Market Analysis of Icici Prudential and Other Insurance-companies (MARKAT)

8/17/2019 Market Analysis of Icici Prudential and Other Insurance-companies (MARKAT)

1/68

A

PROJECT REPORT

ON

COMPARATIVE ANALYSIS OF ICICIPRUDENTIAL AND OTHER

INSURANCE COMPANIES


2/68

ABSTRACT

MBA is a stepping-stone to the Management carrier and to develop good Managers is

necessary that the theoretical must be supplement with exposure to the real environment.

Theoretical knowledge just provides the base and it’s not suicient to produce a good

Manager that’s why the practical knowledge is needed.

Thereore the !esearch "roject is an essential re#uirement or the student o MBA. This

research project not only helps the students to utili$e his skills properly and learn ield

realities but also provides a chance to the organi$ation to ind out talent among the building

Managers in the very beginning.

%n accordance with the re#uirement o MBA course % have done my research project on the

topic “COMPARATIVE ANALYSIS OF ICICI PRUDENTIAL AND OTHER

INSURANCE COMPANIES” with special reerence to %&%&% "rudential.


3/68

INDEX

EXECUTIVE SUMMARY Page No.

CHAPTER-1

'.'. %ntroduction - basics o insurance

'.(. )eed o lie o insurance

'.*. !oles o insurance

'.+. Types o lie insurance

CHAPTER-

(.'. %ndustry "roile

(.(. &ompany "roile

CHAPTER-!

*.'. ,iterature !eview

*.( !esearch Methodology

CHAPTER-"

+.'. Analysis tudy

CHAPTER-#

.'. /ata Analysis 0 %nterpretations

C$a%&e'-(

1.'. ,imitations

1.(. 2indings 0 !ecommendations

CONCLUSION

BIBLIO)RAPHY


4/68

EXECUTIVE SUMMARY

T*&+e o, &$e %'oe&/

Market analysis o %&%&% prudential and other insurance companies

O0e&*e2/

3orking o the unit linked insurance plans

34T analysis o the product

&omparative study o the competition

tudy tax planning solutions available in the market

tudy asset allocation through insurance plans

Market interace

Co3%a'a&*e a4a+52*2 6o4e o4/

,ie insurance corporation

5/2& tan ,ie

Birla un ,ie

Bajaj Allian$

Re2ea'$ Me&$o6o+og5/

"rimary data collected by personally visiting these leading insurance players. 6g7 ,%&8 Max

)ew 9ork ,ie %nsurance8 Bajaj Alliance8 Birla unlie8 5/2& tan lie.


5/68

Da&a Co++e&*o4/

PRIMARY DATA

"rimary data collected through direct interaction with customer.

ample si$e ':: people.

SECONDARY DATA

econdary database rom dierent maga$ines.

2irst and oremost8 accumulating inormation rom newspapers 8

;ournals8 Maga$ines8 and company webside.

econdly8 taking a sample si$e and doing a market survey by illing up #uestionnaires

rom customers to ind out what dierent companies are oering in the


6/68

CHAPTER-1


7/68

1.1. INTRODUCTION TO INSURANCE

,%26 %)

I427'a4e *2 a 252&e3 &o a++e*a&e ,*4a4*a+ +o22e2 05 &'a42,e''*4g '*28 o, +o22 ,'o3 o4e

e4&*&5 &o a4o&$e'.

@%nsurance’ is basically a sharing device. The losses to assets resulting rom natural calamities

like ire8 lood8 earth#uake8 accidents8 etc. are met out o the common pool contributed by

large number o persons who are exposed to similar risks. This contribution o many is used

to pay the losses suered by unortunate ew. 5owever the basic principle is that loss should

occur as a result o natural calamities or unexpected events which are beyond the human

control. econdly insured person should not make any gains out o insurance.

%t is natural to think o insurance o physical assets such as motor car insurance or ire

insurance but oten we orget that creator o all these assets is the human being whose eorts

have gone a long way in building up the assets. %n that sense8 human lie is a uni#ue income

generating assets.


8/68

Ho9 *427'a4e 9o'82:

uppose there are '::: persons all aged * years and healthy lives. They are insured or one

year against the risk o death. 6ach person is insured or !s. :8:::. % the past experience

indicated that + out o '::: persons8 at this age are expected to die during the year8 expected

amount o death claim to be paid to the amily o our persons would come to !s. (8::8:::.

The contribution to be paid by each o the '::: persons will come to !s. (:: per year. Thus8

all the '::: persons share loss caused to the + unortunate amilies. 1 persons who

survived till one year have not lost anything as they secured peace o mind and a eeling o

security o their amily. 3hile insurance cannot prevent accidents or premature death8 it can

help protect the amily o the decreased against the loss o income caused by the death o the

main breadwinner. %n return or speciied payments8 insurance will provide protection against

the incidence o an uncertain event- such as premature death. The business o insurance

company called insurer is to bring together persons who are exposed to similar risks8 collect

contribution premiumC rom them on some e#uitable basis and pay the losses claimsC to the

unortunate ew who suer.

C+a22*,*a&*o4 o, I427'a4e

%nsurance business can be divided into two broad categories8 lie and non-lie. ,ie insurance

is concerned with making provision or a speciic event happing to the individual8 such as

death whereas non lie or general insuranceC is more commonly concerned with the

provision or a speciic event which aects a property8 such as ire8 lood8 thet etc. %n this

course we will only cover lie insurance. o8 let us now move on to the deinition o lie

insurance.

De,*4*&*o4 o, L*,e I427'a4e

According to the


9/68

1.. NEED FOR LIFE INSURANCE

!isks and uncertainties are part o lieEs great adventure -- accident8 illness8 thet8 natural

disaster - theyEre all built into the workings o the


10/68

1.!. ROLE OF LIFE INSURANCE

Life Insurance As An Investment: -

%nsurance is an attractive option or investment. 3hile most people recogni$e the risk

hedging and tax saving potential o insurance8 many are not aware o its advantages as an

investment option as well. %nsurance products yield more compared to regular investment

options8 and this is besides the added incentives oered by insurers.

9ou cannot compare an insurance product with other investment schemes or the simple

reason that it oers inancial protection rom risks8 something that is missing in non-

insurance products. %n act8 the premium you pay or an insurance policy is an investment

against risk. Thus8 beore comparing with other schemes8 you must accept that a part o the

total amount invested in lie insurance goes towards providing or the risk cover8 while the

rest is used or savings.

%n lie insurance8 unlike non-lie products8 you get maturity beneits on survival at the end o

the term. %n other words8 i you take a lie insurance policy or (: years and survive the term8

the amount invested as premium in the policy will come back to you with added returns. %n

the unortunate event o death within the tenure o the policy8 the amily o the deceased will

receive the sum assured.

)ow8 let us compare insurance as an investment options. % you invest !s ':8::: in ""28 your

money grows to !s ':8: at . per cent interest over a year. But in this case8 the access to

your unds will be limited. 4ne can withdraw : per cent o the initial deposit only ater +

years.

The same amount o !s ':8::: can give you an insurance cover o up to approximately !s -

'( lakh depending upon the plan8 age and medical condition o the lie insured8 etcC and this

amount can become immediately available to the nominee o the policyholder on death. Thus

insurance is a uni#ue investment avenue that delivers sound returns in addition to protection.


11/68

1.". TYPES OF LIFE INSURANCE PLANS

L*,e I427'a4e P+a42/


12/68

;ea+&$ C'ea&*o4 P+a42

3ealth &reation "lans give the customer the dual beneit o protection along with the potentially higher returns o market-linked instruments. The most important beneit o


13/68

P'o&e&*o4 P+a42

The sole objective o these plans8 as their name indicates8 is to serve the protection needs othe customer and by doing so8 saeguard one’s amily rom the inancial implications ounortunate circumstances than one cannot oresee.


14/68

THE INSURANCE RE)ULATORY AND DEVELOPMENT AUTHORITY


15/68

;HY PRIVATE INSURANCE:

• All the private companies have a lock in period o * yrs hence no disinvestments possible.

• Minimum net worth o :: &r re#uired or ac#uiring license with a minimum paid up

capital o ':: &r in their insurance venture.

• &ommitment to increase the paid up capital maniold in next ive years.

• !e insurance or all its policies worth more than lakhs. !einsurance partners8 best and

the largest in the world I general cologne and wiss reinsurance.

• Audit o accounts by at least ( independent approved auditors each year.

•

"roducts and pricing are cleared by %!/A8 which looks into the inancial visibility o the product and the inancial implication.

• %!/A is now proposing a "vt. "olicy "rotection und.

• 2unds to be invested in only regulated and controlled areas with close to J:Kbeing

pumped into only gilts thereby assuring saety o unds.


16/68

CHAPTER-


17/68

.1.LITERATURE REVIE;

5ow a company does announced a name change especially when the old name was well

knownL 5ow does the company explain itsel to constituents who may have known the

company #uite well in an earlier incarnation but may be struggling to igure out what the new

organi$ation stands orL 5ow can the company create a new image while retaining the

strengths o the old oneL And what role might corporate advertising play in all thisL

&orporate advertising can tell a story about a company as a whole8 large organi$ations may

need to use corporate ads to simpliy their image in the minds o key constituents and to show

what uniies the company8 despite the geographical spread and variety o its businesses.

3e can very well understand the concept o corporate advertising by taking the example o

%&%&% "rudential communication. 3hen &ompany irst began operations8 the task was to

present the visiting card o the company to the public at large and build credibility and stature

and to give the consumer the conidence that EEhere is a company that can be trusted to invest

unds with.EE

This re#uired a corporate campaign - to establish the brand8 build awareness and give the

brand a larger-than-lie image.

The advertising idea8 which was encapsulated in symbols o protection rom the initial print

campaign8 culminated in the corporate ilm where sindhoor was used as an endearing and

lasting symbol o protection. 4nce the corporate image and brand identity were established8

and as the company expanded and its product range grew8 the next phase o communication

was to give the

consumer a rational and tangible reason to buy - irst o all insurance and secondly rom

%&%&% "rudential ,ie. This was tackled through product-speciic advertising8 such as or

%&%&% "ru mart Hid8 retirement solutions or ,ieTime.


18/68

..>EY SUMMERY

&reate a good citi$en image through consistent 0 dedicated eort.

&onvey the organi$ations commitment to the concerned publics as well as to the

masses 0 eliminate prejudices8 i any held by opinion leaders in particular 0 by the

public in general.

Boost both employee management relation 0 employee morale enabling all

Members o the internal public to discover a new vitality.

.!. RESEARCH METHODOLO)Y

!esearch Methodology has many dimensions8 it include not only research methods

but also considers the logic behind the methods used in the context o the study and explains

why only a particular method o techni#ue had been used so that research lend themselves to

proper evaluations. Thus in a way it is a written game plan or concluding research thereore

in order to solve research problem it is necessary to design a research methodology or the

problem as the same may dier rom problem to problem. !esearch design is the conceptual

structure within which the research is conducted. %ts unctions are to provide or the

collection o relevant evidence with minimum expenditure o eort8 time and money. But8

how this can be achieved depends on the research purpose. %n my study the research purpose

is exploratory study i.e. to gain amiliarity with phenomena or to achieve new insights in it.

MA!H6T !66A!&5 /6%?) 7 /escriptive type

/ATA 4

AM",6 %O6 7 ':: samples

M4/6 42 &4,,6&T%)? /ATA7 !espondents to be chosen randomly.


19/68

SAMPLE DESI)N/

ocial phenomenon being very vast8 it becomes impossible to contact each and every

individual o population due to limitation o essential resources like time and money.

Thereore8 the study is preerably narrowed down to a representative sample to make the

study more manageable. Nuota sampling is adopted in the exploratory study. %t is a non-

probability study in which various insurance players are taken.

SAMPLIN) UNIT7

The data can be collected rom primary sources. The basic premises o my study are

primary data but at the same time it is supplemented with the secondary data. ampling unit

is a unit which would be considered or the purpose o study to conduct the comparative

study o the %&%&% "rudential and other insurance companies with special reerence to


20/68

company’s database and i seemed interested % take along with me the representatives o the

company or urther inormation gathering.

'C S&765 o, Seo46a'5 Da&a/ The #uickest and the most economical way or researchers to

ind possible hypothesis is to take the advantage o the work done earlier and thus utili$e

their eorts.

(C I4-6e%&$ I4&e'*e92/ % used in-depth interviews because it attempts to inluence

respondents to talk reely about their subject o interest .A ormal #uestionnaire was made

and according to which the #uestions were asked to the respondents.

Ba2* 3e&$o62 o, o++e&*4g P'*3a'5 Da&a/

'C 7e2&*o44a*'e Me&$o6/ The #uestionnaire used by me or the purpose o data collection

were o structured type )on-disguisedC.

(C Co4&a& Me&$o6/ %n order to derive inormation rom the intended organi$ation8 it was

elementary or me to search or a link which could enable me to conduct a research in that

organi$ation.

OBJECTIVE OF THE STUDY

The project undertaken by me as a part o my ummar Training o M.B.A.course is an eort

made to study the


21/68

• Market interphase.

CHAPTER-!


22/68

!.1. INDUSTRY PROFILE

Ba8g'o746

%n ''(8 the %ndian lie insurance companies Act was passed . This was the irst

comprehensive legislation in %ndia to regulate the business o insurance. it had been observed

that the provisions o %ndian &ompany’s Act did not meet the purpose. A urther legislation

was passed in '(J8 But a comprehensive legislation was passed in '*J. The amendments in

the act were made in '1 when insurance was nationali$ed and ,%& and ?%& were ormed.

,ie insurance business was nationali$ed with eect rom ' ;anuary '1 and (1

companies were merged. %nsurance Act was urther amended in ' and %!/A was ormed

in view o the circumstances arising out o opening up o insurance industry in (:::.%!/A

authority to protect the interest o the holders o insurance policies8 to regulate 8 promote and

ensure the working o all companies.

As we enter into the new millennium8 economies o the world over are getting

redeined and remodeled with the new mindsets8 new technologies8 new riles and new

directions. 2inancial sector reorms received top priority ever since the ?ovt. o %ndia

initiated the process o economic liberali$ation. These reorms are extending the hori$ons o

the inancial services sector and have been transorming our capital markets 8 banking and

inancial services industries.


23/68

%n the last our decades 8 ater nationali$ation o the insurance industry 8 certain socio-

economic objectives were achieved through public ownership o the insurance business. 9et8

market oriented dynamism was missing as evidenced by the lack o

product innovations8 high premium rates and limited use o inormation technology.

The insurance sector reorms have encouraged Blue-Bloods o %ndian corporate sector

TATA8%&%&%85/2&8B%!,A8B%8!6,%A)&68H4TAH etc to tie up with world’s largest

insurance majors to capture slice o the country’s potential insurance market.

This has brought abu$$ activities in insurance business. )ew players are wooing the customer

with promises o better services and customi$ed products. The ,%& and ?%& are countering

the competition on the strength o their track records8 distribution networks and so on.

This new scenario will witness inancially sound and experienced players transorming the

industry with best products in service and product development 8 operational eiciency8

marketing capability8 service plus and tech-savvy orientation. As a result8 the insurance

business can become global with e-business applications.

%t is awkward business playing value igures on people’s lives. %t is almost as

awkward as selling the likelihood o an event people do not want crossing their minds . in

%ndia8 it is rather a shrub. 2or this reason alone lie insurance is no ordinary market.


24/68

This assumes signiicance because %ndia is witnessing oreign competition in

this sector ater a long monopoly period.

There is consensus on success becoming a unction o market strategy. o ar

the market has been shaped by ,%& . it is only recently that private insurers with P+7(1

joint ventures between %ndian and oreign companies have been ormed under the

watch o %!/A. %&%&% prudential8 5/2& slandered lie and Max )ew 9ork ,ie were

irst o the block8 ollowed by Hotak Mahindra8 !oyal undram8TATA Aig8Birla

unlie8B% ,ie and %)? Qyasa which were started later.

udden burst o competition itsel is a uni#ue occurrence. The %ndian market

distinguishes itsel in other ways too8 most notably in the areas o consumer

perception and investment option. o it is worth which will the market move and what

could be the winning strategies. Basic premise is clear that R+*,e *427'a4e *2 a

2%e*a+*e6 072*4e22D.

LIFE INSURERS

'. BA;A; A,,%A)O ,%26 %)

(. B%!,A *. 5/2& TA)/A!/ ,%26 %)

+. %&%&% "!. %)? Q99A ,%26 %)

P. MAG )6394!H ,%26 %)

J. M6T,%26 %)/%A %)


25/68

''. TATA A%? ,%26 %)

'(. AQ%QA ,%26 %)

'*. A5A!A ,%26 %)

L*,e I427'a4e Co3%a4*e2

ICICI P'76e4&*a+ L*,e I427'a4e Co3%a45 L*3*&e6

%&%&% "rudential ,ie %nsurance &ompany ,imited was incorporated on ;uly

(:8(:::.The authori$ed capital o the company is !s (*:: million and the paid up capital

is !s ':: million. The &ompany is joint o %&%&% P+KC and "rudential plc


26/68

>OTA> MAHINDRA LIFE INSURANCE COMPANY LTD.

Hotak Mahindra lie %nsurance &ompany ,imited is a joint venture

between Hotak Mahindra 2inance ,td and 4ld Mutual.

>o&a8 Ma$*46'a F*4a4e L&6.

Hotak Mahindra is one o the %ndia’s leading inancial institutions8

oering complete inancial solution that encompasses every sphere o lie. 2rom

Banking8 to stock Broking8 to Mutual 2unds8 to ,ie %nsurance8 to %nvestment Banking8

the company caters to the inancial needs o individuals and corporates.

O+6 M7&7a+

4ld Mutual8 a company with over 'P years o experience in lie

insurance business8 has the largest inancial services business in outh Arica8 through its

lie assurance8 asset management8 banking and general insurance operations. Being listed in

,ondon tock 6xchange and included in 2T6 ':: list o companies8 old Mutual’s assets

under management are worth S(:J billion.

Ta&a AI) L*,e I427'a4e Co3%a45/

Tata A%? ?eneral %nsurance &ompany ,td and Tata A%? ,ie %nsurance &ompany ,td

collectively RTata A%?DC are joint venture companies between the Tata group %ndia’s most

trusted industrial house and American %nternational grouping A%?C8 the leading


27/68

Both promoters have a deep and abiding interest in %ndia’s %nsurance sector. "rior to

nationali$ation8 the Tanta’s pioneered private insurance in %ndia when ir /orab Tata set

up new %ndia assurance in ''.By 'P*8when ?eneral %nsurance was nationali$ed the Tata

company had a global presence with 1 overseas oices. Aig too has always considered the

%ndian insurance sector to be o signiicance. The A%? companies entered %ndia in '+ and

had oices in several %ndian cities prior to nationali$ation.

HDFC S&a46a'6 L*,e/

HDFC tandard ,ie %nsurance company is a joint venture between %ndia’s largest

housing inance provider8 5/2& and 6urope’s largest mutual lie assurance company The

tandard ,ie Assurance &ompany


28/68

At the industry level8 along with the ?overnment and ?%&8 it has helped established the

)ational %nsurance Academy. %t presently transacts individual lie insurance businesses8

group insurance businesses8 social security schemes and pensions8 grants housing loans

through its subsidiary> and markets saving and investment products through its mutual

und. %t payo about !s 1::: crore annually to .1 million policyholders. Market share o

,%& which is J(.*K.By the ,%& '.: crores policies has been sold that was in the (::+-:

0 the total premium that are collected by ,%& in (::+-: was !s.::P crores.

ALLIAN? BA?A? LIFE INSURANCE COMPANY

Allian$ A? with over '': years o experience in over P: countries and Bajaj Auto8

trusted or over years in the %ndian market 8together are committed to oering inancial

solutions.

&haracteri$ed by global presence with a local ocus and driven by customer

orientation to establish high earnings potential and inancial strength8 Allian$ Bajaj ,ie

%nsurance &o ,td was incorporated on '(th March (::'.The company received the

insurance regulatory and development Authority %!/AC &ertiicate o !egistration on * rd

August (::' to conduct ,ie %nsurance business in %ndia. The Market share o Bajaj

Allian$ in (::*-:+ was .K which has been increases in (::+-: and it is know (.:*K

which depicts the inancial position o the co.


29/68

!.. COMPANY PROFILE

%ndia’s )umber 4ne private lie insurer8 %&%&% "rudential ,ie %nsurance &ompany is a joint

venture between %&%&% Bank-one o %ndia’s oremost inancial services companies-and

"rudential plc- a leading international inancial services group head#uartered in the


30/68

The %&%&% "rudential edge comes rom our commitment to our customers8 in all that we do I be

it product development8 distribution8 the sales process or servicing. 5ere’s a peek into what

makes us leaders.


31/68

'. 4ur products have been developed ater a clear and thorough understanding o customers’

needs. %t is this research that helps us develop 6ducation plans that oer the ideal way to truly

guarantee your child’s education8 !etirement solutions that are a hedge against inlation and yet

promise a ixed income ater you retire8 or 5ealth insurance that arms you with the unds youmight need to recover rom a dreaded disease.

(. 5aving the right products is the irst step8 but it’s e#ually important to ensure that our

customers can access them easily and #uickly. To this end8 %&%&% "rudential has an advisor base

across the length and breadth o the country8 and also partners with leading banks8 corporate

agents and brokers to distribute our products

*. !obust risk management and underwriting practices orm the core o our business. 3ith clear

guidelines in place8 we ensure e#uitable costing o risks8 and thereby ensure a smooth and

hassle-ree claims process.

+. 6ntrusted with helping our customers meet their long-term goals8 we adopt an investment

philosophy that aims to achieve risk adjusted returns over the long-term.

. ,ast but deinitely not the least8 our '18::: plus strong team is given the opportunity to learn

and grow8 every day in a multitude o ways. 3e believe this keeps them engaged and

enthusiastic8 so that they can deliver on our promise to cover you8 at every step in lie.

P'o3o&e'2

ICICI Ba48

ICICI Ba48


32/68

customers have access to its services at all times.

P'76e4&*a+ P+

6stablished in ,ondon in 'J+J8 "rudential plc8 through its businesses in the


33/68

3e do believe that we are on the threshold o an exciting new opportunity8 where we can play a

signiicant role in redeining and reshaping the sector. ?iven the #uality o our parentage and

the commitment o our team8 there are no limits to our growth.

O7' a+7e2 /

6very member o the %&%&% "rudential team is committed to core values7 %ntegrity8 &ustomer

2irst8 Boundary less8 4wnership8 and "assion. These values shine orth in all we do8 and have

become the keystones o our success.

SHEET

THE Co3%a45

%&%&% "rudential ,ie %nsurance &ompany is a joint venture between %&%&% Bank8 a premier

inancial powerhouse8 and "rudential plc8 a leading international inancial services group

head#uartered in the


34/68

%&%&% "rudential has one o the largest distribution networks amongst private lie insurers in

%ndia. As o March *'8 (::P the company has over J: oices across the country and over

(*+8::: advisors.

The company has over (( bancassurnace partners8 having tie-ups with %&%&% Bank8 2ederal

Bank8 outh %ndian Bank8 Bank o %ndia8 ,ord Hrishna Bank8 %dukki /istrict &o-operative

Bank8 ;algaon "eoples &o-operative Bank8 hamrao Qithal &o-op Bank8 6rnakulam Bank8

Bank o %ndia sponsored !egional !ural Banks !!BsC8 angli


35/68

insurance8 private e#uity and asset management. %&%&% Bank is a leading player in the retail

banking market and services its large customer base through a network o over : branches

and extension counters8 **:: ATMs8 call centers and internet banking www.iciciprulie.com

to ensure that customers have access to its services at all times.

6stablished in ,ondon in 'J+J8 "rudential plc8 through its businesses in the a44a4 6xecutive /irectorM'. B$a'ga Da2g7%&a 6xecutive /irectorM2. A4*&a Pa* 6Q" I &ustomer ervice 0 TechnologyM'. A*3 M*&$a4* &hie ActuaryM'. P74ee& Na46a &hie %nvestments 4icerM'. B*4a5a8 D7&&a &hie I ales and distribution

Mr. ). . Hannan6xecutive /irector %&%&% "rudential,ie %nsurance &ompany ,imited

http://www.iciciprulife.com/http://www.iciciprulife.com/public/About-us/ProfileTeam-ShikhaSharma.htmhttp://www.iciciprulife.com/public/About-us/ProfileTeam-ShikhaSharma.htmhttp://www.iciciprulife.com/public/About-us/ProfileTeam-BhargavDasgupta.htmhttp://www.iciciprulife.com/public/About-us/ProfileTeam-AnitaPai.htmhttp://www.iciciprulife.com/public/About-us/ProfileTeam-AzimMithani.htmhttp://www.iciciprulife.com/public/About-us/ProfileTeam-PuneetNanda.htmhttp://www.iciciprulife.com/public/About-us/ProfileTeam-BinayakDutta.htmhttp://www.iciciprulife.com/http://www.iciciprulife.com/public/About-us/ProfileTeam-ShikhaSharma.htmhttp://www.iciciprulife.com/public/About-us/ProfileTeam-BhargavDasgupta.htmhttp://www.iciciprulife.com/public/About-us/ProfileTeam-AnitaPai.htmhttp://www.iciciprulife.com/public/About-us/ProfileTeam-AzimMithani.htmhttp://www.iciciprulife.com/public/About-us/ProfileTeam-PuneetNanda.htmhttp://www.iciciprulife.com/public/About-us/ProfileTeam-BinayakDutta.htm


36/68

). . Hannan joined %&%&% "rudential ,ie %nsurance &ompany ,td as 6xecutive /irector

in August (::8 where he has overall responsibility or sales8 marketing8 investments8

group business and business intelligence. "rior to joining %&%&% "rudential8 Hannan was

the &hie 2inancial 4icer and Treasurer o %&%&% Bank ,imited where he was

responsible or investor relations and or the inance8 perormance management8 accounts8

taxation8 risk management8 secretarial and credit middle oice unctions. The treasury

operations o %&%&% Bank include Balance heet Management and Asset and ,iability

Management. %&%&% Bank is the second largest bank in %ndia with an asset base o about


37/68

• %&%&% "!


38/68

• "remiums are high as compared to its competitors.

• Qery ew branches in the country.

• "!4/


39/68

"ast perormance o these plans is not indicative o the uture perormance o the

plan

The sum invested in the unds is subject to market risks and there can be no

assurance that the objective o the plans will be achieved. All beneits payable under the policy are subject to the tax laws and other

inancial enactment8 as they exist rom time to time

MEANIN) OF ULIP

A policy8 which provides or lie insurance where the policy value at any time varies

according to the value o the underlying assets at the time.


40/68

FEATURES OF ULIP


41/68

V ,i#uidity

V Tax planning

The two strong arguments in avour o unit-linked plans are7

• 2irstly8 the investor knows exactly what is happening to his money

• econdly it allows the investor to choose the assets into which he wants his unds

invested.

An investor in a


42/68

%n traditional G9*&$ %'o,*&2 policies the insurance company bears the investment risk to the

extent o insured amount. %n IN) OF UNIT LIN>ED INSURANCE PLANS

SUPER SMART >ID

S3a'&>*6 oers an exclusive choice o * education insurance plans7 martHid )ew


43/68

Mo'&a+*&5 Po+*5 A63*4*2&'a&*o4 $a'ge2/

the units in the und.

(. martHid )ew


44/68

,ie,ink uper

3ell-deserved inancial incentives8 rewarding business proits and even ancestral money are

precious amounts that you should invest immediately so they earn you potentially higherreturns in the long run.

%nvest in %&%&% "rudentialEs ,ie,ink uper policy-a single-premium unit-linked policy

that works best or investors who have in mind long-term inancial goals8 such as theeducation o a child or the purchase o a larger home.

Apart rom the potentially higher returns that you can earn8 ,ie,ink uper insures your

amily against misortunes with its protective insurance cover.

!ead more about the eatures and beneits o this plan8 right away.

L*,eL*48 S7%e' a& a g+a4e


45/68

Fea&7'e2 a46 0e4e,*&2 o, L*,eL*48 S7%e'

o%&*o42 o, S73 A227'e6/ &hoose to receive either '(K or ::K o the single premiumamount.

F+e*0+e %o+*5 &e'3/ /ecide how long you wish to invest in this policy. 9ou can invest or aminimum o years and keep your investment growing or as long as you wish ater that.

Pa'&*a+ 9*&$6'a9a+ o, 3o4e5/ 3ithdraw unds in installments rom the +th year onwards.

A&&'a&*e %'e3*73 a++oa&*o4 'a&e2/ 6njoy '::K allocation or premium amounts e#ual toor greater than !s. lacs.

( *4e2&3e4& ,7462/ elect among 2lexi-?rowth8 Maximiser8 2lexi-Balanced8 Balancer8

"rotector8 and "reserver8 based on your inancial goals and risk proile.

S9*&$ 0e4e,*&/ witch between unds anytime to maximi$e on market movements. 9ou canswitch unds + times a year8 at no cost. 2or subse#uent switches8 you will be re#uired to pay aswitch ee o !s. '::.

Ma&7'*&5 0e4e,*&/ !eceive the 2und Qalue when your policy matures. &hoose to take this

Minimum=Maximum 6ntry Age

Maximum Age at "olicy Maturity

Minimum "olicy Term

Minimum ingle "remium

Minimum um Assured

Tax Beneit

: years to 1 years

P: years

years


46/68

value as a single lump-sum amount or in monthly8 bi-annual or annual installments spreadover ' to years.

Dea&$ 0e4e,*&/ 9our amily receives the higher o 2und Qalue or um Assured shouldsomething happen to you.

;$5 L*,eT*3e S7%e'

As an individual who desires a lot rom lie-a car8 a beautiul home and o course8 the comortand contentment o your amily-you would undoubtedly want to plan your inances such thatyou can take care o all your re#uirements.

%nvest in %&%&% "rudentialEs ,ieTime uper policy-a regular-premium unit-linked policy8

which oers potentially higher returns that systematically enable you to meet your long-terminancial objectives. %n addition8 ,ieTime uper also provides the protective beneit o aninsurance cover8 which keeps your amily secure8 always.

!ead more about the eatures and beneits o this plan.

L*,eT*3e S7%e' a& a g+a4e


47/68

Fea&7'e2 a46 0e4e,*&2 o, L*,eT*3e S7%e'

F+e*0+e %o+*5 &e'3/ /ecide or how long you want your policy. 9ou can invest or aminimum o ': years and a maximum o P years.

! $o*e2 o, %'e3*73 %a53e4&/ 4pt to pay the premium on a monthly8 bi-annual or anannual basis.

( *4e2&3e4& ,7462/ elect among 2lexi-?rowth8 Maximiser8 2lexi-Balanced8 Balancer8"rotector8 and "reserver8 based on your inancial goals and risk proile.S52&e3a&* 9*&$6'a9a+ o, 3o4e5/ 3ithdraw money in installments rom the +th year

onwards.

Minimum=Maximum 6ntry Age

Maximum Age at "olicy Maturity

Minimum=Maximum "olicy Term

"remium "ayment 2re#uency

Minimum "remium

Minimum um Assured

Tax Beneit JC

: years to 1 years

P years

': years to P years

Monthly8 hal-yearly8 yearly

!s. 'J8::: per annum

Annual "remium x Term=(. ubject to aminimum o !s. '8::8:::

"remium paid or the policy and critical illness beneit rider will be eligible or tax beneitunder ec. J:& and J:/ respectively. Anyamount paid to you will be eligible or tax

beneits under ec. ': ':/C as per prevailing%ncome Tax laws.


48/68

Ma&7'*&5 0e4e,*&/ !eceive the 2und Qalue when your policy matures. &hoose to take thisvalue as a single lump-sum amount or in monthly8 bi-annual or annual installments.

Dea&$ 0e4e,*&/ 9our amily receives the higher o 2und Qalue or um Assured shouldsomething happen to you.

S9*&$ 0e4e,*&/ witch between unds anytime to adjust your portolio8 based on your goalsand risk proiles. 9ou can switch unds + times a year8 at no cost. 2or subse#uent switches8you will be re#uired to pay a switch ee o !s. '::.

ROLE OF AN ADVISOR IN UNIT LIN>ED INVESTMENT PLANS

%t is important or us to know that what is the role that an advisor will play. At %&%&%

"rudential8 you are an advisor is to

'. "rovide ongoing inancial advice or his=her clients7 9ou are an advisor and just like a

lawyer or a doctor you advice the client about insurance and inance.

(. %dentiy uture clients7 ,ie insurance is a business o contacts an the advisor constantly

need to know people so that his business expands.

*. &onstantly make appointments7 ;ust making contacts will not be enough to develop a

good lie insurance business.

+. Advisor needs to meet these contacts and thus should make appointments on constantly.. &onduct inancial review meetings with prospects= clients7 As an advisor it is necessary

to meet with client not only or the purpose o selling but also to review the need o the

client and prospects. Many people would not be in or lie insurance today but as time

moves they can be re#uiring one. imilarly an existing client may also be in need o

more insurance as responsibilities and liabilities increase.

&lose sale7


49/68


50/68

CHAPTER-"

".1.ANALYSIS STUDY ;ITH THE COMPETITORS

LIST/

• ,ieTime uper Qs ,%& Bima"lus

• ,ieTime uper Qs Birla un,ie &lassic ,ie

• ,ieTime uper Qs 5/2& ,inked


51/68

• "remier,ie Qs Bajaj Allian$


52/68

lakh

urvival beneit Qalue o units *rd year onwardsC Bid Qalue o the und units

along with maturity bonus at K

o the um Assured

/eath beneit 5igher o um Assured or value o

units.

/eath during the irst 1 months -

*:K o A U value o units8 next

1 months - 1:K o A U value o

units. /eath ater 'st year - A U

value o units. /eath during the

':th year - ':K o A U value

o units.

3ithdrawal beneit "artial or complete withdrawals are

available rom the *rd year onwards

"remature withdrawal allowed

ater one year ater applying

bid-oer spread.

&ontribution Minimum7 !s. 'J8::: p.a. )ot speciied

2lexible

contribution

2lexibility to increase or decrease in

contribution )ot available

%nvestment options Maximiser8 Balancer8 "rotector 0

"reserver. Balanced8 ecured 0 !isk

%ncrease = /ecrease

o death beneit

Available. )ot available

Bonus units Available )ot Available.

Top-up Available. Minimum top-up o !s.

:::. &harges - 'K o top-up.

Available &harges7 '.K o the

top-upC

witch

+ ree switches a year8 with the

minimum switch amount being !s.

(:::.

)o ree switches. &ost o

switching is (K o the und

value.

urrender value The policy will ac#uire a surrender value ater * complete premium-

paying years. The surrender value is

'::K o the value o investments.

"artial surrender up to :K o bid value o units allowed ater *

years rom date o

commencement

%nitial &harge K Allocation o the premium )ot /isclosed

'J:::- +87 'st year - J:K> (nd

year - (.K > *rd year onwards -

1K.

:::: and above7 'st year - J(K>

(nd year - (.K> *rd year onwards -


53/68

1K.

Admin &harge )one )ot applicable

4ther &harges )ot applicable )ot applicable

2und Management

&harges

The annual administrative and und

management charge is (.(K or Maximiser8 (.(K or Balancer8

'.:K or "rotector 0 :.PK or

"reserver. 'K o the und per annum

IFETIME SUPER VS HDFC LIN>ED

Fea&7'e2 L*,eT*3e S7%e' HDFC L*48e6

Age : - 1: years 'J - 1: years

Term Minimum premium payment term o

*years

': - *: years

um Assured &hoose your sum assured8 subject to

a minimum sum assured o !s. '

lakh

4nly 8':8 (: age-basedC

multiples are allowed as um

Assured.urvival beneit Qalue o units *rd year onwardsC Qalue o units

/eath beneit 5igher o um Assured or value o

units.

5igher o um Assured or value

o units.

3ithdrawal beneit "artial or complete withdrawals are

available rom the *rd year onwards

"artial withdrawal available

rom the *rd year onwards8

provided that the Qalue o


54/68

2lexible

contribution

2lexibility to increase or decrease in

contribution.

Available


"reserver.

2und 4ptions- Balancer8

/eensive Managed8 ae

Managed8 ,i#uid 0 ?rowth

%ncrease = /ecrease

o death beneit

Available. )ot available

Bonus units Available )ot available



Available

witch + ree switches a year8 with the

minimum switch amount being !s.

(:::.

witches are ree as o now. But

the company reserves the right

to put a charge on the switches.urrender value The policy will ac#uire a surrender

value ater * complete premium-

paying years.

The surrender charge is (K o

* years outstanding regular

premium. )o charges ater *

years

%nitial &harge K Allocation o the premium &harges

'J:::- +87 'st year - J:K> (nd

year - (.K> *rd year onwards -

1K.

'st yr-(PK8 (nd yr- (PK8 *rd yr

onwards- 'K

:::: and above7 'st year - J(K>

(nd year - (.K> *rd year onwards -

1K.

Admin &harge )one Admin charges o !s.'J: ixed

charge per annum.

4ther &harges )ot applicable )ot applicable

2und Management

&harges

The annual administrative and und

management charge is (.(K or

Maximiser8 (.(K or Balancer8

'.:K or "rotector 0 :.PK or

"reserver.

%nvestment charge o :.J:K o

the 2und Qalue across all the

unds.

!ider A/B!8 &%B! 0 MA! AB! 0 &%B!


55/68

SUPER PREMIER LIFE VS BAJAJ ALLIAN? UNIT)AIN PLUS

Fea&7'e2 S7%e' P'e3*e' L*,e Baa A++*a4 U4*&ga*4 P+72

Age 'J - 1: years : - 1: years

Term "remium paying term o * years8

years8 P years or ': years.

Minimum premium payment

term o * years

um Assured um Assured multiple is ' - ( times

the annual premium

Minimum um Assured is

times the premium paid.

urvival beneit Qalue o units Anytime ater payment o *

ull yearEs premiums.

/eath beneit 5igher o um Assured decreased by

the amount o withdrawals made or

value o units.

5igher o um Assured or

value o units

3ithdrawal beneit "artial withdrawals are available ater

the *rd policy year and ater payment

o * yearsE premiums. &omplete

withdrawals are available ater the 'st

year premium. 5owever surrender

penalties will apply.

"artial or complete

withdrawals are available ater

the *rd years contribution

&ontribution Minimum7 !s. 1:8::: p.a. Minimum7 !s. ':8::: p.a.

2lexible

contribution

Available

Available


"reserver.

6#uity %ndex 2und8 6#uity "lus

2und8 /ebt 2und8 Balanced

2und8 &ash 2und

/ecrease in death

beneit

Available. Available

Bonus units Available. )ot available


56/68



Available. &harge are (K o

the top-up amount

witch + ree switches a year. Three ree switches every year.

urrender value The policy will ac#uire a surrender

value rom the 'st year onwards.

3ithdrawals are only allowed

ater payment o * ull yearEs

premiums

%nitial &harges K Allocation o the premium K Allocation o the premium

3 year premium paying term 'st year - P1K> PK rom year

( onwards

!s. 1:.::: - !s. +887 'st year7

JPK> (nd and *rd year7 1K

!s. 8::8::: and above7 'st year7 JK>

(nd and *rd year7 1K

5, 7 and 10 year premium paying term

!s. 1:.::: - !s. +887 'st year7

JJK> (nd and *rd year7 PK> +th and

th year7 JK>1th year onwards7 '::K

!s. 8::8::: and above7 'st year7 :K>

(nd and *rd year7 PK> +th and th

year7 JK> 1th year onwards7 '::K

Admin &harge Admin charge o !s. 1: = month Annual admin charges o !s.

(:

2und Management

&harges

The annual investment charge is '.:K

or Maximiser8 '.::K or Balancer8

:.PK or "rotector 0 "reserver.

'.K p.a. or a 6#uity "lus

2und8 'K p.a. or 6#uity %ndex

2und8 )o speciic charges in

case o Balanced 2und8 :.PK

p.a. or /ebt "lus 2und and

:.PK in case o &ash "lus

2und.!ider A/B! 0 &%B! AB!8 A/B!8 &% 0 5ospital

&ash Beneit


57/68

STUDY TAX PLANNIN) SOLUTIONS

AVAILABLE IN THE MAR>ET

TAX BENEFITS ON INSURANCE AND PENSION

,ie insurance and retirement plans are eective ways o saving taxes. The tax breaks that are

available under various insurance and pension policies are described below7

• ,ie insurance plans are eligible or deduction under ec. J:&

• "ension plans are eligible or a deduction under ec. J:&&&

•

5ealth riders are eligible or deduction under ec. J:/

• The proceeds or withdrawals o lie insurance policies are exempt under ec

':':/C8 subject to norms prescribed in that section.

Ta Ra&e2 ,o' I46**67a+2

T$e 'a&e2 o, *4o3e &a ,o' FY @@-@ a'e a2 ,o++o92/

To&a+ I4o3e


58/68

As per ection ':':/C o %ncome tax Act8 '1'8 any sum received under a lie insurance

policy8 including the sum allocated by way o bonus on such policy is exempt rom tax.

5owever8 this rule does not apply to ollowing amounts7

um received under ection J:// *C8 or

Any sum received under a Heyman %nsurance "olicy8 or

Any sum received other than as death beneit under an insurance policy which has been

issued on or ater April ' (::* and i the premium paid in any o the years during the term o

the policy is more than (:K o the sum assured.


59/68


60/68

DATA ANALYSIS FINDIN)S

1=. A'e 5o7 *4&e'e2&e6 *4 %'o67&2 o,,e'e6 05 &$e ICICI PRUDENTIAL:

9es 1'K

)o ((K

3ill think 'PK

INTERPRETATION

The good thing is that atleast the corporates were #uite eager to ind out what %&%&%

"!


61/68

96 1K

)o *K

INTERPRETATION

5ere is where the challenge is. %nevitably most o the players are very satisied with their

present insurer which makes it more tough or the private players to attract the corporates.

The remaining * K are also not very dissatisied by the services but they are just open to

new avenues and are looking orward that private companies come with good oers so that

they may shit to them. Thus private players will have to be very proactive and in this regard

since ,%& is the leader and %&%&% "!


62/68

BA;A; A,,%A)O -

TATA A%? - '

B% - J

H4TAH MA5%)/!A - (

INTERPRETATION

Thus we see that the companies are comortable in having business with govt. owned

companies as they eel its sae 0 secure to have business with them which is ollowed by B%

as it is the biggest bank and then ollowed by TATA A%? as the name TATA is associated with

it which commands huge premium in the market . 3hereas in the case o %&%&%

"!


63/68

INTERPRETATION

"eople invest in insurance mainly because o security concern.

#=. A'e 5o7 a9a'e o, L*,e&*3eS7%e' *4&'o67e6 05 ICICI P'76e4&*a+ +*3*&e6:

9es JK


64/68

)o +(K

INTERPRETATION

The awareness level among the corporate about %&%&% "!


65/68

CHAPTER-(

(.1. LIMITATIONS

• The geographical area was very much limited to residential area 0 so the results are

not particularly relection o the current behavior.


66/68

• Biases and non-cooperation o the respondents.

• /ue to limited time period and constrained working hours or most o the

respondents8 the answers at times were vague enough to be ignored.

• Most o the people in %ndia take their policies in the period preceeding Marchor tax

saving purposesC 0 so the response to initial contacts were not all encouraging and

that has been the primary reason in the inability to #uantiy the results large enough so

as to reduce any relevant outcomes.

• Most o the results that are spelt out have been o #ualitative aspects.

• "eople are not interested in giving personal opinion.

(.. FINDIN)S RECOMMENDATIONS

• More emphasis should be on promotional activities.

• "lenty o advertisement should be done through T.Q8 )ewspaper and !adio as these

media’s are having maximum recall value.

• Total inancial planning and advice should be given to every customer.

• More business opportunity seminars should be conducted to make people aware o the

oer given.

• The company should #uite re#uently send their agent to the customer so that they

should be aware o the latest oer.

• The company should attempt to open more and more o its branches in the country so

as to promote their product publicity.


67/68

CONCLUSION

,%& enjoys credibility over other private players in the industry "eople look or

security over returns in market linked plans .,ietime is the most popular product

among the people who are aware about %&%&% "rudential’s products. "eople are now

showing more interest in


68/68

BIBLO)RAPHY

• www.iciciresearchcenter.org

•

www.tata-aig.com• www.iciciprulie.com

• www.personaln.com
http://www.iciciresearchcenter.org/http://www.tata-aig.com/http://www.iciciprulife.com/http://www.personalfn.com/http://www.iciciresearchcenter.org/http://www.tata-aig.com/http://www.iciciprulife.com/http://www.personalfn.com/

Documents

Market Analysis of Icici Prudential and Other Insurance-companies (MARKAT)