ICICI

A COMPARATIVE STUDY OF LIFE

INSURANCE POLICIES PROVIDED BY

“LIFE INSURANCE CORPORATION”

“ICICI PRUDENTIAL LIFE INSURANCE”

BY: GUIDED BY:

VISHAL S. DIPANI Mr. KRUNAL

T.Y.BBA LECTURER

ROLL NO.35

SWAMI SAHAJANAND COLLEGE OF COMMERCE

AND MANAGEMENT

BHAVNAGAR UNIVERSITY

BHAVNAGAR

BATCH 2009-11

1

A COMPARATIVE STUDY OF LIFE

INSURANCE POLICIES PROVIDED BY

“LIFE INSURANCE CORPORATION”

“ICICI PRUDENTIAL LIFE INSURANCE”

A PROJECT SUBMITTED

TO

THE BHAVNAGAR UNIVERSITY OF BHAVNAGAR

IN PARTIAL FULFILLMENT FOR THE DEGREE

OF

BACHELOR OF BUSINESS ADMINISTRATION

BY: GUIDED BY:

VISHAL S. DIPANI Mr. KRUNAL

T.Y.BBA LECTURER

ROLL NO.35

SWAMI SAHAJANAND COLLEGE OF COMMERCE

AND MANAGEMENT

BHAVNAGAR UNIVERSITY

BHAVNAGAR

BATCH 2009-11

2

3

CONTENTS

Sr. no. Particulars Page no.

1. Candidate’s Statement 3

2. Preface 5

3. Acknowledgement 7

4. Executive Summary 8

5. Introduction about Industry 19

6. Company Profile 25

7. Research Methodology 28

8. Findings 67

9. Bibliography 71

1.CANDIDATE’S STATEMENT

I, Vishal Dipani, the student of T.Y.B.B.A. undersigning that the project

work presented in this report is my own work and has carried it out under the co-

operation and guidance of the lecturer Mr.Krunal of Swami Sahajanand

college of commerce and management, Bhavnagar.

I, am thankful to Mr.K.U.PATHAN, the DEO of LIC of Bhavnagar for

helping me in making this project.

Date;

Place: SSCCM,

BHAVNAGAR

----------------

(Mr. Krunal)

4

2. PREFACE

There are mainly two main learning methods viz.

(i) Theoretical learning method

(ii) Practical learning method.

From the above two learning methods, the practical learning method is

much effective and efficient and leads to the better understanding of the

subject. Whenever the matter is concerned about management we must go

towards practical aspect because management wants actual prediction and

result that can be possible only through practical aspect.

Being a student of management i.e. BBA and doing specialization in

finance I find the need to understand the market trend closely, so that I can

judge what is actual position of the market in this competitive era. I have to

touch the practical aspect to understand the difference between practical

knowledge and theoretical knowledge.

Today insurance sector is not treated as only an insurance cover but also

for savings and investments. Before, 2000 Indian insurance sector was only

run by public companies, but after 2000, the private companies also entered

in to the insurance market. I have been assigned to do a comparison on

insurance policies provided by public sector and private sector. And I choose

Life Insurance Corporation of India (LIC) as Public sector and ICICI Prudential

Life Insurance as Private sector.

Whatever I have learnt and I will learn in theories and books may or may

not be directly useful to me, but to make that knowledge usable I need to go

through practical aspects, which will be received by me through this project

training.

5

This report is true reflection of what I have understood and learnt during

the course of project. This is prepared for the purpose of study for my own

knowledge.

6

3. ACKNOWLEDGEMENT

This report is an outcome of the efforts of many guardians who helped me

through out in preparation of my project. I am really thankful to all of them.

First and foremost I am thankful to my trusty Dr. Sureshbhai Sawani, and

our honorable principal Miss. Hetal who gave me such opportunity to learn

something new? Then I would like to express my deep gratitude to lecturer Mr.

Krunal my project guide. During my project work, she has been constant source

of inspiration and encouraged me throughout the project

I am heartily .thankful to Mr. K.U.PATHAN the development officer of LIC

of India, Bhavnagar branch.

Again I am thankful to all my coordinators.

VISHAL

DIPANI

(A Student of

T.Y.B.B.A.)

SSCCM

BHAVNAGAR

7

4. EXECUTIVE

SUMMARY

8

Sr.no. Particulars Page

no.

A. What is insurance? 10

B. Why should we take insurance? 11

C. Which are the companies

providing Insurance?

12

D. History of Insurance 13

E. Need and advantages of

insurance

15

F. Present and future market senior

of Life Insurance sector in India.

18

9

[A.] WHAT IS INSURANCE?

Life insurance is a guaranty that your family will receive financial support,

even in your absence. Put simply, Life Insurance provides your family with a sum

of money when something happens to you. It thus permanently protects your

family from financial crises.

Life insurance is a contract that pledges payment of an amount to the

person assured (or his nominee) on the happening of the event insured against.

The contract is valid for the payment of the insured amount during:

The date of maturity, or

Specified dates at periodic intervals, or

Unfortunate death, if it occurs earlier.

Among other things, the contract also provides for the payment of

premium periodically to the corporation by the policyholder. Life Insurance is a

universally acknowledged to be an institution, which eliminates ‘risk’, substituting

certainty for uncertainty and comes to the timely aid of the family in the

unfortunate event of death of the breadwinner.

By and large, life insurance is civilization’s partial solution to the problems

caused by death. Life Insurance in short, is concerned with two hazards that

stand across the life path of every person:

1. That of dying prematurely, leaving a dependent family to fend for

itself.

2. That of living till old age without visible means of support.

10

[B] WHY SHOULD WE TAKE INSURANCE?

Insurance is desired to safeguard one self and one’s family against

possible losses on account to risks. It provides financial compensations for

losses suffered due to the happening of some unforeseen events. By taking life

insurance person can have peace of mind and need not to worry about the

financial consequences in case of any untimely death.

Life Insurance helps you to protect yourself and your family against an

uncertain future. While thinking about the future, some questioned that need to

be answered are;

1. In case of one’s death, will his family have enough money to meet their

standard of living?

2. When one gets old, will he have enough money to live a comfortable retired

life?

3. What is the value of his assets today?

4. What are his liabilities today and how much will they amount to in future?

5. How much insurance does one need?

11

[c]. WHICH ARE THE COMPANIES

PROVIDING INSURANCE?

In India prior to liberalization, insurance protection was made available

through public sector insurance companies viz; Life Insurance Corporation of

India and subsidiaries of General Insurance Corporation of India.

During the reform process and passing of Insurance Regulatory

Development Act (IRDA) by the Parliament in 1999, the Indian Insurance sector

was opened for private company.

Today at present the following Private Companies are providing Life

Insurance to the Indian people:

1. BAJAJ ALLIANZ LIFE INSURANCE

2. ICICI PRUDENTIAL LIFE INSURANCE

3. RELIANCE LIFE INSURANCE

4. HDFC STANDARD LIFE INSURANCE

5. MET LIFE INSURANCE

6. SAHARA INDIA LIFE INSURANCE

7. AVIVA LIFE INSURANCE

8. TATA AIG LIFE INSURANCE

9. ING VYSYA LIFE INSURANCE

10.BIRLA LIFE INSURANCE

11.MAX NEW YORK LIFE INSURANCE

12.SBI LIFE INSURANCE

13.KOTAK MAHINDRA INSURANCE

12

[D] HISTORY OF INSURANCE

The story of insurance is probably as old as the story of mankind. The

same instinct that prompts modern businessmen today to secure themselves

against loss and disaster existed in primitive men also. They too sought to avert

the evil consequences of fire and flood and loss of life and were willing to make

some sort of sacrifice in order to achieve security. Though the concept of

insurance is largely a development of the recent past, particularly after the

industrial era – past few centuries - yet its beginnings date back almost 6000

years.

Life Insurance in its modern form came to India from England in the year

1818. Oriental Life Insurance Company started by Europeans in Calcutta was the

first life insurance company on Indian Soil. All the insurance companies

established during that period were brought up with the purpose of looking after

the needs of European community and Indian natives were not being insured by

these companies.

However, later with the efforts of eminent people like Babu Muttylal Seal,

the foreign life insurance companies started insuring Indian lives. But Indian lives

were being treated as sub-standard lives and heavy extra premiums were being

charged on them. Bombay Mutual Life Assurance Society heralded the birth of

first Indian life insurance company in the year 1870, and covered Indian lives at

normal rates. Starting as Indian enterprise with highly patriotic motives, insurance

companies came into existence to various sectors of society. Bharat Insurance

Company {1896} was also one of such companies inspired by nationalism. The

swadeshi movement of 1905-1907 gave rise to more insurance companies. The

United India in Madras, National Indian and National insurance in Calcutta and

the Co-operative Assurance at Lahore were established in 1906. In 1907,

Hindustan Co-operative Insurance Company took its birth in one of the rooms of

the Jorasanko, house of the great poet Rabindranath Tagore, in Calcutta. The

Indian Mercantile, General Assurance and Swadeshi Life {later Bombay Life}

13

were some of the companies established during the same period. Prior to 1912

India had no legislation to regulate insurance business. In the year 1912, the Life

Insurance Companies Act, 1912 made it necessary that the premium rate tables

and periodical valuations of companies should be certified by an actuary. But the

Act discriminated between foreign and Indian companies on many accounts,

putting the Indian companies at a disadvantage.

The first two decades of the twentieth century saw lot of growth in

insurance business. From 44 companies with total business-in-force as Rs.22.44

core, it rose to 176 companies with total business-in-force as Rs.298 core in

1938. During the mushrooming of insurance companies many financially unsound

concerns were also floated which failed miserably. The insurance Act 1938 was

the first legislation governing not only life insurance but also non-life insurance to

provide strict state control over insurance business. The demand for

nationalization o life insurance industry was made repeatedly in the past but it

gathered momentum in 1944 when a bill to amend the Life Insurance Act 1938

was introduced in the Legislative Assembly. However, it was much later on the

19th of January, 1956, that life insurance in India was nationalized. About 154

Indian insurance companies, 16 non-Indian companies and 75 provident were

operating India at the time of nationalization. Nationalization was accomplished in

two stages; initially the management of the companies was taken over by means

of an Ordinance, and later, the ownership too by means of a comprehensive bill.

The parliament of India passed the Life Insurance Corporation Act on the 19th of

June 1956, and the Life Insurance Corporation of India was created on 1st

September, 1956, with the objective of spreading life insurance much more

widely and in particular to the rural areas with a view to reach all insurable

persons in the country, providing them adequate financial cover at a reasonable

cost.

14

[E]. NEED & ADVANTAGES OF

INSURANCE

Need For Life Insurance: Today, there is no shortage of investment options for a person to

choose from. Modern day investments include gold, property, fixed income

instruments, mutual funds and of course, life insurance. Given the plethora of

choices, it becomes imperative to make the right choice when investing your

hard-earned money. Life insurance is a unique investment that helps you to meet

you dual needs - saving for life’s important goals, and protecting your assets.

Benefits of Life Insurance In Detail:

1.Assets protection: From an investor’s point of view, an investment can play two roles –

asset appreciation or asset protection. While most financial instruments

have the underlying benefit of asset appreciation, life insurance is unique

in that it gives the customer the reassurance of asset protection, along

with a strong element of asset appreciation.

The core benefit of life insurance is that the financial interests of one’s

family remain protected from circumstances such as loss of income due to

critical illness or death of the policyholder. Simultaneously, insurance

products also have a strong inbuilt wealth creation proposition. The

customer therefore benefits on two counts and life insurance occupies a

unique space in the landscape of investment options available to a

customer.

15

2. Goal Based Savings: Each of us has some goals in life for which we need to save. For a

young newly married couple, it could be buying a house. Once, they

decide to start a family, the goal changes to planning for the education or

marriage of their children. As one grows older, planning for one’s

retirement will begin to take precedence.

Clearly, as your life stage and therefore your financial goals change,

the instrument in which you invest should offer corresponding benefits

pertinent to the new life stage.

Life insurance is the only investment option that offers specific

products tailor-made for different life stages. It thus ensures that the

benefits offered to the customer reflect the needs of the customer at the

particular life stage, and hence ensures that the financial goals of that life

stage are met.

The table below gives a general guide to the plans that are

appropriate for different life stages,

16

Life Stage Primary Need Life Insurance

Product

Young & Single Asset creation Wealth creation plans

Young & Just married Asset creation & protection Wealth creation and

mortgage protection plans

Married with kids Children’s education, Asset creation

and protection

Education insurance,

mortgage protection & wealth

creation plans

Middle aged with grown up kids Planning for retirement & asset

protection

Retirement solutions &

mortgage protection

Across all life-stages Health plans Health Insurance.

17

[F]. PRESENT & FUTURE MARKET

SENIOR OF LIFE INSURANCE SECTOR

IN INDIA

Valued @ $10.2 billion, the Indian insurance industry is on an

expansion stage with the largest number of life insurance policies in

force in the world, India’s insurance sector accounted for 4.8 % of GDP

in 2006-07, up from 3.14 % in 2005-06. The industry recorded a 19.9 %

growth in premium in dollar terms in 2006-07, compared to the world

market growth rate of 2.9 %. In fact, the growth in premium has pushed

India being the 15th largest market from 19th in 2005.

Market penetration tends s to rise as incomes increase, particular

in life insurance. India, with its huge middle-class house-holds base and

a galloping economy, has exhibition a huge potential for this sector.

Current estimates say that for every 1% increase in our GDP, insurance

premium increase by at least 4 %.

The domestic insurance industry in India is estimated to reach

about $60.5 billion by 2010, of which $35 billion will come from rural and

semi-rural areas, while life insurance is expected to grow to $35 billion.

18

INTRODUCTION

ABOUT

INDUSTRY

19

[A]. INTRODUCTION OF LIC

{PUBLIC COMPANY}

LIC was formed in 1st Sep, 1956 with a capital contribution of

Rs.5 cores from the Government of India. Its main duty was to spread

the message of life insurance in the country and mobilize people to save

for nation building activities.

Overtimes LIC become very popular in India. The central office of

LIC is in Mumbai and it has 7 zonal offices at Mumbai, Delhi, Kolkata,

Chennai, Hyderabad, Kanpur and Bhopal. There are over 100 divisional

offices and 2500 branch offices. There are more than 5.59 lakhs active

agents of LIC. It also has office abroad at Fiji, Mauritius, and the United

Kingdom for business transactions. LIC has entered into joint ventures

abroad with several companies in the field of insurance. LIC has enjoyed

monopoly of life insurance business till near the end of 2000. By enacting

the IRDA 2000, the government of India effectively ended LIC’S

monopoly and opened the doors for private insurance companies.

LIC has a variety of plans which helps all categories of people and

their diverse need. The fund generated through the premium of policy

holders are divested to a number of socio-economic project in the

country. The LIC insurance plan is categories as: Individual insurance

plan, Group insurance schemes, Pension plan, and Capital market linked

plan.

20

Objectives:

Spread Life Insurance widely and in particular 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.

Maximize mobilization of people’s savings by making insurance-linked

savings adequately

attractive.

Bear in mind, in the investment of funds, the primary obligation to its

policyholders, whose money it holds in trust, without losing sight of the

interest of the community as a whole; the funds to be deployed to the best

advantage of the investors as well as the community as a whole, keeping in

vies national priorities and obligations of attractive return.

Conduct business with utmost economy and with the full realization that the

moneys belong to the policy holders.

Act as trustees of the insured public in their individual and collective

capacities.

Meet the various life insurance needs of the community that would arise in the

changing social and economic environment.

Involve all people working in the corporation to the best of their capability in

furthering the interests of the insured public by providing efficient service with

courtesy.

Promote amongst all agents and employees of the corporation a sense of

participation, pride and job satisfaction through discharge of their duties with

dedication towards achievement of Corporate Objective.

21

[B]. INTRODUCTION OF ICICI

PRUDENTIAL LIFE INSURANCE

{PRIVATE COMPANY}

ICICI Prudential Life Insurance Company is a joint venture between

ICICI Bank - one of India’s foremost financial services companies-and

Prudential plc - a leading international financial services group headquartered in

the United Kingdom. Total capital infusion stands at Rs. 29.32 million, with ICICI

Bank holding a stake of 74% and prudential plc holding 26%.

ICICI Prudential Life Insurance began their operations in December 2000

after receiving approval from Insurance Regulator y Development Authority

{IRDA}. Today, our nation-wide team comprises of over735 offices, over 243,000

advisors; and 22 banc assurance partners.

ICICI Prudential was the first life insurer in India to receive a National

Insurer Financial Strength rating of AAA {Ind} from Fitch ratings. For three years

in a row, ICICI prudential has been voted as India’s Most Trusted private Life

Insurer, by The Economic Times – AC Nielsen ORG Marg survey of ‘Most

Trusted Brands’. As ICICI prudential Life insurance grows their distribution,

product range and customer base, we continue to tirelessly uphold our

commitment to deliver world-class financial solutions to customers all over India.

22

Vision:

To be the dominant Life, Health and pensions player built on trust by world-

class people service.

This We Hope To Achieve By:

Understanding the needs of customers and offering them superior products

and service

Leveraging technology to service customers quickly, efficiently and

conveniently.

Developing and implementing superior risk management and investment

strategies to offer sustainable and stable returns to our policyholder.

Providing and enabling environment to foster growth and learning for our

employees.

And above all building transparency in all our dealings.

The success of the company will be founded in its unflinching commitment

to 5 core values --- Integrity, Customer First, Boundary less, Ownership and

passion. Each of the values describes what the company stands for, the qualities

of our people and the way we work.

We do believe that we are on the threshold of and exciting new opportunity,

where we can play a significant role in redefining and reshaping the sector. Given

the quality of our parentage and the commitment of our team, there are no limits

to our growth.

23

Values:

Every member of the ICICI Prudential team is committed to 5 cores values:

Integrity, Customer First, Boundary less, Ownership and Passion. These values

shine forth in all we do, and have become the keystone of our success.

24

6. COMPANY

PROFILE

25

[A]. COMPANY PROFILE OF LIC

{PUBLIC COMPANY}

Name : Life Insurance Corporation of India

Establishment Year : 1st September 1956.

Registered Office : LIC of India

Western Zonal Office

Yogakshema, Jeevan Bima Marg,

Mumbai – 400021

Web Site : www.licindia.com

Company Form : Public Company

Punch line : Zindgi Ke Sath Bhi,

Zindgi Ke Bad Bhi.

26

{B}. COMPANY PROFILE OF ICICI PRUDENTIAL

LIFE INSURANCE (PRIVATE COMPANY)

Name : ICICI Prudential Life Insurance Company

Limited.

Establishment Year : 24th Nov, 2000.

Registered Office : ICICI Prudential Life Insurance Company

Limited.

ICICI Prufile Towers, 1089,

Appasaheb Marathe Marge,

Prabhadevi,

Mumbai-400025.

Web Site : www.iciciprulife.com

Company Form : Private Company.

Punch Line : Jeetye Raho

27

7. RESEARCH

METHODOLOGY

28

SR. NO PARTICULARS Page No.

A Objective of Research 30

B Source of Research 30

C Research Instrument 31

D Limitation of Research 31

E Data Analysis 32

29

{A}. OBJECTIVES OF RESEARCH

The main objective of doing this research is to know whether people prefer

private or public company at the time of taking insurance. There are some other

objectives of this research which are as follows:

To know about insurance.

To know about a comparative performance of public and private life

insurance.

To know about various policies provided by public and private insurance

companies.

{B}. SOURCE OF RESEARCH.

The data has been collected from both primary as well as secondary sources.

The primary data is a data basically collected for the purpose of concerned

or particular study. In case of this project primary data of the study has

been collected by interaction with the officers.

30

The secondary data is one which already exists or is someone for some

other purpose of study. In case of this project the secondary data has

been collected through web sites, office records in banks, magazines,

books, newspapers, etc.

{C}. RESEARCH INSTRUMENT

There are some methodologies through which we can do the research and

for that there are some instrument available. As my research is more concerned

with public opinion, I have chosen questionnaires as my instrument. Through

asking question I can easily judge the people views and also it take very less time

of the people. I have fill up 50 questionnaires in Bhavnagar area and then I have

given conclusion to my research.

[D]. LIMITATIONS OF RESEARCH

I have research my project in very selective area if, we go for mass area

than the result may be differs.

Some people are not more aware about the public and private insurance

market when, such people fill up the format that time there is possibility of wrong

conclusion.

Some people are not interested in answering the question at that time the

result may be differs

31

[E]. DATA ANALYSIS

Potential Market Position of Both the Companies

Claim settled during 1.4.2008- 31.3.2009

(As per IRDA annual report)

CLAIM

PENDING

AT THE

START OF

YEAR

CLAIM

INTIMATED

DURING

THE YEAR

TOTAL

CLAIMS

CLAIM

SETTLED

% OF

CLAIM

SETTLED

LIC

ICICI

PRUDENTIAL

LIFE

11550

365

579547

10378

591097

10743

564389

9298

95.48%

86.55%

32

PROFIT AND LOSS SECENARIO

AS PER IRDA ANNUAL REPORT

PROFIT AFTER

TAX AS ON

31.3.2008

PROFIT AFTER

TAX AS ON

31.3.2009

ACCUMULATED

LOSS AS ON

31.3.2009

LIC

ICICI

PRUDENTIAL

LIFE

Rs.84,463 LAKH

Rs.1,39,506

LAKH

Rs. 95,735 LAKH

Rs.77,970 LAKH

NIL

Rs.3,77,646 LAKH

33

After the entry of private players in the insurance market in 2000, India’s

insurance industry has moved into exiting and thrilling times. The insurance

sector in the country now accounts for 10-15% of India’s total financial sector.

The opening up of sector has lured many foreign players into the market.

By referring above chart it can be said that because of stiff competition LIC

loses its market share from the total market. In 2002, the private sector

accounted for a very small 1.4% share, which has grown to a huge 25.8% in

2007; and on the other hand the share of LIC has shrunk from 98.6% in 2002 to

74.2% in 2007.

But, if we compare LIC with ICICI Prudential Life Insurance than in 2006

the share of LIC is 73.5% and the share of ICICI prudential Life Insurance is 6.7%

while , in FY’07 the share of LIC increase by 0.7% and the share ICICI Prudential

Life Insurance increase by 0.5% that means both are growing at about the same

level.

At the same time if we compare ICICI Prudential Life Insurance with other

private companies than the market share of ICICI Prudential Life Insurance is

highest and so it is recognize as India’s no.1 private life insurance company.

34

PRODUCTS OFFERED BY BOTH THE

COMPANIES

LIFE INSURANCE

CORPORATION

LIC

ICICI PRUDENTIAL LIFE

INSURANCE

ICICI

Children’s plans

1. Jeevan Anurag

2. CDA Endowment Vesting at 21

&18

3. Jeevan Kishor

4. Child Carrier plan

5. Komal Jeevan Plan

6. Marriage Endowment or

Education Annuity plans.

7. Jeevan Chhaya

1. Smart Kid Regular Premium

35

8. Children Future plan

Retirement Plans

1. Jeevan Nidhi

2. Jeevan Akshay

3. New Jeevan Suraksha

4. New Jeevan Dhara

1. Forever Life

2. Immediate Annuity

Money Back Plans

1. Money Back Policy- 20 year &

25 year.

2. Jeevan Surbhi 15 year, 20 year

& 25 year

.

3. Bima Bachat

4. New Bima Gold

1. Save ‘n’ protect

2. Cash Bank

Term Assurance Plans

1. Two year Temporary Assurance

Policy

2. The Convertible term assurance

1. Life Guard

36

policy

3. Anmol Jeevan-1

4. Amulya jeevan

2. Pure Protect

3. Home Assurance

4. I Protect

Whole life

1. Whole life policy

2. Whole life Limited Payment

3. Whole life Single payement

4. Jeevan Anand

5. Jeevan Tarang

1. Whole Life

2. Guaranteed Savings Insurance

Plan

Endowment Plans

1. Endowment Assurance policy

2. Endowment Assurance policy-

Limited payment

3. Jeevan Mitra (Double & Triple

Cover Endowment)

4. Jeevan Anand

5. New Janaraksha Plan

1. Life Time Premier

2. Pinnacle – 2

3. Life Stage Wealth

4. Life Link Wealth Sp

37

6. Jeevan Amrit

Special Plans

1. Jeevan Bharti -1

2. Jeevan Adhar

3. Jeevan Vishwas

4. Jeevan Sath

5. Jeevan Sathi Plus

1. Health Saver

2. Medi Assure

3. Hospital Care – 2

4. Cricis Cover

38

LIC

Children Carrier Plan

ICICI’s Children Carrier Plan is specially

designed to meet the increasing

educational and other needs of growing

children. It provides the risk cover on the

life of child not only during the policy term

but also during the extended term (i.e. 7

years after the expiry of policy term). A

number of Survival benefits are payable

on surviving by the life assured to the end

of the specified duration.

Options:

A person may choose Sum Assured

(S.A.), Maturity Age, Policy Term, Mode

of Premium payment and Premium

Waiver Benefit.

Payment of Premiums:

A person may pay the premiums regularly

at yearly, half-yearly, quarterly or through

ICICI PRUDENTIAL LIFE INSURANCE

Smart Kid

ICICI Prudential’s Smart kid is a fixed-

term insurance plan that provides you

with funds at regular intervals. The plan

also keeps the family financially secure

should an untoward event ever occur.

Smart Kid New Unit linked Regular

Premium is a unit-linked plan, which

enables you and your child to

accumulate wealth by virtue of

performance of the under lying market-

linked instrument

Eligibility Condition and Other

Restrictions :

Minimum/Maximum Entry Age{Parent}:

20-60 Years

Minimum/Maximum Entry Age {Child}:

0-15 years

Maximum Age At Maturity {Child}:18-25

39

Salary deductions over the term of policy.

Premiums may be paid either for 6 years

or up to 5 years before the policy term.

Death Benefit:

On death (after the Date of

Commencement of Risk) -

(i) If death occurs within the period from

date of commencement of risk to 5 years

before the date of expiry of policy term:

Sum Assured along with Vested Simple

Reversionary Bonuses and Final

(Additional) bonus (if any) is payable.

(ii) If death occurs within 5 years before

the date of expiry of policy term: Sum

Assured along with Final (Additional)

bonus (if any) is payable.

On death during the Extended Term -

Sum Assured is payable.

On death (before the Date of

Commencement of Risk) - All the

premiums paid (excluding extra premium

and premium for premium waiver benefit,

if any,) along with interest of 3% p.a

compounding yearly shall be payable.

AutoCover:

If after at least two full years’ premiums

Years

Minimum/Maximum Term: 10-25 years

Premium Payable Frequency: Yearly,

Half-Yearly, Monthly.

Minimum Premium: 10,000/-

Minimum Sum Assured: Annual

Premium And Term/2 Subject To A

Minimum of Rs 1, 00,000.

Features and Benefits:

Regular payouts: As the child

approaches key educational milestones

such as 12th standard or graduation

exams, he or she will receive regular

payouts, guaranteeing he or she

continues to study, no- matter what the

circumstances.

Death Benefit: Your child will receive

the sum assured immediately, should

something happen to you. ICICI

Prudential will pay the remaining

premiums, ensuring your child continues

to receive policy benefits, as always.

Income Benefit Rider: You can choose

to add the benefits of this rider to your

child’s education plan. Should you

depart before your son’s or daughter’s

education is complete, your child will

receive 10% of Rider Sum Assured, for

40

have been paid and any subsequent

premium be not duly paid, full death cover

shall continue for a period of two years

from the due date of the First Unpaid

Premium (FUP). During this Auto Cover

Period, one or more installments of

premiums with interest can be paid

without submission of evidence of health.

On payment of one or more of the arrears

of installment premiums with interest, the

Auto Cover Period of 2 years shall be

extended from the due date of new FUP.

Premium Waiver Benefit shall remain in

force during the Auto Cover period.

Premium Waiver Benefit:

The proposer can opt for this benefit if

aged between 18 and 55 and is medically

fit. It provides waiver of premiums on

death of proposer. Further the benefit

shall remain in force during the Auto

cover period. Any premiums that have

fallen due and not paid during the Auto

Cover period shall also be waived. This

benefit shall not be available in case of

suicide by the proposer within one year of

policy. Further, revival of the policy shall

be subject to medical fitness of the

proposer. 

the balance term of the policy.

Add-on riders: ‘Accidental Death and

Disability Rider ‘ and ‘Waiver of

Premium Rider’ ensure your child stays

doubly protected, at all times. You can

choose to add these to your child’s

education policy.

Tax Benefits: Premiums you pay for a

smart Kid policy are eligible for tax

savings [u/s 80{C}]. Maturity and death

benefits are eligible for tax exemption

41

Eligibility Conditions and Other

Restrictions:

Minimum entry age : 0 years (last

birthday)

Maximum Entry age : 12 years(last

birthday)

Minimum maturity age : 23 years (last

birthday)

Maximum maturity age :27 years (last

birthday)

Minimum sum assured : Rs.1,00,000

Maximum sum assured : Rs.10,00,000

Policy term :11 to 27 years

Premium Paying Term: 6 years and

Policy Term less 5 years.

--------------------------------------------------------

Jeevan Nidhi

LIC’s JEEVAN NIDHI is a with profits

Deferred Annuity {pension} plan. On

survival of the policy holder beyond term

of the policy the accumulated amount {i.e.

Sum Assured + Guaranteed Additions +

Bonuses} is uses to generate a pension

{annuity} for the policyholder. The paln

also provides a risk cover during the

deferment period The USP of the plan

\

Forever Life

ICICI Prudential's ForeverLife is a

complete insurance cum pension plan

that performs two crucial roles: it acts as

a protective cover while you earn for

your retirement, and provides you with

regular pensions once you retire.

 Features and benefits of ForeverLife

42

being the pension can commence at 40

years. The premiums paid are exempt

under section 80ccc of Income Tax Act.

This is a with-profits pension plan which

provides for death cover during the

deferment period and on survival to the

date of vesting, the maturity proceeds are

compulsorily to be used for purchase of

annuity.

Eligibility Conditions and other

Restrictions:

Minimum age at entry: 18 years

{completed}

Maximum age at entry: 50 years

Maximum age at vesting: 60 years

Policy terms: 6to 35 years under Single

Premium mode and 10 to 35 years under

regular premium mode

Minimum Sum Assured: Rs.1,00,000/-

Maximum Sum Assured: An amount

equal to the sum assured under the Basic

plan subject to a limit of Rs.25,00,000/-

taking all Term Assurance Rider Sum

Assured under all policies of a life

assured.

ForeverLife is a regular premium

deferred pension plan, which provides

you with the security of a life cover

during your working years (the

Accumulation phase of the policy) and

regular pensions once you retire

(Annuity phase of the policy).

Premiums: Choose the Sum Assured

and Vesting Age (age at which one

wants to start receiving his pensions).

Depending on these as well as his age

at entry, his annual premium is

determined.

Pre-decided vesting age: Choose the

date from which one want to receive

pensions.

Life cover: Enjoy the protective benefits

of a life cover during the term of your

policy i.e. the time from when one

purchase the policy to the time he

retires. The life cover amounts to the

Sum Assured along with guaranteed

additions and vested bonuses.

Annuities: Receive the Sum Assured

along with guaranteed additions and

vested bonuses when one retire.

Choose how he wants to receive his

annuities.

43

Multiples of Sum Assured: Rs.25,000/-

Features and Benefits:

Guaranteed Additions:

Guaranteed Additions @ Rs.50/- per

thousand sum assured for each

completed year, for the first five years.

Participation in profits:

The policy shall participate in profits of the

corporation from the 6th year onwards and

shall be entitled to receive bonuses

declared as per the experience of the

corporation.

Loan Assignment:

No Loan/Assignment will be available by

the corporation to the policy holders

under this plan.

Premiums:

Premiums are payable yearly, half-yearly,

quarterly, monthly or through salary

deduction, as opted by you, throughout

the term of the policy or till earlier death.

Alternatively, the premium may be paid in

one lump sum {single premium}.

Tax Benefits:

Tax relief under Section 80CCC{1} is

5 options of annuity payouts: Choose

to receive his annuity out of five annuity

options that come with this retirement

plan.

Guaranteed additions: Receive

additional sums at the rate of 3.5% per

annum compounded on the Sum

Assured, for the first four years.

Vested bonuses: Receive these from

the 5th year onwards, as an annual

compounded percentage of the Sum

Assured.

Death benefit: Should something

happen to you, your nominee will

receive the Sum Assured along with

guaranteed additions and vested

bonuses.

Tax benefits: Enjoy tax savings on the

premiums you pay (under u/s 80 CCC)

and tax exemptions on death benefits

[under u/s 10 (10 D)].

Forever Life at a glance

Minimum Sum Assured : RS.50000

Minimum Premium : RS.

6000

44

available on premiums paid under this

policy.

Bonuses after the first 5 years:

This is a with-profit plan and participates

in the profits of the corporation’s life

insurance business after 5 years. It gets a

share of the profits in the form of

bonuses. Simple Reversionary Bonuses

are declared per thousand sum assured

annually at the end of each financial

year. Once declared, they form part of the

guaranteed benefits of the plan. A Final

{Additional} Bonus may also be payable

provided a policy has run for certain

minimum period.

Death Benefit:

The sum assured along with accrued

guaranteed additions and vested simple

reversionary bonuses and Final

{Additional} Bonus, if any, is payable in a

lump sum on death of the life assured

during the deferment period of the policy.

Benefit on Vesting:

On the date of vesting you can en cash

up to a maximum of 1/3rd of the amount

consisting of the Sum Assured along with

accrued guaranteed additions, vested

simple reversionary bonuses and Final

{Additional} Bonus, if any as a tax-free

lump sum. The balance amount shall be

Minimum/ maximum entry age : 20-60

years

Minimum/Maximum Term :5-30

years

Minimum/Maximum vesting age:50-70

years

45

compulsorily converted into an annuity at

the option and the rated applicable at the

time of vesting of the annuity.

Supplementary/Extra Benefits:

These are the optional benefits that can

be added to your basic plan for extra

protection/option. An additional premium

Is required to be paid for these benefits.

Bima Bachat

LIC’s Bima Bachat is a money-back

policy which offers financial security and

assurance to the policy holder and his

family. Bima Bachat requires the policy

holder to pay only one premium. The

amount paid for the premium depends on

the duration of the policy taken and life

insurance is available till the date of

maturity.

For a term 12 years: The policy holder will

receive 15% of the sum assured at the

end of every 3rd, 6th and 9th policy year.

Save’n’ Protect

It is a fixed term policy of ICICI that

combines saving with life cover. In this

plan, a person pay premium regularly

during the term,. On death of life

assured up to age 7 year, the basic

premium paid will be returned without

interest.

On the death of the life assured after

age 7 age 7 years, the beneficiary will

get the sum assured, the guaranteed

46

For a term 15 years: The policy holder will

receive15% of the sum assured at the

end of every 3rd, 6th, 9th and 12th policy

year.

For a term of 9 years: The policy holder

will receive 15% of the sum assured at

the end of every 3rd and 6th policy year

What additional benefits will one get

upon maturity?

If the policy holder outlives the duration of

the policy, at the time of maturity, a single

premium payment (excluding extra

premium) is made along with loyalty

additions, if any.

How much insurance will policy holder

get?

The policy holder is insured for an amount

equal to the sum assured.

What about the installment received

already?

The insurance cover is irrespective of the

addition at 3.5% compounded annum

for the first 4 years and the vested

bonuses.

Once the policy matures, i.e. at the

policy term a person can get the full

sum assured and guaranteed addition at

3.5% compounded annually for the first

4 year as well the vested bonus.

Extended life cover:

This provides a person with features

which gives you additional extended

term insurance cover for 5 years after

maturity date of policy.

Critical illness rider:

This rider provides protection again a

critical illness.

Eligibility Conditions and Other

Restrictions:

Maximum Age: 60 years

Maximum Age: 10 years

Premium Payable: 6000.

47

installments received.

When will one be eligible for the

guaranteed surrender value?

The guaranteed surrender value is

available only after completion of at least

one policy year. This value is equal to 90

% of the single premium paid (excluding

extra premium).

What other benefits does this

insurance cover offer?

Bima Bachat is the only money-back

policy that offers a loan facility. The rate

of interest for this will be determined from

time to time by the corporation. Presently

the rate of interest is 9% p.a. payable

half-yearly.

It also offers other benefits like the 15 day

cooling off period, grace period and

revival.

Who is eligible for the policy? Are

there other conditions or restrictions?

The following are the requirements that

one needs to be aware of before applying

for this

48

policy:

· The person applying for the policy

should have completed 15 years and

should not be older than 66 years.

· The policy will mature when the person

is 75 years old.

· There is a choice of three terms to

choose from (9, 12 and 15 years) for the

policy depending on the age and

requirement of the applicant.

· The minimum sum that needs to be

assured is Rs 20,000/- and there is no

limit on the amount that can be assured.

· It is important to note that the sum

assured should be in multiples of Rs

5000/- only.

· The policy requires the holder to pay a

single premium.

The convertible term

Assurance Policy:

LIC’s this plan of assurance is designed

to meet the needs of those who are

initially unable to pay the larger premium

required for a whole Life or Endowment

assurance policy, but hope to be able to

pay for such a policy in the near future.

Life Guard

Under this plan of ICICI, in case of the

life assured during the term, the sum

assured will be paid to the beneficiary.

There are no maturity benefits. Hence

49

This plan would be found useful also in

cases where it is desired to leave the final

decision as to the plan to a later date

when, perhaps a better choice could be

made.

Policy holders gets an option of

converting an policy into endowment

assurance or limited payment whole life

assurance.

Suitable For:

For all people with earned income under

category I and unearned incomes under

category II, basically standard and sub-

standard lives attracting EMR classes I

and II.

Death Benefit:

The sum assured is payable only in the

event of death of the life assured before

the expiry of the specified term.

on survival till, the policy will terminate.

In this policy a person needed to pay

the regular premium, for the term

chosen and the person will be provided

with life cover equal to the sum assured.

Eligibility Conditions and Other

Restrictions:

Minimum term: 5 years

Maximum term: 30 years

Minimum premium payable: 24000/-

Features and benefit:

Accident and disability benefit rider:

On death of the life assured due to an

accident, the beneficiary gets the

additional sum assured under the rider.

In case an accident related an accident

related death occurs while, travelling by

mass surface public transport, the

beneficiary gets twice the sum assured

under the rider.

In the event of total and permanent

disability, 10% of the rider sum assured

is paid out every year, for 10 years.

Waiver of premium:

In case of total permanent disability due

to an accident, this rider would waive

50

Endowment assurance

policy :

LIC’s this policy not only makes

provisions for the family of the life

assured in event of his early death but

also assures a lump sum at a desired

age. The lump sum can be reinvested to

provide an annuity during the remainder

of his life or in any other way considered

suitable at that time.

Premiums are usually payable for the

selected term of years or until death if it

occurs during the term period.

Suitable For:

Being an endowment assurance policy,

this plan is apt for people of all ages and

social groups who wish to protect their

families from a financial setback that may

occur owing to their demise.

The amount assured if not paid by reason

of his death earlier will payable at the end

of the endowment term where it can be

invested in an annuity provision for the

rest of the policyholder’s life or in any

future premium till maturity.

Pinnacle - 2

ICICI Pru Pinnacle II- a unit linked

insurance plan.

ICICI Pru Pinnacle II is a unit linked

insurance plan that offers protection for

family through its life insurance cover.

It also gives you the advantage of

varying exposure to equities with

downside protection, so that ones

investments are protected in financially

volatile times.

It offers a limited premium payment term

while allowing one to enjoy insurance

protection for a longer period.

Features and benefits of ICICI Pru

Pinnacle II

1. Guaranteed NAV: Get the benefit of

the highest NAV recorded on a daily

basis, in the first 7 years of the Pinnacle

II Fund, at maturity.

In this product, we guarantee the

highest Net Asset Value (NAV) recorded

on a daily basis, in the first 7 years of

51

other way he may think most suitable at

that time.

Features and benefits:

Moderate premiums

High bonus

High liquidity

Savings oriented.

Disability Benefit:

In case policy holder becomes totally and

permanently disabled due to an accident

before reaching the age of 70 and the

policy is in full force, he will not be

required to pay further premiums, {the

Disability Benefit is available in respect of

the first Rs. 20,000 sum assured on any

one life and the policy will continue to be

in force.

Accident Benefit:

By paying a small extra premium of Rs.1

per Rs.1000/- sum assured per year he or

his family are entitled to the following

benefits on death or permanent disability

caused by accident. Even students above

the age of 18 years can avail of this

benefit.

launch of the Pinnacle II Fund, subject

to a minimum of Rs.10. The guarantee

will be applicable only at maturity. The

period of 7 years starts from the date of

launch of Pinnacle II Fund and will end

on the completion of 7 years (from

26/10/2010 to 26/10/2017).

2. Limited premium payment term: 

Pay premiums for only five policy years.

3. Death benefit: In the unfortunate

event of death of the Life Assured, the

nominee will receive Sum Assured plus

Fund Value, subject to Minimum Death

Benefit.

4. Partial withdrawals: Ensures

liquidity from the 6th policy year

onwards.

5. Tax benefits: Avail tax benefits on

the premiums paid and benefits

received under the policy, as per the

prevailing Income Tax laws

6. Loyalty Additions: Added to the

fund at maturity. Calculation of the fund

value for Loyalty Addition will be based

on the prevailing NAV and not on the

Guaranteed NAV

ICICI Pru Pinnacle II at a glance

52

Premium Stoppage:

If payment of premiums ceases after at

least THREE years premiums have been

paid, a free paid-up policy for a reduced

sum assured will be automatically

secured provided the reduced sum

assured , exclusive of any attached

bonus, is not less than Rs.250/-. The

reduced sum assured will become

payable on the event as stipulated in the

policy.

Bonus:

Is there anything extra payable besides

the sum assured at that time of claim

Insurance Corporation distributes its

surplus among policy holder to with profits

polices in the form o bonuses. Substantial

bonuses have been declared in the past

after valuation of policy liabilities.

Whole Life

LIC’s this plan is mainly devised to

create an estate for the heirs of the

policyholder as the plan basically

provides for payment of sum assured plus

Premium

Payment

Term

5 years

Minimum

PremiumRs. 50,000 p.a.

Maximum

PremiumRs. 2,00,000 p.a.

Modes of

Premium

payment

Yearly

Policy Term 10 years (fixed)

Maximum

Maturity

Age

75 years

Minimum

Sum

Assured

Age

at

entry

<45

yrs

>=45

yrs

Minimu

m SA

10 *

Annual

Premium

7   *

Annual

Premium

Whole Life

ICICI Pru Whole Life provides you with

a unique double advantage of savings

53

bonuses on the death of the policyholder.

However, considering the increased

longevity of the Indian population, the

Corporation has amended the above

provision, thereby providing for payment

of sum assured plus bonuses in the form

of maturity claim on completion of age 80

years or on expiry of term of 40 years

from date of commencement of the policy

whichever is later.

The premiums under the policy are

payable up to age 80 years of the

policyholder or for a term of 35 years

whichever is later.

If the payment of premium ceases after 3

years, a paid-up policy for such reduced

sum assured will be automatically

secured provided the reduced sum

assured exclusive of any attached bonus

is not less than Rs.250/-. Such reduced

paid-up policy is not entitled to participate

in the bonus declared thereafter but the

bonuses already declared on the policy

will remain attach, provided the policy is

converted in to a paid-up policy after the

premiums are paid for 5 years.

Suitable For:

This policy is suitable for people of all

ages who wish to protect their families

from financial crises that may occur owing

to the policyholder’s premature death.

and protection that not only allows you

to meet your goals but also seeks to

ensure that your dear ones will continue

to live their lives in comfort without

financial worries in case of unforeseen

eventuality

You always strive to provide the best for

your family, you set goals to buy a car, a

house, get married, secure your

children’s education, go for that dream

vacation and secure a better life after

retirement. Most importantly, you want

to ensure your family receives all these

benefits during your lifetime and also in

case you are not around.

Features and benefits of ICICI Pru

Whole Life

54

Benefits

Insurance Regulatory & Development

Authority (IRDA) requires all life insurance

companies operating in India to provide

official illustrations to their customers. The

illustrations are based on the investment

rates of return set by the Life Insurance

Council (constituted under Section 64C(a)

of the Insurance Act 1938) and is not

intended to reflect the actual investment

returns achieved or may be achieved in

future by Life Insurance Corporation of

India (LICI). For the year 2004-05 the two

rates of investment return declared by the

Life Insurance Council are 6% and 10%

per annum.

Product summary

This is a whole of life assurance plan that

provides financial protection against

death through out the lifetime of the Life

Assured.

Premiums:

Under Table Nos 2 & 5 the premiums are

payable yearly, half-yearly, quarterly,

monthly or through Salary deductions, as

opted by you. Under Table No 8 the

premium is payable in one lump sum

(Single Premium).

Under Table No 2 the premiums are

payable for a period of 35 years or up to

age 80 years, whichever is later. Under

Triple advantage of ICICI Pru Whole

Life

1. Survival benefit: Create a corpus to

meet your desired goal at the end of a

chosen premium paying term. You are

entitled to the chosen Sum Assured and

all the bonuses declared, if any, during

the premium paying term.

2. Life cover benefit: In case of your

untimely demise during your premium

paying years, your family would receive

twice the Sum Assured along with all

bonuses accumulated during the

premium paying term of the policy.

3. Whole life cover benefit: You are also

entitled to an additional Sum Assured

payable in case death occurs after the

completion of the premium paying term

or on completion of 100 years of age,

whichever is earlier, allowing you to

leave a legacy to your dear ones.

Key features of the plan:

o Life cover of double Sum Assured and

vested reversionary bonuses, if any,

during the premium paying term

o Wealth creation through regular bonus

additions declared at the end of each

financial year

o Survival benefit of Sum Assured plus

55

Table No 5 the premiums are payable up

to the selected premium paying period.

Under Table No 2 the premiums are

payable for a period of 35 years or up to

age 80 years, whichever is later. Under

Table No 5 the premiums are payable up

to the selected premium paying period.

The premiums are payable for the periods

as specified above or up to earlier death

Bonuses:

This is a with-profit plan and participates

in the profits of the Corporation’s life

insurance business. It gets a share of the

profits in the form of bonuses. Simple

Reversionary Bonuses are declared per

thousand Sum Assured annually at the

end of each financial year. Once

declared, they form part of the

guaranteed benefits of the plan. A Final

(Additional) Bonus may also be payable

provided a policy has run for certain

minimum period.

Death Benefit:

The Sum Assured plus all bonuses to

date is payable in a lump sum upon the

death of the life assured.

Maturity Benefit:

This is a whole of life assurance plan and

hence does not have a maturity date.

vested reversionary bonuses and

terminal bonus, if any, at the end of the

premium paying term

o Additional life cover for the chosen

Sum Assured post premium payment

term, for whole life

o Enhanced coverage through riders –

Accident and Disability Benefit Rider,

Critical Illness Rider and an Income

Benefit Rider

o Avail of tax benefits on the premium

paid and benefits received under the

policy, as per the prevailing Income Tax

laws. Service tax and education cess

will be charged extra, as per applicable

rates. The tax laws are subject to

amendments from time to time.

56

You, however, have the option to take the

Sum Assured plus all bonuses declared

under the policy anytime after 40 years

from the date of commencement of the

policy provided you have attained, at

least, 80 years of age.

Supplementary/Extra Benefits:

These are the optional benefits that can

be added to your basic plan for extra

protection/option. An additional premium

is required to be paid for these benefits.

Surrender Value:

Buying a life insurance contract is a long-

term commitment. However, surrender

value is available under the plan on

earlier termination of the plan.

Guaranteed Surrender Value:

The policy may be surrendered after it

has been in force for 3 years or more.

The guaranteed surrender value is 30%

of the basic premiums paid excluding the

first year’s premium. In case of a single

premium policy the guaranteed surrender

value is 90% of the single premium paid

excluding any extra/additional premium.

57

Public Views About Both The

Companies

1. What do you consider insurance?

A. Simple Insurance

B. Savings

C. Investment

According to my research 50% of people believe that insurance is

only simply insurance, neither saving nor investment.

58

While, 38% people believe that it is one type of savins. 12%people

believe that insurance is a sector where we invest for a long time.

2. Have you taken insurance policy?

A. YES

B. NO

59

As per my result 97% people say that they have taken the policy

and secured their life. But yet 3% people are such who have not

taken the insurance policy.

3. Which type of company do you prefer?

A. Private company

B. Public company

60

The above figure shows that most of the people i.e. 71% have

taken insurance from public sector company while only 29% of

people are interested in private sector company.

4. Which insurance policy do you prefer?

A. Children Plan

B. Pension Plan

C. Health Plan

D. Protection Plan

E. Special Plan

F. Endowment Plan

61

As per my research 32% of people want to protect their salves

so they have chosen protection plans.

18% people are such who are more curious about their

children’s future so they prefer children plicy. Another 18%

people have prefered endowment plans.

At the same time 14% people prefer health plans. Very few

people i.e. 9% prefer special plans and another 9% people

prefer pension plan

5. From the following which is the best insurance company according to

you?

A. LIC

B. ICIC PRUDENTIAL LIFE INSURANCE

C. OTHERS

62

.

As per my research 65% people would like to take insurance from LIC

(public sector) while, 20% people prefer ICICI Prudential Life Insurance

and very few people i.e. 15% prefer other companies. There are some

reasons behind it which can be judge from remaining questions.

6. Why have you choosen ICICI Prudential Life Insurance?

A. Innovative plans avaible

B. India’s no. 1 private life insurance company

C. Good premium rate

D. Quick reliable services

63

From amongst the people who have chosen ICICI Prudential Life

Insurance 50% of people say that they have choosen this company

because of their quick and reliable services.

18% people have choosen ICICI Prudential Life Insurance because it is

providing new innovation plans to the customers.

While 16% people have choosen ICICI Prudential life insurance because it

is india’s no. 1 private insurance company and another 16% people have

choosen it because of it’s good premium rates.

7. Why you have choosen LIC?

A. Government guarantee

B. Good premium rate

C. Variety of plans

D. A trusted company

64

Those who have choosen LIC from among them 65% people believe that

there is government guarantee in public sector and they also believe that

in public sector there is no risk in loosing the money.

And 22% get insured because of 50 year’s trust in public sector i.e. in LIC.

8% people prefer LIC because of variety of plans avaible in LIC while only

5% people are such who prefer LIC because of it’s good premium rates.

8. Why have you not choosen LIC?

A. Delay in providing services

B. The Government interferance

C. Slow decision making process

65

From among the people who have not chosen LIC, 50% of them say

that the reason is LIC’s slow decision making process.

While 25% people have not chosen LIC because of its delay in

providing services; and the remaining 25% people have not chosen

due to the government interference in LIC.

9. Why have you not chosen LIC?

A. No Government guarantee

B. High penalty charges

C. Profit making approach

66

Those who have not chosen ICICI Prudential Life Insurance from them

56% people believe that there are no Government guarantee in private sector

i.e. ICICI Prudential Life Insurance

23% people have not chosen because of its profit making approach and

the remaining 21% people have not chosen it because of its high penalty

charges.

67

8.FINDINGS

By doing this project I have concluded the following points:

If we compare private and public sector company than mostly i.e. 71%

people would like to invest their money in public sector. Only 29%

people are such who would like to invest in private sector.

68

About 97% people have taken the insurance and only 3% people have

not taken insurance. The major factor which influences the people are

variety and innovative policies, premium rates and insurance cover.

At the same time 65% people prefer LIC due to its government

assurance but there are 35% people who have not chosen it due to its

slow decision making process.

20% people have chosen ICICI Prudential Life Insurance due to its

reliable services. But there are 65% who have not chosen due to

absence of Government assurance.

At the present period the share of LIC in the total market is better in

comparison to ICICI Prudential Life Insurance.

At last we can say that mostly people would like to take insurance in

public sector. But if we see the market strategy than we can conclude

that the share of public sector is shifting from public to private sector.

Over and above this there are some other reasons on the basis of

which we can say that both the companies i.e. private and public are

growing at parallel level on the basis of following points:

o Policies

o Insurance Cover

o Administration

o Premium Rate

o Marketing Strategy

o Branch expansion.

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Questions

1. What do you consider insurance?

A. Simple Insurance

B. Savings

C. Investment

2. Have you taken insurance policy?

A. YES

B. NO

3. Which type of company do you prefer?

A. Private company

B. Public company

4. Which insurance policy do you prefer?

A. Children Plan

B. Pension Plan

C. Health Plan

D. Protection Plan

E. Special Plan

F. Endowment Plan

5. From the following which is the best insurance company according

to you?

A. LIC

B. ICIC PRUDENTIAL LIFE INSURANCE

C. OTHERS

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6. Why have you choosen ICICI Prudential Life Insurance?

A. Innovative plans avaible

B. India’s no. 1 private life insurance company

C. Good premium rate

7. Quick reliabl Why you have choosen LIC?

A. Government guarantee

B. Good premium rate

C. Variety of plans

D. A trusted company e services

8. Why have you not choosen LIC?

A. Delay in providing services

B. The Government interferance

C. Slow decision making process

9.Why have you not chosen LIC?

A. No Government guarantee

B. High penalty charges

C. Profit making approach

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9. BIBLIOGRAPHY

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Books:

Business Environment- C.B.Gupta

Financial market- Vasant Desai

Management of banking and financial Services- Justin Paul & Padmalatha

Suresh

Newspaper:

Financial Express

Websites:

www.licindia.com

www.iciciprulife.com

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