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FINANCIAL PERFORMANCE OF LIFE INSURANCE COMPANIES
AND PRUDUCTS
V.NEELAVENI*
*Lecturer,
School of commerce and management,
Dravidian university, kuppam.
ABSTRACT
Future is associated with uncertainty. Uncertainty is a
universal risk for the mankind. Such
type of risk is to be controlled or avoided or financed by
everybody. Many types of risk
management techniques are there. Insurance is one of the best
risk financing techniques.
With reforms of regulations and opening up of the insurance
sector to the private
management in the year 1999, it can be seen the tough
competition in the insurance industry.
The number of General insurance and Life insurance companies
have been increasing in the
21st century. The ultimate person is an investor or customer,
who has to get the update
information, observe keenly the performance of the companies and
their attractive products.
The evaluation of financial performance of the life insurance
companies is essentially needed
to select a best life insurance policy. Five life insurance
companies are randomly selected at
the time of 2002-03 and evaluated its performance in this
endeavor.
___________________________________________________________________________
INTRODUCTION
The article presents a brief profile of the companies that have
been selected as sample units.
The companies that are covered: LIC, ICICI Prudential Life
Insurance Company Limited,
Bajaj Allianz Life Insurance Company Limited, Birla Sunlife
Insurance Company Limited
and ING Vysya Life Insurance Company Private Limited.
1. LIFE INSURANCE CORPORATION OF INDIA
The symbol of Life Insurance Corporation of India (LIC) gives
the message of protection to
light the lamps of security in as many homes as possible and to
help the people in providing
protection to their families.1 The LIC was established in the
year 1956 with following main
objectives.
1. Meeting the various life insurance needs of the community
that would arise in the changing social and economic
environment.
2. Spreading life Insurance widely, particularly to the rural
areas and to the socially and economically backward classes with a
view to reaching all insurable persons in the country
and providing them adequate financial cover against death at a
reasonable cost.
3. Maximizing mobilization of peoples savings through
insurance.
4. Providing good returns to the policyholders (insureds) by
investing in attractive securities.
1 Tryst with Trust, the LIC Story, PR& publicity,
Yogakshema, (Bombay; 1991), Pp.45-46.
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5. Acting as trustee of the insured public in their individual
and collective capacities.
6. The vision of the Corporation is "a trans-nationally
competitive financial conglomerate of significance to societies and
pride of India". The mission of the Corporation is that to
explore
and enhance the quality of life of people through financial
security by providing products and
services of aspired attributes with competitive return, and by
rendering resources for
economic development.
The enforcement of New Economic Reforms in 1991 coupled with the
formation of
Insurance Regulatory and Development Authority Act (IRDA) of
2000 (which started issuing
licenses to private life insurers) has diluted the monopoly
position of the LIC. Inspite of 22
new players from the private sector, LIC continues to dominate
the business with its
widespread activities. Large number of agents numbering over a
million and the variety of
products introduced. At the end of August 2008, LIC accounted
for about 60 per cent of total
premium underwritten by the life insurance sector. LIC has
played a significant role in
spreading life insurance and mobilization of peoples money for
peoples welfare. The
market share as at 30.06.2009 is 62.45% in premium and 69.88% in
policies. During the
fiscal year of 2008-09 the LIC has 3.58 crores policies and sum
assured of Rs.3, 90,053
crores. In the year 2008-09, LIC settled over 149 lakh claims
for an amount of Rs.37, 893
crores in individual life insurance business. Out of total
maturity claims settled over 97%
were settled on or before the date of maturity and over 93% of
the total non early death
claims were settled within 20 days of intimation.
The LIC has subsidiary companies such as LIC Nepal, LIC Sri
Lanka and Life Insurance
Corporation of India International. LIC International is a joint
venture offshore company
promoted by LIC which commenced its operations in July, 1989
with the objective of
offering policies denominated in US $ to NRIs residing in the
Gulf. LIC Nepal was formed in
2001 in joint venture with Vishal Group of Industries, Nepal.
LIC Lanka was formed in
2003 in joint venture with Bartleet Group of Companies. Sri
Lanka LIC Housing Finance
was established on 19 June, 1989 in Dubai with the objective of
providing long term finance
for construction of houses or apartments. LIC Housing Finance
Limited Care Homes, a
wholly owned subsidiary of LIC Housing Finance Corporation
builds assisted community
living centers for senior citizens.
The LIC has been functioning with head office located at Mumbai,
8 zonal offices and 105
divisional offices in India. It has at least 2048 branches
located in different cities and towns
of India along with satellite offices attached to about 807
branches, 114916 employees and
have a network of around 1.3 million agents by June 2009. LICs
ECS and ATM premium
payment facility is an addition to customer convenience. With a
vision of providing easy
access to its policyholders, LIC has launched its SATELLITE
SAMPARK offices. The
satellite offices are smaller, leaner and closer to the
customer. The digitalized records of the
offices will facilitate anywhere servicing and many other
conveniences in the future. Existing
as a towering insurance company over 53 years, LIC has acquired
almost monopoly power in
sale of life insurance policies in India. LIC has extended its
activities in 12 countries other
than India with the objective of catering to the insurance needs
of Non Resident Indians.
The organizational chart of LIC can be framed as below.
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TABLE: 1
COMPOUND ANNUAL GROWTH RATE (%)
Variables from Financial Statements CAGR (%) of LIC
Share Capital 0.00
Fixed Assets 16.64
Current Assets 09.63
Cash and Bank Balances 5.37
Current Liabilities 24.44
Net Working Capital 3.79
Policy Liabilities 17.41
Total Income 20.51
Premium Income 19.13
Income from Investments 23.24
105 DIVISIONAL OFFICES
8 ZONAL OFFICES
Bhopal, Chennai,
Hyderabad, Kanpur,
Kolkata, New Delhi,
Patna
CENTRAL OFFICE
MUMBAI
2048 BRANCH OFFICES
807 SATELLITE OFFICES
FOREIGN OFFICES
United Kingdom, Mauritius, Fiji
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Other Income (03.90)
Profit Before Tax 11.44
Insurance Benefits delivered 21.26
Commission Paid 16.34
Operating Expenses 15.09
FIGURE: 1
Table: 1 shows that the Compound Annual Growth Rates of several
variables of the LIC. The
CAGR of fixed assets of LIC is 16.64%. The growth rate of
current liabilities is recorded as
highest (24.44). The growth rate of Income from investments and
Insurance benefits are
considered as good. And the corporations other income is showing
negative growth rate.
The corporation has issued number of insurance products in order
to satisfy the customer
needs and requirements. Some of these products are discussed in
the following lines.
JEEVAN NISCHAY
LICs Jeevan Nischay is a single premium, guaranteed return and
closed ended plan
designed for giving financial protection to the policyholders.
The plan is sold only for
existing customers. The eligibility age to enter into the policy
is from 18 years to 50 years.
The range of sum assured is Rs. 10,000 Rs. 10, 00,000. The
policy terms are available in
terms of 5, 7 and 10 years. There will be higher maturity
incentive for the policyholder who
will pay premium amount is Rs. 25,000 or more. There will be
loan facility after completion
of one year. It can be surrendered after one year of
commencement of the policy. Death
benefit is five times the single premium during the first policy
year, after that it is equal to
sum assured. Maturity benefit is sum assured plus loyalty
additions.
-5
0
5
10
15
20
25
CAGR (%) of LIC
Share Capital
Fixed Assets
Current Assets
Cash and Bank Balances
Current Liabilities
Net Working Capital
Policy Liabilities
Total Income
Premium Income
Income from Investments
Other Income
Profit Before Tax
Insurance Benefits delivered
Commission Paid
Operating Expenses
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NEW BIMA GOLD
New Bima Gold is a special plan, where premiums paid over the
term of plan is paid
back during the policy term in installments and life insurance
cover is available not only
during the term but also during the extended term of the plan.
Eligibility age to enter into
plan starts from 14 years to 57 years. The maximum maturity age
is 75 years. The policy is
available in terms of 12, 16 and 20 years. The range of sum
assured is Rs. 50,000 to
unlimited. The sum assured is in multiples of Rs. 5000. 15% of
sum assured paid as survival
benefit for every four years. Death benefit is an amount equal
to sum assured under the basic
plan on death of the life assured during the policy term
provided the life cover is in force.
Payment of an amount equal to 50% of sum assured under the basic
plan on death of the life
assured during the extended term provided all the premiums under
the policy have been paid.
The extended term shall be half of the policy term after the
expiry of the policy term. There
will be loan facility, surrender value and guaranteed surrender
value. In addition accidental
death and disability benefits, optional rider benefits and paid
up value are available in this
policy.
CONVERTIBLE TERM ASSURANCE POLICY
The Convertible Term Assurance Policy is designed to meet the
needs of investors
who are initially unable to pay the larger premium required for
a whole life or endowment
assurance policy, but they have hope to pay for such a policy in
the near future. The
policyholders have an option of converting a policy into
endowment assurance or limited
payment whole life assurance. The range of sum assured amount is
Rs.50, 000 1, 00,
00,000. The term of the policy is 5 to 7 years. Premium can be
paid yearly, half-yearly,
quarterly and monthly up to maximum of 55 years old of insured.
The survival benefit is not
applicable and the sum assured is payable only in the event of
death of the life assured before
the expiry of the specified term.
TWO - YEAR TEMPORARY ASSURANCE POLICY
The Two year Temporary Assurance Policy is designed for people
who specially
require insurance cover against risk for a short period like two
years. It is without profit plan.
The premium can be paid at once. There is no survival benefit,
surrender value and loan
availability. The eligibility age to enter into the policy
starts from 18 years to 60 years. Sum
assured amount is from Rs. 50,000 to 1, 00,000. Death benefit is
total sum assured amount.
THE ENDOWMENT ASSURANCE POLICY
The Endowment Assurance Policy is suitable for people of all
ages and social groups
who wish to protect their families from a financial distress. It
is saving oriented plan. The
main features of this policy are moderate premiums, more bonuses
and high liquidity. The
eligibility age to subscribe the policy is in between of 12 - 65
years. The sum assured amount
starts from Rs. 50,000 to unlimited. The term of the policy
starts from 5 years to 55 years.
The premiums are paid annually, half-yearly, quarterly and
monthly. The sum assured is paid
only at the end of the policy term or death of the policyholder
whichever is earlier. Loan
facility is available for the policy. The disability benefit is
available in respect of the Rs.20,
000 sum assured on any ones life. Accident benefit can be
availed by the insured on
payment of extra premium of Rs. 1 per Rs. 1000 sum assured per
year.
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JEEVAN ANAND
Jeevan Anand is a combination of endowment and whole life plans.
It provides
financial protection against death throughout the lifetime of
the life assured with the
provision of payment of lump sum at the end of the selected term
of his/her survival.
Premiums can be paid monthly, quarterly, half-yearly and yearly.
As it is with-profits plan,
the policyholder can participate in the profits of the
corporation in the form of bonus. Simple
reversionary bonuses declare per thousand sum assured annually
at the end of each financial
year. Additional bonuses are also paid for certain minimum
period. Survival benefit of the
plan is sum assured and vested bonuses at the end of the term.
Death benefit is sum assured
amount plus all declared bonuses. Accident benefit is sum
assured amount up to Rs. 5 lacs.
Extra benefits can be opted by the insured on extra premiums.
The facility of surrender value
is available. The guaranteed surrender value is paid after
paying 3 years or more premiums
and the value is 30% of the basic premium excluding first years
premium.
WHOLE LIFE POLICY
Whole life policy is suitable for people of all ages who wish to
protect their families
from financial crisis. The premium is payable lump sum called as
single premium. The
premiums are paid yearly, half yearly, quarterly and monthly.
The policy will be chosen in
between of 35 years and 80 years. The policy is with profit plan
and the profit will be
distributed to policyholders in the form of bonus. Simple
reversionary bonuses are declared
per thousand sum assured annually at the end of each financial
year. Additional bonus is also
paid for certain minimum period. The sum assured plus bonuses
paid in a lump sum upon the
death of the life assured. As it does not have a maturity date,
an option is to take the sum
assured plus all bonuses at any time after 40 years from the
date of commencement of the
policy. Optional benefits can be added to basic plan for extra
protection at cost of additional
premium. Surrender value is available. On earlier termination of
the plan, the guaranteed
surrender value is 30% of the basic premiums paid excluding the
first years premium. The
value is 90% in case of a single premium policy.
JEEVAN NIDHI
Jeevan Nidhi is with - profit and deferred annuity plan. The
amount of sum assured,
guaranteed additions and bonuses is used to generate a pension
for the policyholder. The age
of eligibility to enter into the policy starts from 18 years to
65 years. The terms of policy are
6 - 35 years for single premium policies and 5 - 35 years for
regular premium policies.
Premiums are paid yearly, half-yearly, quarterly and monthly.
The minimum sum assured
amount is Rs. 50,000. Minimum annual premium is Rs. 3000 and
single premium is Rs.
10,000. The annuity is paid to the life assured as long as
insured alive. The annuity increases
every year at a simple interest rate of 3% per annum. The
annuity is paid to the life assured
for periods of 5 or 10 or 15 or 20 years as chosen by insured.
The purchase price of the
annuity is paid as death benefit. Loan facility is not available
in this policy. The maximum
sum assured under the basic plan subject to a limit of Rs. 5,
00,000 taking all critical illness
riders. Rebate of 2% on yearly premium and 1% on half yearly
premium can be availed by
the insured. In case of death due to any accidents the sum
assured will be paid as accident
benefit. Sum assured will be paid over a period of 10 years in
monthly installments. Term
assurance and critical illness rider are as optional riders.
Critical illness rider will be payable
in case of diagnosis of defined categories of critical illness
subject to certain terms and
conditions. The policyholder can revive his/her lapsed policy by
paying arrears of premium
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together with interest rate within a period of five years from
the date of unpaid premium. The
interest rate is 9% charged. Grace period of 30 days will be
available for payment of
premium which can be paid yearly, half- yearly or quarterly. The
policyholder can return the
policy to the corporation within 15 days, if he / she is not
satisfied.
JEEVAN KISHORE
The plan is an endowment assurance plan available for children
who have less than 12 years
of age. The policy can be purchased by any parent or
grandparent. There will be risk
coverage either after two years from the date of commencement of
the policy or from the
immediate policy anniversary, following the completion of 7
years age of child whichever is
later. Premiums are paid monthly, quarterly, half-yearly and
yearly. It is with-profits plan and
policyholder can get the participation in the profits of the
corporation in the form of bonus.
Simple reversionary bonus paid per Rs. 1000 sum assured annually
at the end of each
financial year. Final bonus may also be paid for certain minimum
period. Maturity benefits
are sum assured and bonuses are paid at the end of policy term.
Death benefits of sum
assured and bonuses on death of the life assured. Premium waiver
benefit is available on
death of proposer. Surrender value is available and guaranteed
surrendered value is after
completion of 3 or more policy years.
THE MONEY BACK POLICY
The money back assurance plan that provides financial protection
against death throughout
the term of plan along with the periodic payments on survival at
specified durations during
the term. Survival benefits are payable only at the end of the
endowment period. In the event
of death at any time within the policy term, the death claim
comprises full sum assured
benefit is payable. Premiums are payable yearly, half- yearly,
quarterly and monthly or
through salary deductions as opted by insured. As it is with -
profit plan, policyholders get
profits in the form of bonuses. Simple reversionary bonuses will
be declared per thousand
sum assured annually at the end of each financial year.
Additional bonuses are also paid for
certain minimum period. Survival benefits are paid certain
percentage of sum assured at the
end of the specific duration. The sum assured and bonuses are
payable in a lump sum upon
the death of the life assured during the policy term
irrespective of the survival benefits paid
earlier. There are optional benefits that can be added to the
basic plan for extra protection for
consideration of paying additional premium. As it is long-term
policy, surrender values are
available on earlier termination of the policy.
BIMA BACHAT
Bima Bachat is one of the money back policies. It offers
financial security and assurance to
the policyholder and his/her family. Policyholder is required to
pay only one premium, which
depends on the duration of the policy taken and life insurance
available till the date of
maturity. Eligibility age to enter in to the policy starts from
15 years to 66 years and
maximum maturity age is 75 years. There are terms to choose
among 9, 13 and 15 years.
Sum assured starts from Rs. 20,000. The policyholder will
receive 15% of the sum assured at
the end of every 3rd
and 6th
policy year and so on. The policy is having surrender value
and
loan facility. The guaranteed surrender value is available only
after completion of premium
paid at least one policy year, the value is equal to 90% of the
single premium paid.
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2. ICICI PRUDENTIAL LIFE INSURANCE COMPANY LIMITED
Industrial Credit and Investment Corporation of India (ICICI)
was established in 1955 with
the objective of extending financial assistance for industrial
development.2 Later, it became a
group company. The ICICI Group offers a wide range of banking
products and affiliates in
the areas of personal banking, investment banking, life and
general insurance, venture capital
and asset management. The ICICI Group entered in the field of
banking as ICICI Bank, in
the field of life insurance business as ICICI Prudential Life
Insurance Company, in the field
of general insurance business as ICICI Lombard General Insurance
business, in the field of
non-banking business as ICICI Securities Limited, in the field
of dealer of government
securities as ICICI Securities Primary Dealership Limited, in
the field of mutual funds as
ICICI Prudential Asset Management and in the field of equity
organizations as ICICI
Venture.
ICICI Bank was set up in 1994 and developed as the largest
private sector bank in India, and
it is the largest issuer of credit cards in India.3 It was the
first bank to offer a wide network of
ATMs. The ICICI Bank is also a pioneer in providing banking
products and financial
services to corporate and retail customers. The products of the
bank are loans, credit cards,
savings, investment for vehicles, insurance etc. The value of
total assets of the bank is $
120.61 billion as on 31march 2009. The ICICI Bank currently has
subsidiaries in the United
Kingdom, Russia and Canada, branches in United States,
Singapore, Bahrain, Hong Kong,
Sri Lanka, Qatar, Dubai, International Finance Centers, and
representative offices in United
Arab Emirates, China, South Africa, Bangladesh, Thailand,
Malaysia and Indonesia. And its
UK subsidiary has established branches in Belgium and Germany.
ICICI Bank's equity
shares are listed on Bombay Stock Exchange and the National
Stock Exchange of India
Limited and its American Depositary Receipts (ADRs) are listed
on the New York Stock
Exchange (NYSE).
The ICICI and Prudential Plc came together and established ICICI
Prudential Life Insurance
Company Limited. Prudential Plc is a United Kingdom-based
financial services company
founded on 30 May 1848 in Hatton Garden in London as the
Prudential Mutual Assurance
Investment and Loan Association to provide loans for
professionals and working people.4 In
1854, the company began selling the relatively new concept of
industrial branch insurance
policies to the working class population for low premiums
through agents who operate as
door to door salesmen. It was converted into a limited company
in 1881. The company was
first listed on the London Stock Exchange in 1924.The company
has over 21 million
customers worldwide. It has operations in 12 countries in Asia
associate with UK. It founded
the Egg internet bank, which was sold to Citigroup in 2007.
The ICICI and Prudential have shares of 74% and 26%
resepectively in ICICI Prudential Life
Insurance Company. The company started its business in December
2000. It has tied up with
ICICI bank, Bank of India, Federal Bank, Lord Krishna Bank, and
some of co-operative
banks, NGOs, MFIs and other corporations. Currently, the company
has 2000 branches more
than 274,500 advisors and 20 bancassurance partners all over
India. The ICICI Prudential
was the first company to receive the rating of AAA from Fitch
ratings.
2 3 4
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The vision of the company is to be the dominant life, health and
pensions player built on
trust. Values of the company are integrity, customer oriented,
boundary less, ownership, and
passion. Understanding the needs of customers and offering them
superior products and
services, leveraging technology to service customers quickly,
developing and implementing
superior risk management and investment strategies to offer
sustainable and stable returns to
policyholders, providing an enabling environment to foster
growth and learning for
employees and building transparency in all dealings are the main
goals of the company.
As on 31 December 2006 it captured over 360 cities or towns in
India. The company
recorded a total new business premium of Rs. 51.6 billion during
fiscal year of 2007 as
compared to Rs.26.0 billion during fiscal year of 2006, thereby
growth of 98.4% observed.
As per the information of 14 June 2007, among all private
players, ICICI Prudential topped
by rising with its premium income of 84.5 per cent is equal to
Rs 271 crore and had 9.08 per
cent of the market share. The company completed eight full years
of operations, during this
period it sold over seven million policies and acquired assets
of worth Rs. 28,000 crore. It
sustained its leadership position with an overall market share
of 11.8 per cent. For the year
ended 31 March 2008, it wrote nearly 3 million policies and it
has a network of 1,956 offices,
2,91,000 advisors, as well as 21 bank partners. The ICICI
Prudential has undertaken and
offered unique programme, Pragati Ki Anokhi Paathsaala (PKAP)
for the rural children of
India. PKAP aims to bring out the inherent creative skills
amongst children and expose them
to the unique and thought provoking learning methods. The ICICI
Prudential Life is the only
life insurance company in India providing local language sales
literature and customer
support. As on 31 March 2009, the company offered customer
support in ten languages
including Hindi, Punjabi, Gujarati, Telugu, Malayalam, Kannada,
Tamil, Bengali and
Marathi in addition to English. ICICI Prudential Life has also
partnered with e-governance
kiosks in Andhra Pradesh - aponline.com and Rajasthan -
emitra.com, to enable consumers
renew their policies in their kiosks.
TABLE: 2
COMPOUND ANNUAL GROWTH RATE (%)
Variables from Financial Statements CAGR (%) of ICICI
Share Capital 18.9
Fixed Assets 30.25
Current Assets 41.49
Cash and Bank Balances 38
Current Liabilities 56.1
Net Working Capital 77.69
Policy Liabilities 41.22
Total Income 86.4
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Premium Income 69.13
Income from Investments 155.27
Other Income 17.06
Profit Before Tax -209.65
Insurance Benefits delivered 201.82
Commission Paid 49.3
Operating Expenses 46.77
FIGURE: 2
Table: 2 shows that the Compound Annual Growth Rates of several
variables of the LIC. The
CAGR of fixed assets of LIC is 30.25%. The growth rate of
commission paid is recorded as
highest (49.3%). The growth rate of Income from investments is
considered as good. And the
corporations profit before tax is showing negative growth
rate.
The company has offered different types of plans under the
different categories based on the
needs of the policyholders. Some of these plans are discussed in
the following lines.
ICICI PRU ELITE PENSION
ICICI Pru Elite Pension is a unique unit-linked pension policy
designed for specific
customers. It enables to pay flexible premiums for a limited
period and making top-ups also.
The eligibility age to enter into the policy is starts from 18
years to 74 years. The range of
-250
-200
-150
-100
-50
0
50
100
150
200
250
CAGR (%) of ICICI
Share Capital
Fixed Assets
Current Assets
Cash and Bank Balances
Current Liabilities
Net Working Capital
Policy Liabilities
Total Income
Premium Income
Income from Investments
Other Income
Profit Before Tax
Insurance Benefits delivered
Commission Paid
Operating Expenses
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policy term is 6-62 years. The minimum premium is to be paid is
Rs. 3,00,000 per annum.
Maximum sum assured is equal or above of Rs. 25,00,000. The term
of the premium
payment is 3 years. The range of vesting age is 50 -80 years.
Policyholder can chose the date
from which the pensions will be received. Among eight investment
funds, policyholder can
select any funds based on their financial goals and risk profile
with switching facility of four
times a year, at no cost. There is a facility of additional
allocation of units at the end of every
5th
policy year at the rate of 1.5% of the average of the daily fund
values, if due premiums are
paid in first three policy years.
ICICI PRU PURE PROTECT
ICICI Pru Pure Protect entitles the policyholder to insure life
and provide total security to
his/her family at a very affordable cost. The eligibility age to
enter into policy is starts from
18 years to 65 years. The maximum maturity age is 75 years. The
minimum annual premium
is Rs.2400 per annum. Premiums are paid yearly, half-yearly and
monthly. The maximum
sum assured is Rs.25,00,000. The term of the policy is in
between of 10 30 years. Death
benefit is sum assured amount and no maturity benefit.
Additional benefits like accidental
death and disability benefit rider and waiver of premium riders
are available along with tax
benefits.
ICICI PRU PINNACLE
ICICI Pru Pinnacle is a unit linked insurance policy which gives
downside protection.
Policyholder can enjoy insurance protection for a longer period
with limited premium
payment. The eligibility age to enter in to the policy is starts
from 8 years to 65 years.
Maximum maturity age is 75 years. Maximum sum assured is 5
multiples of annual
premiums. The minimum premium is Rs. 50,000 per annum for the
term of 3 years. Premium
is paid half-yearly and yearly. The term of the policy is 10
years. Death benefit is higher of
sum assured or fund value with partial withdrawal facility from
6th
policy year onwards.
Maturity benefits are paid either higher of fund value or
guarantee value with additional
allocations. The fund value is equal to units multiplied with
net asset value.
ICICI PRU LIFE TIME MAXIMA
ICICI Premium Life time Maxima is unique strategy that entitles
the policyholder to gain
through his/her funds invested in the equity markets and also
provides an insurance cover.
The eligibility age to enter into the policy starts from 0 to 65
years. Maximum maturity age is
75 years. The sum assured amount is five multiples of annual
premiums. The policy terms
are 10,15,20,25 and 30 years. Minimum premium is Rs. 24,000 per
annum. Premiums are
paid monthly, half-yearly and yearly. It provides to investors
multiple investment options
which are triggers of portfolio strategy and fixed portfolio
strategy. Additional allocation of
units allowed from 6th
year onwards which results more than 100% allocation to fund
on
premium payment. Death benefit is higher of either sum assured
or fund value by allowing
partial withdrawals every 3 years starting from 6th
policy year. Maturity benefits are paid as
fund value and based on chosen options.
SAVE N PROTECT
Save n Protect policy is suitable for long term investors to
meet long term objectives. The
minimum sum assured amount is Rs. 50,000. The term of the policy
starts from 10 to 20
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years. Investor can enter into the policy from 0 to 60 years.
The maximum maturity age is 70
years. The minimum premium is Rs. 6,000 per annum. The premiums
are paid annually, half
yearly, and monthly. Death benefits as well as maturity benefits
are sum assured and
guaranteed bonus. Insured can enjoy 5 years extended life
coverage period at 50% of the sum
assured after the maturity of the policy.
CASH BAK
Cash Bak insurance plan is a fixed term insurance plan, which
provides money at regular
intervals to keep the policyholders financially sound. The
eligibility age to enter into the
policy starts from 16 years to 55 years. The minimum sum assured
starts from Rs.75,000.
Guaranteed additions are received as additional sums at the rate
of 3.5% compounded
annually on the sum assured for the first four years. Maturity
benefit is 50% of sum assured
and guaranteed additions. On the death of the policyholder, the
nominee will be entitled to
receive sum assured along with guaranteed addition for the first
four years along with bonus.
SMART KID REGULAR PREMIUM PLAN
Smart Kid Insurance plan is a fixed term insurance plan that
provides funds at regular
intervals. It is an exclusively education insurance plan which
is offered by the company in 3
choices of Smart Kid New Unit Linked Regular Premium, Smart Kid
New Unit Linked
Single Premium and Smart Kid Regular Premium. Basically it is
unit linked plan and enable
the insured and insureds child to accumulate wealth by virtue of
the performance of the
underlying market linked instrument. The minimum premium is Rs.
10,000 per annum which
will be invested in the selected funds. The minimum sum assured
is 5 times of annual
premium. The term of the policy will be calculated as the
difference between childs current
age and the age of the child when the policy matures. In this
policy Smart Kid Unit Linked
Single Premium is another choice. For which the premium is paid
Rs. 50,000 onwards.
Another option is Smart Kid Regular Premium which has guaranteed
bonus option. The
bonus is 3.5% per annum for the first 4 premium paying years and
an annual vested bonus in
subsequent years. The regular payouts are paid for the education
of a child. Income benefit
rider is another option to make attractive the policy.
Accidental death disability rider and
waiver of premium riders ensure the child stays double protected
at all times. The premium
will be calculated based on 3 factors such as sum assured,
policy tenure and age of the
policyholder.
LIFE TIME GOLD
Life Time Gold is a regular premium unit - linked policy that
offers potentially higher returns
through the multiplier that invests in the top 50 large cap
companies. It offers protective
benefits of an assurance cover and financial security for
insureds family. Insured can invest
for a minimum of 10 years and a maximum of 75 years. There are 7
investment funds are
available, among the funds, policyholder can select any funds of
Flexi Growth, R.I.C.H.,
Multiplier, Flexi balanced, Balancer, Protector and Preserver
based on his/her financial goals
and risk profile. The eligibility age to enter in to the policy
is in between of 0-65 years. The
maximum age of maturity of the policy is 75 years. Minimum
premium is Rs. 20,000/- per
annum. The minimum sum assured amount is 5 times of annual
premium, subject to
minimum of Rs. 1,00,000. Systematic withdrawal facility is
available in installments from 4th
year onwards. Maturity benefit is fund value. Death benefit is
higher of either fund value or
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sum assured. Switching is possible between funds any time to
adjust a portfolio based on
insureds financial goals and risk profiles. Switching of 4 times
a year is allowed at no cost.
3. BAJAJA ALLIANZ LIFE INSURANCE COMPANY LIMITED
The Bajaj Group is one of the biggest two and three wheeler
manufacturers in the world.5
Bajaj Allianz Life Insurance Company Limited was incorporated by
both the Bajaj Group
and the Allianz SE., which is a Germany based company and one of
the largest asset
managers in the world. Allianz SE has over 115 years of
financial experience over 70
countries. It is a leading insurance conglomerate and one of the
largest asset managers in the
world. The objective of Allianz life Insurance company is to
become loyalty leader in all
chosen markets and further strengthen its sales channels with a
special focus on recruiting,
training and developing agents. It has been managing assets
worth over Rs. 55,00,000 crore.
Allianz SE has its head office in Munich. Allianz Group provides
more than 60 million
customers worldwide with a comprehensive range of services in
the areas of property and
casualty insurance, life and health insurance, asset management
and banking.
Bajaj Allianz Life Insurance is in the fields of both life
insurance and general insurance.
Currently, it has presence in more than 550 locations with over
60,000 insurance consultants.
Bajaj Allianz Life Insurance Company is a large private sector
life insurance company in
terms of number of policies. It has taken the lead amongst
private sector life insurance
companies in proving its superior management & marketing
skills. It has a strong retail focus
to become the most profitable private life insurance company.
The company announced
healthy profits of Rs. 63 crore for the financial year 2006-07.
In June 2008, Bajaj Allianz
entered into partnership with Thomas Cook India to provide
travel finance. Bajaj Allianz Life
Insurance ensures excellent insurance and investment solutions
by offering customized
products, supported by the best technology.
TABLE: 3
COMPOUND ANNUAL GROWTH RATE (%)
Variables from Financial Statements CAGR (%) of Bajaj
Allianz
Share Capital 0.16
Fixed Assets 32.91
Current Assets 50.54
Cash and Bank Balances 47.02
Current Liabilities 69.96
Net Working Capital -313.07
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Policy Liabilities 92.52
Total Income 126.08
Premium Income 107.41
Income from Investments 251.82
Other Income 8.05
Profit Before Tax -254.46
Insurance Benefits delivered 256.41
Commission Paid 86.17
Operating Expenses 68.09
FIGURE: 3
Table: 3 shows that the Compound Annual Growth Rates of several
variables of the LIC. The
CAGR of income form investments of LIC is 251.82% which is good.
The growth rate of
insurance benefits delivered is also good (256.41%). The growth
rates of total income and
premium income are considered as not bad. And the corporations
profit before tax and net
working capital are showing negative growth rate.
The company has been offering various types of policies under
various categories. Some of
these plans are discussed as under.
-400
-300
-200
-100
0
100
200
300
CAGR (%) of Bajaj Allianz
Share Capital
Fixed Assets
Current Assets
Cash and Bank Balances
Current Liabilities
Net Working Capital
Policy Liabilities
Total Income
Premium Income
Income from Investments
Other Income
Profit Before Tax
Insurance Benefits delivered
Commission Paid
Operating Expenses
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NEW RISK CARE
New Risk Care is a term assurance plan with regular or single
premium payment options to
secure life at lowest possible cost. Life insurance cover is
available at lowest possible price.
The policy is non-participating and traditional term assurance
plan with additional rider
benefits. Premiums are paid annually, halfyearly, quarterly and
monthly with regular
intervals. Maximum age of maturity is 65 years. A lapsed policy
can be revived within 2
years from first unpaid premium by paying all due regular
premiums along with interest.
Surrender value is not available and there is no conversion
facility. Accidental death benefit,
accidental permanent total or partial disability Benefit,
critical illness benefit and hospital
cash benefit are attractive features of the plan.
INVEST GAIN
Invest Gain is specially designed with unique combination of
benefits that help insured to
develop a sound financial portfolio for his/her family. The plan
gives 4 times of life cover at
a little extra cost. There is limited payment option is
available. Accidental death benefit,
disability benefit, critical illness benefit, hospital benefit
and family income benefit are
additional benefits offered by the company on additional
premiums. In case of death or
accidental or total permanent disability of insured, all future
premiums are waived and 1% of
the sum assured is paid monthly, Maturity benefit is in the form
sum assured along with
accrued bonuses.
LIFE TIME CARE ECONOMY
Life Time Care Economy is a whole life endowment plan with
profits. The sum assured and
the bonus is payable only to the beneficiary upon the death of
the policyholder. A terminal
bonus may be paid on death or survival after age of 80 years.
Premiums should be paid for at
least 15 years. Accidental permanent, total or partial
disability benefit and waiver of
premium benefit will be paid at each policy anniversary. The
benefits include accidental
death cover, disability cover, critical illness cover hospital
cash cover and waiver of premium
benefits. Premiums are paid yearly, half yearly, quarterly and
monthly. Housing loans and
general loans are available. A full sum assured and bonus are
generally payable as maturity
benefits. The survival benefits are not applicable. Full sum
assured and bonuses are paid as
death benefits. And also accidental and death benefits are
additional benefits.
FUTURE INCOME GENERATOR
Future Income Generator facilitates the investor to save money
which will become wealth in
future. The plan is an alternative to superannuation and
provident funds. The flexible
retirement plan helps to policyholder to maintain their
lifestyle and create a monthly income
that will last him/her all the means to enjoy it. It is a smart
saving plan. Financial
independence from work is necessary to everybody, so the
policyholder need not to worry of
income after their retirement. It is a specialized retirement
solution for housewives, so that,
they become financially independent. Open market option is
allowed to purchase an
immediate annuity from the company or any other life insurers
recognized by IRDA.
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SWARNA VISHRANTI
Swarna Vishranti is a plan, which enables the policyholder to
spend life in retirement stage
with happiness. There is an option to take a tax-free on lump
sum up to 33% of sum assured
cum accrued bonuses. Accidental death benefit and disability
benefit, critical illness benefit
and hospital cash benefit are additional benefits available in
this policy. All future premiums
are waived and 1% of sum assured is paid monthly in case of
death or accidental total
permanent, disability of the insured. The additional life
insurance protection is available at a
nominal cost. Open market option is allowed to purchase an
immediate annuity from the
company or any other life insurers recognized by IRDA.
UNIT GAIN PLUS GOLD
Unit Gain Plus Gold is a combination of protection and earning
attractive returns by
investing in various combinations of securities. High
allocations of profits and guaranteed
life cover can be possible. The plan has choice of seven
investment funds. Additional
benefits like accidental death benefit, critical illness
benefit, hospital cash benefit, family
income benefit and waiver of premium benefit made attractive
this policy.
4. BIRLA SUNLIFE INSURANCE COMPANY LIMITED
Birla Sunlife Insurance Company Limited (BSLI) is a joint
venture between Sunlife
Assurance Company of Canada and Aditya Birla Management
Corporation limited with
shareholdings of 26 percent and 74 percent respectively.6
The Aditya Birla Group, a US ($28 billion) conglomerate, is one
among the largest business
houses in India. It enjoys a leadership position in all the
sectors in which it operates. It is
anchored by a force of 100,000 employees, belonging to 25
nationalities. Its operations are
spanned 25 countries across six continents and it is reckoned as
India's first multinational
corporation. It is headquartered at Mumbai, over 60 per cent of
the group's revenue flows
from the overseas operations. The Group nurtures a work culture
where success is built on
learning and innovation. The Group has been adjudged "The Best
Employer in India and
among the top 20 in Asia" by the Hewitt, Economic Times and Wall
Street Journal Study
2007.
Sun Life Financial Inc. is a leading international financial
services organization providing a
diverse range of wealth accumulation and protection products and
services to individuals and
corporate customers. Tracing its roots back to 1865, Sun Life
Financial and its partners today
have operations in key markets worldwide, including Canada, the
United States, the United
Kingdom, Hong Kong, the Philippines, Japan, Indonesia, India,
China and Bermuda. As of
31 March 2008, the Sun Life Financial group of companies had
total assets of $ 404.7 billion.
Sun Life Financial Inc. trades on the Toronto (TSX), New York
(NYSE) and Philippine
(PSE) stock exchanges under ticker symbol "SLF".
The head office of Birla Sunlife is located at Mumbai. It
started operations in March 2001
after receiving its registration license from IRDA in January
2001. Within four years of
launch, the BSLI has cemented its position as a leading player
in the private life insurance
industry. The core strategy of the company is to create value
for all its stakeholders. It
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launched innovative unit-linked insurance products. It aims at
being a leader in product
innovations to cater specific customer needs. It has direct
sales force of more than 60000
high quality licensed insurance advisors in major cities and
towns in India. The BSLI was
ranked 18th
among the "TOP 25" in the "Great Places to Work - 2006
Survey".
The vision of the Birla Sun Life Insurance Company Limited is to
create long term value
along with market leadership and mission of the company is to
help people mitigate risks of
life, accident, health and money at all stages and under all
circumstances. Birla Sun Life
Insurance has some values of passion, integrity, speed,
commitment and seamlessness. With
an experience of over 9 years, BSLI has contributed
significantly to the growth and
development of the life insurance industry in India. It was the
first Indian Insurance
Company to introduce Free Look Period, which was made as
mandatory by IRDA for all
other life insurance companies. The BSLI is a pioneer player in
introducing Unit Linked Life
Insurance plans amongst the private players in India. The BSLI
provides insurance, mutual
fund, investment and wealth management services. It was the
first company which sold its
policies through the bancassurance and the internet as well as
the first private sector player to
introduce pure Term Plans in the Indian market.
TABLE: 4
COMPOUND ANNUAL GROWTH RATE (%)
Variables from Financial Statements CAGR (%) of Birla
Sunlife
Share Capital 40.75
Fixed Assets 14.31
Current Assets 54.21
Cash and Bank Balances 59.47
Current Liabilities 51.83
Net Working Capital 43.72
Policy Liabilities 80.96
Total Income 73.37
Premium Income 68.31
Income from Investments 179.16
Other Income 30.61
Profit Before Tax 32.43
Insurance Benefits delivered 72.52
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0
Commission Paid 50.5
Operating Expenses 47.09
FIGURE: 4
Table: 4 shows that the Compound Annual Growth Rates of several
variables of the LIC. The
CAGR of income from investments of LIC is 179.16%. The growth
rate of insurance benefits
delivered is recorded as good (72.52%). The growth rates of
current assets cash and bank
balances and networking capital are also considered as good.
The BSLI offers several types of life insurance products, some
of them discussed in the
following lines
BSLI TERM PLAN
BSLI Term Plan is designed for people who want to avail of the
benefit of life insurance at
low cost. It is a low premium, pure risk coverage plan which
takes care of investors financial
commitment towards their family or dependants if any risk
occurred. The entry age starts
from 18 years to 55 years. The minimum sum assured is
Rs.2,50,000 in case of single
premium and Rs.2,00,000 in case of regular premium. The terms of
the benefits paid are
5,10,15,20 or 25 years. Frequency of premium payment is
annually, semi-annually, quarterly,
monthly and also single time payment. There will be grace period
of 30 days after the
premium due date. There is no maturity benefit. Accidental death
and dismemberment rider,
critical illness rider and waiver of premium riders, accompanied
with this plan whenever the
policyholder choose at the time of purchase.
0
20
40
60
80
100
120
140
160
180
CAGR (%) of Birla Sunlife
Share Capital
Fixed Assets
Current Assets
Cash and Bank Balances
Current Liabilities
Net Working Capital
Policy Liabilities
Total Income
Premium Income
Income from Investments
Other Income
Profit Before Tax
Insurance Benefits delivered
Commission Paid
Operating Expenses
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BSLI PREMIUM BACK TERM PLAN
BSLI Premium Back Term Plan is unique term plan that offers an
assurance throughout the
specified term and low cost plan. In this plan the entire amount
of premium paid over period
of time. The total premiums paid back over the term on maturity.
Minimum sum assured is
Rs.2,00,000. The terms of the policy are 10, 15 and 20years. The
eligibility age to enter in to
the policy starts from 18 to 50 years for the 20 years term plan
and from 18 to 55 years for 10
and 15 years term plan. Maximum maturity age is 70 years. The
surrender value is available
but it varies with the premium term as well as the policy year
in which the plan is
surrendered. Frequency of premiums paid is annually
semi-annually. Premium shall be paid
throughout the benefit period. Investors can choose from eight
investment fund options to
match their risk and return profile. Switching facility is also
available premium allocation
percentage into the various investment fund options during the
tenure of the policy. The
funds are Assure, protector, Builder, enhancer, creator,
Magnifier, Maximizer and Multiplier.
Death benefit paid is equal to coverage or face amount plus
payback amount. Maturity
benefit is paid by paying total premiums incase of 100% pay back
or more than premiums
incase 125% pay back. Accidental death and dismemberment,
critical illness and waiver of
premium are riders are available to choose.
FLEXI SAVE PLUS
Flexi Save Plus is one of the endowment plans. It is designed
for the insured and his/her
family. The plan not only offers the advantages of unit-linked
plan and provides the insured
an opportunity to make large tax free saving over a period of
time. The eligibility age to
enter in to the policy starts from 30 days to 60 years. Maximum
maturity age is 70 years.
Sum assured starts from Rs.2,00,000/- for 70 years old insured,
and Rs.1,00,000/- for the rest.
Premiums are paid either single time or yearly, half yearly,
quarterly and monthly. Range of
duration of the policy is 10, 15, 20, 25 or 30 years. Minimum
duration of the policy is 6 years
for minors and 10 years for all others. And maximum duration is
35 years for minors, 52
years for majors and 30 years for the rest. Policyholders can
increase their premiums by
paying top-up if he/she has additional savings. The minimum
amount of top up is Rs. 5000
and maximum amount of top up is Rs.50,000 or an annual premium,
whichever is higher.
Insured can choose any investment fund among three investment
funds namely Protector,
Builder and Enhancer. There is a freedom of switching among the
funds. A partial
withdrawal from fund value is offered at any time after three
years premiums are received by
insured. Two partial withdrawals are free of cost in a year. The
policy can be surrendered
without penalty at any time after four policy years. Guaranteed
returns of 3% per annum
applies on premiums and top up premiums. The maturity benefit is
higher of either fund
value or guaranteed fund value. Death benefit is higher of
either fund value or guaranteed
fund or sum assured less applicable withdrawals. 100% coverage
is there in case of death
due to accident. The surrender facility is there any time during
the tenure of the policy. The
surrender charge will be zero after the four policy years.
Accidental death and
dismemberment riders are available. 15 days of time will be
given as free look period, with in
which insured return the policy, if he/she is not satisfied with
the policy.
FLEXI SECURE LIFE RETIREMENT PLAN - II
Flexi Secure Life II plan is unit linked non - participating
retirement plan which helps to the
people who save a little amount every day. It has two options of
single premium plan and
regular premium plan. It offers benefits to meet insureds
specific retirement planning needs.
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The eligibility age to enter the policy starts from 18 to 65
years. Insured can choose the
retirement plan till the vesting age. The minimum sum assured is
Rs.55,000 under the single
premium plan and Rs.50,000 under the regular premium plan.
Insured pays Rs.5,000 as
regular premium. In both options he/she can top up their fund
with additional savings. The
minimum amount of such top up is Rs.10,000. The policyholder can
choose any one of the
funds among Nourish, Growth and Enrich. He/she may allocate
premium in varying
proportions amongst available investment fund options to
diversify risk. Switching facility is
available between the investment fund options. In a year two
such types of switches are free
of cost. There is an option to purchase an annuity that will
provide income throughout life.
CHILDRENS DREAM PLAN
Childrens Dream Plan helps is a long-term unit - linked
insurance plan that is specifically
designed to provide financial security to the policyholders
child when he/she becomes an
adult. It helps to insured to give the financial freedom to
his/her children to achieve their
dreams. It combines a guaranteed return on savings with upside
potential based on the
performance of the investment funds. However, the minimum amount
will be given with
guaranteed benefit at the maturity. The immediate sum assured
will be paid to the child even
in absence of the insured, unfortunately. The eligibility age to
enter into the policy starts
from 18 to 60 years. The child must have 13 years old to enter
into the policy. The term of
maturity ends at 75 years old. The minimum sum assured should be
Rs.50,000. Premiums are
paid yearly, half-yearly, quarterly and monthly. The
policyholder may select any one among
the three investment funds of Protector, Builder and
Enhancer.
FLEXI LIFE LINE PLAN
Flexi Life Line Plan is unit - linked, non - participating plan
which gives efficient earnings in
the long term. The age of eligibility to enter in to the policy
starts from 30 to 65 years. The
minimum sum assured amount is Rs.5,00,000 for 10 year period to
all ages. It is Rs.3,00,000
for minors and Rs.2,00,000 for majors. The maximum maturity age
is 70 years for minors
and100 years for majors. The premium paying terms are 10, 15, 20
and 25 years. The
frequency of premium payment is annually, semi annually,
quarterly and monthly. There is a
top up facility whenever insured has additional savings during
the tenure of the policy. The
range of top ups is Rs.5,000 - Rs.50,000. A minimum guaranteed
return of 3% per annum
applies on premiums. Maturity benefit is higher of either the
fund value or the guaranteed
fund value. The death benefit is higher of either the fund value
or guaranteed fund or sum
assured less all applicable partial withdrawals in the 24 months
preceding the death of the life
insured. Partial withdrawals are allowed after three policy
years or on attaining the age of 18
years whichever is later. Two partial withdrawals are free of
charge. The policy can be
surrendered at any time during the tenure of the policy. The
surrender charges will be zero
after the 4th
policy year. Insured has the right to return the policy to the
company within 15
days from the date of receipt of the policy. The Policyholder
may select any one among the
three funds available of Protector, Builder and Enhancer.
The insured can add up riders to the base plan at a marginal
extra cost. Accidental death and
dismemberment benefit rider provides 100% of coverage in case of
death due to accident,
loss of more than one limb or sight in both the eyes, 50%
coverage in case of loss of one limb
or sight in one eye. Term rider provides additional amount of
cover in the event of death of
the life insured. Critical illness rider provides coverage in
the event of life insured being
diagnosed as suffering from any of four illnesses specified.
Critical illness plus rider provides
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a coverage in the event of life insured being diagnosed as
suffering from any of specified
illnesses. Critical illness woman rider provides coverage
against several critical illnesses
including woman specific illnesses like pregnancy complications
and congenital anomalies.
A premium waiver rider waives payment of future premiums on the
happening of any of the
unforeseen events.
5. ING VYSYA LIFE INSURANCE COMPANY PRIVATE LIMITED
ING group originated in 1990 by the merger of Nationale
Nederlanden, NV the largest Dutch
Insurance Company and NMB Post Bank Groep NV. The newly formed
company has been
called the Internationale Nederlanden Group, market circles have
abbreviated the name to
I-N-G. ING Group is a world-class financial conglomerate of
Dutch origin offering banking,
insurance and asset management. It comprises a broad spectrum of
prominent companies that
serve their clients in over 40 countries under the ING brand.
One such company is the ING
Vysya Insurance Company Private Limited, established in
September 2001. The equity
partners of the company are ING Insurance International B.V
(26%), Exide Industries (50%)
and other shareholders (24%).
The ING Vysya Insurance with its head quarters at Bangalore is
present in 229 cities
across 251 branch offices. It distributes its products in
several parts of the country through its
partners presence. It has issued over 1 million policies by the
end of December 2010.It
distributes its products through two channels, the Tied Agency
Force and the Alternate
Channel. The Tied Agent force comprises over 50,000 ING Life
Advisors, spread across the
country. The Alternate Channels business within ING Life India
is a fast growing distribution
channel, and includes the Bancassurance partner (ING Vysya
Bank), referral Partners,
Corporate Agents and Brokers.
TABLE: 5
COMPOUND ANNUAL GROWTH RATE (%)
Variables from Financial Statements CAGR(%) of ING Vysya
Life
Share Capital 29.22
Fixed Assets -0.46
Current Assets 33.82
Cash and Bank Balances 26.82
Current Liabilities 44.34
Net Working Capital -227.11
Policy Liabilities 106.24
Total Income 100.68
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Premium Income 86.21
Income from Investments 212.59
Other Income 18.63
Profit Before Tax 20.14
Insurance Benefits delivered 161.95
Commission Paid 51.97
Operating Expenses 34.81
FIGURE: 5
Table: 5 shows that the Compound Annual Growth Rates of several
variables of the LIC. The
CAGR of income from investments of LIC is 212.59% which is
highest. The growth rate of
insurance benefits delivered is recorded as good (161.95%). The
growth rates of total income
and premium income are considered as average. And the
corporations net working capital is
showing negative growth rate.
Given here is a comprehensive list of various insurance policies
& saving plans offered by
ING Vysya Life Insurance Company Private Limited.
-250
-200
-150
-100
-50
0
50
100
150
200
250
CAGR(%) of ING Vysya Life
Share Capital
Fixed Assets
Current Assets
Cash and Bank Balances
Current Liabilities
Net Working Capital
Policy Liabilities
Total Income
Premium Income
Income from Investments
Other Income
Profit Before Tax
Insurance Benefits delivered
Commission Paid
Operating Expenses
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ING TERM LIFE PLUS
ING Term Life Plus is a term insurance product with return of
premiums. There is a
flexibility of surrender the policy. The eligibility age to
enter into the policy starts from 18 to
65 years. Maximum maturity age is 75 years. Sum assured starts
from Rs. 5 Lakhs. The term
of the policy is in between of 10 to 30 years. Three terms are
available such as regular,
limited and single premium plans. Premiums are paid annually,
half- yearly quarterly or
monthly. Death benefit is sum assured amount. After completion
of half of the policy term,
company may return a proportion of the premium that insured has
paid. There is flexible
surrender value after completion of three regular premium
payments.
ING NEW BEST YEARS
ING New Best Years is a retirement plan gives capital guarantee
and provides safety to
retirement corpus. In the policy, the policyholder can choose
pension payout commencement
option, top-up feature and frequency of premium payments. The
eligibility age to enter into
the policy starts from 20 years to 65 years. The range of
vesting age is 45-70 years.
Minimum premium amount is Rs. 12,000 and top-up contribution is
Rs. 20,000.
ING FLEXI LIFE PLUS
ING Flexi Life Plus is a unit linked life insurance policy that
gives dual benefit of insurance
coverage and investment opportunity.7 It provides flexibility in
premium payments either to
increase or decrease of regular premiums. The eligibility age to
enter into the policy starts
from 0 to 60 years. The range of maturity age is 18-70 years.
The policy term is available in
terms of 10 years and 20 years. Premiums are paid annually,
half-yearly, quarterly and
monthly. The minimum sum assured is 6.25 times the annualized
regular premium.
Maximum sum assured amount is 25 times of annualized regular
premium. And the
minimum top-up amount is Rs. 2000. The accumulate amount of fund
will be given as
maturity benefit and allowed partial withdrawals. The plan
provides an Enhance Accidental
Protection Benefit, which is an additional benefit on death due
to accident.
SAFAL JEEVAN ENDOWMENT PLAN
Safal Jeevan Endowment Plan offers comprehensive protection and
savings in an easy
manner. As title is Safal Jeevan, the policy is a simple life
insurance plan gives complete
freedom to choose from pre-packaged solutions and decide the
time period of premium
payment. The eligibility age to enter in to the policy starts
from 18 to 45 years. Maximum
maturity age is 60 years. Premium payment terms are chosen among
10, 15 and 20 years.
Premiums are paid yearly, half yearly, quarterly and monthly.
Minimum premium starts
from Rs. 2000 per annum. The plan offers death benefit, maturity
benefit and in built
accident cover. Low premiums, availability of in built accident
coverage are major benefits
of the scheme.
CREATING STAR
Creating Star plan gives an opportunity to fulfill the childrens
needs. It offers to
policyholder a systematic and hassle-free way to pre-fund
his/her childs education program
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by paying premiums regularly and securing the childs education.
The eligibility age to enter
into the policy starts from 0 to 15 years for life assured and
18 to 50 years for the
policyholder. The range of maturity age of life assured is 21
-25 years. Premiums are starts
from Rs. 48,000/- if it is single premium, Rs.20,000/- if it is
limited premiums and
Rs.12,000/- if it is regular premium. The premiums are paid
yearly, half-yearly, quarterly and
monthly. Waiving of premiums in the unfortunate event of parents
death, Education payouts
in the last three years of the policy, systematic investment
options and partial withdrawal
benefits are key benefits of the plan.
PRIME LIFE
Prime Life is a unique plan with an option of systematic
withdrawals, which allows insured
to with draw money, when he/she requires it rather than borrow
from some others. The plan
is unit linked plan that gives insured the unique advantage of
savings as well as reaping
returns on investment when more than 100% of the initial
allocation charges are returned. In
the policy, Sum assured increases by 5% every year. The
eligibility age to enter in to the
policy starts from 10 to 45 years. The range of maturity age is
25 - 65 years. Yearly Premium
starts from Rs.12,000 to Rs.60,000. Insured can increase the
premiums with the help of top-
ups when he/she has additional savings. Minimum top up value is
Rs.2000/-. The policy
terms are available in 15 year and 20 years. Policy term is
equal to premium paying term.
Premiums are paid yearly, half yearly, quarterly and monthly.
Sum assured is fixed which is
5 times of the annualized premium. Sum assured increases every
year, option to extend the
policy term by 10 years and in built additional accident
coverage are key benefit of the
policy.
HIGH LIFE PLUS
High Life Plus is a unit linked insurance plan. It is
superlative investment plan that gives
insured the opportunity to build his/her wealth through regular
systematic investments and
additional top ups as per convenience. The plan not only
provides protection cover of
investors choice, but also enhances his/her investment
opportunities to earn returns with the
market. The eligibility age to enter in to the policy starts
from 0 to 70 years. Maximum
maturity age is 75 years. The terms of premium payment are 3
years to 25 years. Premiums
are paid annually, half- yearly, quarterly and monthly. Life
coverage is based on choice of
investor. Death benefit includes sum assured or fund value and
flexible payouts of maturity
benefit.
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TABLE: 6
COMPOUND ANNUAL GROWTH RATE (%)
Variables from
financial
Statements
CAGR
(%) of
LIC
CAGR (%)
of ICICI
CAGR (%)
of Bajaj
Allianz
CAGR (%)
of Birla
Sunlife
CAGR(%)
of ING
Vysya Life
Share Capital 0 18.9 0.16 40.75 29.22
Fixed Assets 16.64 30.25 32.91 14.31 -0.46
Current Assets 9.63 41.49 50.54 54.21 33.82
Cash and Bank
Balances
5.37 38 47.02 59.47 26.82
Current
Liabilities
24.44 56.1 69.96 51.83 44.34
Net Working
Capital
3.79 77.69 -313.07 43.72 -227.11
Policy Liabilities 17.41 41.22 92.52 80.96 106.24
Total Income 20.51 86.4 126.08 73.37 100.68
Premium Income 19.13 69.13 107.41 68.31 86.21
Income from
Investments
23.24 155.27 251.82 179.16 212.59
Other Income -3.9 17.06 8.05 30.61 18.63
Profit Before Tax 11.44 -209.65 -254.46 32.43 20.14
Insurance
Benefits
delivered
21.26 201.82 256.41 72.52 161.95
Commission
Paid
16.34 49.3 86.17 50.5 51.97
Operating
Expenses
15.09 46.77 68.09 47.09 34.81
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FIGURE: 6
Table 6 shows that the combined financial performance of five
life insurance companies in
terms of compound annual growth rates of the variables.
CONCLUSION
LIC is a public sector life insurance Company, which is taken as
one of the sample
companies. Although it is big public sector company, in the past
a decade period it is lagging
behind in some of the financial aspects. The reason is the
company has been facing the tough
competetion from private sector life insurance companies. The
market share of LIC has
decreased gradually. The financial performance of other private
life insurance companies is
also good in some aspects.
-400
-300
-200
-100
0
100
200
300
Shar
e Cap
ital
Curre
nt As
sets
Curre
nt Lia
biliti
es
Polic
y Liab
ilities
Prem
ium In
com
e
Othe
r Inc
ome
Insu
ranc
e Be
nefits
deli
vere
d
Oper
ating
Exp
ense
s
CAGR (%) of LIC
CAGR (%) of ICICI
CAGR (%) of Bajaj
Allianz
CAGR (%) of Birla
Sunlife
CAGR(%) of ING
Vysya Life