (Nadler 1984). In
these settings, Human Resources Development is the framework that focuses on the
organizations competencies at the first stage, training, and then developing the employee,
through education, to satisfy the organizations long-term needs and the individuals’
career goals and employee value to their present and future employers. Human Resources
Development can be defined simply as developing the most important section of any
business its human resource by, “attaining or upgrading the skills and attitudes of
employees at all levels in order to maximize the effectiveness of the enterprise” (Kelly
2001). The people within an organization are its human resource. Human Resources
Development from a business perspective is not entirely focused on the individual’s
growth and development, “development occurs to enhance the organization's value, not
solely for individual improvement. Individual education and development is a tool and a
means to an end, not the end goal itself”. (Elwood F. Holton II, James W. Trott Jr). The
broader concept of national and more strategic attention to the development of human
resources is beginning to emerge as newly independent countries face strong competition
for their skilled professionals and the accompanying brain-drain they experience.
1.2 MODERN CONCEPT OF HUMAN RESOURCES
Though human resources have been part of business and organizations since the first days
of agriculture, the modern concept of human resources began in reaction to the efficiency
focus of Taylorism in the early 1900s. By 1920, psychologists and employment experts in
the United States started the human relations movement, which viewed workers in terms
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of their psychology and fit with companies, rather than as interchangeable parts. This
movement grew throughout the middle of the 20th century, placing emphasis on how
leadership, cohesion, and loyalty played important roles in organizational success.
Although this view was increasingly challenged by more quantitatively rigorous and less
"soft" management techniques in the 1960s and beyond, human resources development
had gained a permanent role within organizations, agencies and nations, increasingly as
not only an academic discipline, but as a central theme in development policy.
Human resource policies are systems of codified decisions, established by an
organization, to support administrative personnel functions, performance management,
employee relations and resource planning.
Each company has a different set of circumstances, and so develops an individual set of
human resource policies.
Purposes
HR policies allow an organization to be clear with employees on:
• The nature of the organization
• What they should expect from the company
• What the company expects of them
• How policies and procedures work at your company
• What is acceptable and unacceptable behaviour
• The consequences of unacceptable behaviour
The establishment of policies can help an organization demonstrate, both internally and
externally, that it meets requirements for diversity, ethics and training as well as its
commitments in relation to regulation and corporate governance. For example, in order to
dismiss an employee in accordance with employment law requirements, amongst other
considerations, it will normally be necessary to meet provisions within employment
contracts and collective bargaining agreements. The establishment of an HR Policy which
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sets out obligations, standards of behaviour and document displinary procedures, is now
the standard approach to meeting these obligations.
Developing the HR Policies
HR policies provide an organization with a mechanism to manage risk by staying up to
date with current trends in employment standards and legislation.
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1.3 HR POLICIES AND PROCEDURES
This factsheet gives introductory guidance. It:
• highlights the main policies and procedures that organizations need to consider
• looks at formatting a policy and sources of information
Introducing HR policies and procedures gives organizations the opportunity to offer a fair
and consistent approach to managing their staff. For more on why HR policies are
introduced, see our factsheet HR policies and procedures: why introduce them?
11 policy or practice areas those are crucial to effective people management and
development:
• recruitment and selection
• training and learning/development
• career opportunities
• communication
• employee involvement
• team working
• performance appraisal
• pay satisfaction
• job security
• job challenge/job autonomy
• Work-life balance.
Not all policies and procedures will be relevant to all organizations, and some policies are
required by law while others are to promote good practice.
The following paragraphs indicate the range of possible policies which apply during the
employment life cycle - more detailed information and the legal requirements on each of
these areas is included.
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Beginning employment
Recruitment and selection
Successful recruitment depends on finding people with the necessary skills, expertise and
qualifications to deliver organizational objectives and who have the ability to make a
positive contribution to the values and aims of the organization. A diverse workforce that
reflects customer groups in the local community should be encouraged.
Elements to consider when forming a recruitment policy:
• job profile/person specification
• dealing with job applications - whether to use hard copy and/or online forms;
confidentiality
• recruitment advertising - discrimination pitfalls
• selection techniques - training and validation
• interviews
• references
• medical examinations
• asylum and immigration
• documentation
• job analysis
• equal opportunities monitoring
• return on investment (ROI)/cost.
There's more information on the website via our Recruitment and talent management
subject pages.
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Induction
Designing an appropriate and cost-effective induction programme is a complex task. The
programme has to find a balance between providing all the information new employees
need without overwhelming or diverting them from integrating into the team.
The length and nature of the induction process will depend on the complexity of the job
and the background of the new employee.
Elements of an induction policy:
• organization information - background and structure; departments; products and
services; physical layout
• terms and conditions - hours of work; holidays, travel policy
• financial - pay; bonuses; overtime; pensions
• culture and values - communication
• rules and procedures - data protection; email and Internet usage; equal
opportunities; use of mobile phones
• health and safety - first aid; smoking; environmental aspects
• training
• trade unions
• welfare, benefits and facilities - alcohol and drugs; employee assistance
programmes.
Organizations may find it useful to have checklists that cover the pre-employment period,
the first day, the first week, the first month and the end of the probationary period (if
applicable) to make sure everything has been explained.
There's more information on the website via our Induction subject page.
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During employment
Employee relations look at the partnership between employee and employer, covering
areas such as communication, grievances and discipline. It is equally important in both
union and non-union situations. While employment law is closely linked with managing
employee relations, a successful organization won't just base its actions on compliance
with the law - exploring the concept of the psychological contract, based on trust between
employee and employer, may also be useful.
Policies and procedures that organizations may introduce include:
• health and safety
• disciplinary and grievance
• maternity and paternity leave and pay
• redundancy
• absence
• whistle blowing
• performance management
• recognition agreements (union and other)
• time off and leave for trade union activities, holidays, secondment, volunteering,
eldercare, childcare, bereavement
• communication and involvement, including employee voice
• harassment and bullying.
There's more information on many of these issues on the website via our HR
practice, Health, safety and wellbeing and Employment law subject pages.
Managing diversity
Diversity runs through all aspects of an organization’s policies. Managing and valuing
diversity is central to good people management and makes good business sense, so it also
makes sense for diversity to be integral within all policies. A diversity policy sets out the
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organisation's vision and values in relation to diversity. It will often include the remit of
polices, the processes for taking action, who is responsible and the training available.
The basic premise is that people should be valued as individuals and for reasons related
to business interests, as well as for moral and social reasons. A more diverse workforce is
likely to offer a wider range of skills and experiences and greater flexibility to meet
business challenges.
Elements of a diversity policy:
• gender/sex equality
• race equality
• sexual orientation
• religion
• age
• appearance/accent
• formats and accessibility of policies and procedures.
Learning, training and development
Roles and responsibilities are constantly changing, so employees will need to continually
renew and refresh their skills and competences through training. This can happen in the
course of normal working (on-the-job training) or away from the workplace (off-the-job
training).
Some training is mandatory to comply with legal requirements, such as health and safety
or finance.
Elements of a learning and development policy:
• the organization’s vision for learning and development
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• opportunities available, including secondment, career breaks, courses, coaching,
mentoring
• who to ask to get authorization for training
• support given for learning opportunities
• development reviews and personal development plans
• payment of professional fees
• training available for 'peripheral' workers ie contractors, temporary staff
• record-keeping and administration
• continuing professional development and personal development allowances (if
these are not part of the employee benefits statement)
• follow-up actions and transfer of learning to work.
Reward
Effective reward practices and procedures can underpin activities in recruitment,
retention, turnover and engagement. Effective implementation and communication are
essential for initiatives to succeed.
Reward policies should be clear and simple so that employees know what's expected of
them and what they can expect to receive in return.
Elements of a reward policy:
• the organization’s vision for reward, including market rates, extra responsibility
allowances
• how jobs are graded or evaluated
• pensions/additional voluntary contributions
• permanent health insurance/critical illness cover
• bonuses and incentive pay
• benefits and non-cash recognition
• company cars
• sick pay
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• pay reviews
• equal pay.
Complementary policies
Other policies that organizations may want to consider in relation to employment include:
• a mission or values statement
• parental leave
• work-life balance/family-friendly work practices
• disability
• well-being and 'wellness'
• green/sustainable development
• the employment of relatives/friends
• conflict of interest, including personal relationships
• second jobs
• confidentiality
• bad weather/climate conditions
• relocation
• suggestion schemes.
Ending employment
There are many reasons why employment ceases, from voluntary resignation to dismissal
or redundancy.
Areas to consider for ending employment include:
• dismissal
• redundancy
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• voluntary resignation
• retirement - retirement age; pre-retirement courses; phased retirement options
• end of a short-term contract
• end of a probationary period
• death in service.
Exit surveys can record information about why employees say they are leaving. But the
data is not always reliable. Another way to discover the reasons why is through opinion
surveys during employment.
Formatting a policy
Policies should be written in plain English, so that they are user-friendly and easily
understood by all employees.
The culture of the organization and the complexity of the policies will dictate the format.
Options include:
• separate manager and employee manuals
• all policies available on an intranet
• key policies on notice boards.
Policies should also indicate who to go to with queries about the content and who is
responsible for updating and reviewing them.
Sourcing information
When developing policies and procedures there are many sources of information
available. The following list gives an indication of further help but is not an exhaustive
list.
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2. INSURANCE INDUSTRY
‘INSURANCE’ is basically a sharing device. The losses to assist resulting from
natural calamities like fire, flood, earthquake, accidents, etc. are not met out of common
pool contributed by large number of persons who are exposed to similar risks. This
contribution of many is used to pay the losses suffered by the few. However the basic
principle is that loss should occur as a result of natural calamities or unexpected events,
which are beyond the human control. Secondly insured person should not make any gains
out of insurance.
It is natural to think of insurance of physical assets such as motorcar insurance or fire
insurance but often we forget that creator of all these assets is human being whose efforts
have gone a long way in building up the assets. In that sense, human life is a unique
income-generating asset. Unlike the physical assets, which decrease in value with the
passage of time, the individual becomes more experienced and more matured as he
advances in age. This raises his earning capacity and the purpose of life insurance is to
protect the income of individual and provide financial security to his family, which is
dependent on his income in the event of his premature death. The individual himself also
needs financial security for the old age or on his becoming permanently disabled when
his income will stop. Insurance also has an element of savings in certain cases.
Insurance is related to the protection of the economic value of the asset. Every
asset has a value .The asset would have been created through the effort of the owner, in
the expectation that, either through the income generated there from or some other
output, some of his needs would be met. In the case of the factor or a cow, the production
is sold and income generated. In the case of a motorcar, it provides comfort and
convenience in transportation. There is no direct income. There is normally expected life
time for the asset during which time it is expected to perform. the owner, aware of this ,
can so manage his affairs that by the end of that life time, a substitute is made available
to ensure that the value, or income is not lost, however , if the asset get lost earlier, being
destroyed or made non functional, through an accident or other unfortunate event, the
24

owner and those deriving benefits therefore suffer. Insurance is a mechanism that helps
to reduce such adverse consequences.
Objectives of life Insurance
There are many reasons for investing in life insurance policies, such as: 1. Protection for
the Family
The most important objective of life insurance is to provide financial protection
for the family in case of an unexpected and premature death of its breadwinner.
The purpose is to protect the dependents against the loss of earning power of the
insured through death or disability. Those who have insured their lives for an
adequate sum can live in peace and comfort, free of the gnawing worry of what
would happen to their families in the event of their sudden and premature death.
Life insurance has long been recognized as a necessary and essential element in a
family's total financial program.
2. Regular Savings
Saving is not a physical need, unlike hunger or sleep. Many of us may not save unless
there is compulsion to do so. For such people, life insurance is a compulsory, regular
savings scheme, especially the monthly salary savings schemes.
Even if you do not subscribe to the salary savings scheme, you can issue standing
instructions to your bankers to pay the premium regularly without reference to you.
The element of savings in a life insurance contract should be understood in a proper
perspective. Typically, life insurance is made available on the basis of equated periodical
payments. In the initial years, you tend to pay more compared to the risk factor. Strictly,
speaking, the 'savings' aspect in a life insurance policy should not be compared with other
pure savings media.
3. Tax Benefits
There is a tax rebate under Section 88 on life insurance premium. Many investors,
especially those in higher tax brackets, used to buy life insurance mainly to take
25

advantage of these tax benefits. Additional tax benefits are available under Section 80DD
and Section 80CCC applicable to specific schemes. Hence, attractiveness from the tax
angle has come down.
4. Housing Finance
One of the easier ways of acquiring a house property is through a loan under the various
scheme of ICICI pru life, under which a life insurance policy is accepted as a collateral
security. The proceeds of the policy can be adjusted towards the housing loan. To enjoy
this loan facility, many people even go in for additional life insurance. However, with the
advent of HDFC and various other housing finance schemes, you have alternatives to
choose from.
Advantages of Life Insurance
• Protection against risk of untimely death.
• Protection during old age
• Forced savings
• Educational requirements and charity
• Nomination and assignment
• Marketability and suitability for borrowing.
• Loans from the Insurance Company
• Tax benefits
• Protection to wife and children
2.1 IMPORTANCE OF INSURANCE
A) Beneficial to an individual:
1) Insurance provides security and safety. In case of life insurance payment is made when
death occurs or the term of insurance is expired.
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2.) Insurance affords peace of mind. A sense of security removes all tensions and fears. It
stimulate to more and better work. By means of insurance much of the uncertainty that
centers round the modern life may be eliminated. 3) Insurance eliminates dependency.
The insurance provides adequate amount to the dependents at the early death of the
property owner to pay off the unpaid loan.
4.) Insurance eliminated dependency. In the event of death of the bread winner of the
family or destruction of property, the family suffers a lot. The insurance assists the family
and provides adequate amount at the time of need.
5) Life Insurance encourages saving. Systematic saving is possible because regular
premium are required to be compulsorily paid. Unlike bank deposits the deposited
insurance premiums can not be withdrawn. Life Insurance is the best media of saving.
6) Life Insurance provides profitable investment. The elements of investment i.e. regular
saving capital formation and return of the capital are observed in life insurance. In India
in insurance policies carry the exemption from the income tax and estate duty.
7.) Life Insurance fulfills the needs of a person. The need of a person may be divided into
(I) Family needs, (ii) old age needs, (iii) re-adjustment needs and(iv) special needs
including needs for education, marriage settlement of children etc. (v) clean up funds for
ritual ceremonies, payment of taxes etc. Insurance comes to help for meeting
requirements.
(b) Beneficial to Business:
Insurance has been useful of the business society in more than one way.
(i) It reduces uncertainty of business losses. As a huge number of
properties are employed in commerce and industry equally great risks are
involved in day to day functioning. The owner of the business might foresee
contingencies that would bring great loss. By purchasing a policy he can be
sured of his earnings.
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(ii) Business efficiency is increased with insurance. A businessman gets
free from unnecessary botherations and can devote more care and energy to
maximize his profits.
(iii)Keyman indemnification. Persons having expertise, experience, ability to control the
business are most important for the employers. Death of such persons proves a more
serious loss then that by fire. The compensation to the dependents of such employers
requires adequate provision which can be met by purchasing life policies.
(iv) Addition in credit. The business can obtained loan by pledging the policy as
collateral security for the loan. As the assets are insured therefore, in the event of loss the
compensation can be paid. (v)Business Continuation. The partnership business may be
discontinued at the death of a partner. The insurance policy provide adequate funds at the
time of death therefore, the legal representative can be paid easily. (vi)Employee
Welfare. Provision for welfare for employees can be made by the life insurance in case
of accident or sickness benefit and pensions.
(c) Beneficial to Society:
(i) Wealth of society is protected. Insurance provides loss of human wealth. Loss of
damage of property can also be indemnified by the insurance company.
(ii) Economic growth of the company. As insurance provides protection
against loss of property thus, if any such damage arise the assets can be
replaced without loss of production thus, Economic development of the
country is not effected.
(iii) Accelerate the production growth. Adequate capital from Insurance
company can accelerate production circle in the country. Economic growth
of the country is not only assured but the process of growth is accelerated
which is more essential in a country like India where the population is
increasing very fast.
(iv) Reduction in inflation. The insurance company in the form of premium
get lot of money supply from the public which insurance corporation put
into production thus the money which would have come into circulation
might have gone for productive purposes.
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2.2 TYPES OF PLANS OR POLICIES
On the basis of insurance objective, basic plans offered by insurers can be classified
under three broad categories: Pure insurance products (term plan), pure investment
products (pension plan) and investment-cum-insurance products (endowment, money-
back, whole-life and unit-linked insurance plans). Increasingly, insurers are launching
hybrid variants of these plain-vanilla plans.
1. Term plan
Term plans are the purest from of insurance. These are no-frills policies that cover
only the risk of your dying. In the event of your death during the policy term, your
nominees receive the cover amount—in insurance parlance, the 'sum assured'; you
get no benefits if you survive the policy term. Since the entire premium paid by
you ---the cost of buying insurance cover---on term policies goes towards
covering the risk of your life, insurers offer you this cover at the least cost.
2. Endowment plans
While term plans covers just the risk of death, endowment plans also offer some
return on the premium is paid by you. So, if you die during the policy term, your
nominee gets the sum assured plus some returns; if you survive the policy term,
you still get back the sum assured and returns. As much as this "money if you die,
money if you live” philosophy is an enticing proposition, it comes at a price; high
premiums, which drag down the returns from endowment plans, to barely 4-6 per
cent a year. In an endowment plan, you pay premiums for a pre-defined tenure
and sum assured. The premium will depend upon your age, the sum assured, the
plans tenure and the nature of returns. A portion of the premium paid by you is
invested by the insures on your behalf. Another portion goes towards your cover
and a third towards meeting the insurer's administrative expenses, which lowers
the effective yield on your investment in endowment plans.
3. Money back plans
Money back plans are variant of endowment plans, with one basic difference: unlike
endowment plans, where the survival benefits are distributed at the end of the policy
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term, the pay back in money -back plans is staggered through the policy term. Typically,
a part of the sum assured is returned to you at periodic intervals through the policy
tenure.
4. Whole-life plan
The three categories of insurance plans mentioned above provide you life cover for a
defined period, up to a certain age (generally, 70 years), Whole-life plan, on other hand,
provide you cover through your lifetime---the only class of insurance policies to do so.
Typically, whole-life plan are structured such that the policyholder has the option to pay
premium up to a certain age (referred to as the 'maturity age' which is generally 80-100
years) or for a specified period. On reaching maturity age, the insurer gives you the
option to either continue with the cover through the lifetime (for which no further
premiums will have to be paid) or encash the maturity benefits (sum assured plus
bonuses). Some insurers do give the option to encash the bonus during the term per it
self, which can serve as a useful income stream during your later years, if you so desire.
5. Unit-linked insurance plans
In insurance-cum investment plans of the kind listed above, you have little say in where
your money is invested. Your insurer too is governed by certain investment restrictions: it
can invest just 10 per cent of the premium paid by you in equities; the greater chunk of 90
percent has to be invested in debt paper. While such restrictions are intended to insure
safety of your investment, they also lead to rigidity in investment are rein in your returns
to low single digits. Unit-linked insurance plans get around such restrictions, by giving
you greater control over where your premium is invested.
Think of them as insurance plans that double as mutual funds. The annual premium you
pay on unit-linked plans is linked to the sum assured and the policy tenure. You can
switch from one plan to another free of cost once a year (a nominal amount is charged for
additional switches). So, if you think stocks are going cheap, you can move to the growth
plan; or, if you think stocks are overvalued, you can move your money to the income
plan. You can switch from one plan to another free of cost once a year (a nominal amount
is charged for additional switches). So, if you think stocks are going cheap, you can move
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to the growth plan; or, if you think stocks are overvalued, you can move your money to
the income plan.
6. Pension plan
Pension plan differ from the five types of the insurance plan mentioned above in the
fundamental way; not all of them of life over. So, why we are talking about them here?
Because pension plan feature among the bevy of products offered by insurers and are
pitched as retirement planning a schemes, similar to other investment-based insurance
plans. Pension plans are investment options that let you set up an income stream in your
post-retirement years by routing your savings through an insurer, who invests it on your
behalf for a free. The precise returns you will get depend upon several factors: your age
begin when you investing, the contribution you make, your investment preferences based
on your risk profile, the age at which you want the money to start coming back to you,
and the number of years for which you want the returns.
2.3 FUNCTIONS OF INSURANCE
a) Primary Functions
(I) Certainty of Compensation of Loss: Insurance provides certainty
of payment at the uncertainty of loss. The element of uncertainty is
reduced by better planning and administration. The insurer charges
premium for providing certainty. Life is always full of risks. Life
without risks and uncertainties is unthinkable. Man has always
encountered risks of various types since the inception of
civilization. Minor risks can be ignored but the major risks cannot
be ignored and their avoidance is desirable. One of the ways or
techniques of meeting the risks loss prevention and insurance.
Insurance removes all uncertainties and the assured is given
certainty of payment of loss. The insurer charges premium for
providing the said certainty.
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(ii) Insurance provides protection: The risk will occur or not, when will
occur, how much loss will be there? There are uncertainties of happenings of
time and amount of loss. The main function of the insurance is to provide
protection against the probable chances of loss. The insurance cannot check the
happening of risk. The insurer gives certainty of payment of loss to the assured by
charging premium.
(iii)Risk sharing: Risk is uncertain and therefore, the arising from the risk is also
uncertain. All business concerns face the problem of risk and if the concern is big enough
the handling of risk become a specialized function. Risk and insurance are interwoven
with each other. Insurance, as a device is the outcome of the existence of various risks in
our day to day life. It does not eliminate risks but it reduce the financial loss caused by
risks. Insurance speeds the whole loss over the large number of persons who are exposed
by a particular risk.
(b) Secondary Function
(I) Prevention of loss: Prevention is always better than cure. Prevention of loss is by far
the best solution to the problem of risk. It is the most effective and cheapest method to
avoid the unfortunate consequences. By having the fire resistant construction, observing
safety instructions, installation of automatic sparker system etc. fore can be prevented.
Similarly better roads, better lights and better traffic regulations automobile accidents can
be prolonged. But some times prevention of protection is not always possible and
effective. When prevention fails other methods must be adopted. The insurance joins
hands with those institutions which are actively engaged in preventing the losses of the
society. Reduction in loss causes lesser payment to the assured and so more saving is
possible which will assist in reducing the premium. Lesser premium invites more
business and more business in its turn results in lesser share to the assured. Reduced
premiums stimulate more business and more and better protection to the insured
(ii) It provides capital: It provides capital to the society. For planned
development of a country there is great need for huge amount of capital. The
accumulated funds are invested in providing proper infrastructure and in
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investing in productive channel. Now a day, the insurance companies are
rendering positive help in the development of trade, commerce and
industries of a country through different scheme of investment. A country's
natural resources can be exploited with long term and huge amount of
investment by the insurance companies.
(iii) Adequate Financial cover: The need of insurance is largely felt to give
a cover to the rural areas and to the socially and economically backward
classes with a view to reach all insurable person in the country and provide
them adequate financial cover against death at a reasonable cost.
(iv) Mobilization of Savings: In insurance the savings of masses is collected
by insurance corporations.
(v)Investment: When funds are invested the interest of the community is kept in mind.
2.4 CONTRACT OF INSURANCE
1. Life Insurance can be defined as a contract, where for stipulated considerations called
the premium the insurer agrees to pay the insured or a beneficiary, a defined amount upon
the occurrence of death or some other specified event.
2. A contract of insurance is a contract of utmost good faith, technically known as
'Ubermiea fides'. The doctrine of disclosing all material facts is embodied in this
important principle, which applies to all forms of insurance.
3. The Proposer, who is one of the parties of the contract, is presumed to have means of
knowledge, which are not accessible to the Company, who is the other party to contract.
Therefore, the Proposer is bound to tell the insurer everything, which might affect the
judgments of the insurer, no matter how unimportant it may seem to him. In all the
contracts of insurance, the Proposer is bound to make full disclosure of all material facts
and not merely those, which he thinks material.
4. Misrepresentation, non-disclosure or fraud in any document leading to the acceptance
of the risk automatically discharges the Company from all liability under the contract the
client loses out.
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Insurable Interest
• An Insurable interest is one of the most basic of all requirements in insurance & it
must be met for an insurance contract to be valid.
• The Principle of Indemnity cannot be applied & does not apply to a Life
Insurance contract because of the difficulty of putting a monetary value on the
human life. However, here also Insurable Interest must be present to distinguish
the contract from a mere gamble.
• The Insurable Interest must:
• Be definite
• Be capable of valuation
• Be legally valid & subsisting
• Involve a loss of a legal right
2.5 INSURANCE SECTOR REFORMS
In 1993, Malhotra Committee- headed by former Finance Secretary and RBI Governor
R.N. Malhotra- was formed to evaluate the Indian insurance industry and recommend its
future direction. The Malhotra committee was set up with the objective of
complementing the reforms initiated in the financial sector. The reforms were aimed at
creating a more efficient and competitive financial system suitable for the requirements
of the economy keeping in mind the structural changes currently underway and
recognizing that insurance is an important part of the overall financial system where it
was necessary to address the need for similar reforms. In 1994, the committee submitted
the report and some of the key recommendations included:
I) STRUCTURE
• Government stake in the insurance Companies to be brought down to
50%.
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• Government should take over the holdings of GIC and its subsidiaries so
that these subsidiaries can act as independent corporations.
• All the insurance companies should be given greater freedom to operate.
II) COMPETITION
> Private Companies with a minimum paid up capital of Rs.1bn should be
allowed to enter the sector.
• No Company should deal in both Life and General Insurance through a
single entity.
• Foreign companies may be allowed to enter the industry in collaboration
with the domestic companies.
• Postal Life Insurance should be allowed to operate in the rural market.
• Only one State Level Life Insurance Company should be allowed to
operate in each state.
III) REGULATORY BODY
• The Insurance Act should be changed.
• An Insurance Regulatory body should be set up.
• Controller of Insurance- a part of the Finance Ministry- should be made
independent
IV) INVESTMENTS
• Mandatory Investments of LIC Life Fund in government securities to be
reduced from 75% to 50%.
• GIC and its subsidiaries are not to hold more than 5% in any company
(there current holdings to be brought down to this level over a period of
time)
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V) CUSTOMER SERVICE
• LIC should pay interest on delays in payments beyond 30 days.
• Insurance companies must be encouraged to set up unit linked pension
plans.
> Computerization of operations and updating of technology to be carried out
in the insurance industry.
The committee emphasized that in order to improve the customer services and increase
the coverage of insurance policies, industry should be opened up to competition. But at
the same time, the committee felt the need to exercise caution as any failure on the part of
new players could ruin the public confidence in the industry.
Hence, it was decided to allow competition in a limited way by stipulating the minimum
capital requirement of Rs.100 crores. The committee felt the need to provide greater
autonomy to insurance companies in order to improve their performance and enable them
to act as independent companies with economic motives. For this purpose, it had
proposed setting up an independent regulatory body
2.6 INSURANCE REGULATORY AND DEVELOPMENT
AUTHORITY.
Reforms in the Insurance sector were initiated with the passage of the IRDA Bill in
Parliament in December 1999. The IRDA since its incorporation as a statutory body in
April 2000 has fastidiously stuck to its schedule of framing regulations and registering
the private sector insurance companies. Since being set up as an independent statutory
body the IRDA has put in a framework of globally compatible regulations. The other
decision taken simultaneously to provide the supporting systems to the insurance sector
and in particular the life insurance companies was the launch of the IRDA online service
for issue and renewal of licenses to agents. The approval of
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institutions for imparting training to agents has also ensured that the insurance companies
would have a trained workforce of insurance agents in place to sell their products which
are expected to be introduced by early next year. Since being set up as an independent
statutory body the IRDA has put in a framework of globally compatible regulations. In
the private sector 151ife insurance and 15 non-life insurance companies have been
registered.
2.7 ENTRY OF PRIVATE PLAYERS
The introduction of private players in the industry has added to the colors in the dull
industry. The initiatives taken by the private players are very competitive and have given
immense competition to the on time monopoly of the market LlC. Since the advent of the
private players in the market the industry has seen new and innovative steps taken by the
players in this sector. The new players have improved the service quality of the
insurance. The following companies are present in the Life Insurance Industry in India.
• Bajaj Allianz Life Insurance Company Limited.
• Birla Sun Life Insurance Co. Ltd
• HDFC Standard Life Insurance Co. Ltd
• ICICI Prudential Life Insurance Life Insurance Co. Ltd
• ING Vysya Life Insurance Company Pvt. Ltd.
• Life Insurance Corporation. of India
• Max New York Life Insurance Co. Ltd
• Met Life India Insurance Company Pvt. Ltd.
• Kotak Mahindra Old Mutual Life Insurance Limited
• SBI Life Insurance Co. Ltd
• Tata AIG Life Insurance Company Limited
• Reliance Life Insurance Company Limited.
• Aviva Life Insurance Co. India Pvt. Ltd.
• Sahara India Life Insurance Co, Ltd.
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• Shriram Life Insurance Co, Ltd.
• Bharti AXA Life Insurance Company Ltd.
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3. COMPANY PROFILE
ICICI Prudential Life Insurance 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 Life Insurance was amongst the first private sector insurance companies to
begin operations in December 2000 after receiving approval from Insurance Regulatory
Development Authority (IRDA).
ICICI Prudential Life Insurance''s equity base stands at Rs. 675 crore with ICICI
Bank and Prudential plc holding 55% and 45% stake respectively. In the quarter ended
June 30, 2004, the company issued over 100,000 policies, for a total sum assured of over
Rs 3,753 crore and had a new business premium income of Rs. 242 crore. Today the
company is the #1 private life insurers in the country.
3.1 GROWTH PATTERN
ICICI Prudential Life Insurance has one of the largest distribution networks amongst
private life insurers in India, having commenced operations in 62 cities and towns in
India. These are: Agra, Ahmedabad, Ajmer, Allahabad, Amritsar, Aurangabad,
Bangalore, Bareilly, Bhatinda, Bhopal, Bhubhaneshwar, Chandigarh, Chennai,
Coimbatore, Dehradun, Goa, Guntur, Gurgaon, Gwalior, Hyderabad, Hubli, Indore,
Jaipur, Jalandhar, Jamnagar, Jamshedpur, Jodhpur, Kanpur, Karnal, Kochi, Kolkata,
39

Kolhapur, Kota, Kottayam, Kozhikode, Lucknow, Ludhiana, Madurai, Mangalore,
Meerut, Mumbai, Nagpur, Nasik, Noida, New Delhi, Patiala, Pune, Raipur, Rajkot,
Ranchi, Rourkela, Siliguri, Surat, Thane, Thrissur, Trichy, Trivandrum, Udaipur,
Vadodara, Vashi, Vijayawada and Vizag.
The company has ten bancassurance tie-ups, having agreements with ICICI Bank,
Federal Bank, South Indian Bank, Bank of India, Lord Krishna Bank, as well as some co-
operative banks and corporate agents. It has also tied up with organizations like Dhan for
distribution of Salaam Zindagi, a policy for the socially and economically
underprivileged sections of society.
ICICI Prudential Life Insurance has recruited and trained over 36,000 insurance agents to
interface with and advice customers. Further, it leverages its state-of-the-art IT
infrastructure to provide superior quality of service to customers.
ICICI Pru in the News
• ICICI Pru has 40% of private life insurance market
The Economic Times: March 1, 2004
• Prudential seeks to replicate ICICI Pru success
• Best Life Insurer Award
Outlook Money: March 15, 2004
• ICICI Prudential Life Insurance Life hikes capital to Rs 675 cr
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• ICICI Pru tops premium income chart
Business Standard: April 15, 2004
3.2 ORGANIZATIONAL STRUCTURE
Board of Directors
The ICICI Prudential Life Insurance Life Insurance Company Limited Board comprises
reputed people from the finance industry both from India and abroad.
Mr. Ajay Srinivasan
Ms. Shikha Sharma
Mr. N. S kannan.
Mr. K. S. Mehta
Mr. Dadi Engineer
Mr. Pradip P. Shah
Dr. (Mrs.) Swati A. Piramal
Mr. Pankaj Razdan
Management Team
Ms. Shikha Sharma, Managing Director
Mr. Sandeep Batra, Chief Financial Officer & Company Secretary
Mr. Shubhro J. Mitra, Chief - Human Resources
Mr. Puneet Nanda, Head - Investments
Ms. Anita Pai, Chief - Customer Service and Operations
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Mr. V. Rajagopalan, Appointed Actuary
Mr. Shridhar Sethuram, Chief - Strategy
3.3 STRUCTURE AND GROWTH OF INVESTMENT
ICICI and Prudential came together in 1993 to form Prudential ICICI Asset Management
Company, which has today emerged as one of the leading mutual funds in India. The two
companies bring together two of the strongest financial service brands in Asia, known for
their professionalism, excellent quality of service and long term commitment to YOU.
Riding on the success of this relationship, the two companies joined hands once more in
2000, to form ICICI Prudential Life Insurance Life Insurance, with a commitment to
provide leading-edge life insurance solutions.
ICICI Bank has 45% stake in the company, and Prudential plc has 55%.
ICICI Bank
ICICI Bank (NYSE:IBN) is India''s second largest bank with an asset base of Rs.
106812 crore. ICICI Bank provides a broad spectrum of financial services to individuals
and companies. This includes mortgages, car and personal loans, credit and debit cards,
corporate and agricultural finance. The Bank services a growing customer base of more
than 7 million customer accounts and 5 million bondholders’ accounts through a multi-
channel access network. This includes about 450 branches and extension counters, 1675
ATMs, call centre and Internet banking (www.icicibank.com). ICICI Bank posted a net
profit of Rs.1, 206 crore for the year ended March 31, 2003. ICICI Bank is the only
Indian company to be rated above the country rating by the international rating agency
Moody''s and the only Indian company to be awarded an investment grade international
credit rating. The Bank enjoys the highest AAA (or equivalent) rating from all leading
Indian rating agencies.
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Prudential plc
Established in 1848, Prudential plc is a leading international financial services company
in the UK, with around US$250 billion funds under management and more than 16
million customers worldwide. Prudential has brought to market an integrated range of
financial services products that now includes life assurance, pensions, mutual funds,
banking, investment management and general insurance. In Asia, Prudential is UK''s
largest life insurance company with a vast network of 22 life and mutual fund operations
in twelve countries - China, Hong Kong, India, Indonesia, Japan, Korea, Malaysia, the
Philippines, Singapore, Taiwan, Thailand and Vietnam. Since 1923, Prudential has
championed customer-centric products and services, supported by over 60,000 staff and
agents across the region.
Underwriting
Underwriting at ICICI Prudential Life Insurance is designed to ensure that the best lives
are taken in the risk pool and at the same time assist sales in getting more policies.
Underwriting at ICICI Prudential Life Insurance is divided into the following categories:
1. Non-Medical underwriting or jet underwriting
2. Standard Medical underwriting
3. Medical underwriting
4. Female underwriting
Non-Medical Underwriting or Jet Underwriting
Definition:
1. Educated life earning regular income through employment
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2. Professionally qualified life earning regular income through practice
3. Businessmen with gross income of Rs. 2 lakh as proved by ITR for the last
financial year
Maximum age at entry: 45 years
Maximum Premium Ceasing age: 65 years
Minimum service:
Employed with the government defense, PSU’s, Public or Private Ltd. Co.’s only.
Employees of partnership firms and proprietorship firms will not qualify.
Qualifying Documents:
For Employed: -
1. Salary certificate / slip (authentication by employer not necessary)
2. Appointment letter given by employer
3. Tax returns for last one year (last financial year)
4. Form 16
For Professionals: -
1. Copy of degree certificate signed by the life assured
2. self declaration by professional on his printed letter head mentioning the
year and place of obtaining the professional degree and years of practice
3. Tax returns for last 1 year (last financial year end)
For Businessmen: -
1. Tax returns for last 1 year (last financial year end) showing income above 2
lakhs
Plans allowed: All plans other than Lifeguard series
Riders Allowed: All
Maximum limit for eligible plan SA+ Rider SA (duly rated up but not including non-
medical plans)
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18 to 35 years: Rs. 10 lakhs death risk
36 to 45 years: Rs. 5 lakhs death risk
Standard Medical Underwriting
Cases that do not fall under jet i.e., non medical – such cases go through medical. The
simplest medical examination is called as SME- Standard medical examination and a
majority or policies sold fall under this category.
Medical underwriting
For cases that have high sum assure and high ages or the underwriter feels that their
needs to be more security before issuance-certain medical tests are conducted
Female underwriting
Female underwriting is divided into three groups. Special underwriting norms are
required for female lives because of health profile, pregnancy related issues and the
varied socio-economic profile
3.4 APPLICATION FORM & LOG- IN PROCESS
There are lot of processes & activities that take place while the proposal pack is
converted into the policy. The process that takes place is called the sales process. At the
very outset, it may be said that there are three basic stages, which are as follows: -
The Advisor customer Interface: This is the stage where after the Advisor has offered a
solution using our company’s products, he has the application form filled up by the client.
Along with this, the other documents that comprise the proposal pack are also collected.
The Advisor Branch Interface: In this second stage, the Advisor submit the proposal to
the branch office of the company, where after checking for the completeness of the
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proposal pack, the acknowledgement slip is handed over to the advisor, along with the
medical slips.
Business process: Here we are referring to the actual processing of the applications. This
would happens once more as one of the three processes –
1. Process for Jet Cases
2. Process for Standard Medical cases
3. Process for Medical cases
Advisor confidential Report:
Here are the guidelines to be followed while filling up the Advisor Confidential Report –
a. Do fill up the information on the identity of life Assured
b. Mention the purpose of insurance for client
c. Provide details as available on the occupation of life assured
d. Do mention his relation with the life assured or proposer
e. Mention about income & assets details
f. Details about other insurance policies would be disclosed
g. The general risk factors would help us to know if there are some
hobbies or financial or social position or personal habits that would
impact the risk profile of the life to be assured.
Proposal Pack:
Here are the documents that comprises a proposal pack –
 Completed application form.
 Proof of age
 Computer generated Quotation Slip, which is included in proposal pack
 Benefit illustration of the products
 First Premium Deposit cheque, / Demand draft / bank pay order.
 Ensure that the application no. is written behind the cheque, DD
 Income Proof
 Advisor’s confidential Report
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 Client Confidential Report
Application form:
• The client should countersign all cuttings, overwriting
• All the fields in the application form should be filled
• Ensure that the application form is filled with same colour ink
Age proof (standard)
 Date of birth / name match with that on form
 If the life assured is married woman, a marriage certificate or maiden name
declaration should be disclosed
 The information provided in the age proof should be legible.
Age proof (Non-standard)
 Date of birth / name does not match with that on form
 Document provided is not legible
 Document provided is not valid
 The death risk exceeds Rs. 3 lakh
 The cover ceasing age for the person is more than 60 years.
Quotation slip
1. Details on the computerized quotation slip does not match with those mentioned on
the Application form
2. For Non –Standard Age proof, extra premium charged not included in the Quotation
slip
Payments details
1. The first premium amount is lesser than Rs. 800
2. For monthly mode of premium payment, the cheque is enclosed for one month
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3. Unacceptable if third party issued cheque
4. For monthly mode of payment, the ECS form is not attached
Other Documents
1. Jet documents not attested by life assured
2. In case of student life, copy of recent ID card/ mark sheet not enclosed.
3. Income proof not enclosed as per requirements.
Certain Pointers
 The advisor must not accept cash payments from the client. Cash will be accepted
only by sales officer at the branch.
 See that the form has been filled in the capitals and in legible handwriting & dark
ink
 The application number should be written behind the cheque
 Take the appointment with the doctor as per the doctor list on the behalf of the client
and inform as to what medical test he/ she will need to undergo
 Give to the client both the copies of Medical examination slip.
 The advisor code should be mentioned on the Application form.
3.5 PERFORMANCE & PRODUCTS OF ICICI PRUDENTIAL LIFE
INSURANCE
Insurance Solutions for Individuals
ICICI Prudential Life Insurance Life Insurance offers a range of innovative, customer-
centric products that meet the needs of customers at every life stage. Its 19 products can
be enhanced with up to 6 riders, to create a customized solution for each policyholder.
Savings Solutions
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 SecurePlus is a transparent and feature-packed savings plan that offers 3 levels of
protection.
 CashPlus is a transparent, feature-packed savings plan that offers 3 levels of
protection as well as liquidity options.
 Save''n''Protect is a traditional endowment savings plan that offers life
protection along with adequate returns.
 CashBak is an anticipated endowment policy ideal for meeting milestone
expenses like a child''s marriage, expenses for a child''s higher education or
purchase of an asset.
Protection Solutions
 LifeGuard is a protection plan, which offers life cover at very low cost. It is
available in 3 options - level term assurance, level term assurance with return of
premium and single premium.
Child Plans
 SmartKid education plans provide guaranteed educational benefits to a child
along with life insurance cover for the parent who purchases the policy. The
policy is designed to provide money at important milestones in the child''s life.
SmartKid plans are also available in unit-linked form - both single premium and
regular premium.
Market-linked Solutions
 LifeLink II is a single premium Market Linked Insurance Plan which combines
life insurance cover with the opportunity to stay invested in the stock market.
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 LifeTime II offers customers the flexibility and control to customize the policy to
meet the changing needs at different life stages. It offers 4 fund options -
Preserver, Protector, Balancer and Maximiser.
 Premier Life is a limited premium paying plan that offers customers life
insurance cover till the age of 75.
Retirement Solutions
 ForeverLife is a retirement product targeted at individuals in their thirties.
 SecurePlus Pension is a flexible pension plan that allows one to select between 3
levels of cover.
Market-linked retirement products
 LifeTime PensionII is a regular premium market-linked pension plan
 LifeLink Pension II is a single premium market-linked pension plan.
ICICI Prudential Life Insurance also launched ''Salaam Zindagi'', a social sector group
insurance policy targeted at the economically underprivileged sections of the society.
Group Insurance Solutions
ICICI Prudential Life Insurance also offers Group Insurance Solutions for companies
seeking to enhance benefits to their employees.
 ICICI Pru Group Gratuity Plan: ICICI Pru''s group gratuity plan helps
employers fund their statutory gratuity obligation in a scientific manner. The plan
can also be customized to structure schemes that can provide benefits beyond the
statutory obligations.
 ICICI Pru Group Superannuation Plan: ICICI Pru offers a flexible defined
contribution superannuation scheme to provide a retirement kitty for each member
of the group. Employees have the option of choosing from various annuity
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options or opting for a partial commutation of the annuity at the time of
retirement.
 ICICI Pru Group Term Plan: ICICI Pru''s flexible group term solution helps
provide affordable cover to members of a group. The cover could be uniform or
based on designation/rank or a multiple of salary. The benefit under the policy is
paid to the beneficiary nominated by the member on his/her death.
TERMINOLOGIES
1. DB: Death benefit: Benefit paid in a life insurance policy or an annuity plan with
live cover in the event of the life assured passing away during the term
2. LA: Life assured: Person who is insured under the plan.
3. SA: Sum Assured: Amount of money for which the insurance is taken.
4. VB: Vested Bonus: Bonuses that have accrued over the term of the plan in with
profits plans.
5. PP: Purchase Price: The accumulation of the money in a deferred annuity plan.
6. GA: Guaranteed Additions: Guaranteed return that the insurer adds to the sum
assured.
7. Prospect: Individual that has the potential to purchase a life insurance policy –i.e.
age, health and money.
8. Prosper: The person who buys the policy-prosper and life assured can be the same
person or different-but should fulfill the principle of insurable interest.
9. Annuitant: The policyholder who has pension / annuity plan.
10. Nominee: The custodian to the claim-may or may not be the rightful owner to the
claim money.
11. Claimant: The person who makes the claim.
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12. Beneficiary: The rightful successor to the claim.
3.6 DIFFERENT PRODUCTS
SAVE ‘N’ PROTECT
Save‘n’protect is a with profits endowment plan with FREE extended life cover.
The prospect has to choose the term & a sum assured for this plan. The plan provides
plan cover during the term of the plan. After the term is over, on maturity the
policyholder is paid the sum assured (SA) along with the bonuses that have accrued on
the policy.
After maturity the policyholder is provided with free cover for 50% of the basic sum
assured that have been taken for next 5 years. Thus this plan is of a great advantage when
it comes to providing protection. The unique benefits provided is known as Extended Life
Cover (ELC)
GENERAL FEATURES
Surrender: The plan can be surrendered after three policy years has been completed.
Loans: Are available on the policy and can be taken after the policy acquires the
surrender value. Rate of interest changed will depend upon the interest rate as of that
time.
Paid-up: The policy can acquire a paid up value after a period of three years.
Tax benefits: The plan carries the Sec 88 on the premium paid and Sec 10(10) d benefit
on death and maturity claim. The tax benefits are subjects to tax laws and are not an
integral features of Save’n’ Protect.
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SAVE’N’PROTECT AT A GLANCE
Minimum sum assured Rs 50,000
Maximum sum assured Rs 1,00,00,000
Minimum Premium Yearly- Rs 6,000
Half yearly-Rs 3,000
Monthly- Rs 500
Minimum age at entry 0 Years
Maximum age at entry 60 Years
Minimum maturity age 18 Years
Maximum maturity age 70 Years
Minimum term 10 Years
Maximum term 30 Years
Sum assured in multiples of Rs 1,000/-
Premium payment frequencies Yearly, half –Yearly, & monthly.
Premium payment period Entire term of the plan
Benefit coverage period Entire term of the policy+ 5 Years
after maturity(50%of sum assured
under ELC )
Death benefit ---------
Age<7years Premiums paid will be refunded.
Age>7years ----------
ELC period 50% of sum assured in case the
policy holder dies during the 5
Years Extended Term.
Maturity benefits S.A +G.A @ 3.5% compounded
annually (for the first 4 Years)
+V.B(if any & after 4 Years).
Surrender/Paid up After 3 full years premiums have
been paid.
Loans Allowed after the surrender value
period. 53

CASH BAK
CashBak is with profits anticipated endowment plan. This plan provides liquidity at the
regular intervals of time and also help in saving money.
General features
Surrender: The plan can be surrendered after three policy years have been completed.
Loans: The Company in CashBak provides no loans as regular payouts are available to
policyholders
Paid-up: The policy can acquire a paid-up value after a period of three years.
Tax benefits: The plan carries the sec 88 on the premium paid and sec10 (10) d benefit
on death and maturity claim. The tax benefits are subject to tax laws and are not an
integral feature of CashBak.
Target market
1. Young people of the age group 20-30 years who have just started a
career and family.
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2. Income group of minimum Rs 10,000 per month.
3. Middle-aged professionals, service holders and businessmen.
Monthly- Rs 500
Minimum maturity age Not Applicable
Benefit coverage period Entire term of the policy.
Death benefit during the term of the
policy
S.A+G.A@3.5%+Vested bonus (if any)
Maturity benefits 50% of Sum assured @ 3.5%G.A compounded
annually (for the first 4 Years)+V.B (if any & after 4
Years).
Surrender/Paid up After 3 full years premiums have been paid.
Loans No Loans
Riders Allowed Critical Illness Benefit Rider (CIBR)
Major Surgical Assistance Rider (MSAR)
Accident & Disability Benefit Rider (ADBR)
Accident Benefit Rider)
55

CASHBAK AT A GLANCE
LIFE GUARD
Life Guard is the term insurance solutions from ICICI Prudential Life Insurance. These
plans provide with optimum financial protection in case death. These plans are extremely
reasonable and are so cost effective that you just can’t afford not to have one.
In this group of term insurance solutions there are three variants:
1. LifeGuard – Return of Premium (ROP)
2. LifeGuard – Without Return of Premium (WROP)
3. LifeGuard – Singe Premium (SP)
Life Guard – ROP
In this variant the premiums that are paid by the policyholder are returned at the end of
the term i.e., on maturity to the policyholder.
Thus this plan serves to provide life protection and at the end of term the money paid
which accumulates to be a substantial amount is received on maturity.
Moreover, this plan provides with the facility of FREE Extended Life Cover after
maturity – which adds to the protection that LifeGuard ROP so excellently provides.
General features
Loans: No loans are available
Paid-up: The policy can acquire a paid up value after a period of three years.
Tax benefits: The plan carries the sec 88 on the premium paid and sec10 (10) d benefit
on death and maturity claim. The tax benefits are subject to tax laws and are not an
integral feature of LifeGuard ROP
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Minimum sum assured Rs 1,00,000
Monthly- Rs 500
Maximum maturity age 65Years
Benefit coverage period Term of The policy
Death benefit The entire Sum assured
Maturity Benefit Sum of Premiums paid & FREE ELC
for 50% OF the SA
For next 5 Years.
Riders Allowed Accident & Disability Benefit Rider
(ADBR)
Accident Benefit Rider (ABR)
Waiver of Premium rider(WOPR)
Surrender/Paid up After 3 full years premiums have
been paid.
Loans No Loans
Remarks Minimum annual premium Needs to
be Rs 2,400
58

LIFEGUARD-WROP
This is the most cost effective policy to have life insurance. This plan Provides Life
protection in the most effective way & it is as inexpensive as your daily newspaper.
For a healthy 30-Years old Male, SA of Rs 1 lakh & premium paid Yearly, the premium
on LifeGuard WROP would be Rs 0.88 per Day for a period of 5 years.
Features of LifeGuardWROP
Features of WROP are in many ways similar-however the features that differentiate it
from LifeGuard ROP are mentioned here for your understanding:
Death Benefit
The beneficiary/nominee gets 100% of the sum assured in case of the death of the
policyholder.
There is no ELC in LifeGuard WROP
Maturity Benefit
NO maturity Benefit
Target Market:
1. Key man Insurance
2. Businessmen & Individuals that have liabilities.
3. People who are looking for pure protection.
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LIFEGUARD-WROPAT A GLANCE
Minimum term 5Years
Benefit coverage period Entire term of the policy
Death benefit The entire sum assured
Maturity benefits No Benefit
Surrender/Paid up After 3 full years premiums have been
paid.
Loans No Loans
(ADBR)
Waiver of Premium Rider (WOPR)
LIFEGUARD-SP
LifeGuard Single Premium is another term product that offers pure protection at lowest
possible cost.
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This plan absolves the policyholder from the commitment of paying regular premiums &
ensures that the protection continues without any hindrance.
The concept of this variant is as same as the rest. The product at a glance will help you in
understanding the plan.
Target Market
1. People who do not prefer long term commitments
2. People going for liabilities like housing loan or any sort of liability.
3. Young professionals that have an earning but are not too sure about it in the
future.
4. Students who are going to study abroad
5. People who are going on short term or middle term assignments abroad.
LIFEGUARD-SPAT A GLANCE
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Maximum sum assured Rs 10,00,000
Minimum term 5Years
Premium payment frequencies Single Premium
Benefit coverage period Term of the policy
Death benefit The entire sum assured
Maturity benefits No Benefit
Surrender/Paid up NO SURRENDER VALUE
Loans NO LOANS
Riders Allowed NO RIDERS
62

SMART KID
Smart Kid is with profits anticipated endowment plan that helps parents in creating an
asset through which they can plan for their children’s future.
This plan insures the life of the parent and makes the child the beneficiary-therefore
ensuring that the future if the child is secure-because when you are a parent you cant
leave anything to change-can you?
General Features
Loans: The Company in Smart Kid provides no loans as regular payouts are available to
policyholders
Tax benefits: The plan carries the sec 88 on the premium paid and sec10 (10)d benefit on
death and maturity claim. The tax benefits are subject to tax laws and are not an integral
feature of Smart Kid
Target Market:
1. Young couples with new born baby or children below 12 Years of age.
2. Income group of minimum Rs 10,000 per month.
3. Ideal age group: 30-45 years.
4. Professionals, service holders & businessmen.
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SMART KID AT A GLANCE
FOREVERLIFE
Forever Life is with life cover. The world in which we live today-the life expectancy is
increasing however the earning period is constantly reducing.
Maximum sum assured Rs 30,00,000
Age at entry for parent 20 Years to 60 Years
Age at entry (child) 0-12 Years
Maturity age 22 Years-25 Years
Minimum term 10Years
Premium payment frequencies Regular premium plan with Yearly,
half-yearly, monthly mode of
payments
Death benefit Sum Assured paid immediately +
Wop + Periodic benefits continue as
it is
Maturity benefits Two payout structures are there
Surrender/Paid up After 3 years of premiums paid
Loans NO LOANS
Riders Allowed ADBR & Income benefit rider
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This means that we will live longer but earn for a shorter period therefore we need to
make our money work for us. And the earlier we put the money that we earn towards our
retirement fund-the better will be our retirement fund and thus a better retired life.
Forever Life is a retirement solution that assists in meeting with that need in a disciplined
planner.
General Features
Loans: The Company in Forever Life provides no loans.
Tax benefits: The plan carries the sec 88 ccc on the premium paid. Death claims are
exempted from tax under sec10 (10)d. Annuity received is taxable at par with income
Target Market
1. Young People in the age group of 25-30
2. Monthly income Rs 10,000 & above
3. Salaried individuals in private sector
4. Businessmen & Traders
ANNUITY:
In this plan the annuitant pays a contribution for a term specified which is called the
deferment period and post that term i.e. on Vesting, annuitant get an annuity. He can
choose any of the 5 annuity types that plan provides. This annuity
65

Continues till the time the annuitant lives. During the deferment period ForeeverLife
provides with life protection – thus this plan provides both life insurance & retirement
planning benefits.
Annuity Options
1. Life Annuity: This annuity provides an annuity till the time the annuitant lives.
Once the annuitant passes away the contract is over & nothing is payable. This is
suitable for an annuitant who does not have any dependents. This annuity type will
disburse the maximum amount as an annuity.
2. Life Annuity with return of purchase price: Annuity is paid till the time the
annuitant survives & after the demise the purchase price (as on vesting) is given to
the nominee. Therefore this annuity type can not provide only annuity but also
leave a legacy for the family
3. Joint Life Annuity, Last survivor annuity: Annuity is paid to the annuitant and
after the annuitant passes away & the spouse survives, the same annuity will be
disbursed to the spouse. On the death of spouse the annuity will stop & nothing is
payable.
4. Joint Life Annuity, Last survivor annuity with return of purchase price:
Annuitant is paid to the annuitant & after the annuitant passes away & the spouse
survives, the same annuity will be disbursed to the spouse. On the demise of the
spouse the purchase price (as on vesting) is given as a claim to the nominee.
Therefore this annuity type can not only provide an annuity but also leave a legacy
for the family.
5. Life Annuity guaranteed for 5,10,15 years & life thereafter: In this annuity
type the annuitant can choose a term of 5,10 or 15 Years & during the term the
annuity will continue to be disbursed irrespective of the fact whether the annuity is
alive or not. If the annuitant survives the guaranteed period the same annuity will
continue to be disbursed till the time annuitant survives. After annuitants demise
nothing is payable.
66

Annuities can be taken on yearly, half yearly, monthly
basis. Annuity Option once chosen cannot be changed.
Annuities have a 5 or 7 year reset option.
FOREVER LIFE AT A GLANCE
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Maximum sum assured No Limit
Maximum maturity age 70Years
Minimum term 5Years
Premium payment frequencies Yearly, half-yearly & monthly
Premium payment period Entire term of the policy
Death benefit The entire sum assured + G.A
+Vested bonus (if any)
Maturity benefits According to Annuity option choose
Surrender/Paid up After three years
Loans NO LOANS
(ADBR)
Critical Illness Benefit Rider
(CIBR)
Major Surgical Assistance Rider
(MSAR)
68

4. HUMAN RESOURCE MANAGEMENT OF ICICI
PRUDENTIAL LIFE INSURANCE
1. MODE OF APPOINTMENT:
The appointment to various points shall be made in the following manner:-
BY DIRECT RECRUITMENT:-
a. The qualifications for direct recruitment shall be such as specified in the
staffing pattern.
b. The appointment shall be made according to the merit list drawn at the
time of selection.
c. All appointments except to class-IV services shall be made on the
recommendations of the selection Committee consisting of the
following:-
BY PROMOTION
Appointment by promotion to the next higher post in the respective discipline
in any category shall be made on the basis of ‘Seniority-cum-Merit’ from
amongst the employees working in the lower category having atleast five
years service on the said post in the Life Insurance.
BY TRANSFER:
a. By transfer of a person on deputation from any Department. Of
Government/ ICICI Prudential Life Insurance or any sister Life Insurance.
b. By permanent transfer of services of surplus staff of ICICI Prudential Life
Insurance on the
69

terms & conditions as Prescribed by the ICICI Prudential Life Insurance and
adopted by the
Board from time to time subject to the approval of Register.
c. By permanent transfer of an employee of other /ICICI Prudential Life Insurance on his
own request and upon the terms & inditions as prescribed by the ICICI Prudential Life
Insurance and adopted by the board from time to time subject to the approval of
Registrar.
The quta of appointment by direct recruitment and by promotion shall be in
the ratio of 40:60 respectively’ wherever applicable. The appointment under
Rule 1.3 shall be treated against the quota of direct recruitment.
a). The reservation for the members of Scheduled Castes, Scheduled Tribes
and Background classes in recruitments shall be in accordance with the
policy of the Govt. as adopted by the BOD.
b). The Life Insurance may fix Quato for promotion of class IV employees to
class III posta upto 10% of the promotion quota.
2. COMMENCEMENT OF SERVICE:
Services shall be deemed to have commenced from the working day on which
the employee reports for duty. If he reports for the duty in the afternoon’ the
services shall be deemed to have commenced from the following day.
70

3. ATTENDANCE AND LATE COMING:-
No employee shall enter or leave the premises of the Establishment accept by the gate or
gates meant for this purpose.
An employee who is off his duty or has resigned or has been discharged or
declared by the competentMedical Authority to be suffering from any
contagious or infectious disease, shall immediately leave the premoises of the
Etablished and shall not enter any part of it, except with the express
permission of the copetent authority.
All employees shall be liable to be searched both at the time of entry and exit
at the main entrance of the Establishment by an authorized person of the same
sex with due dignity.
If more than one shift is working, the employee shall be liable to be transferred
from one shift to another.
4. SENIORITY:
a). The seniority of an employee under these rules shall be determined in a
particular category of post on the basis of the length of service on that post
provided that in the case of employees appointment by the direct recruitment
which join within the period specified in the order of appointment or within
such period specified by direct recruitment who who join with in the period
specified in the order of appointment or within such period as may from time to
time be extended by the appointing authority, subject to a maximum of one
month from the data of order of appointment, the order of merit dertermined,
shall not be disturbed. Provided further that in the case a candidate is permitted
71

to join the service after the expiry of the said period of one month, his seniority
shall be determined from the data he joins the service.
b). A person recruited by promotion from the service of the Life Insurance shall be
senior to the person recruited otherwise if they join on the same data. Provided
that in case of promotion of two or more persons with effect from the same
data their inter-se-seniority shall be determined according to their seniority in
the cadre or postal from which they have been promoted.
c) Seniority of the employees of PDDC/ICICI PRUDENTIAL LIFE INSURANCE upon
the permanent transfer of
their services to the Life Insurance vis-à-vis other employees of Life Insurance, shall
be determined in the following manner:-
(1) An employee who was working in the higher pay scale at the time of
permanent transfer shall rank senior to the employee working in the
lower pay scale on that date.
(2) In case where the pay scale of the post held by an employee in the
PDDC or ICICI Prudential Life Insurance and of the post against which he has
been transferred
in Life Insurance identical, their seniority shall be determined on the basis
of length of services in the same pay scale.
5. POSTING AND TRANSFERES:
Managing Director shall be competent to post/ transfer any employee within the
establishment. He shall also be competent to transfer an employee against any equivalent
post or along with post.
As and when considered necessary in the internet of work and upon request from ICICI
Prudential Life Insurance/Sister Life Insurance’the services of an employee of ?Life
Insurance may be placed on national deputation without payment of deputation allowance
72

to any other Life Insurance/ ICICI Prudential Life Insurance for Period upto one year in
the first instance, which can be extended further.
6.DEPUTATION
Any employee of Life Insurancemay be sent on deputation to any State level co-
operative Apex. Institution or Government Undertaking with his consent and
on receipt of writtenrequisation from the concerned Institution/Government
undertaking and with the concurrence of the ICICI Prudential Life Insurance on the
terms &
conditions mutually agreed upon by the leading and borrowing organizations
subject to prior approval of the Registration.
7. JOINING TIME:
Upon transfer of an employee from one station to another the joining time,
exclusive of journey day(s), shall be admissible as under:-
(i) upto distance of 4 kms : No joining time.
(ii) For distance between 41kms : one day
to 100 kms
(iii) Above 100kms : Two day
8.Security
An employee of the Life Insurance Shall furnish such security, Fidelity guarantee,
agreement bond in favour of the Life Insurance as may be decided by board from
time to time.
9. PROVIDENT FUNDS:
Employees of the Life Insurance shall be entitled to the membership of the
Employees Provident Fund and other schemes under the employees Provident
Fund and Misc. Provisions Act’ 1952 irrespective of the pay drawn b him re-
employed persons shall be governed by the terms of their appointment.
10. BONUS:
73

Employees of the Life Insurance shall b entitled to payment of the Bonus under
the payment of Bonus Act, 1965 as amended or re-enacted from time to time.
11. MEDICAL BENEFITS:
An employee, as and when covered under the PSI Act/Scheme, shall get
medical benefits as provided there in. An employee not covered under the PSI
Act/Scheme shall be entitled to medical benefits as may be decided by the
board from time to time with the concurrence of the ICICI Prudential Life Insurance.
12. ALLOWANCE:
Dearness Allowance, Additional Dearness Allowance, House Rent Allowance, City
Compensatory Allowance, Rural Allowance and Other Compensatory Allowance Shall
be Admissible to the Employees of the Life Insurance as per the Decision of the Board
with the concurrence of the ICICI Prudential Life Insurance and approval of the
Registrar.
13. BENEFITS ADMISSIBLE IN THE EVENT OF DEATH OF AN
EMPLOYEE DURING SERVICE:
In case of death of an employee whilr in the service of
Life Insurance his family members shall be entitled to the following benefits/ facilities at
the rates/scales and on the tearms & conditions as approved by the board from time to
time with the concurrence of ICICI Prudential Life Insurance.
a. Ex-gratia grant.
b. House Rent Allowance.
c. Encashment of P.leave.
d. Priority for employment of window/dependent of deceased employee.
e. Special Ex-gratia grant to the family members of an employee of the
Life Insurance Killed by terrorist action.
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14. TRAINING:
Managing Director may wit the concurrence of Life Insurance employee to attend a
seminar/ workshop/training within the country or abroad in accordance with the
instructions of the Registrar, as may be issued from time to time.
15. LEAVE:
15.1 All the employees of Life Insurance shall be entitled to the following
kinds of leave:-
(i) PRVILEGE LEAVE (LEAVE WITH WAGES:
One day for every 18 days of service (for the purpose of calculation
of days of services,the period of Privilege Leave availed and leave
without wages/ absence shall not be counted).
(ii) CASUAL LEAVE:
12 days per annum.
(iii) SICK LEAVE:
(a) 14 days per annum to those mployees ho are not covered by the
ESI ct/Schemes.
(b) 7 days per annum to thise employees who are covered by the ESI
Act/Scheme.
16. RESIGNATION:
If a regular/permanent employee intends to leave the service of the
Life Insurance by tendering resignation, he shall have to give one
month’s notice in writing, otherwise, he shall have to deposit on e
month’s notice in writing, otherwise, he shall have to deposit one
month’s salary or salary for the period by which the notice falls short
of one month (for this purpose salary will include basic pay +all other
allowance admissible thereon, experts House Rent/Rural allowance,
Conveyance Allowance and Medical Allowance.)
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