SUMMER TRAINING REPORT

ON
AN INTRODUCTION ABOUT INSURANCE
SECTOR WITH SPECIAL REFERENCE TO HDFC
STANDARD LIFE INSURANCE COMPANY
LIMITED
(Housing Development & Finance Corporation)
AT
PATIALA
Submitted in partial fulfillment of the requirement for the degree of
Masters of Business Administration
(Session 2006-08)

Submitted to:-
The Department of Management
RIMT (Institute of Engineering & Technology)
Mandi Gobindgarh

Submitted By:
Rajnish Kaushal.
MBA- II SEM.
ROLL NO. 6944
 THE DEPARTMENT OF
MANAGEMENT
RIMT (Institute of Engineering &Technology)
Mandi Gobindgarh.
CONTENTS

1) Preface
2) Certificate
3) Acknowledgement
4) Introduction
Definition
Need for Life Insurance
Role of Govt.
Role of Life Insurance
Evaluation of Insurance Industries in India
Future Scenario
5) Opening of Insurance sector in India
6) Changing expectation of customer
7) Major player
HDFC standard life insurance
Life Insurance Corporation
ICICI Prudent
Om Kotak Mahindra
Birla Plus Sun Life
 8) Comparison of the unit linked plan of various
companies
9) Research Methodology
Objective and limitation
10) Data Analysis and findings
11) Conclusion
Finding
Suggestion
12) Appendices
Query
Bibliography
AC K N OWLE D G E M E NT

I deem it as my personal duty to thank all those who proved indispensable

in the completion of my project. I express my gratitude to Dr.Harpreet
Singh(H.O.D) RIMT Institute of Engineering & Technology, Mandi Gobindgarh
for his constant guidance, encouragement and inspiration given throughout the
course of study.
I would also like to thank Mr. Tejpreet Singh Asstt. Sales Manager, Patiala
who allow me to undergo training at HDFC Standard Live Insurance Patiala.
Least but not last I would like to thank all the Staff members who helped
me in completing the project.

Rajnish Kaushal.
 I NS U RAN C E

Insurance is basically risk management device. The losses to assets resulting form
natural calamities like fire, flood, earthquake, accident etc. are met out of the
common pool contributed by large number of persons who are exposed to similar
risks. This contribution of many is used to pay the losses suffered by unfortunate
few. However the basic principle is that losses should occur as a result of natural
calamities or unexpected events which are beyond the human control. Secondly
insured person should not make any gains out of insurance.
It is natural to think of insurance of physical assets such as motor car insurance or
fire insurance but often be forget that creator all these assets is the human being
whose effort have gone along way in building upto assets. In that scene human life
is a unique income generating assets. Unlike physical assets which decreases with
the passage of time. The individual become more experience and mature as he
advances in age. This raises his earnings capacity and the purposes of life
insurance is to protect the income to individual and provide financial security to
his family which is dependent of his income in the event of his pre mature death.
The individual also himself also himself also needs financial security for the old
age or on his becoming permanently disabled when his income will stop.
Insurance also has an element of saving in certain cases.
Insurance is rupees 400 billion business in India and yet its spread In the country
is relatively thin. Insurance as a concept has not being able to make headway in
India. Presently LIC enjoys a monopoly in Life Insurance business while GIC
enjoys it in general insurance business. There has been very little option before
the customer to decide the insurer. A successful passage of the IRA bill have clear
the way of private sector operators in collaboration with their overseas partner. It
is likely to bring in a more professional and focuses approach. More over the
foreign players would bring sophisticated actuarial techniques with them which
would facilitate the insurer to effectively priced the product. It is very important
that the trained marketing professionals who are able to communicate specific
features of the policy should shall sell the policy. In the next millennium all the
activities would play a crucial role in the overall development and maturity of the
insurance industry.
Definition General Definition:-
In the words of D S Hansell, “ Insurance may be defined as a social device
providing financial compensation for the effects of misfortune, the paying being
made from the accumulated contributions of all participating in the scheme.”
Contractual Definition:-
In the words of justice Tindall “insurance is a contract in which a sum of money is
paid to the assured as consideration of insure’ incurring the risk of paying a large
sum upon a given contingency.
Characteristics of Insurance
Sharing of risk
Co-operative device
Evaluation of risk
Payment on happening of special event
The amount of payment depends on the nature of losses incurred
Need of the Life Insurance:-
The original basic intention of life insurance is to provide for one’ family and
perhaps others in the event of death. Originally, polices were to provide for short
periods of time, covering temporary risk situations, such as sea voyages. As life
insurance became more established. It was realized what a useful tool it was in a
number of situations, including:
1. Temporary needs threats:
The original purpose of Life Insurance remains an important element,
namely providing for replacement of income on death etc.
2. Regular saving:
Providing one’s family and oneself, as a medium to long term exercise
(through a series of regular payment of premiums). This has been become more
relevant in recent times as people seek financial independence from their family.
3. Investment:
Put simply, the building up of saving while safeguarding it from ravages of
inflation. Unlike regular saving products are traditionally lump is investments,
where the individual makes are one time payment.
4. Retirement:
Provision for one’s on later years has become increasingly necessary.
Especially in charging culture abs social environment, one can buy a suitable
insurance policy which will provide periodical payments on one’s old age.
BENEFITS:
1. It is superior to traditional saving machine
As well as providing a secure vehicle to build up saving etc. it provides
pieced of mind to the policy holder. In the event ultimately death, of say, the main
earner in the family, the policy will pay out guaranteed sum assured, which is
likely to be significantly more then the total premiums paid. With more
traditional, saving vehicles such as fixed deposits, the only return would be the
amount invested plus any interested accrued.
2. It encourages saving and forces thrift:
 Once an insurance contract has been entered into, the insured has an
obligation to continue paying premiums, until the end of the term of policy,
otherwise the policy will lapse. In other words, it becomes compulsory for the
insure to save regularly and spend wisely. In contrast saving held in a deposit
account can be accessed or stop easily.
3. It provides easy settlement and protection against creditors
Once a person appointed for receiving the benefits or a transfer of rights is
made (assignments), a claim under the life insurance contracts can be settled
easily. In addition, creditors have no right to any momies by the insurer, where the
policy is written under trust. Under the married woman’s act the money available
from the policy forms a kind of trust which creditors can not claim on.
4. It can be enchased and facilities borrowing.
Sum contracts may allow the policy can be surrendered for a cash amount,
if policy holder is not in a position to pay the premium. A loan, against certain
policy, can be taken for a temporary period to tide over the difficulty. Presence of
life insurance policy facilitates credit for personal or commercial loans as it can be
offered as collateral security.
5. Tax relief:
The policy holder obtains income tax rebates by paying the insurance
premium. The specified from of saving which enjoys a tax rebate u/s 88 of the
income tax act. Include Life Insurance premiums and contribution to a recognized
PF etc.
Govt. Role:
Govt. keen to reduce the dependency on the state via private pension
provisions. They have a choice between using compulsion and incentives. Most of
the govt. chooses the later method. Tax relief is guaranteed in the pension plants
and is extremely generous, reflecting the value that the govt. and the society and
large place on the provision of retirement benefits. Tax treatments of the benefit
caries by country and by benefits.
 In India, the proceeds of gratuity and provident fund are tax free in the
hand of the members. In UK a certain amount of the proceeds can be taken as tax
lump sum and reminder as taxable income. Benefits due on with drawl from
scheme or approved pension plan.
Role of Life Insurance
Role1: Life Insurance as ‘investment’ insurance is an attractive option for
investment. While most people recognize the tax hedging and tax saving potential
of life insurance, many are not aware of its advantage as an investment option as
well as, insurance products yields more compared to regular investment option as
this is besides the added incentives (read bonuses) offered by insurers.
You can not compare an insurance product with other investment schemes
for simple reason that it offers financial protection form risks. Something that is
the missing in non insurance products.
Infect, the premiums you pay for an investment against risk. Thus, before
comparing with other scheme, you must accept that a part of total amount invested
insurance life insurance goes towards providing for the risk cover, while the rest is
used for savings.
Insurance life Insurance, unlike non-products, you get maturity benefits on
survival at the end of the term. In other words, if you take a life insurance policy
for 20 years and survive the term the amount investor as premium insurance the
policy will come back to you with family of the deceased will receive the sum
assured.
Now, let us compare insurance as an investment options. If you invest Rs.
10000/- insurance PPF, year money grows to Rs. 10950 at 9.5% interest over a
year. But insurance this case, the access to your funds will be limited one can
withdraw 50% of the initial deposit only after four years.
The same amount of Rs. 10000/- can give an insurance cover of up to
approx. Rs. 5 to 12 lacs. (depending upon the plan, age and medical condition of
life insure etc.) and this amount can become immediately available to the nominee
of the policy holder on death. Thus insurance is a unique investment avenue that
delivers sound returns insurance addition to protection.
Role 2: Life Insurance as “Risk Cover”
First and foremost, insurance is about risk cover and protection – financial
protection, to be more presize – to help out last unpredictable losses. Designed to
safe guard against losses suffered on account of an unforeseen events. Insurance
provide you with that uniqueness scene of security that no other form of
investment provides. By buying life insurance, you buy peace of mind and are
prepared to face any financial demand that would hit the family incase of an
untimely demise.
To provide such protection, insurance firms collect contributions for many
people who face the same risk. A loss claim is paid out of the total premium
collected by the insurance companies, who act as trustees to the monies.
Insurance also provides a safeguard insurance the case of accident or a
drop insurance income after retirement. As accident or disability can be
devastating and an insurance policy can lend timely support to the family
insurance such time. It also comes as a great help when you retire, insurance case
untoward incident happens during the term insurance the policy.
With the entry of private sector player insurance insurance, you have a
wide range of products and service to choose from. Further, many of these can be
further customizes to fit individual/group specific needs considering the amount
you have to pay now, its worth buying some extra sleep.
ROLS 3: LIFE Insurance as “Tax planning.’’
Insurance serves as an excellent tax saving mechanism too. The Govt. of
India have offered tax incentives to life insurance products insurance order to
facilitate the flow of funds into productive assets, U/S 88 OF Income Tax Act
1961, an individual is entitled to rebate 20% On the annual premium payable on
his/her life and life of his/her children or adult children. The rebate is reducible
from tax payable by an individual or Hindu undivided family. This rebate is can
be availed up to a maximum of Rs 12000/- on payment of yearly premium of Rs
6000/- a year, you can buy anything upward of Rs 100000/- in sum assured. This
means that you get Rs 12000/- tax benefit. This rebate is deductible from the tax
payable by an individual or a Hindu undivided family.
THE EVALUATION OF INSURANCE INDUSTRY IN INDIA:
Life insurance in its modern form is a western concept. The Indian
insurance industry is as old as it is insurance other part of the world. Although life
insurance business has been taking shape for the last 300years, it came to India
with the arrival of Europeans. First Life Insurance Company was established
insurance 1818 as Oriental Insurance, mainly to provide for widows of Europeans.
The companies that follow mainly catered to Europeans and charged extra
premium on Indian Lives. The first insurance company insuring Indian Lives at
standard rates was BOMBAY MUTUAL LIFE INSURANCE COMPANY which
was formed insurance 1870. This was also the year when Ist insurance act was
passed by the British Parliament.; the years subsequent to the Swadeshi movement
saw the emergence of several insurance companies. At the end of the year 1995
there were 245 insurance companies AII the insurance companies were
nationalized insurance 1965 and brought under one umbrella. LIFE INSURANCE
CORPORATION OF INDIA (LIC) which enjoyed a monopoly of the life
insurance business until near the end of 2000. By enacting the IRDA act 1999. the
Govt of India effectively ended Lick’s monopoly and opened the door for private
insurance companies Collaboration of Indian Companies with Foreign
Companies.
FUTURE SCENARIO:-
Before looking insurance future prospectus of the insurance industry, we
must take a look into its past history. The independent India started with private
sector insurance companies. These companies were nationalized by the Union
Govt. in 1965 to form a monopoly known as Life Insurance Corporation of India
has being under public sector for over four decades till the govt. opened the
insurance sector for private companies in 2000.
 When the insurance Industry was nationalized, it was consider a land mark
and a milestone on the way to the socialistic pattern of society that India had
chosen after independence. Nationalization has lent the industry solidity and
growth which is unparalleled. Forever, along with these achievements there also
grew a feelings of

Indian Company Foreign Partner

Kotak Mahindra Chubb
Tata Group AIG
Sundram Finance Winterthur
Spic Metlife
ILFC Cigna
Alpic Finance Allianz
20th Century Canada Life
Vysa Bank ING
Cholamandlam Axa
SBI Alliance Capital
HDFC Standard Life
ICICI Prudential
Hindustan Times Commercial Union
IDBI Principal
Max India New York Life

Insensitivity to the needs of the market, traditions insurance adoption of modern

practices to upgrades technical skills coupled with a scene of lethargy which
probable led to a feeling amongst that the insurance industry was not fully
responsive to customers needs.
The life insurance corporation of India has not succeeded in extending the
insurance cover to all the needy people of the country due to various reasons. LIC
could not insure very fast growth of insurance in India even in a long period
extending over four decades. Hence the penetration of insurance is very low
insurance India. The following indicates as explained and support this contention:
1. While per capita insurance premium in developed country is high, it is
quite low insurance India. For instance, per capital insurance premium
insurance India insurance 1999 was only $8 while it was $4800 for
 Japan and $1000 for Republic of Korea, $887 for Singapore, $823 for
Hong-Kong and $144 for Malaysia.
2. Similarly the penetration of insurance is also assessed by the ratio of
insurance premium to gross domestic products in a country. While
insurance premiums as a percentage of GDP was 14% in Japan 13% for
South-Africa, 12% for Korea, 9% for UK and France. It was only
around 2% insurance India insurance 1999. Hence the 34th penetration
of insurance is low here.
3. the penetration of insurance is also assessed by a ratio of insurance
premium to gross domestic savings (GDS). While insurance premium
as a percentage of GDS was 52% for UK, 35% for other European and
American countries, it was only 9% insurance Indian Insurance 1999.
hence even this index indicates low level of penetration of insurance
insurance India.
4. the share of India insurance the world market insurance terms of gross
insurance premium is again very small for instance while Japan 31%,
European union 25%, South Africa 2.3%, Canada 1.7% share of global
insurance premium to is only 0.3% for India.
OPENING OF INSURNACE SECTOR INSURANCE INDIA
The Union Govt. of India decided to open the insurance sector to make it
more dynamic and customer friendly.
Objective of Liberalization of Insurance:-
The main objective for the opening up the insurance sector to the private insures
as under:-
 To provide better coverage to the India citizens.
 To augment the flow of long term financial resources to finance the growth
of infrastructure.
Insurance Industry in the year 2000-2001 had 16 new entrants, namely:
Life Insurers:
S. No. Registration Date of Reg. Name of the Company
 Number
1 101 23-10-2000 HDFC Standard Life Insurance Company Ltd.
2 104 15-11-2000 Max New York Life Insurance Co. Ltd.
3 105 24-11-2000 ICICI Prudential Life Insurance Co. Ltd.
4 107 10-01-2001 Kotak Mahindra Old Mutual Life Insurance Ltd.
5 109 31.01.2001 Birla Sun Life Insurance Co. Ltd.
6 110 12.02.2001 Tata AIG Life Insuance Co. Ltd.
7 111 30-03-2001 SBI Life Insurance Co. Ltd.
8 114 02-08-2001 ING Vysya Life Insurance Co. Pvt. Ltd.
9 116 03-08-2001 Bajaj Allianz Life Insurance Co. Ltd.
10 117 06-08-2001 Metlife India Insurance Co. Pvt. Ltd.
General Insurers:
S. Registration Number Date of Reg. Name of the Company
No.
1 102 23-10-2000 Royal Sundaram Alliance Insurance Co. Ltd.
2 103 23-10-2000 Reliance General Insurance Co. Ltd.
3 106 04-12-2000 IFFCO Tokio General Insurance Co. Ltd.
4 108 22-01-2001 TATA AIG General Insurance Co. Ltd.
5 113 02-05-2001 Bajaj Allianz General Insurance Co. Ltd.
6 115 03-08-2001 ICICI Lombard General Insurance Co. Ltd.
Yr: 2001-2002 (From 1st Jan 2001 to Dec. 2002)
Insurance Industry in this year, so far has 5 new entrants’ namely
S. Registration Number Date of Reg. Name of the Company
No.
1 121 03-01-2002 AMP Sanmar Life Insurance Co. Ltd.
2 122 14-05-2002 Aviva Life Insurance Co. Pvt. Ltd.
General Insurers:
S. Registration Number Date of Reg. Name of the Company
No.
1 123 15-07-2002 Cholamandalam General Insurance Co. Ltd.
2 124 27-08-2002 Export Credit Guarantee Corporation Ltd.
3 125 27-08-2002 HDFC-Chubb General Insurance Co. Ltd.
Yr: 200-2004 (From 1st Jan. 2003 till date)
Insurance Industry in this year, so far has 1 new entrants: namely
Life Insurers:
S. Registration Number Date of Reg. Name of the Company
No.
1 127 06-02-2004 Sahara India Insurance Co. Ltd.
Yr: 2004-2005
Insurance Industry in this year, so far has 1 new entrants; namely
Life Insurers:
S. Registration Number Date of Reg. Name of the Company
No.
1 128 17-11-2005 Shriram Life Insurance Co. Ltd.

CHANGING CUSTOMER EXPECTATIONS IN INSURANCE SECTOR PRE

TO POST LIBERALIZATION
Research Objective & Methodology
Objective:- To provide insights into customer experience prior to recent
liberalization, mapping changes in expectations after liberalization and perceived
performance of insurance players vis expectations.
Research Approach:- In depth qualitative study to capture indicative trends which
can be statistically validated, if required.
Geographical Coverage: Delhi, Mumbai, Kolkata, Hyderabad & Bangalore.
RESEARCH DESIGN
RESPONDENT SEGMENTS
Life Policy Holders
• Old Customer: Taken insurance prior to liberalization only
• Evolved customer: Taken insurance both insurance pre and post
liberalization
• New Customer: Taken insurance in post liberalization only
Non Life Policy Holders
• Motor Vehicle Insurance
• Health Insurance
• Property Insurance
• Personal Accident Insurance
Non Policy Holders (Life)
RESEARCH DESIGN
SAMPLING PLAN
RESPONDENT CATEGORY SEC A SEC B SEC C TOTAL
LIFE POLICY 48 41 37 126
NON-LIFE POLICY 43 21 16 80
NON POLICY (LIFE) 14 15 16 45
TOTAL 105 77 69 251

RESPONDENT CATEGORY Old Evolved New TOTAL

Customer Customer Customer
LIFE POLICY 47 40 39 126
The Insurance company faces financial challenge when it is not prepared for
disaster management readiness for catastrophe claims and for lack of systematic
approach insurance claims settlement strategies with cash flow.
PRE PURCHASE PROCESS: LIFE
Pre Liberalization Post Liberalization
Motivating Factor(s) for considering insurance
• Security 43% • Security 50%
• Savings 14% • Savings 34%
• Tax Rebate 43% • Tax Rebate 16%
Children’s education. Daughter’s marriage
retirement plan.
Sources of information on insurance & product awareness
• Friends, Colleagues, Relatives • Additionally form direct mailers,
and Agent consumer meets internet &
• Low awareness of several media (mass media & outdoor)
insurance products due to poor • Rising level of aeareness of new
communication is spite of products of both LIC and private
availability companies
Choice of first policy
• Money Back 60% • Money Back 42%
• Endowment 40% • Endowment 48%
• Whole Life 0% • Whole Life 10%
This change insurance product-mix reflects
maturing of the insurance customer
Approach of the Agent and Consumer’s Experience
• Approach of Agent-informal and • Approach more professional,
through referral some times aggressive
• Long term family type of (insurance one or two private
relationship company agents.
• Often selling insurance as • Proactive insurance constacting
commodity prospectus directly, often has to
• Average communication skills start form selling concept of
insurance rather than product.
 • Conducts financial health check
up and then offers suitable
products/solutions
• Better communicator &
presenter
• Handles larger number of queries
Awareness & Consideration of private players
Private Overall SECA SEC B SEC C
companies
Awareness 73% 93% 30% 50%
Consideration 35% 65% 30% 10%
SECB & C prospect not influenced much by direct contact of agent and generally takes decision only
after consulting informed family member or friend.
AWARENESS OF NEW PRODUCTS-LIFE
• Only some customers have mentioned new products such as
• Products with multiply riders medical accident, waiver of premium rider
• Though most SEC A & some SEC B customers have generally heard
liberalization but unable to provide any details.
• Flexi premium plans-product with singly premium and shout time premium
option.
PURCHASE PROCESSL : LIFE
Pre Liberalization Post Liberalization
Role of Agent and customer’s Experience
• Medical Examination: In several • Medical Examination: Both LIC
cases details filled by agent and private company customers
medical examination very examination, arranged by agent
perfunctory • Experience more satisfactory,
• Purchase experience with agent agent maintains regular contact
reasonably satisfactory, but often post
agent not insurance touch later. • Purchase phase also
Product Offering
• Limited Products choices and • Product with multiple riders-
less flexible products medical, accident, waiver of
• Choice often determined by premium rider
Agent push • Pension / retirement benefit
plans flexi premium, saving &
security plans
Discount Offering Practices
• No. of customers getting • Customers getting discount:33%
 discount: 50% (Highest insurance Delhi)
• Fate of discount:25%-50% of • Rate of discount: more less same
first year premium
Policy Deliver
• Mode-Registered post for LIC, • Mode-Registered for LIC-courier
Hand delivered by agent insurance for private companies
23% case • In both cases policy comes in
• Time taken attractive, Protective plastic
• Up to 1 week 0% jacket
• One Month 65% • Time taken LIC Private Co.
• > 1 month 35% Up to 1 week 5% 85%
Upto one month 77% 15%
> 1 month 18% 0%
CLAIMS SETTLEMENT EXPERIENCE-LIFE (LIC ONLY SO FAR) FINAL
MATURITY CLAIM
• Involvement of agent very low (35%)
• Payment mostly within 15 days, but 1 to 3 month insurance some situation
such as change of survivors address etc.
• Most customer are satisfied with the overall process.
DEATH CLAIM
• Involvement of agent low though considered critical by nominee
• Payment takes 3 to 6 month cases, in dispute cases 9 to 12 months.
• Process very cumbersome and people faced many difficult
CHANGING CUSTOMER EXPECTATIONS-LIFE TIME EXPECTATIONS
• First premium receipt (FPR) delivery to customer insurance 2 days.
• Policy document should be delivered within 7 days from FPR
• Premium notice should arrive 30 days before due date
• Final maturity payment should reach within 10 days of maturity date
• Death claim should be settled insurance 30 days.
EXPECTATIONS FROM AGENT
• Should Give Information On All Products & Not Push High Commission
Products Only.
 • Should maintain regular contact with client to give information on new
products/services
• Premium payment reminder should come form agent also (besides form
company)
• Should college premium payment, deposit and handover receipt (from his
existing customer who desire this service)
• Should be actively involved insurance Death Claims settlement and Lapses
Policy Revival.
CHANGING CUSTOMER EXPECTATIONS-LIFE EXPECTATIONS FROM
COMPANY
• Premium notice should be sent regularly
• Premium payment at banks, internet and special collection centers (Om
Kotak Insurance Mumbai), Payment through Credit Card
• Payment through Credit Card
• Most SECA & some SEC b would consider payment through credit
card expect customers insurance Delhi who wanted to keep this as last
option.
• Company should bear service charge on credit card transaction
• Most SEC B & all SEC C not inclined to pay through credit card,
prefer to pay through SEC B & some SEC C were ready for credit card
payment system
• Facility of purchasing policy through more channels.
• Flexible/wider range of products.
CHANGING CUSTOMER EXPECTATION-LIFE EXPECTATION FROM
COMPANY (CONTD.)
• Focus on Consumer Education
• Fine Prints/Devil Insurance Detail , Correct Disclosures
 • Information about systems/processes, particularly handling of
complaints & grievances
• Transparent and fair dealings
• Information on new product/services through call centers, internet,
mailers and consumer meets. Set up Toll Free Help Line,
• Where customer is compelled to change agent due to poor service, new
agent through’ whom premium is deposited be entitled to the
commission thereafter.
ROLE OF IRDA
• Educate public on regulatory safeguards, investment guidelines and plough
back of profits (several people had expressed concern about security of
their money, credibility of private insurance company’s investment of
funds insurance foreign markets and repatriation of profits to foreign
countries)
• Inform public on Social and Rural Obligations of private players (several
people believed that only LIC was responsible for insuring the poor).
POST PURCHASE PROCESS : LIFE
Pre Liberalization Post Liberalization
Premium Notice Intimation form Company/Reminder from Agent
• Notice form company 42% • Reminder form Agent 67%
• Reminder form Agent 47% • Notice form company 77%
Model of premium Payment
• Cash 43% • Cash 41%
• Cheque 57% • Cheque* 49%
• Credit Card 10%
• No case of payment through
internet was observed, due to
low awareness and security
apprehensions.
# Include deposits at private
company collection centers
Who Deposits Premium ?
• Self* 44% • Self* 37%
• Agent 49% • Agent 49%
 • Salary Saving scheme 7% • Salary Saving Scheme 14%
• Includes relatives & friends • Includes relatives & friends
Correspondence (other than premium notice form Company/Agent
• Generally no correspondence • Mailers form both private
form either company or agent companies & LIC on product &
expect for late premium payment services, greeting cards on
reminder from company birthdays, anniversary and New
• Agent maintained informal Year
contact with close customers • Phone calls form private
company call centers
• Agent insurance regular contact
for offering. New products
Delay Insurance Premium Payment
• Incidence of delay high 30% • Incidence of delay low 15%
(due to irregular receipt of (more regular receipt of premium
premium notice form notice form company /reminder
company/reminder form agent) form agent)
CHANGING TRENDS INSURANCE SAVINGS PATTERN
Pre Liberalization Post Liberalization
Saving instrument % of respondents Saving instrument % of respondents
Insurance 23 Insurance 33
Bank Deposit 28 Bank Deposit 44
PPF 19 PPF 8
NSC 12 NSC 0
Shares 7 Shares 3
Post Office 7 Post Office 3
Bonds 0 Bonds 9
Gold 4 Gold 0
Total 100 Total 100
* when the respondents were asked where they would invest their extra income, if
any, the top responses were recorded as above.
 COMPANY PROFILE
HOUSING DEVELOPMENT FINANCE CORPORTION LTD. (HDFC)
Founded in 1977, HDFC is today the market leader insurance housing finance
insurance India and has extended financial assistance to more than 15 lacs homes.
HDFC has more than 110 offices insurance. Dubai abd 3 nire services associate
insurance Kuwait, Qatar and Sultanate of OMAN. HDFC’s assets base amount to
over 15,000 crores. Its financial strength is reflected in highest safety rating of
“FAAA’ and “MAAA” awarded by CRISIL and ICRA – two of India’s leading
credit rating agency respectively, for the last 6 year consecutively, it has a
depositor base of over 11 lacs customer and a deposit agents force of over 46,000
of the total deposit, 73 are sourced from individual and trust depositors, which
demonstrates the tremendous confidence that retail investors have insurance the
company.
HDFC – Promoted companies have emerged to meet the investors
and customers needs. HDFC bank for commercial banking, HDFC mutual Fund
for mutual fund products, to be allowed very shortly by HDFC Standard Life
Insurance Company for the Life endurance and pension products.
Being an institution that is strongly committed to the highest
standards of quality and excellence, HDFC has won several accolades in the past
few years. One such award is the “Ramakrishna Bajaj National Quality Award”
for the year 1999. this award was instituted to award recognition to Indian
companies for business excellence and quality achievement. HDFC is the only
company so far to receive this award in the service category.
STANDARD LIFE ASSURANCE COMPANY (SLAC):
 Founded insurance 1952, Standard Life has been at the for frontry of
the UK insurance industry for 176 years b combining sound financial judgement
with inter gritty and reliability. The Kingdom, Ireland, Spain, Germany and some
more with representative office insurance Hong-Kong and China.
One of the most recent success was the launch of Standard Life Bank on 1st
January 1998. Insurance less than 20 months, the bank collected Rs. 28,000 crore
insurance deposit. The introduction of its innovative mortgage product insuance
Jan. 1999. had an immediate impact on the UK market, accounting for 11% of all
new lending within the first operational tear. The current loans outstanding
amount to Rs. 43,300 crore.
Standard Life has total assets of Rs. 55,000 crore and new premium income last
year 33,000 crore, its UK investment portfolio account for approximately 2% of
all shares listed insurance the London Stock Exchange. Its one of the new
Insurance companies in the World to receive AAA rating form two of the leading
international credit rating agencies. Moody’s and Standard’s And poor’s. The
latter described Standard Life’s ability to meet its claim obligations as
overwhelming under a variety of economic conditions.
Not surprisingly, Standard Life is rated as one of the few strongest companies
insurance the world. Insurance financial terms. The quality and value standard
Life brings to this venture are immense. The company’s reputation insurance UK
market remains unrivalled. Besides, being voted company of the ears of overall
service, for the third consecutive year. Standard Life was recently voted
‘Company of the decade’ by independent brokers.

THE PARTNERSHIPS:-
HDFC and Standard Life commenced discussions about possible joint venture, to
enter the life insurance market, in Jan. 1995. It was clear from the outset that both
companies shared similar values and beliefs and a strong relationship quichly
formed. Insurance Oct. 1995 the companies signed a 3 year joint venture
agreement.
Around this time standard life purchased a 5% stake in HDFC, Further
strengthening the relationship.
A small project term was set up insurance UK and India and set about preparatory
work. Among other things, the team conducted market research, looked at
possible information technology, documented high. Level business process maps
and set about preparing the first project plan.
The next three years were filled uncertainty, due to change insurance
Govt. and booth ongoing delays insurance getting the insurance bill passed
insurance parliament. Despite this both companies remained firmly committed to
venture.
Insurance Oct. 1998, the joint venture agreement was renewed and
additional resources made available. Around this time Standard Life purchased
2% infrastructure Development Finance Company Ltd. (IDFC) standard life also
started to use the services of the HDFC Treasury department to advise them upon
their investments insurance India.
One of the many success stories over the last few years, has been the
actuarial student program. The program was designed to identify high caliber
individuals who would be sponsored by Standard Life to study for their mutual
qualification in the UK
The new company has 1 Indian actuary and 5 actuarial students in
the team, with a further 2 students undergoing training in the UK. Both parents
companies strongly believe the program will benefit the new company insurance
the years to come and are firmly committed to it. Towards the end of 1999. the
opening of the market looked very promising and both companies agreed the time
was right to move the operation to the next level. Therefore, insurance Jan. 2000
and expect team form the UK joined a hand picked team form HDFC to form the
core project based insurance Mumbai.
Around this time Standard Life purchased a further 5% stake in
HDFC and a 5% stake insurance HDFC bank.
 Insurance further development standard life to participate insurance
the Assets Management Company promoted by HDFC to enter the mutual fund
market.
The mutual fund market was launched on 20th July 2000 and one on
on the 10th Nov. 2000 assets under the management reached Rs. 1063 crores.
The company was incorporated on 14 th Aug. 2000 under the name of
HDFC Standard Life Insurance Company Limited.
The ambition of the company form as for back as Oct. 1995 was to
be first private company to reenter the life insurance market insurance India. On
23rd of Oct. 2000, this ambition was realized when HDFC standard Life Insurance
Company Limited were only Life company to be grated a certificate of
registration.
HDFC are main shareholders insurance HDFC standard Life
Insurance Company Limited with 81.4% while standard Life own 18.6 given
Standard Life’s existing investment in the HDFC Group. This is max. investment
allowed under current regulations.

MISSION AND VALUES OF HDFC STANDARD LIFE:-

MISSION:-
HDFC Standard Life have clearly on several occasions that they aim
to be the top new life insurance company in the market.
This does not just mean being the largest or the moist proactive company
insurance the market, rather it is a combination of several things.
• Professionalism
• Value of money
• Customer services
• Innovative Product
• Use of Technology
 • Market Share
As mentioned earlier the aim is to be yardstick against which all other life
insurance companies and measured.

VISION
“The Most successful and admired life insurance company, which means that we
are the most trusted company, the easiest to deal with, offer the best value for
money, and set the standards in the industry. In short, “The most obvious choice
for all”.
VALUES
 Team Work
 Customer Centric
 People Care
 Innovation
 Integrity
 Joy and Simplicity

Product
UNIT LINKED YOUNG STAR PLAN
The HDFC Standard Life Unit Linked You:
o An outstanding investment opportunity in a wide range of investment funds
backed by HDFC, leading fund manager.
o Valuable protection in case of the insured parent’s unfortunate demise.
o Valuable protection in case of the insured parent’s unfortunate demise.
o Very flexible benefit combinations and payment options.
o Very flexible benefit combinations and payment options.
o Flexible additional benefit options such as critical illness cover.
Sum Assured you had chosen* plus the fund built up by your and HDFC standard
Life contributions. **
4 easy steps to your own plan
Step1_ choose the premium wish to invest
Step2_ Choose the amount of protection (Sum Assured) You desire.
Step3_Choose the additional benefit options you desire.
Step4_Choose the investment found or funds you desire.

Step 1: Choose your regular Premium

This is the premium you will continue to pay each year of the policy. The
minimum regular premium is Rs. 10000 per year. You can pay quarterly, half
quarterly or annually. You may also choose to pay additional single premiums.
(See additional single premiums).
Step 2: Choose your level or protection
You can choose any amount of Sum Assured with:
• A minimum of 5 times you chosen regular premium.
• A maximum of 20 times you chosen regular premium.
You can reduce but not increase the sum assured any time during policy term.
Step 3: Choose Additional to the maturity benefit, you can choose from these
benefit options.
o Life Option-Death Benefit
o Life & Health Option – Death Benefit + Critical illness benefit
Step 4: Choose your investment Funds
Choosing your investment options is important. We have 5 funds that give you.
• The potential for higher but more variable returns over the term of you
policy; or
• More stable returns will lower long term potential.
Your investment will buy units insurance any of 5 funds designed to meet you risk
approach. All units insurance a particular fund are identical. You can choose form
all or any of the following 5 funds.
Fund Details Asset Class
Bank Deposit Govt. Equity Risk &
& Money Securities Return
Market & Bonds Rating
Fund Composition
Liquid Fund Extremely low capital risk very 100% -- -- Low
stable returns
Secure Fund More capital stability than equity -- 100% -- Low
funds
Defensive * Access to better long term -- 70% tp 15% to Moderate
Fund returns through equities 85% 30%
* Significant bond exposure
keeps risk down

Balance * Increased equity exposure -- 40 % to 30% to High

Managed gives better long term return 70% 60%
Fund * Bond exposure provides some
stability
Growth Fund * For those who wish to -- -- 100% Very high
maximize their returns
* 100% investment insurance
high Indian equities

Flexible products for your children’s needs

We know your life will change as you children grow. We have designed the plan
to meet your children’s needs now and insurance the future. You can use these
features to improve the investment returns.
Flexible Options Benefits
Premium Payments (i) You can pay your regular premium upto 15 days after the
due date to fit in with you r cash flow.
Additional Single (ii) You can, very cost effectively invest any extra money you
Premium might have to enhance the long term return and provide the
little extras you child deserves
(iii) The minimum additional single premium amount is only
Rs. 5000
Premium Changes (iv) You can increase or reduce Stop or restart your regular
premium at any time.
(v) All changes will take place format the next premium due
date.
(vi) Life cover will continue as long as the policy is insurance
force. Charges for life cover and any other risk cover you have
chosen will continue to be charged.
Changing your You can change your investment fund choices insurance two
investment decisions ways.
 * Switching: You can move your accumulate funds form one
fund to another anytime.
* Premium Redirection: You can pay your future premiums
into a different selection of funds, as per your need.

Eligibility
The age and term limits for taking out Unit Linked Young Star Plan are as shown
below.
Benefit Term Period (Yrs.) Entry Age (Yrs.) Maximum
Options age at expiry
(yrs.)
Minimum Maximum Minimum Maximum
Life Option 10 25 18 60 75
Life and 10 25 18 55 65
health option

Accessing your money

a) On maturity
Your policy matures at the end of the policy term you have chosen and your death
and other risk covers ceases. You may redeem your balance units at the then
prevailing unit price and take the fund value with you.
However, you also have the option to take your fund in periodical installments
over the period which may extend to 5 years. This is called the “Settlement
Option”
Your money will remain invested in the funds chosen by you. During such period,
we will continue to deduct charges other than the risk benefit charges such as the
mortality charge.
At the end of this 5 year period, we will redeem the balance units at the then
prevailing unit price and pay the fund value to you.
Your policy will terminate the moment the balance of your units in all the funds
reaches zero.
b) On Death
In case of your unfortunate demise during the policy term, we will:
• Pay the sum assured you had chosen to your child
• Continue your policy and continue to pay the original regular premiums
you had chosen
Any critical illness cover terminates immediately
c) On Critical Illness
In case you are diagnosed with any of the critical illnesses covered before the end
of policy term, we will
• Pay the sum assured you had chosen to your child
• Continue your policy and continue to pay the original regular premiums
you had chosen
The Death Benefit cover terminates immediately
d) On surrender or Partial withdrawal
In the first three years
Insurance plans are long term investments with significant tax advantages. Neither
the IRDA now we view them as short term plans.
Therefore, for the first three years of your plan, you may not surrender the plan or
withdraw any portion of your funds from it.
If you stop your regular premium commitment before three years have passed,
your life cover will cease and funds will be held in suspense after deduction of
surrender charges. These funds will be paid out to you only at the end of the third
year or the end of the revival period of 2 years, whichever is later.
From the fourth year onwards
You can choose to surrender the policy at any time and the surrender value will be
the value of the units in the fund. We will enforce surrender only if you have
stopped paying regular premiums and your fund value is less than your original
annual regular premium amount.
You can make lump sum partial withdrawals from your funds at any time within
the policy term chosen provided.
• The minimum withdrawal amount is Rs. 10000.
• After the withdrawal, the funds does not fall below the sum of top-up
premiums paid in the preceding three years, ignoring all top-up premiums
paid in the three years before the maturity date.
BENEFICIARIES
The beneficiary (your child) is the sole person to receive the benefit under the
policy. Where the beneficiary is less than 18 years of age, the benefit will be paid
to the Appointee.
LOYALTY UNITS
At the end of every policy year we will increase the number of units in each of
your funds by 0.10% as long as your policy is in force or paid up.
The compounding effect of these regular addition is expected to boost your final
maturity value.
CHARGES
The charges under this policy are deducted to provide for the cost of benefits and
the administration provided by us. Our charges, when taken together are
structured to give you better returns and value for money over the long term.
PREMIUM ALLOCATION CHARGE
This is a premium based charge. After deducting this charge from your premiums,
the remainder is invested to buy units. The tables given below will help show how
percentage of your premium is used to buy units. This percentage is called the
Allocation Rate. the allocation rates are guaranteed for the entire duration of the
policy term.
Premium Paid During Year (Rs.) Allocation Rate
1st year 2nd year onwards
Upto 199999 40% 99%
Regular From 200000 to 499999 60% 99%
Premiums From 500000 to 999999 70% 99%
From 1000000 to 1999999 80% 99%
From 2000000 and above 90% 99%
Single Premium Top-Up(s) 97.50% 99%

FUND MANAGEMENT CHARGE (FMC)

In the long term, the key to building great maturity values is a low FMC. The
daily unit price already includes our low fund management charge of only 0.80%
per annum of the fund’s value.
SURRENDER CHARGE
This is the charge we will apply when the policy is surrendered. It is equal to 60%
of the difference between the regular premiums expected and received in the first
year of the contract.
OTHER CHARGES
The following is the set of other charges that we will take from your policy.
Charges Explanation
Policy Administration A charge of Rs. 20 per month is charged to
Charge cover regular administration costs. We take the
charge by canceling units proportionately from
each of the funds you have chosen.
Mortality and other Every month we make a charge for providing
Risk Benefit Charges* you with the death or critical illness cover
(which includes the SA plus a value of the
future premiums payable) in your policy. The
amount of the charge taken each month
depends on your age. We take the charge by
canceling units proportionately from each of
the funds you have chosen.
Switching Charge 24 switching will be given free in a policy year
and any additional switch will be charged Rs.
100 per switch
Partial Withdrawal 6 partial withdrawal requests will be free in a
charge policy year and any additional partial
withdrawal request will be charged Rs. 250 per
request
Revival Charge A charge of Rs. 250 is charged for revival to
cover for administrative expenses
Miscellaneous Charge This is a charge levied for any alterations
within the contract like premium redirection or
adhoc policy servicing. 12 premiums
redirection request will be free in a policy year
and any additional premium redirection request
will be charged Rs. 250 per request. 6 policy
servicing requests will be free in a policy year
and any additional policy servicing request will
be charged Rs. 250 per request.
 LIFE INSURANCE CORPORATION
PROFILE
OBJECTIVES:-
Spread Life Insurance much more 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 responsible cost.
Maximum 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
policy holders, whose money it holds insurance trust, without losing sight of the
interest of the community as whole, keeping insurance view national priorities and
obligation of attractive return.
Conduct business with almost and with the full realization that the money belongs
to the policy holders.
Act as trustees of the insured public insurance their individual and
collective capacities.
Involve all people working insurance their individual and collective
capacities. Involve all people working insurance the corporation to the best of
their capability insurance furthering the interest 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.
VISION:-
“A Tran-nationally competitive
financial conglomerate of
significance to Society &
ride of India”.

MISSION:-
“Explore and enhance the quality of life
of people through financial security by
providing products and services of
as pried attributes with competitive
returns, and by rendering resources
for economic development”.
Products:
FUTURE PLUS
LIC’S Future Plus (T. No. 172) is a unit Linked Pension Plan bundled with lots of
options with insurance built flexibility.
o Future Plus, a deferred pension plan is available with or without life cover,
o It can be taken as a single premium policy or under regular premium
payment mode i.e. yearly or half-yearly.
o The plan comes with a host of riders like accident benefit rider, critical
illness rider etc. which are to be opted at the time of taking the policy.
o On vesting, the customer gets a pension on accumulated bid value of the
units allotted under the plan. Option is available to commute up to one-
third of the fund under the units at the time of vesting.
o The policy can be surrendered at no loss on the bid value of the units after
two years of policy existence and a small charge up to a maximum of 4%
of levied if surrendered within two years.
o The vantage pints of the plan are the Auto cover on the plan (keeps the
policy insurance force even if premiums are not paid subject to certain
conditions). The facility for top-ups (additional premium can be paid to
invest insurance the funds with no upper limit) and of course to opt for
early pension (40 years onwards).
o On death of the customer during the deferment period, basic Sum Assured
plus th bid value of the units become payable by LIC provided life cover
option is exercised. Else, the bid value of the units become payable to the
nominee. The nominee can also opt for a pension insurance lieu of lump
sum death claim amount.
o Persons insurance the age band of 18-65 years are eligible to take Future
Plus.
o The minimum and maximum vesting age offered is 40-75 years. The
minimum policy term is five years.
o The minimum premium payable under single premium mode is Rs. 10000
and Rs. 5000 per annum under regular premium mode.
o Future Plus comes with options to invest in any of the four types of funds,
based on the customer’s choice and risk taking ability.
o Bond fund and income fund are available for risk averse customers where
major portion of the fund is invested insurance Govt. securities and other
secured bond/income funds. Growth fund is available for risk loving
customers. Especially for those who aspire for rewarding returns as major
portion of the found would be invested insurance equity markets. Balanced
 fund is also available to customer who wish to strike a balance between the
above two.
o The plan is priced at competitive charges on administrative and fund
management fronts with nil bid-offer spread. The plan extends the
Insurance come tax benefits u/s 80 CCC (i).
The allocated premiums will be applied to purchase units as per the Fund type.
Chosen. The policyholder’s Unit account will be subject to deduction of charges
as specified insurance the Policy Conditions. The value of the unit insurance the
Unit Fund may increase or decrease, depending on the investment return of the
assets representing the chosen fund.
1. Premiums: Regular premium can be paid either insurance yearly of half-yearly
installments. The minimum annual premium will be Rs. 5000/- increasing
thereafter insurance multiples of Rs. 1000.
Alternatively, a single premium can be paid subject to a minimum of Rs. 1000 and
thereafter insurance multiples of Rs. 1000.
2. Benefits:
A) Death Benefit:
Insurance case of death of the policy holder within the policy term, when the life
cover is opted for and is in force, the nominee will get the sum Assured under the
Basic Plan together with the Bid Value of units held insurance the Policy Holder’s
Unit Account either as a lump sum or as pension on his/her life-the actual amount
of the pension will depend on the then prevailing immediate annuity rates under
the annuity option chosen.
The limits on life cover i.e. the Sum Assured under the Basic Plan are as under:-
For Single Premium Policies: Equal to the Single Premium
For Regular Premium Policies:
5 to 20 (integer) times of the annualized
premium as per the option exercised by the
propose. However, the maximum life cover
shall not exceed the annualized premium
 multiplied by the term subject to a minimum
life. Cover of 5 times the annualized premium.
In case the policy is taken without risk cover, then the Bid value of the units held
insurance the Policyholder’s Unit Account shall be payable either as a lump sum
or as a pension on his/her life, which will be based on the than prevailing
immediate annuity the relevant annuity option. If the policy is insurance lapsed
condition, than also the Bid Value of the units held in the policyholders unit
account shall become payable to the nominee, either as a lump sum or as a
pension on his/her life which will be based on the than prevailing immediate
annuity rates under the relevant option.
B) Benefit on vesting:
On the policy holder surviving to the date of vesting, the Bid Value of the units
held insurance the policyholders unit account will compulsorily be utilized to
provide a pension based on the tern prevailing immediate annuity rates under the
relevant annuity option. However, the Policyholder may opt to commute upto one
third of the Bid option. However, the Policyholder’s Unit Account at the time of
vesting of the annuity, which shall be period as a lump sum. Insurance case
communication is opted for, the amount of annuity/pension available will be
reduced proportionately. There will also be an option to purchase pension form
any other insurance company subject to Regulatory provisions.
3. Options:
A) Accident Benefit Option:
Accident Benefit can be availed as on optional Rider benefit by paying an
additional premium of Rs. 0.50 p for every Rs. 1000/- of the Accident Benefit
Sum Assured per policy year by cancellation of appropriate number of units
out of the Policyholder’s Unit Account every month. On Accidental death of
the Policyholder’s during the term of the policy, a sum equal to the Accident
Benefit cover is opted for and is insurance force. The Accident Benefit rider
option will not be available insurance case Basic Sum Assured under the Basic
Plan, subject to an overall limit of Rs. 25 lakh under all policies of the
Policyholder with the Corporation taken together.
B) Critical Illness Benefit Rider:
An amount equal to the critical Illness Rider Sum Assured will be payable in
case of diagnosis of defined categories of Critical Illness subject to certain
terms and conditions, provided the Critical Illness Benefit cover is opted for an
is insurance force. The maximum cover to this rider will be Rs. 5 Lakh under
all policies of the Policyholders with the Corporation taken together. The
Critical Illness Rider Sum Assured shall also not exceed the Sum Assured
under the Basic Plan. So, the critical Illness rider option will not be available
in case Sum Assured under the Basic Plan is zero.
4. ELIGIBILIGY CONDITONS AND OTHERS RESTRICTIONS:
For the Basic Plan:
(a) Minimum Age at entry - 18 years completed
(b) Maximum Age at entry - 65 years (age nearer birthday)
(c) Minimum Age at vesting - 40 years (age last birthday)
(d) Maximum vesting Age - 75 years (age last birthday)
(e) Minimum Policy Term - 5 years for both Single Premium and
Regular Premium policies (with and
without Risk Cover)
(f) Minimum Premium - Rs. 10000 for Single Premium
Rs. 5000 p.a. for Regular Premium
(g) Sum Assured under the Basic Plan (where Life Cover is opted for)-
Single Premium - Equal to the Single Premium
Regular Premium - 5 to 20 9integer) times of the annualized
Premium as per the option exercised by
the proposed However, the maximum
life cover shall not exceed the
annualized premium multiplied by the
 term subject to a minimum life cover of
5 times the annualized premium.
Critical Illness Benefit Rider Option:
(a) Minimum Age at entry - 18 years completed
(b) Maximum Age at entry - 50 years (age nearer birthday)
(c) Maximum Maturity Age - 60 years (age nearer birthday)
(d) Minimum Sum Assured - Rs. 50000 provided the Sum Assured
under the Basic Plan is more than or
equal to Rs. 50000
(e) Maximum Sum Assured under Critical
Illness Benefit Rider Option - The maximum Critical Illness Rider
Sum Assured shall be of Rs. 500.000
taking, critical illness riders under all
policies of the Policyholder with the
Corporation and the Critical Illness
Benefit option under the new proposal
into consideration.
Accident Benefit Rider Option :
(a) Minimum Age at entry - 18 years completed
(b) Maximum Age at entry - 65 years (Age nearer birthday)
(c) Maximum Maturity age - 70 years (age nearer birthday)
(d) Minimum Sum Assured - Rs. 25000 provided Sum Assured under
the Basic Plan is Rs. 25000 or more.
(e) Maximum Sum Assured -
under Accident Benefit Option – The Maximum Accident Benefit Sum Assured
shall be of Rs. 2500000 taking Accident
Benefit under all policies of the Policyholder
with the Corporation and the Accident Benefit
Sum Assured under the new proposal into
consideration.
 5. Investment of Funds:
The premiums allocated toi purchase units will be strictly invested according
to the investment pattern committed insurance various fund types. Various
types of fund and their investment pattern will be as under:
Fund Type Investment insurance Short term Investment insurance
Govt./Govt. Guaranteed investment such as Listed Equity Share.
Securities money market
instruments
(including Govt.
Securities)
(i) Bond Fund Not less than 0% 100% Nil

(ii) Income Fund Not less than 70% Not more than 90% Not more than 20%

(iii) Balance Fund Not less than 60% Not more than 80% Not more than 3%

(iv) Growth Fund Not less than 30% Not more than 50% Not more than 60%
The Policyholder has the option to choose any One of the above 4 funds.
Insurance case no fund has been opted from the allocated premiums shall, by
default, be invested insurance the INCOME FUND.
6. Method of Calculation of Unit price:
Units will be allotted based on the Net Asset Value (NAV) of the respective fund
as on the date of purchase of units. There is no Bid-Offer spread (the Bid price
and Offer price of units will both the equal to the NAV). The NAV will be
computed based on investment performance under each fund type and shall be
calculated as under:
Market/Fair value of the chosen fund’s underlying assets plus Current
Assets, accrued income (net of Fund Management charge and other outgo)
Less Current Liability and Provisions
Net Asset Value =
Number of Units existing insurance the fund at the valuation date
7. Charges under the Plan:
I) Allocation Rate: The allocation applicable to the premium to determine the part
of premium utilized to purchase units in the Policy holder’s Unit Account will
depend on whether the policy is a Single Premium or Regular Premium contract
and on the premium size as under:
Single Premium:
Premium Band Allocation Rate*
10000 to 19000 0.9600
20000 to 49000 0.9700
50000 to 99000 0.9775
100000 to 499000 0.9815
500000 and above 0.9835
* Under Single Premium Policies an amount equal to (1-the allocation rate) times
the Single Premium will also be deducted at the First Policy anniversary by
canceling an appropriate number of units form the Policyholder’s Unit Account.
Premium Band Allocation Rate
First Year & 2nd Year Thereafter
5000 to 9000 0.8700 0.9750
10000 to 19000 0.8950 0.9750
20000 to 49000 0.9075 0.9750
50000 to 99000 0.9150 0.9750
100000 to 499000 0.9175 0.9750
500000 and above 0.9200 0.9750

Allocation Rate for Top-up (Additional premium) 0.9875

II) Other Charges: the following charges shall be deducted by canceling
appropriate number of units out of the Policyholder’s Unit account:
i) Life cover and Critical Illness Benefit rider charge_ Charges for live cover and
critical Illness Benefit will be taken every month by canceling appropriate number
of units out of the Policyholder’s Unit Account as per the rate prevalent at the time
of policy issue or as amended by LIC form time to time based on actual
experience.
ii) Accident Benefit Charge: Rs. 0.50 per thousand Accident Benefit Sum Assured
per policy year by canceling appropriate number of units out of the policyholder’s
Unit account.
iii) Administrative charge:- If live cover is opted form then there will be an
Administrative charge of Rs. 1% of sum Assured under the Basic Plan Subject to
a maximum of Rs. 1000 insurance each of the first 2 years.
iv) Policy Charge: Rs. 0.10%.0 Sum Assured under the Basic Plan,. Where risk
cover is opted form insurance each of the first 2 years, insurance case no life
cover is opted for, the Policy charge insurance each of the first 2 years will be
equal to Rs. 0.10%0 ot the total premiums payable throughout the policy term.
v) Service Tax Charge:
This charge shall be levied on the life cover.
Accident Benefit and Critical Illness Benefit charged, if any, and shall be taken by
canceling appropriate number of units on a monthly basis as and when the
corresponding life cover, Critical Illness and Accident Benefit charges are
deducted. The level of this charge will be as per the rate of Service Tax premium
if any as applicable form time to time.
vi) Flat Fee Rs. 15/- per month will be charged throughout the term of the policy
by canceling appropriate number of units out of the Policyholder’s Unit Account.
III) Fund Management Charge: Fund dependent deductible on the date of
computation of NAV:
1.00% p.a. of Unit Fund for “Bond” Fund
1.00% p.a. of Unit Fund for “Income” Fund
1.25% p.a. of Unit Fund for “Balanced” Fund
1.50% p.a. of Unit Fund for “Growth” Fund
IV) Bid/Offers Spread-Nil
V) Right to reserves the right to service all or any of the above charges, including
the right to charges the manner insurance, which charges are to be recovered, the
Corporation may also introduce new charges, as and when such a need may arise.
The modification insurance charges will be done with prospective effect with the
prior approval of IRDA after giving the policyholders a notice of 3 months. In
case a policyholder does not agree with the modified charges, he/she shall be
allowed to withdraw the Bid Value of the Units held insurance his/her Unit
Account without any surrender charge, if any.
Although the charges are review able. They will be subject to the following
maximum limits:
- Flat fee will be subject to a maximum of Rs. 50 per month
- Administrative charge shall not exceed Rs. 2%0 Sum Assured under the
Basic Plan, if any, subject to a maximum of Rs. 2000 insurance each of the first 2
years.
- Policy charge will be fixed depending on the amount prescribed by the
Indian Stamp Act, 1989
- Fund Management Charge: The maximum for each Fund will be as
follows:
i) Bond Fund : 2.0% p.a. of Unit Fund
ii) Income Fund: 2.0% p.a. of Unit Fund
iii) Balanced Fund : 2.5% p.a. of Unit Fund
iv) Growth Fund : 3.0% p.a. of Unit Fund
8. Surrender Charge:
The Surrender charge will be under:
i) Single Premium
Duration since date of commencement Surrender Charge
Less than 1 Year : 4% of Bid value of the units held
1 year or more but less than 2 years 2% of Bid value of the units held
2 years or more : Nil
ii) Regular Premium
Number of years premiums have been paid Surrender Charge
If one full year’s premium or less are paid 60% of Bid Value of the Units
held
If more than one full year’s but less 40% of Bid Value of the
Than 2 full years premium are paid units held
If 2 or more full years premiums are paid:

Tax Implication on Surrender

Currently, as per the Sub-section of 80 CCC of the Income Tax Act, 1961 any
amount taken on account of surrender under the above plan shall be chargeable to
tax as income in the year of surrender.
Partial Surrender: No partial surrender of units will be allowed under this plan.
9. Other Features:
i) Auto-cover: if the policyholder has opted for risk cover, then charges for the
same shall be taken by canceling an appropriate number of units out of the
Policyholder’s Unit have not been paid as and when due under the policy.
During the period of Auto-cover any/all unpaid premiums that have fallen due
may be paid at anytime without interest.
For regular premiums policies, when 3 ore more year’s premiums have been paid,
the Auto-cover facility will compulsorily be available throughout the term of the
policy.
However, for Regular premium policies where less than 3 year’s premiums have
been paid, the Auto-cover facility will compulsorily be available only for a period
of 6 months from the due date of the First Unpaid premium. Thereafter, the risk
cover will cease i.e. the policy will lapse. In such cases, the Policyholder shall
have the option of reviving the policy within period of 5 years from the due date
of the First Unpaid Premium, by paying all unpaid premiums without interest and
on submission of proof of continued insurability to the satisfaction of the
Corporation.
Notwithstanding what is stated above, the balance in the Policyholder’s Unit
Account, at all times, should be sufficient to cover the relevant charges. However,
for all Regular Premium Policies where at least 3 years premiums have been paid,
the policyholder’s Unit Account, at all times, shall be subject to a minimum
balance of one year’s annualized premium in the Policyholder’s Unit Account. In
case the Policyholder’s Unit Account falls below this limit, the policy shall
compulsorily be terminated and the balance amount in the Policyholder’s Unit
Account will be refunded to the Policyholder.
ii) Top-up (Additional Premium): The policyholder can pay additional premium in
multiples of Rs. 1000 without any limit at anytime during the term of the policy.
In case of yearly or half-yearly mode of premium payment such Top-up can be
paid only if all premiums have been paid under the policy.
iii) Switching: The policyholder can switch between any funds types during the
policy term within a given policy year 4 switches will be allowed free of charge.
Subsequent switch in that policy year shall be subject to a switching charge of Rs.
100 per switch.
iv) Increase/decrease of benefits: No increase (Except to the extent of Top-up
stated above) of benefits will be allowed under the plan. The Policyholder can,
however, decrease the risk cover once in a year during the Policy term, subject to
the respective minimum limits, provided all due premiums under the policy have
been paid.
v) Conversion to annuity at Vesting Date: The rate at which the amount at vesting
date will be converted to an annuity is not guaranteed and will be based on the
prevailing immediate annuity rates under the relevant annuity option at the vesting
date.
vi) Minimum Guaranteed Growth Rate: For the “Bond” fund, the allocated
premiums, net of all charges and deductions, will have a guaranteed minimum
growth rate of 3% p.a. compounding yearly, provided the minimum policy term is
10 years and the policy is held till the vesting date without any switching to any
other fund in between. The guarantee shall not apply to any Top-up premiums
paid under the policy. There will be no guarantee under other funds.
vii) Paid-up Value: If premiums are payable either yearly or half-yearly and the
same have not been duly paid under the Policy, the Policy shall become paid-up.
10. Revival or reinstatement:
In case of lapsed policy, the Policyholder shall have the option of reviving the
policy at any time during the premium paying term but within a period of 5 years
from the due date of the First Unpaid Premium, by paying all unpaid premium
without interest and on submission of proof of continued insurability to the
satisfaction of the Corporation.
11. Risk borne by the Policyholder:
The Value of the units and hence the Benefit relating to the policyholder’s unit
account is subject to market and other risk and there can be no assurance that the
objectives of any of the above funds will be achieved. Further, the value of units
within each Fund can go up or down depending on different factors affecting the
capital markets and may also be affected by changes in the general level of
interest rates and other economic factors. All benefits under the policy are also
subject to the Tax Laws and other Financial enactments as they exit from time to
time.
12. Cooling off period:
If policyholder is not satisfied with the “Terms and Condition” of the policy, he /
she may return the policy to us within 15 days from the date of receipt of the
Policy Bond.
13. Loan:
No loan will be available under this plan.
14. Assignment:
No assignment will be allowed under this plan.
15 Exclusion:
No risk claim will be paid in case the Policyholder commits suicide (whether sane
or insane at the time) at any time on or after the date on which the risk under the
policy has commenced but before the expiry of one year from the date of
commencement of risk under this policy and the Corporation will not entertain
any claim by virtue of this policy except to the extend of the Bid value of the
Policyholder’s Unit Account on the date of death, subject to deduction of the
charge for premature surrender as mentioned under Section 8 above.
16. Dating Back:
No dating back of the Policy will be allowed under this plan.
Benefit Illustration:
Statutory warning
“Some benefits are guaranteed and some benefits are variable with returns based
on the future performance of your life insurance company. If your policy offers
guaranteed returns then these will be clearly market “guaranteed” in the
illustration table on this page. If your policy offers variable returns then the
illustrations on this page will show two different rates of assumed investment
returns. These assumed rates of return are not guaranteed and they are not upper
or lower limits of what you might get back as the value of your policy is
dependent on a number of factors including future investment performance.”
i) This illustration is applicable to a non-smoker male/female standard (from
medical, life style and occupation point of view) life.
ii) The non-guaranteed benefits (1) and (2) in above illustration are calculate so
that they are consistent with the Projected Investment Rate of Return assumption
of 6% p.a. (Scenario 1) and 10% p.a. (Scenario 2) respectively. In other words, in
preparing this benefit illustration, it is assumed that the Projected Investment
Rate of Return that LIC1 will be able to earn throughout the term of the policy
will be 6% p.a. or 10% p.a., as the case may be. The Projected Investment Rate of
Return is not guaranteed.
iii) The main objective of the Illustration is that the client is able to appreciate of
the product and the flow of benefits in different circumstances with some level of
quantification.
iv) The maturity sum shown in the Illustration is to be annuities. However, the
policyholder can opt to take up to one-third of the maturity sum as a tax-free lump
sum.
SECTION 41 OF INSURANCE ACT 1938
(1) No person shall allow or offer to allow, either directly or indirectly, as an
inducement to any person to take out or renew or continue an insurance insurance
respect of any kind of risk relating to lives or property insurance India, any rebate
of the whole or part of the commission payable or any rebate of the premium
shown on the policy nor shall any person taking out or renewing a policy accept
any rebate except such rebates as may be allowed insurance accordance with the
published prospectuses or tables of the insurer provided that acceptance by an
insurance agent of commission insurance connection with a policy of life
insurance taken out by himself on his own life shall not be deemed to be
acceptance of a rebate of premium within the meaning of this sub-section if at the
time of such acceptance the insurance agent satisfied the prescribed. Conditions
establishing that he is a bona fide insurance agent employed by the insurer.
(2) Any person making default insurance compiling with the provision of this
section shall be punishable with a fine, which may extend to 500 rupees.

INTRODUCTION

ICICI Prudential Life Insurance Corporation Ltd. was incorporated on 20-

07-2002. this company is a joint venture of ICICI (74%) and Prudential plc UK
(26%)
The company was granted certificate of registration for carrying out life Insurance
Registory and Development authority on Nov. 24.2000. it commenced
commercial operations on Dec. 19.2000, Becoming one of one of the few private
sector players to enter the liberalized arena.
DETAILS OF ICICI:-
This is Indian participate company of this insurance Co. ICICI Ltd. was
established in 1955 by world bank, the govt. of India and the Indian Industry, to
promote industrial development of India by providing project and corporate
finance to Indian Industry.
Since inception, ICICI has grown from a development bank to a financial
conglomerate and has become one of the largest public financial institutions in
India. ICICI has thus far financed all the major sectors of the economy, covering
6848 companies and 16851 projects.
DETAILS OF PRUDENTIAL PLC:-
Prudential Plc was founded in 1848 . since then it has grown to become one of the
largest providers of a wide range of saving products for the individuals including
life insurance, pensions, annuities m unit trust and personal banking. It has
presence in 15 countries, an caters to the financial needs of over 10 millions
customers.
Prudential is the largest life insurance company in the United Kingdom. Asia has
always been an region for prudential and it has had a presence in Asia for 75
years. In fact prudential first Overseas operation was in India, way back in 1923 to
establish Life and General Branch agencies.
1. Save ‘n’ Project
2. Cash Bank
3. Smart Kid
4. ICICI PRU Life Guard
5. Life Time Pension
ICICI Pru Life Time (ICICI PRU Life)
Suitability
o This policy is a long term market linked total protection plan. The plans offer
projections for life at the same time allows the policyholder to get market
linked returns. It is a single product combining the benefits of both an
investment product and insurance plan. This apart, the product offers a lot of
flexibility.
Salient Features
 Death benefit will be a multiple of premium paid.
 Premium paid will be invested in the fund chosen ( Maximiser, Balancer or
Protector fund ) after deducting mortality charges and administrative expenses.
 Policy holder has the option to vary the amount of insurance projection vis-à-
vis investment while maintaining the same premium.
 The returns depend on the plan chosen- growth. Balanced and income and one
can switch from one fund to another depending on the financial priorities.
Once in a year switching is done free of cost.
 Benefits can be enhanced by adding Accident & Disability Benefit. Major
Surgical Assistance, Critical Illness benefits at a nominal extra premium.
 Entry into the plan will be based on the Unit Value applicable on the date of
policy issue. The amount of premium towards to wards death benefit decreases
with the increase in the value of the units.
 One has the flexibility to increase the death benefit by 25% subject to a
maximum of Rs. 100.00 every third year opto 3 times. Without any
underwriting. Death benefit can be increased beyond this limit with
underwriting.
 Apart from the above the policy holder can increase the death benefit at
different state of life such as Marriage, birth of first child and birth of second
child. This is irrespective of when the last increase was done.
 One can decrease the death benefit in the multiple of Rs. 100.00. However a
minimum death benefit of Rs. 100.00 has to be maintained.
 Policy holder has the option to increase the investment by the way of top ups
with a lump sum payment at any time.
 If after at least 3 years premium payments are made and then one is unable to
pay the subsequent premiums towards the life cover under the policy will
continue and the premiums towards the life cover and riders will be debited
from the unit fund.
 Unit value is calculated bi-weekly on a forward pricing basis every Tuesday
and Friday Unit Value=
 Market/Fair Value of the relevant Plan’s Investments plus Current Assets less
Current Liabilities and Provisions
------------------------------------
Number of units outstanding under the relevant Plan
* The returns depend on the plan chose.
Maximiser (Growth) Plan
 If high growth is your priority this is the plan for you. You can long-term
capital appreciation from a portfolio that is invested primarily in equity and
equity-related securities.
Protector (Income) Plan
 If on the other hand your priority is steady returns, you can opt for the
Income Plan. Here you can accumulate a steady income at a low risk
across a medium to long term period.
Balancer (Balanced) Plan
 If you prefer a balance of growth and steady returns choose our Balanced
Plan. This would ensure that your portfolio is invested in equity and equity
linked securities as well as in fixed income securities.
Benefits
On Death
 In the event of death of the policyholder, beneficiaries will be paid the
higher of death benefit and value of the units.
On Survival
 There is no maturity period and policy holder has the option to withdraw
units under the plan at anytime after the policy has been in force for three
years.
Riders
Accident & disability benefit
 10% of SA each year for 10 years in case of permanent total disability
  Additional SA, if death is due to an accident while traveling as a passenger
in train or bus.
Critical Illness Benefit
 9 medical conditions are covered. On admission of a claim, sum assured
under the rider is paid and the rider comes to and end. Claim under this
rider is not admissible during first six months of the policy.
 43 surgical procedures are covered
1. Major Surgical Procedure – 50% of SA
2. Intermediate Surgical Procedure – 30% of SA
3. Minor Surgical Procedure – 2% SA
Claims can be made for more than one surgical procedure, subject to a
maximum of 50% of SA, claim under this rider is not allowed during first 6
months of the policy.
Other Conditions
 Minimum age at entry : 0 year
 Maximum age at entry: 60 years (completed years)
 Minimum premium: Rs. 18000 per annum
 Minimum sum assured under riders: Rs. 100000
 Maximum sum assured under riders : Rs. 1000000
Following are the charges applicable under the policy:
 The initial administrative charges in the 1st year would be 20% of the
premium, for premium amounts less than Rs. 50000/- for premiums equal
to or more than Rs. 50000/- it is 18% of the premium.
 Other charges: Annual administrative charges of 1.00% p.a. of the net
assets for protect (Income) and 1.25% p.a. for Maximiser (Growth) and
Balancer (Balanced) options. Annual investment charge of 0.5% p.a. of
the net assets for Protector and 1% p.a. of the net assets for Maximiser
and Balanced.
 Mortality charge towards death benefit
  Initial charges of 1% on Top ups
 One free switch every year after which a switching fee of 1% of the
switching amount will be levied. Any unutilized free switch cannot be
carried forward.
Note: In case the unit value is inadequate to cover charges, the policy will
terminate.

OM KOTAK INVESTMENT PLAN PRODUCT

Suitability
The policy is an investment cum endowment insurance plan, and suitable for
people who are looking at investment option with good return and the security of
the investment.
Salient Features
 This is an endowment cum plan and hence benefits are payable both on
death and on maturity
  Premiums paid are invested in capital markets providing the policyholder
an opportunity to earn market linked returns. Policyholder can avail of all
the profits from the markets and in case the market does not perform well,
he would still get back the guaranteed Sum Assured thus protecting him
from the adverse affects of market.
 The plan assures a minimum guaranteed amount on maturity, or in case of
death.
 This is a non participating plan.
 The premiums paid, net of charges, are converted into units and invested in
funds selected by the policyholder. Based on his risk appetite policyholder
has the to choose any of the four funds offered under the policy
 Money market Fund – A portfolio invested primarily in money market
instruments and other short-term investments. It provides access to a low
risk portfolio and is useful when one wants to avoid the risks associated
with long-term investments.
Min. investment Maximum Risk Profile
Money Market Instruments / Bank 100% 100% Low
Deposit
Equity shares of blue chip companies 40% 80% Medium to
High

Securities issued by Central Govt. / 20% 60% Low to

Guaranteed by Central Govt. Medium
Short Term Bank deposit / Call money 0% 20% Low
/ Cash

 Policy holder has the flexibility to switch the money (or a part of it) from one
fund to the other is available. Funds can be switched any number of times
during the term of the plan, at daily declared selling and buying prices.
 Loan can be availed provided the policy has been in force for 3 years
 Automatic Cover Maintenance facility: This facility keeps the policy in force
even on non-payment of premium. However, this facility is available only if
 the policy has been in force for a period of 3 years. Under this facility, in case
policyholder misses premium payments, units would be liquid dated at the
prevailing selling price to meet the ridk and expense charges an policy would
be in force. As long as the value of units is sufficient to meet the expenses, the
policy would be in force, on maturity, the residual value of uits would be paid
as a benefit to the policy holder.
 The premiums paid under the plan will qualify for rebate under Sec. 88 of the
Income Tax Act, 1961 and the returns are fully Tax exempt under Sec 10
(10D). premiums paid for Critical Illness Benefit qualify for rebate under Sec,.
80 D.
 The policy benefits can be enhanced by adding riders to it. The riders available
with the policy are:-
o Term / Preferred Term Benefit
o Accidental Death Benefit
o Permanent Disability Benefit
o Critical Illness Benefit
o Life Guardian Benefit
o Accidental Disability Guardian benefit
Benefit
On Maturity
Full Sum Assured or the market value of the units, whichever is higher is payable,
On Death
Full Sum Assured or the market value of the units, whichever is higher is payable
Riders
Term/Preferred Term Benefit: In the event of death during the term of this benefit,
the beneficiary would receive and additional death benefit amount, which is over
and above the sum assure. The maximum amount of benefit one can avail is equal
to the basic sum assured. Where the Term Benefit cover applied for is more than
Rs. 10 Lakhs. Better rates may apply, subject to meeting eligibility requirements.
Accidental Death Benefit: This benefit provides an additional amount (over and
above the sum assured) to the beneficiary in the event accidental death of the life
insured. The maximum cover available under this benefit is equal to the basic sum
assured (subject to a maximum of Rs. 10 lakhs).
Permanent Disability Benefit: In case of permanent disability due to an accident,
the riders pays an additional amount, which is paid out as an annuity, the
maximum, permanent Disability Benefit that one Can avail of is equal to the basic
sum assured (subject to a maximum of Rs. 10 lakhs)
Critical Illness Benefit:- This benefit can be added to the basic life insurance plan
to provide financial support in the event of medical emergencies. On the first
occurrence of critical illness during the term of the plan, policyholder would
receive a portion of the sum assured to reduce your financial burden in this
emergency.
Life Guardian Benefit: In case of the unfortunate death of the proposer, this
benefit keeps the policy alive by waiving all future premiums on the policy.
Accident Disability Guardian Benefit: In case the proposer is permanently
disabled as a result of accident, this benefit keeps the policy alive by waving all
future premiums on the policy
Other Conditions
 Minimum Age at entry : 18 years
 Maximum Age at entry : 60 years
 Maximum maturity age : 75 years
 Term of the policy : 10-30 years
 Minimum Premium
1. Quarterly – Rs.2620
2. Half yearly – 5115
3. yearly – 10000
Exclusions
In case the life insured commits suicide during the first year of the plan, the
beneficiary would not receive any of the benefits outlined in the plan.
Exclusions for Accidental Death Benefit, Permanent Disability Benefit,
Critical Illness Benefit, and Accidental Disability Guardian Benefit
q. Self inflicted injuries, suicide, insanity, immorality, committing any breach
of law or being under the influence of drugs. Liquor etc.
r. when the life insured / proposed is engaged in aviation or aeronautics other
than as a passenger on a license commercial aircraft operating on a schedule
route.
s. due to injuries from war (whether war is declared or not), invasion, hunting,
mountaineering, motor racing of any kind, other dangerous hobbies or
activities, or having been on duty in military, para military, security or police
organization. Additional Exclusions for Critical Illness Benefit
t. Unreasonable failure to seek or follow medical advice.
u. any pre-existing medical conditions not disclosed at inception.
v. infection with Human Immunodeficiency Virus (HIV) or condition due to
any Acquired Immune Deficiency Syndrome (AIDS)
w. Infection with Human Immunodeficiency Virus (HIV) or condition due to
any Acquired Immune Deficiency Syndrome (AIDS)
x. In addition, no benefit would be paid in respect of the exclusions specific to
each critical illness.
 Gilt Fund – the portfolio primarily consists of securities issued by or
guaranteed by the Central Government of India. Short-term
investments will also be made with banks. There is no credit risk
associated with this portfolio, suitable for investors looking for regular
and steady income.
Min. Maximum Risk
Investment Investment Profile
Securities issued by Central Govt. / Guaranteed by 80% 100% Low
Central Govt.
Short Term Bank Deposit / Call Money / Cash 0% 20% Low
  Balanced Fund – A portfolio invested primarily in share of well-
managed companies and in highly rates securities of Central Govt. this
portfolio offer you a balance of steady returns and growth.
Min. Maximum Risk
Investment Investment Profile
Equity shares of blue chip companies 30% 60% Medium
Securities issued by Central govt. / Guaranteed by 20% 70% Low
Central Govt.
Short Term Bank Deposit / Call money / Cash 0% 20% Low
 Growth Fund – A portfolio invested judiciously in equity and equity
related investments of well-managed companies. Security will be
enhanced through holdings in highly rated securities and short term
deposits. This fund is suitable for investors looking for growth and
capital appreciation in the term.

BIRLA SUN LIFE

PRODUCT
Single Premium Bond (Birla Sun Life)
Suitability
 This is an investment plan, suitable for people who seek market-linked returns and
the same time are averse to any capital erosion. This policy also provides life
insurance cover.
Salient Features
 This is a single premium, unitized investment plan.
 This plan is similar to a mutual fund providing market linked returns with an added
advantage of having no down side risk of capital erosion.
 Policy provides an insurance cover to the extent of 50% of premium paid or policy
fund which ever is higher.
 Policy is be offered for 10 and 5 years terms
 Policy holder has the option to choose the type of investment fund based on his risk
appetite. While for 10 year plan, policyholder can choose from protector, Builder or
enhancer options for 5 year plan only protector option is available.
 Premium paid is invested in the fund chosen after deducting the administrative and
other expenses.
 Policy fund is expressed in terms of units. Net Assets Value per of each investment
fund is announced at least once in a week.
 Policyholder can surrender the policy and receive Policy fund cash value. However
if the policy is surrendered in the policy year, a surrender charges of 25% of the
premium paid is applicable.
 Premiums paid under the policy are eligible for tax rebate under section 88 of IT
Act 1961. Further benefits paid under the policy are entirely tax under section 10
(10D).
Benefits
Maturity Benefit
On maturity of the plan (when the plan comes to n end) the higher of the Policy Fund
of the Policy Premium will be paid.
On Death
An amount equivalent to 105% of premium paid of policy fund which ever is higher is
payable.
Other conditions
 Minimum Age at Entry : no age limit
 Maximum age at entry : 70 years
 Maximum age at Exit : 80 years
 Minimum premium : Rs. 25000 and multiples of Rs. 5000 thereof.
 Term available : 5 and 10 years

Comparative Analysis of Unit Linked Plan

S. Company HDFC Std. LIC ICICI Om Kotak Birla Sun Life
No. Name Life Insurance Prudential Mahindra
1 Plan Name Youngstar Future Plus Life Time Kotak Sale Classic Life
Investment
Plan
2 Age 18 – 65 18 to 65 0 to 60 18 to 65 18 to 65
3 Sum Min. 100000 Min. 50000 Min. 1 lac Subject to Min. 5 Lac.
Assured Max. no limit Max. No Max. 1 Crore minimum Sub. To pre.
limit premium Amount
4 Premium Min. 10000 Min. 5000 Min. 18000 Min. 10000 Min. 25000
Max. no Limit Max. noMax. no limit Max. no max. no limit
limit limit
5 Lock in 3 years No lock 3 years 3 years One year
period period
6 Surrender After 3 years : Less than After 3 year After 3 Loans/surrender
 allowed no charges one year: partial or year value is allowed after
before lock regular 40% final min. Rs. is equal to one year min
period 25% of of bid value 2000 NAV – withdrawal of
O/S amount single 96% 2.5% amount will
of bid value have to be Rs.
more than 25000 surrender
one but less charges is
than 2 year applicable first
regular 60% 75%
bid value
single: 98%
of bid value
7 Death and On Death : On death On death On death On death
maturity Sum Assured + some some assured market *higher of
Annual Assured + or bid value value of policy fund or
premium is Bid value of of unit which fund or SA the face amount
given by unit held b ever is higher which ever reduce by all
HDFC as a policyholder there is no is higher withdrawals
bonus to is given on maturity date on maturity made in the 6
policyholder on maturity : SA or month
Maturity: Lumpsum market preceding the
Market value market value value death of LA *
of Unit held by of unit held which ever in death of a
Policyholder is is given is higher Minor before
given the year policy
fund is payable
8 Fund * Growth fund * Bond fund * Protector * Money * Protector
option * Liquid fund * Income F. * Balance market * Builder
* Secure fund * Balance F. * Maximiser * GILT * Enhancer
* Defensive F. * Growth F. * One free * Balance * Creator
* Balance switchover * Growth * Switch over is
managed fund every year * Switch allowed after
there after 1% over any one year form
OP switching number one two
amount and times switches are
buying price during the free
year at
selling
fund to
another
9 Term Rider For Accident Accidental * Accident * Accidental
* Critical allowed upto benefit and permanent
Illness Max * Critical disability * Accidental
2500000 Illness benefit death and
* Major allowed dismemberment
Surgical Max 80+40 Rider
upto 10 Lac paise per * Critical
thousand Illness
* Critical * Critical
Illness Illness Plus
* Life
Guardian
 * WOP on
Pid
10 Charges Fund The Addition Sales 1st year prm.
Management Accidental charges 1st related 1st 25000-49999-
Charges–0.80% benefit year – 20% of year – 14% 15% 50000 –
p.a. charges premium is 2nd year 99999 – 14%
Administration 0.50% p.a. less then onward one lac and
charge – Rs. 15 CIB Charges 50000 18% if 3.5% * above – 13%
per month Risk – depending premium Admn subsequent year
benefit charges upon age higher then charges 1st –4% *
Depends upon *flat – Rs. 15 50000 * 1% year – 7% Investment
your age fund p.m. to 1.25% upto 20000 Management
switching * Admn. annual fund pre. And fee is 1% p.a.
charging, Charges – management 3% there Protector,
premium Rs. One% of charges after Builder,
redirection SA * under Enhancer and
charges – after * Switch writing 1.25% for
there years no over charges charges Creator.
charges Rs. 100 based on
cancellation service tax – age 0.2 to
charges – 10.2% 0.6%
before three * fund
year 25% of charges
O/S premium money
market –
0.6%
* Guilt
fund – 1%
Balance-
1.3%
* Growth
1.5%

RESEARCH METHODOLOGY

OBJECTIVES OF THE STUDY

1. To know about the requirement habits of the people in the region of patiala.
2. To know about the views of people regarding various Insurance
Companies.
3. Position of the Insurance companies in the mind of the consumer.
4. Position of the Insurance Competition regarding various Insurance
Companies.
 5. To find out the position of Insurance Companies in the market.

LIMITATIONS:-
1. Most of the people are not interested to give the right data.
2. Some people don’t know about the private companies.
3. A span of 6 weeks training was too short for survey

DATA ANALYSIS AND FINDINGS:-

Respondent Profile:-

Respondent profile has been analysed:-

Ques 1:- Awareness of the various Insurance companies:-

S. No. Particulars %age
A ICICI 80%
B HDFC Std. Life Insurance 75%
C Om Kotal Mahindra 5%
D LIC 90%
E Birla Plus 10%

Birla Plus
E ICICI
LIC A
D

Om Kotal HDFC Std. Life

Mahindra Insurance
C B

Respondent response about the awareness of the insurance comapneis

Ques 2:- What the people think about the Insurance
S. No. Particulars %age
A Necessity for protection security 89%
B Imposition of an burden of expenses 5%
C A compulsory tool for tax saving 78%
 A com pulsory
tool for tax
Necesaity for
saving
protection
C
security
Im position of A
an burden of
expenses
B

Ques 3:- Main consideration that a customer looks at while purchasing an

Insurance policy.
S. No. Particulars %age
A TAX 90%
B SAVING 75%
C PROTECTION 80%
D PENSION 25%
E INVESTMENT 35%
Ques 4:- What a respondents see while purchasing a Insurance from the
Company.
S. No. Particulars %age
A Standing & Goodwill of the Company 90%
B Product Range of the Company 1%
C Advertisement being released by the Company 5%
D Services being given by the Company 80%
E Communication and knowledge of the 10%
Representatives
F Returns of Bonus declared by the Company 85%

A Standing and Goodw ill of the Co. B Product range of the Co.
C Advertisement being released by the Co. D Services being by the Co.
E Communication and know ledge of the Rep. F Returns of Bonus declared by the Co.
 CONCLUSIONS
FINDINGS AND RECOMMENDATIONS:
1. The monopoly of LIC has been broken because private Insurance
companies came into the market.
2. 09% respondents are aware of privatization of Insurance Industry and
10% respondents do not know about private companies.
3. 90% people know about LIC Insurance Company. 75% people know
about HDFC Insurance Co. and 15% people know about other
companies.
4. Some people preferred to the private companies because of their better
services.
5. Some people believe only or preferred only Public Insurance
Companies like LIC.
6. As majority of the population of Patiala City belongs to the services
class so they consider tax saving rather purchasing a life insurance
7. The financial growth of private companies is much more Life Insurance
companies
8. The private companies always keep in touch with their customers with
the latest information.
9. Most of the respondent said that private companies should not be
trustworthy
10. Most of the people go for Children benefit because of triple benefit.
11. Now, a days people preferred to invest the money in Insurance policy
rather than in Banks because of better benefits of Insurance policies
growth money with life cover.
12. The respondents are above 45 they believe in Public Insurance
companies and those respondents who are less than 45 believe in
Private Insurance companies.
13. HDFC has made its presence felt in the market in a short span of time.
SUGGESTIONS:

1. Advertisement should be done on television and especially posters and

banners. This will greatly help in raising awareness level.
2. Insurance company should show more commitment with the customer.
3. Private companies give better services to the customers comparatively to
public companies.
4. The private company should create good relation and communication.
5. Private companies should work together to spread awareness regarding the
benefit given by the Private companies.
6. Private Insurance Companies give some discount to after the customer.
7. A public relation officer should be appointed in the company who with
customers and their need.
8. Cross training should introduce in private companies.
9. Private companies needs to the market their products better and should
create greater awareness about their product and services. They need
extensive market advertisement about the additional benefit provided by
them in comparison to the policies offered by LIC.
10. Agents have got maximum influence on a customers. They are the one who
introduce the prospect to different policies. So agents should be give full-
fledged training and the training should be strict.
 * QUESTIONAIRE *
(This Information is for our internal use only, will not to be disclosed to any other
organization / department)
Consumer Behavior towards various Investment and Insurance Products.
A-STUDY

Name Address
Telephone Age
Occupation Annual Income
Marital Status Single Ø Married Ø (Age of Children if applicable)
---------------------------------------------------------------------------------------------------
Q. 1 Any There Insurance Companies, which you are aware of ?

Q. 2 What do you think Insurance Is ?

A3. Necessity for Protection and security Ø
Imposition as an Extra Burden on expenditure Ø
A compulsory Tool for Tax Saving Ø
Q.4 What are the main considerations that a customer looks at while purchasing
an insurance policy.
A4. Tax Ø Saving Ø Protection Ø Pension Ø Investment
Ø
Q.5 What would you see while purchasing an Insurance Policy from a
Company ?
A5. Standing and Goodwill of the Company Ø
Product range of the Company Ø
Advertisement being given by the company Ø
Services beings given by the Company Ø
Communications and Knowledge of the representative Ø
Returns and Bonus declared by the Company Ø
Other Ø Please specify _________________________________
Q6. Why you want to buy another Insurance ?
A6. Tax Benefits Ø Savings Ø Other Ø
Q.7 If saving, What are your financial needs in next 10-20 years.
A7. Child Education Ø Marriage House Construction Retirement Needs
Ø
Q. 8 Are you aware about the Unit Link Plans beings launched by various
Insurance Companies.
A.8. Yes Ø No Ø (If yes, name the Co. and products)
Any other comments :
________________________________________________________________
________________________________________________________________
________________________________________________________________

(Thank You)
 BIBLIOGRAPHY

Study Material HDFC Standard Life Insurance

Study Material LIC
Study Material ICICI Prudent
Study Material Om Kotak Mahindra
Study Material Sun Birla Plus

Websites
www.hdfcinsurance.com//http//www/hdfcinsurance
www.iciciprulife.com //http//www/iciciprulife.com
www.licindia.com //http//www/licindia.com
www.bimaonline //http//www.bimaonline.com