A Project Report on Insurance as an investment tool with regards to ULIP at ICICI LTD
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Transcript of A Project Report on Insurance as an investment tool with regards to ULIP at ICICI LTD
Insurance as an investment tool with regards to ULIP at ICICI LTD
EXECUTIVE SUMMARY
As the people are becoming more and more and aware of their Life Style and Income
level. They need a plan, which has an optimum balance between their Investment and
Savings. They require an integrated financial plan for investment.
The customer requires those investment options, which provide them with flexibility and
Liquidity and tax benefit.
Among the various other investment options, Insurance has gained a prominent place .It
provides the policyholder with the benefit of Life Protection and at the same time allows
him to take the benefit of the fluctuations of the share market.
Thus Life Insurance has taken a very vital position as a wholesome investment option.
Life Insurance is gaining public awareness and interest very rapidly. It was till now been
thought as a way to insure lives, But, recently it is emerging as a prominent Investment
avenue.
It has come up as a wholesome Investment avenue & provides the benefit of flexibility,
Liquidity and Life protection. Along with added benefits like the rider attachments which
protect the policyholder from various kinds of diseases and accident etc.
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Insurance as an investment tool with regards to ULIP at ICICI LTD
Scope of the study:
The study will bring out the what people prefer investing in the insurance and
how they divide there income for investing in different source of investment.
The study will bring out the extent of awareness of ULIP.
The study will help to know the working environment of the organization in the
field.
Limitation of the study: As this study is academic in nature, it suffer from time and cost constraints.
As data was collected through personal survey, it suffer from reverse bias.
Respondent were asked to recall from their memory. Hence there are chance of
recall bias.
The behavior of personnel might have changed under the condition of
observation.
There might have been tendencies among the respondent to amplify of their
responses under testing condition.
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Insurance as an investment tool with regards to ULIP at ICICI LTD
Company profileAs finance is the lifeblood for all economic activities, one aspect of financial arena,
which plays a very important role, is the Insurance.
Insurance is the outcome of Man’s search for safety and security, and to find out
ways and means to minimize the hardship, which are beyond his control. Because of the
economic reforms introduced by our government we can see that due to this
Globalization and privatization there is enormous increase in the private sector players
queuing in the insurance sector. This entry of Private players has enhanced the
competitiveness and Quality of service with many innovated products.
Now in India there are totally 28 players including 14 Life and 14 General
Insurance Companies. And Life Insurance is one of the most common forms of
insurance.
ICICI Prudential Life Insurance is a joint venture between the ICICI Group and
Prudential plc, of the UK. ICICI started off its operations in 1955 with providing finance
for industrial development, and since then it has diversified into housing finance,
consumer finance, mutual funds to being a Virtual Universal Bank and its latest venture
Life Insurance .ICICI Prudential Life Insurance Company is a joint venture between
ICICI Bank, which is one of India's foremost financial services companies, and
Prudential plc, which is a leading international financial services group headquartered in
the United Kingdom. ICICI Prudential began the operations in December 2000. Today,
this company has over 2100 branches, which include 1,116 micro-offices, over 290,000
advisors and 18 banc assurance partners. ICICI Prudential Life Insurance Company is the
first life insurer in India that received a National Insurer Financial Strength rating of
AAA (Ind) from Fitch ratings. ICICI Prudential has been voted as India's Most Trusted
Private Life Insurer for three consecutive years. ICICI Prudential Life Insurance
Company has various insurance plans that have been designed for different individuals,
as every individual has different insurance needs.
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ICICI Prudential Life Insurance Company Limited was incorporated on July 20,
2000.The authorized capital of the company is Rs.2300 Million and the paid up capital is
Rs. 1500 Million. The 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 business, by the Insurance Regulatory and Development Authority on
November 24, 2000. It commenced commercial operations on December 19,
2000,becoming one of the first few private sector players to enter the liberalized arena.
The Company is now operational in Mumbai, New Delhi, Pune, Chennai,
KolkataBangalore, Chandigarh, Ahmedabad, Hyderabad, Lucknow, Nasik, Jaipur,
Cochin, Meerut, Mangalore and Ludhiana.The Company recognizes that the driving force
for gaining sustainable competitive advantage in this business is superior customer
experience and investment behind the brand. The Company aims to achieve this by
striving to provide world class service levels through constant innovation in products,
distribution channels and technology based delivery.
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 savings products for the individual including life insurance,
pensions, annuities, unit trusts and personal banking. It has a presence in over 15
countries, and caters to the financial needs of over 10 million customers. It manages
assets of over US$ 259 billion (Rupees 11,39,600 crores approx.) as of December 31,
1999. Prudential plc. has had its presence in Asia for the past 75 years catering to over 1
million customers across 11 Asian countries.
Prudential is the largest life insurance company in the United Kingdom (Source : S&P's
UK Life Financial Digest, 1998). Asia has always been an important region for
Prudential and it has had a presence in Asia for over 75 years. In fact Prudential's first
overseas operation was in India, way back in 1923 to establish Life and General Branch
agencies. Development of superior products and services that offer value for money and
security while producing superior financial returns, enables Prudential to maximise the
value of its shareholder's investment and to establish lasting relationships with customers
and policy holders.
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Brief Review of Scenario – InsuranceInsurance was nationalized mainly on 3 counts First, Indian lives were not insured.
Second, even if they were insured, they were treated as substandard lives and extra
premium was charged. Third, there were gross irregularities in the functioning of Life
insurance was nationalized in the year 1956, and then general insurance was nationalized
in the year 1972. In 1999, the private insurance companies were allowed back again into
insurance sector with maximum cap of 26 percent foreign holding.
1818 The British introduce to India, with the establishment of the Oriental Life
Insurance company in Calcutta.
1850 Non life insurance debuts, with Triton Insurance Company.
1870 Bombay Mutual life Assurance Society is the first Indian-owned life insurer
1907 Indian mercantile Insurance is the first Indian non-life insurer.
1912 The Indian life assurance companies’ act enacted to regulate the life
insurance business.
1938 The insurance act, which forms the basis for most current insurance laws,
replaces earlier act.
1956 Life insurance nationalized, government takes over 245 Indian and foreign
insurers and provident societies.
1956 Government sets up LIC
1972 Non life insurance nationalized, GIC set up.
1993 Malhotra committee, headed by former RBI governor R.N.Malhotra, set up
to draw up a blue print for insurance sector reforms.
1994 malhotra Committee recommends re-entry of private players, autonomy ot
PSU insurers.
1997 Insurance regulator IRDA (Insurance Regulatory and Development
Authority) set up.
2000 IRDA starts giving licensed to private insurers
2001 ICICI Prudential Life Insurance came into the market to sell a policy.
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2002 Banks were allowed to sell insurance plans, as TPAs enter the scene,
insurers start settling non-life claims in the cashless mode.
Contractual Definition:
According to E.W.Patterson, “Insurance is a contract by which one party, for a
consideration called a premium, assures a particular risk of other party ad promises to
pay to him or his nominee a certain or ascertainable sum of money on a specified.
According to the U.S Life Office Management Association Inc (LOMA), Life
Insurance is defined as follows: Life insurance provides a sum of money if the person
who is insured dies whilst the policy is in effect.
V ision: Understanding the needs of customers and offering them superior products and
service
Building long lasting relationships with their partners
Providing an enabling environment to foster growth and learning for their
employees.
Leveraging technology to service customers quickly, efficiently and conveniently
Values: Customer First: Own Customer; deliver the promise
Keep customer interest in the centre of all decisions.
Promise what you can, deliver it to finish.
Proactively seek Voice of Customer and act on it
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Sponsors
ICICI Ltd was established in 1955 by the World Bank, the Government 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 financed all major sectors of the economy,
covering 6,848 companies and 16,851 projects. In the fiscal year 2000-2001, ICICI had
disbursed a total of Rs 319.65 billion. ICICI has now developed a whole range of
activities to become a Universal Bank. Some of ICICI's spectrum of activities include:
Commercial Banking - ICICI Bank, India's first internet bank.
Information Technology - ICICI InfoTech, transaction processing, software
development
Investment Banking - ICICI Securities, one of the key players in the Indian
Capital Markets
Mutual Fund - Prudential ICICI AMC, leading private sector mutual fund player
in India
Venture Capital - ICICI Venture, leading private equity investor with focus on
IT and HealthCare
Retail Services - ICICI PFS, Marketing and Distribution of Retail Asset
Products
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Other terms used in relation to insurance and their meaning:
Agent: The authorized representative of the insurer, licensed by the concerned authorities
like IRDA to canvass insurance.
Bonus: The yearly share of policy holders profit declared by the company based on its
profits which gets added to the policy amount and is payable upon its maturity.
Claim: The amount entitled to the policy holder or his nominee/assignee under a policy
contract in the event of the happening of the contingency insured against.
Insurable Interest: Evidence suggesting financial losses due to the occurrence of the
event insured against.
Policy: The evidence of contract between the insurer and the insured. A stamped sealed
and signed document issued by the insurer to the insured in proof of insuring his life.
Premium: The amount mentioned in the policy contract to be paid by the insurer
periodically to the insure to keep the policy in full force.
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Area of Operation
ICICI Prudential has one of the largest distribution networks amongst private life insurers
in India, having commenced operations in 132 cities and towns in India, stretching from
Bhuj in the west to Guwahati in the east, and Jammu in the north to Trivandrum in the
south.
The company has 9 bank partnerships for distribution, having agreements with ICICI
Bank, Bank of India, Federal Bank, South Indian Bank, Lord Krishna Bank, and some
co-operative banks, as well as over 200 corporate agents and brokers, it has also tied up
with NGOs, MFIs and corporates for the distribution of rural policies.
ICICI Prudential has recruited and trained more than 72,000 insurance advisors to
interface with and advise customers. Further, it leverages its state-of-the-art IT
infrastructure to provide superior quality of service to customers.
Achievements
Beginning operations in December 2000, ICICI Prudential’s success has been meteoric,
becoming the number one private life insurer within months of launch. Today, it has one
of the largest distribution networks amongst private life insurers in India, with branches
in 54 cities. The total number of policies issued stands at more than 780,000 with a total
sum assured in excess of Rs.160 billion.
ICICI Prudential closed the financial year ended march 31, 2004 with a total received
premium income of Rs. 9.9 billion; up 135%. New business premium income shows a
106% growth at Rs. 7.5 billion, driven mainly by the company’s range of unique unit-
linked policies and pension plans. The company’s retail market share amongst private
companies stood at 36%, making it clear leader in the segment. To add to its
achievements, in the year 2003/04 it was adjudged Most Trusted Private Life Insurer
(Economic Times ‘Most Trusted Brand Survey’ by ACNeilsen ORG-MARG). It was also
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conferred the ‘Outlook Money-Best Life Insurer’ award for the second year running. The
company is also proud to have won Silver at EFFIES 2003 for its ‘Retire from work, not
life’ campaign. Notably, ICICI Prudential was also short-listed to the final round for its
‘Sindoor campaign in EFFIES 2002.
In Keeping with its belief that a happy customer is the best endorsement, ICICI
Prudential has embraced the ‘SIX SIGMA’ approach to quality, an exercise that begins
and ends with the customer from capturing his voice to measuring and responding to his
experiences. This initiative is currently helping the company improve processes,
turnaround times and customer satisfaction levels. Another Novel introduction is the
ICICI Prudential Lifestyle Rewards Club, India’s first rewards programmed for Life
Advisors; it allows ICICI Prudential Advisors to redeem points for items ranging from
kitchenware to gold, white goods, and even international holidays.
Promotion
ICICI Prudential is a case study in how advertising and marketing can play a vital role in
re-shaping an industry. It has demonstrated how an industry where the customer was
nothing more than a policy number has changed to one where ‘customer preference’ rules
the roost.
Brand-building in a complex category like life insurance is an uphill and multi-faceted
task. At the time of launching operations, the communications task was to build
credibility, so as to give the customer the confidence that it was ‘a company that could be
trusted to invest funds with’. The aim was to encourage people to view insurance not as a
compulsory tax saving instrument, but as a means to lead a worry-free, secure life and in
the process, create the differentiator for brand ICICI Prudential.
The brand proposition for all the campaigns was reflected in the line: ‘Suraksha: Zindagi
ke har kadam par’. The campaign featured a significant competitive advantage, the sound
financial backing and credentials of ICICI Prudential, and showcased products from
different segments. The advertising idea was encapsulated in the symbol of protection –
the ‘Sindoor’. This campaign contributed extensively to raising brand awareness and
creating a distinctive identity for the company.
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Insurance as an investment tool with regards to ULIP at ICICI LTD
Board of Directors
The ICICI produentional Life Insurance Company Limited Board Comprises
reputed people from the finance industry both from India and abroad.
Mr.Chanda D.Kochhar, Chairperson
Mr. N.S. Kannan, Director
Mr. K.Ramkumar, Director
Mr. Barry Stowe, Director
Mr. Adrisan O’Connor, Director
Mr. Keki Dadiseth, Independent Director
Prof. Marti G. Subranhmanyam, Independent Director
Ms. Rama Bijapurkar, Independent Director
Mr. Vinod Kumar Dhall, Independent Director
Mr. V. Vaidyanathan, Managing Director
and CEO
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Management Team
Mr. V. Vaidyanathan, : Managing Director and CEO
Ms. Anita Pai, : Executive Vice president – Customer
service, Techonology and Marketing
Dr. Avijit Chatteriee, : Appointed Actuarcy
Mr. Puneet Nanda, : Executive Vice President
Contribution to Indian Economy
Life Insurance is the only sector which garners long term savings.
Spread of financial services in rural areas and amongst socially less privileged.
Long term funds for infrastructure.
Strong positive correlation between development of capital markets and
insurance/pension structure.
Employment generation.
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Stages in Insurance policy
1) Proposal : A Proposal Stage is the First stage before the policy is issued at COPS. At
this stage, the application form is received by COPS, but it is pending for issuance due to
further clarifications required from the customer.
2) Login : A proposal which is complete i.e., duly filled with all necessary documents
attached to it & accepted by the Branch ops, is called a Login
3) Reject: An Application gets rejected at the Branch Ops level due to necessary details
not filled in the form or necessary documents not submitted is a Reject. It is then sent
back to the Advisor for completion.
4) Issuance :Issuance means a policy that is issued to the Customer by Central Ops.
5) Decline Status : When a customer refuses to take a policy post login but before
Issuance is called a Decline
6) Cancellation : When the cheque given by the customer bounces, it amounts to
cancellation of the policy.
7) Lapse: A policy for which the Customer fails to pay subsequent premiums is a Lapsed
Policy.
8) Freelook : Post issuance of the policy, the policy holder has the option to turn down
the policy within 15 days from the date of issuance. This period of 15 days is called
Freelook Period.
9) Surrender: When a customer wants to discontinue with the policy.
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Insurance in Indian Financial System
In India insurance is in practice since 12th century as per the records. The first life
insurance company to operate in India the Oriental Life Insurance company was
established in 1818 in Calcutta. However it was a British company. The first Indian
Insurance company, the Bombay Mutual Life Assurance Society started its operation in
1871. The Indian Life Insurance company Act was passed in 1928.Subsequently, both of
these Acts were merged and the insurance Act 1938 was promulgated.
The story of non-life insurance in India is no different. Though Lloyd’s insurance
pioneered the general Insurance way back in 1688, the first non-life Insurance Company
to set up shop in India was the Triton Insurance company of Calcutta. In 1907 the first
Indian general insurer the Indian Mercantile insurance company started its operations.
The New India Assurance Company Limited was incorporated in 1919. After
independence the India Reinsurance Corporation was set up in 1956 and in 1957 the
office of the controller of the insurance was constituted. In 1968, that tariff advisory
committee was set up to regulate the investment of the players and finally in 1972, the
non-life insurance business in the country was nationalized and the general insurance
company was formed as holding company with four subsidiaries, the National Insurance,
Oriental Insurance, United India Insurance and the new India Assurance Company
Limited. In the same year the National Insurance Company Limited was amalgamated
with 22 foreign and 11 Indian Insurance companies. Thus over a period of two centuries,
the Indian insurance industry has gone through the full circle. From being an open
competitive market, it went through nationalization and has been subsequently liberalized
again. Keeping in mind the national economic and commercial objective of India the
government has set up IRDA on 7th December 1999. Through which the reforms process
of the industry got under way.
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Insurance in Indian Financial System – Its ImportanceInsurance industry is one of the corner stone of any economy and financial System.
Insurance industry contributes its major part in increasing the saving and the fund
collected is utilized in developmental program.
The Financial sector in our country is in the process of change with the objective
o the overall growth of the economy. The insurance sector as every one knows,
constitutes a very important and vital financial intermediary for the growth of the
economy.
Insurance has become part and parcel of the financial system because it:
Reduces the uncertainty of business loses.
Increases business efficiency.
Identifies key men.
Enhances the credit.
Takes care of welfare of the society.
Protect the wealth of the nation.
Helps to attain economic growth.
Reduces the inflation level.
It is said “Every rupee invested in insurance contributes thrice the amount in the
economic development.
The Life Insurance:
Life Insurance is one of the most common forms of insurance. It has acquired top
position all over the world.“Life insurance is a contract fare by the insured promised to
pay a uniform rate premium of fixed intervals of time against which the insurer agrees to
pay a fixed amount on the happening of the event which may be the death of the insured
on the expiry of certain number of years”.
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Advantages of Life Insurance
Life insurance is brought not because someone is going to die, but because
someone is going to live.
Life insurance means peace of mind.
Life insurance promises payment of the full sum assured from the moment the
first premium is paid.
Life insurance encourages regular savings and guards against extravagances.
In most cases life insurance possesses a cash value after the first three years.
Life insurance removes the worry of looking after your savings. Experts safely
and profitably invest your money on your behalf by experts.
Life insurance guarantees payment in cash and is backed by the Government of
India.
Life insurance is a tax saving product.
Life insurance is free from loss, from theft, fire, misplacement etc.
A life insurance contract is one sided, i.e., always in favour of the insured and his
family. One can withdraw from the contract anytime, but the company’s cannot.
Life insurance replaces uncertainty with certainty. It provide a complete, balanced and
perfect hedge against economic threats, which confront all person, the danger of living
too long or the danger of dying soon.
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How Insurance Works
Suppose there are 1000 person all aged 35 years and healthy lives. They are insured for
one year against the risk of death. Each person is insured for Rs. 50,000. if the past
experience indicates the 4 out of 1000 people die during the year, expected amount
claimed to be paid to the family of 4 persons would come to Rs. 2,00,000. the
contribution to be paid by the each of the 1000 will come to Rs.200 per year. Thus, all the
1000 persons share loss caused to the 4 unfortunate families. 996 persons who survived
till 1 year have not lost any thing as they have secured peace of mind and a feeling of
security for their family. While insurance cannot prevent accident or premature death, it
can help, protect the family of the deceased against the loss of income caused by the of
the main breadwinner. In return for specified payments, insurance will provide protection
against the insurance of an uncertain event such as premature death. The business of
insurance company called insurer is to bring together persons who are exposed to similar
risk, collect contribution (premium) from them on sum equitable basis and pay the losses
(claim) to the unfortunate few who suffer.
NEED FOR THE INSURANCE:
Unlike other avenues of savings where the amount saved with interest is payable only on
maturity, insurance plans provide for payment of the total sum assured along with a
bonus, if any, on any eventuality even before the maturity of the policy. And another
advantage of insurance is that an insurer can avail loans against the security of the policy
from the insurance company. Even banks and other financial institutions advances loans
with insurance policies as a collateral security.
To provide for one’s family and perhaps; others in the event of death, especially
premature death. Originally, policies were to provide for short period of time, covering
temporary risky situations, such as sea voyages. As lie insurance became more
established, it was realized what a useful tool it was for a number of situation, including
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Regular savings:-
Providing for one’s family and oneself, as a medium o long term exercise (through
a series of regular payment of premiums). This has become more relevant in recent
times as people seek financial independence from their family.
Investment:-
It is the insurance that builds up the savings of the society and thus safeguard the
economy from the ravages of inflation. Unlike regular saving products,
investment products are traditionally lump sum investments, where the individual
makes one time payment.
Retirement:
Provisions for one’s own later years become increasingly necessary, especially in
a changing cultural and social environment. One can buy a suitable insurance
policy, which will provide periodical payments in one’s old age.
Insurance Market in India
The term “insurance market” is used to denote the means available for the placing of
insurance and the various organizations that are willing to accept risks. It comprises of
the demand side i.e., the buyers and the supply side i.e. sellers and the intermediaries.
The rational behind the opening up to the sector was to five individual and corporate
insurance consumers a competitive environment that can deliver products and service in
tune to their requirements. At the same time and open insurance market will enable
capital formation. Reducing the need for India to seek external capital to support its
infrastructure of development program. The industry is believed to benefit from any
increased private participation especially in terms of technology from other global
players as these players enter into joint ventures with India counterparts. The partnership
between Indian and foreign firms will also enable the market to grow beyond the currents
rates and will offer wider choice for the consumer through the introduction of new
products, service and price option. New players are aggressive in their marketing
campaigns and the challenging LIC, virtually in all aspects.
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Why should you take insurance
Insurance is desired to safeguard oneself and ones family against possible losses on
account of risk and perils. It provides financial compensation for the losses suffered due
to the happening of unforeseen events. By taking life insurance a person can have peace
of mind and need not worry about the financial consequences in case of any untimely
death.
Along with the growth of overall population in the country, crossing the benchmark of
hundred crore, there gas been a significant awareness for the need for insurance in the
other as well as rural segments and even among the lower middle class and illiterate class
of the population.
We in India have around 30 crore middle class educated and enlightened people who
have not realized that insurance is as necessary as the other basic necessities of life such
as food, shelter, clothing.
There are two kinds of insurance as given below:-
1. Life Insurance:
Human lives are insured under life insurance. A Life Insurance is a combination of
savings as well as security element. The insured is assured that the insurance company
will pay his family the insured amount in the case of premature death. Is he is alive and
the policy matures for payment, the savings so made will be helpful in his old age. Only
the Life Insurance Corporation of India transacts life insurance business in India.
2. General Insurance:
All insurance other than Life Insurance fall under General Insurance. Only the general
insurance corporation of India transacts General Insurance business in India.
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The following are different types of general insurance:
Marine Insurance:-
The marine insurance is the oldest form of insurance and covers all the marine perils. Due
to marine perils, the ship can be damaged or destroyed, cargo can be lost and
consequently there can be lost of freight. Therefore, the marine insurance covers the risk
to ship, cargo, and freight on the high seas.
Fire Insurance :
The fire insurance covers the risk of fire to property because there is every likelihood of
fire spreading in big factories, go-downs, ware housing, house shops and ships. The fire
insurance not only covers the risk of fire, but also the consequential losses from such fire.
Insurance products
Education Insurance Plans
Smart Kid New Unit-linked
Regular Premium
Smart Kid New Unit-linked
Single Premium
Smart Kid Regular Premium
Wealth creation plan
Wealth Advantage
Life Stage Assure
Life Time Gold
Life Link Super
Life Stage RP
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Insurance as an investment tool with regards to ULIP at ICICI LTD
Premium guarantee plan
Invest Shield Life New
Invest Shield Cash Bank
Protection plan
Pure Protect
Life Guard
Save 'n' Protect
Cash Back
Home Assure
Retirement plan
Life Stage Pension
Life Time Super Pension
Life Link Super Pension
Forever Life Plan
Immediate Annuity
Health coverage plan
Health Saver
Medi Assure
Hospital Care
Crisis Cover
Cancer Care
Diabetes Care Active
Diabetes Assure
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ICICI pru group solution plan
Group Super Annuation
Group Gratuity Plan
Annuity Solutions
Group Term Insurance Plan
Group Term Insurance in lieu of EDLI
ICICI Pru Suraksha
ICICI Pru Suraksha Kavach
Micro insurance plan
ICICI Pru Sarv Jana Plan
Organization chart
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Different department in ICICI life insurance Ltd
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Senior Voice President
Voice President
ZM Manager
Regional Manager
Associate Regional Manager
Area Manager/Sales Manager
Sourcing structure
Business Manager
CEO
Senior Agency Manager
Agency Manager
Senior business
Manager
Unit Manager
Insurance as an investment tool with regards to ULIP at ICICI LTD
Tied Agency
Tied Agency is the largest distribution channel of ICICI Prudential, comprising a large
advisor force that targets various customer segments. The strength of tied agency lies in
an aggressive strategy of expanding and procuring quality business. With focus on sales
& people development, tied agency has emerged as a robust, predictable and sustainable
business model.
Banc assurance and Alliances:
ICICI Prudential was a pioneer in offering life insurance solutions through banks and
alliances. Within a short span of two years, and with nearly a large number of partners,
B & A has emerged as a vital component of the company’s sales and distribution
strategy, contributing to approximately one third of company’s total business.
The business philosophy at B&A is to leverage distribution synergies with our partners
and add value to its customers as well as the partners. Flexibility, adaptation and
experimenting with new ideas are the hallmarks of this channel.
Customer Service and Operations:
The operation department ensure consistent and quality service to the customer.This
department provide full information about the insurance product to the customer and this
department act as mediator between the clients and the agent. And smoothly
Manage the work process in company.
The Vision at Customer Service is to deliver ‘World Class Service’ at every opportunity.
Units such as the 9 to 9 contact centre, Outbound Call Centre, Customer Care and Query
Resolution Unit are all committed to providing effective solutions to over lakhs of
customers across the country.
Information Technology:
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Insurance as an investment tool with regards to ULIP at ICICI LTD
The Information Technology function at ICICI Prudential is committed to enable
business through the use of technology. It is segmented into 4 groups to enable highest
levels of delivery to the customers: Life Asia Solutions Group that provides flexibility in
designing better product offerings to end-users, the Solutions Group- Web that provides
real-time information to customers and is responsible for customer relationship
management, IT Architecture & Corporate Solutions Group is in charge of developing
and maintaining a blueprint for the IT architecture for the enterprise as a whole. This
team works as an in house R&D Solution Group, exploring new technological initiatives
and also caters to information needs of corporate functions in the organization. IT
Infrastructure group is responsible for providing hardware, software, network services to
the whole organization. This group runs the 'Digital Nervous System' of the Enterprise at
the highest levels of efficiency and provide robust, scalable and highly available platform
for deployment of business application.
Marketing
The marketing department play important role in the icici prudential life insurance
company. The company adapt brand and media management, channel support, direct
marketing and corporate communications to reach the customer. Advertising help the
ICICI prudential to identity while effectively communicating its varied product offerings
to the customer and channel marketing provide boost to the sale and help to build a strong
distribution channel The Direct marketing team was set up to generate high quality leads
for profitable business. The team achieves this through target database acquisition and
communicating customized product information through e-mailers, telemarketing and
innovative direct mailers.
Human Resource
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The people strategy of ICICI Prudential is “To build a committed team with a culture of
innovation, learning and growth. The Human Resource Function at ICICI Prudential
drives the people strategy of the business. With its initial focus on operational excellence
to deliver benefits and services to staff members, HR is now committed to building
capability through state of the art processes. A robust performance management system,
compensation system and a segmented training architecture enable it to deliver value to
the organization.
Other private sector
S.No.
Registrati onNumber
Date of Reg.
Name of the Company
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 Company Ltd.
4 107 10.01.2001 Kotak Mahindra Old Mutual Life Insurance Limited
5 109 31.01.2001 Birla Sun Life Insurance Company Ltd.
6 110 12.02.2001 Tata AIG Life Insurance Company Ltd.
7 111 30.03.2001 SBI Life Insurance Company Limited .
8 114 02.08.2001 ING Vysya Life Insurance Company Private Limited
9 116 03.08.2001 Bajaj Allianz Life Insurance Company Limited
10 117 06.08.2001 Metlife India Insurance Company Ltd.
11 133 04.09.2007 Future Generali India Life Insurance Company Limited
12 135 19.12.2007 IDBI Fortis Life Insurance Company Ltd.
General Insurers:
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Insurance as an investment tool with regards to ULIP at ICICI LTD
S.No. Registration Number
Date of Registration
Name of the Company
1 102 23.10.2000 Royal Sundaram Alliance Insurance Company Limited
2 103 23.10.2000 Reliance General Insurance Company Limited.
3 106 04.12.2000 IFFCO Tokio General Insurance Co. Ltd
4 108 22.01.2001 TATA AIG General Insurance Company Ltd.
5 113 02.05.2001 Bajaj Allianz General Insurance Company Limited
6 115 03.08.2001 ICICI Lombard General Insurance Company Limited.
7 131 03-08-2007 Apollo DKV Insurance Company Limited
8 132 04-09-2007 Future Generali India Insurance Company Limited
9 134 16-11-2007 Universal Sompo General Insurance Company Ltd.
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Insurance as an investment tool with regards to ULIP at ICICI LTD
Yr: 2001-2002 :
Life Insurance:
General Insurance :
S.No. Registration Number
Date of Registration
Name of the Company
1 123 15.07.2002 Cholamandalam General Insurance Company Ltd.
2. 124 27.08.2002 Export Credit Guarantee Corporation Ltd.
3. 125 27.08.2002 HDFC-Chubb General Insurance Co. Ltd.
Yr: 2003-2004 :
Life Insurers:
S.No. RegistrationNumber
Date of Reg.
Name of the Company
1 127 06.02.2004 Sahara India Insurance Company Ltd.
Yr: 2004-2005 :
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S.No. RegistrationNumber
Date of Reg.
Name of the Company
1 121 03.01.2002 Reliance Life Insurance Company Limited.
2 122 14.05.2002 Aviva Life Insurance Co. India Pvt. Ltd.
Insurance as an investment tool with regards to ULIP at ICICI LTD
Life Insurance:
S.No. RegistrationNumber
Date of Reg.
Name of the Company
1 128 17.11.2005
Shriram Life Insurance Company Ltd .
Yr: 2006-2007 :
Life Insurance:
S.No. RegistrationNumber
Date of Reg.
Name of the Company
1 130 14.07.2006 Bharti AXA Life Insurance Company Ltd.
Yr: 2007-2008 :
S.No. RegistrationNumber
Date of Reg.
Name of the Company
1 133 04.09.2007
Future Generali India Life Insurance Company Limited
2 135 19.12.2007
IDBI Fortis Life Insurance Company Ltd.
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Insurance as an investment tool with regards to ULIP at ICICI LTD
Yr: 2008-2009 :
Life Insurers:
S.No.
RegistrationNumber
Date of Reg.
Name of the Company
1 136 08.05.2008
Canara HSBC Oriental Bank of Commerce Life Insurance Company Ltd.
2 138 27.06.2008
Aegon Religare Life Insurance Company Ltd.
3 140 27.06.2008
DLF Pramerica Life Insurance Company Ltd.
4 142 Star Union Dai-ichi Life Insurance Co. Ltd.,
General Insurance:
S.No. RegistrationNumber
Date of Reg. Name of the Company
1 139 27.06.2008 Bharti Axa General Insurance Company Ltd.
Awards and Achievements
Innovation Award for launching Diabetes Care – Prudence Award 2006
People Award for excellence in training and people development Prudence Award 2006
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Insurance as an investment tool with regards to ULIP at ICICI LTD
India's Most Customer Responsive Insurance Company - Economic Times Customer Responsiveness Awards
Most Trusted Private Life Insurer: The Economic Times – A C Nielsen Survey of Most Trusted Brands – 2004
Prudence Customer Centricity Award - 2004 & 2005: Prudential Corporation Asia
Best Life Insurer 2003: Outlook Money Awards 2003-04
IMM Award for Excellence: Institute of Marketing & Management
Organization with Innovative HR Practices: Indira Group of Institutes
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Superbrand 2003-04
Organization with Innovative HR Practices: Asia-Pacific H R Congress Awards for HR Excellence
Silver Effie for Effectiveness of the ‘Retire from Work not life’ advertising campaign: Effies 2003
Most Trusted Private Life Insurer: The Economic Times – A C Nielsen Survey of Most Trusted Brands – 2003
Best New Insurer: Outlook Money Awards 2003
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Major Market Players: Presently there are 15 Life insurance companies in the country. There is only one public
sector company LIC and the rest 14 are from private sector. Although LIC has been
dominating the Life Insurance business since past few years the private players have now
started to build up momentum.
HDFC – Standard Life:
HDFC and Standard Life first came together for a possible joint venture, to enter
the Life Insurance market, in January 1995. It was clear from the outset that both
companies shared similar values and beliefs and strong relationship quickly formed.
Products offered by the company:
Endowment Assurance Plan
Money Back Plan
Group Insurance Plan
Life Insurance Corporation of India (LIC):
Life Insurance Corporation of India is a 100% government held Public Sector
Company. Being the first to be established LIC is the forerunner in the Life Insurance
sector. The market share for FY 2005-06 was 71.44%.
Bajaj Allianz Life Insurance Co
Bajaj Allianz Life Insurance Co. Ltd. is a joint venture between two leading
conglomerates-Bajaj Auto, one of the biggest 2 and 3 wheeler manufacturers in the
world and Allianz AG, one of the world's largest insurance companies.
The following are the products offered by the company:
Bajaj Allianz Group Gratuity Care
Bajaj Allianz Group Superannuation Care
Bajaj Allianz Group Credit Care Plan
Bajaj Allianz term Plan
Bajaj Allianz Risk Care Plan
Bajaj Allianz Life Time Care
Bajaj Allianz save Care
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The TATA AIG Group:
TATA AIG group is a 74:26 JV between Tata Group and AIG. It belongs to the
private sector. The company was registered on 12/2/2001. The market share for FY
2005-06 was 1.29%.
5) Max New York Life Insurance Company Ltd:
Product Offered By the Company Endowment policy
Whole Life policy
Term Insurance
6) MetLife Insurance Company Ltd:
The origin of Metropolitan Life Insurance Company (MetLife) was started in 1863.
But the company decided to focus on life insurance business in 1868. By 1880 the
company was started to 700 new industrial policies a day. From 1909 MetLife
became the nation’s largest life insurance in terms of insurance.
Products offered by the company Term Insurance products
One Year Term Insurance
Scheduled Term Insurance
Permanent insurance products
L-98 whole life
Equity Advantage VUL
SBI Life Insurance Company Ltd:
SBI Life Insurance Company is a 74:26 Joint venture between SBI and Cardiff S.A.
The company was registered on 31/3/2001.It is a private sector company. The market
share for FY 2005-06 was 2.31%.
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Sahara India Life Insurance Company Ltd:
First Wholly Indian Owned Private Life Insurance Company. The Company
commenced operations from 30th October 2004. The market share for FY 2005-06
was 0.06 %.
6) MetLife Insurance Company Ltd:The origin of Metropolitan Life Insurance Company (MetLife) was started in 1863.
But the company decided to focus on life insurance business in 1868. By 1880 the
company was started to 700 new industrial policies a day. From 1909 MetLife
became the nation’s largest life insurance in terms of insurance.
Products offered by the company Term Insurance products
One Year Term Insurance
Scheduled Term Insurance
Permanent insurance products
L-98 whole life
Kotak Mahindra Life insurance Company Ltd:
Product offered by the company Endowment assurance plan
Money back policy
Term policy
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Insurance as an investment tool with regards to ULIP at ICICI LTD
The Insurance Regulatory and Development Authority (IRDA) :
Reforms in the Insurance sector were initiated with the passage of the IRDA Bill in
Parliament in December 1999. The IRDA since its incorporation as a statutory body in
April 2000 has fastidiously stuck to its schedule of framing regulations and registering
the private sector insurance companies.
The other decisions taken simultaneously to provide the supporting systems to the
insurance sector and in particular the life insurance companies were the launch of the
IRDA’s online service for issue and renewal of licenses to agents.
The approval of institutions for imparting training to agents has also ensured that the
insurance companies would have a trained workforce of insurance agents in place to sell
their products, which are expected to be introduced by early next year.
Since being set up as an independent statutory body the IRDA has put in a framework of
globally compatible regulations. In the private sector 12 life insurance and 6 general
insurance companies have been registered.
Mission
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” To protect the interest of the policy holder to regulate, promote and ensure orderly
growth of the insurance and for matter connected there with or incidental there to.”
Functioning of the IRDA
To exercise all the powers and functions of controller of insurance.
Protection of the interest of the policy holders.
To issue, renew, modify, withdraw or suspend certificate of registration.
To specify requisite qualification and training for insurance intermediaries and
agents.
To promote and regulate professional organizations connected with insurance.
To conduct inspection/investigation etc.
To prescribe method of insurance accounting.
To regulate investment of funds and margins of solvency.
To adjudicate upon dispute.
To conduct inspection and audit of insurers intermediaries and other organization
concerned with insurance.
Protection of the interest of policy holders:
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IRDA has the responsibility of protecting the interest of insurance policyholders.
Towards achieving this objective, the Authority has taken the following steps:
IRDA has notified Protection of Policyholders Interest Regulations 2001 to
provide for: policy proposal documents in easily understandable language; claims
procedure in both life and non-life; setting up of grievance redressal machinery;
speedy settlement of claims; and policyholders' servicing. The Regulation also
provides for payment of interest by insurers for the delay in settlement of claim.
The insurers are required to maintain solvency margins so that they are in a
position to meet their obligations towards policyholders with regard to payment of
claims.
It is obligatory on the part of the insurance companies to disclose clearly the
benefits, terms and conditions under the policy. The advertisements issued by the
insurers should not mislead the insuring public.
All insurers are required to set up proper grievance redress machinery in their
head office and at their other offices.
The Authority takes up with the insurers any complaint received from the
policyholders in connection with services provided by them under the insurance
contract.
INSURANCE AS AN INVESTMENT TOOL WITH REGARDS
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Insurance as an investment tool with regards to ULIP at ICICI LTD
TO ULIP
With the development of the insurance market, investors now have more choice. One
option is unit linked insurance policies, which are slightly different from other policies.
Unit linked insurance products act like an insurance cover with the benefits of a mutual
funds. Benefits are expressed in terms of number of units and units price. Customer can
buy as many units through their premium as they wish. As in a mutual fund, the net asset
value is known on a daily basis.
The product have a higher transparency in terms of returns. While the
market link gets a policy-holder a better return ,the insurance aspect attached to each
unit gets the holder a tax exemption on premium paid up to 10,000 under Sec.80d.
Here, the virtues of asset allocation hold good too. If you want less risk,
choose a debt plan. Liquid funds are generally less risky and growth funds, which allot
substantial sums to equities, carry the highest risk reward ration.
Most insurance companies have turned out a good performance since 2002.
While debt funds recorded an average return of 8 percent equity funds earned a
phenomenal 60 percent on returns.
Investors must understand that a unit linked plan work on a minimum
premium basis and not on a sum assured one .like a mutual fund, one can fix an amount
of contribution or a minimum premium .
In short, if you can choose on the market and increase your investment, you can
maximise your return. On an average , the annual growth rate is pegged at 8 percent but
this is not guaranteed .however cumulative bonuses, ranging from 13 to 15 percent
annum, on an average is added to the sum assured for every claim free year.
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Insurance as an investment tool with regards to ULIP at ICICI LTD
Many plan allow a reduction in premium if it has been paid regularly for a certain period
or the unit fund achieves a certain valuation. Your premium would depend on the age
and term of the policy An investor has to pay some charges since the fund also involves
management of assets. Apart from the regular charges for cancellation of units, risk cover
and charges relate to policy specifics, these is a cost attached to fund management. Which
is normally in the range of 0.8 percent of the fund value per annum. Also ,under ULIP.
one will have to pay a certain amount for the cancellation of a policy before paying a
regular premium for three years.
However, there is a benefits for holding on for three years one can withdrawals without
any penalty. In the case of a fatality, the insured will receive the sum assured and then the
maturity value.
To put in to simply, ULIP attempt to fulfill investment need of an investors
with protection/insurance need of an insurance seeker. ULIPs work on the premise that
there is class of investors who regularly invest their savings in products like fixed
deposits, coupon-bearing bonds, debt fund, diversified equity fund and stock. There is a
another class of individuals who take insurance to provide for their family in case of
anevetuality. so typically both these categories of of individual have portfolio of
investment as well as life insurance. ULIP as a product combines both these
products( investment and life insurance) into single product. This save the investors/
insurance seeker the hassles of managing and tracking a portfolio of products. According
to the IRDA, a company offering unit linked plan must give an option to choose among
debt, balanced and equity funds.
Five step to selecting the right ULIP
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Unit linked insurance plan(ULIP) were seen s wonder product that simultaneously an
individual’s need for investment and insurance. here are 5 step to select the right ULIP.
1) Understand the concept of ULIP:
Try to do as much homework as possible before investing in an ULIP. This way you
will kwon that you are getting into and won’t be faced with unpleasant surprises at later
stage. Gather the information on ULIPs the various options available and understand
their working. Read the literature available on ULIP on the websites and broachers
circulated by insurance companies.
2) Focus on your requirement and risk profile Identify a plan that is best suitable for you(in terms of allocation of money
between equity and debt instrument). Your risk appetite should play an important role
in the plan you choose. So if have a high risk a appetite, go in for a more aggressive
investment option.
3) Compare ULIPs of different insurance companies
Compare products of the leading insurance companies. Enquire about the premium
payments as ULIPs work on minimum premium basis as opposed to sum assured in the
case of conventional insurance policies. Check the fund’s performance over the past six
months. Find out how the debt and equity schemes are performing and how steady the
performance has been. Enquire about the charges you will have to pay. In ULIPs the cost
involved are a big deciding factor.
Ask about the top-up facility offered by ULIPs, additional lump sum investments
you can make to increase the saving portion of your policy. The companies give you the
option to increase the premium amount, there by providing you with the opportunity to
gainfully utilise surplus funds at your disposal.
Enquire about the number of time you can make free switches(change the asset
allocation of money in your ULIP account) from one investment plan to another. Some
insurance companies offer you free switches for a2 year period while other do so only for
1 year.
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Insurance as an investment tool with regards to ULIP at ICICI LTD
4) Go for an experienced insurance advisor:
Select an advisor who is not only professional and informed, but also independent and
unbiased. Also enquire whether he has serviced client like you. When your agent
recommends A ULIP of X Company ask him a few product related questions to test him
and also ask him why the other products should not be considered.
Insurance advice at all times must be unbiased and independent and your agent must be
willing to inform you about the pros and cons of buying a particular plan. His job should
not just being by filling the form and end after he deposits the cheque and give you the
receipt. He should keep a track of your plan and inform you on a regular basis. The key is
to go for an advisor who will offer you value added products
5) Dose your ULIP offer a minimum guarantee?
In market linked product if you investment’s downside can be protected, it would be a
huge advantage. Find out if the ULIP you are considering offers a minimum guarantee
and what cost have to be born for the same. This will enable you to make an informed
choice.
BASICS OF UNIT LINKED INSURTANCE PLANS
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Basics of unit insurance Plans:
A Policy which provides for life insurance where the policy
value at any time varies according to the value of underlying assets at the time.
Unit Linked Insurance Plans (ULIP) is life insurance solution that provides the client
with the benefits of protection and flexibility in investment.
The investment is denoted as units and is represented by the value that it has attained
called as Net Assets Value (NAV).
Unit UnitsLinked in UnderlyingInsurance Fund Policies
ULIP Came into play in the 1960s and became very popular in Western Europe and
Americans. The reason that is attributed to the wide spread popularity of ULIP is because
of the transparency and the flexibility which it offered to the clients.
In today’s times-ULIP provides solutions for all the needs of a client like insurance
planning, financial needs, financial planning for children’s future and retirement
planning.
An ULIP structures looks like as follows
Less charge
Investment Life coversRepresented as units
FEATURES OF UNIT LINKED PLAN
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Contribution
Less Charges
Insurance as an investment tool with regards to ULIP at ICICI LTD
ULIP distinguishes itself through the multiple benefits that it provides to the consumer.
The plan is a one stop solution providing.
1. Investment and savings
2. Life Protection
3. Flexibility
a. Adjustable Life cover
b. Investment Options
4. Transparency
5. Options to take additional cover against
a. Death due to accident
b. Disability
c. Critical illness
d. Surgeries
6. Liquidity
7. Tax planning
Now let us see each of the above in detail.
1. Investment and savings:
ULIP provides the client with the option of investing as per personal risk profile and get
return accordingly. There are options of funds where in the client can put money in
1. Equity Markets
2. Debt Markets
3. balanced funds with a mix of the above two
4. Short-term debt market.
This also help the client in savings in accordance to the age as a younger person can
afford to take some risk however a senior citizen might not be in a position to make
investment in comparatively high risk instruments.
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With the option of four funds to invest in the client always has the option to change shift
as the risk and return orientation changes.
Subsequent contributions and contribution can also be allocates in different funds.
Net Asset Value
The investment is denoted as NAV-Net Asset Value.
Net Asset Value is defined as the total value of the assets in the underlying fund minus
the expenses paid or to be paid divided by the number of units issued. The issue value of
a unit is usually 10/-.
The Net Asset Value of a fund is the indicator of the value of the fund.
In traditional Plans the policyholder is not aware of the value the policy is accruing.
In a Unit Linked plan—the investment, which is denoted through a NAV, is the real time
indicator of the value of the fund. Therefore a policyholder can easily find out that what
is the value that the policy has accrued as of now.
The NAV is listed on a daily basis in all the national newspapers.
Example
If 2, 00,000 - have been accumulated in the equity fund. And the number of units issued
is 10,000/- then NAV of the equity fund is
2, 00,000/10,000=20/-
As the equity markets develop the fund grows from 2,00,000 to 2,20,000
Now the NAV is 2, 20,000/10,000=22/-.
fund.
2. Life Protection:
The life insurance needs keep changing through the life stage of an individual.
When we start working
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When we start a family
When our children start a career
When we retire
This When mapped to life insurance needs gives us a graph:`Therefore as our responsibilities grow the need for life protection grows and when these
responsibilities are successfully executed the needs reduces.
ULIP allows a client to change the varying life protection needs that makes it.
Easier for the client to manage
Hassle free
Economically effective
The death benefit is usually a multiple of the contribution being paid which ensures that
the contribution is adequate enough to provide life protection and savings.
In a ULIP the client usually pays yearly mortality charges, which makes it more cost
effective for the clients.
The charges deducted each year as per the age client therefore at the age of 30, mortality
for the age of 30 is charged and at the age of 31 mortality for age of 31 is charged.
3. Transparency:
ULIP are completely transparent and the client knows as how every paisa being charges
is allocated.
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There are various kinds of expenses that are involved in any insurance plan. These
expenses may be related to the sales and distribution cost, or the operational costs, the
coasts related to the life insurance cover or the costs related to the management of
expenses. Since all unit-linked plans have a transparent structure, they have to exhibit all
the charges. It may be worthwhile to know about the various kind of expenses related to a
unit-linked plan.
The various kinds of expenses are detailed below
Contribution Related Charges
These are charges that are represented as a percentage of the regular or single
contribution paid. In case of regular contribution plan, it is usually high in the first year to
pay for the distribution cost. This charge pays for the issuance and for distribution
commissions.
This is a charge to cover the running expenses of the policy. For single contribution plans
this is levied once at the start of the policy. For regular contribution plans this will be
charged on a regular uniform basis depending upon the frequency of payments.
Normally these charges are shown as percentage of the contribution. Allocation is
another terminolology used by the company in actually representing costs.
Allocations mathematically reverse of the charges. Thus mathematically;
Allocation=1-Charges. Thus for example if a product has a 70% allocations in the first
year, it means 1-.07=0.3% or 30% charge.
Administrative Charges:
These are charge that are levied for the administration of the policy and the related costs
of administration of the insurance company itself. These costs are different from the
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issuance and the distribution related costs of the product. They are more related to their
costs like the IT, operational, etc cost of continuing the policy. There are few prominent
ways in which these costs are levied.
a) They can be levied as the percentage of the value of the investments (funds) in the
account of the policyholder. So for example, as Bajaj Allianz levy a charge of
1.25% of the fund for the administration of the policy, every year. These kinds of
charges get adjusted in the Unit Value (NAV), as the NAV is declared after
adjusting these costs.
b) They can be levied as flat charge with an option of increasing it by a certain
percentage over years. For example Birla levies a flat charge of Rs 28 per month
on its policy. HDFC SL unit linked plan levies Rs 180 annually as the
administration charges.
Fund management fee:
All unit linked plans have underlying funds, which the policyholders choose for their
investments. These funds constitute of various financial instruments such as equity,
bonds, and money market instruments.
These charges are expressed as a percentage of the Asset Under Management of the
insurance company. So for example, Birla in its creator fund charges 1.25% annually of
the AUM, HDFC charges 0.09% for its equity fund. Interesting thing to know here is the
factor on which the charges depend the main factor being the fund composition.
For example, the cost of managing a bond is lesser than the cost of managing equity.
Thus normally, the fund option, which has a higher percentage of equity, would have
higher charges comparatively to other funds.
Mortality charges:
This covers the cost of providing life protection for the insured and may be once at the
start of the policy or a recurrent manner (for example). This charges is levied to provide
the insurance cover under the plan.
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Normally these charges are 1-year charges and keep changing as per the age of the
policyholder.
These are the normally expressed as per thousand of the sum assured and depend on the
age of the policy holder. For example one would have the mortality charges as Rs 1.50
per thousand for 30 years old and Rs 1.55 for the age of 35 years. This means that cost of
insurance of Rs 1000 at the age of 30 is 1.50, where the same insurance cover cost Rs
1.55 at the age of 35 year
Rider charges: Rider charges are similar in nature to the mortality charges as they are levied to pay for
the other protection benefits that the policy holder has choose for critical illness benefits
or accident benefits.
Surrender charges: When policy holder decides to surrender the policy or partially withdrawals some of the
units for cash a surrender charges may be apply. Usually surrender charges apply only in
the first few years after the units are invested and are usually on a decreasing scale.
Surrender by charges are used to cover the initial expenses that have been incurred by the
company but not yet recovered by the policy holder
These charges can either be expressed as a percentage of the value of the investment or
as fixed flat charges, on the structure of the product.
Transaction Specific charges:
These charges are levied when the client dose some specific transaction like changing
funds, topping up the investment component or withdrawals.
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4) Extra protection: Riders provide more protection to the policyholder and ULIP allows addition of
rider, at nominal cost.
The common riders that are attachable are
1. Death due to accident
2. Disability
3. Critical illness
4. Surgeries
5) Liquidity: This facility makes the ULIP a very practical insurance in current time, most life
insurance plan do not provide the policy holder the facility of withdrawals money in case
the need arises.
Unit linked plan provide you easy access to your money as and when you may require.
One can redeem the units after a particular period of time as defined by the plan, as per
the need .ULIP allow either partial or complete withdrawal, without penalizing the
policyholder.
6) Tax Planning:
Insurance is a very important of financial planning. It not only provides you and your
family with a comforting sense of security but some plans like the term assurance plan
can be easy on your pocket too
Working of a Unit Linked Plan
A client puts in a regular contribution of Rs 20,000/-. From this amount a percentage
is deducted as a contribution.
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Insurance as an investment tool with regards to ULIP at ICICI LTD
Therefore if the contribution related expenses is 20% - Rs 4,000 will be deducted as a
contribution related charges.
The amount that is now available is Rs 20,000– 4,000= 16,000/-
Now, if the client who is aged 30 years were to a life cover of 5,00,000/-, then
mortality 91.50/- per thousand at the age of 30 charges of Rs 750/- will be deducted.
This amount will provide life cover to the policy holder. The remaing amount of Rs
15250/- will be invested in any of the underlying funds i,e debt, equity or mix of both
the two. The client can invest in any one of them or all of them.
The investment as showed in terms of units. Thus if the client invested in debt fund
and NAV of the debt fund is 16/- (Market Price) then the number units that the client
is 15250 / 16 = 953.125 for this investment – fund management fee will be charged
and for maintaining the policy and administrative charge is levied.
Flow Chart of a Unit linked plan
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Less 20%
20,000-4000=16000
16,000-750=15,250
for the age 30- mortality at 1.50
per thousand
15,250/- invested in debt fund
at a NAV of 16/-
953.1250units allocated
NAV of debt fund 16/- per unit
First and foremost, investors need to understand that a ULIP is a bundled product of their
investment of their investment and their insurance proceeds. So if you have a ULIP
invested in equities, you are exposing your life insurances monies as well as your
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ContributionContribution related
charges deducted
Mortality & Rider Charges deucted
The client invests resultant in funds as
chosen
Units allocated
Represented as NAV
Life Protection500,000
Investment in Funds
Debt / Equity or balanced
Insurance as an investment tool with regards to ULIP at ICICI LTD
investable surplus to the vagaries of equity markets. While it is fine and even sensible to
let your invest able assets get an equity flavors, the same cannot be said about your life
insurance monies, which to a large extent should be sacred. The volatility in equity
markets a can disturb the calmest of minds and the last thing you want to see is your nest
egg being eroded by the latest slide in equity markets. Abhishek Bhatia elaborates, ‘A
ULIP policyholder has the option to invest in a variety of funds, depending on his risk
profile. If one does not have the appetite to invest in equity, they can choose a debt or
balanced fund.’
However, the structure of a ULIP takes care of quite a bit of the uncertainty in the
markets. Insurance companies understand the need to give insurance – seekers the
flexibility to rethink their investment strategy in view of the market histrionics. There is
an option for the insurance – seeker to switch to another plan with a lower or zero equity
component to stem the loss in a falling equity market. The switch option allows
customers to switch between fund options, thereby making adjustments to any perceived
risks. ‘ICICI Pru allows policyholders to make this switch four times a year at no cost,
with Rs 100 at every additional switch after that. However, for investors to make the right
switch they need to track markets actively and well – informed, which is actually the job
of the investment advisor/consultant. SO IF INSURANCE –SEEKERS / INVESTORS
PLAY THEIR CARDS RIGHT, THEY CAN MAKE THIS MARRIAGE WORK.
Funds available in ICICI prudential
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Plan Plan objective Risk Investment pattern
Maximiser
(Growth)
High growth and capital
appreciation over a long
terms
High Equity and equity related
securities: Max 90%, Debt,
money market and cash :
Min 10%
Balancer
(balanced)
Balance of capital
appreciation and study
returns over a long terms
Average Equity and equity related
securities: Max 40%, Debt,
money market and cash :
Min 60%
Preserver Equal balance of capital
appreciation and study
returns over a long term
Low Debt instrument: Max 50%
Money market and cash
Min 50%
Protector
(Income)
Study returns over a long
term.
Moderate Debt instrument: Max
100%
Money market and cash
Max 25%
The various products under ULIPS that ICICI Pru offers
RETIREMENT SOLUTIONS
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Life expectancy has been rising rapidly and today, you can now expect to live much
longer than your earlier generations. For you, this increase will mean a longer
retirement life, stretching into couple of decades. So it is more critical than ever to
plan adequately and wisely for those incremental retirement years, keeping in mind
that your expenses will spiral upward, your cost of living will increase and inflation
will be ever present. Therefore, you need a plan that ensures safety, risk cover income
security and regular return for your post retirement year.
ICICI prudential life insurance Retirement solution that combine the best of
investment and insurance. The solution are developed to ensure your peace of mind
for the year to come. Solutions that give you power to maintain your lifestyle need, for
longer as you live.
Power you receive with retirement Solution
Power to choose retirement date
Power to increase your investments
Power to choose the protection level
Power to invest in a plan, based on your priority
Power to receive your pension
Life time pension: A regular premium
Life time pension is the new age retirement solution. It is a solution that provides the
policyholder with power to adapt as a life stage chance. It powers the policyholder to
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Insurance as an investment tool with regards to ULIP at ICICI LTD
plan for retirement, investment and protection. The flexibility to plan for your
retirement the way you want to is the crux of this plan.
The plan is a combination of Forever and life time. During the deferment period the
plan operate like Life time; enable the policyholder to create the best investment as
per personal risk and return profile. When policyholder desires to vest the plan, Life
time pension operate just like Forever Life.
Tax Benefits Tax Benefits u/s 80CCC(1) up to Rs 10,000/- deducted from your taxable and heath
rider have tax benefits under sec 80D.
Annuity once give is guaranteed and is taxable as per the current income tax
rules.
Communication and death claim where in the sum assured or purchase price is
paid, the amount is tax free.
Life Link Pension II A single premium plan This is the single premium market linked retirement solution. The plan combines the
facility of Life link and Forever life. This is oriented towards senior people who have
not planned for their retirement and would like to do so through a single premium. It is
also targeted towards people that have received a lump sum payment or have a lump
sum to invest, and would like to plan for their retirement with that money.
LIFE TIME PENSION II gives you the freedom to choose the amount of premium, and
invest in market – linked funds, to generate potentially higher returns. On the future
retirement date, the accumulated value of the units will be used to purchase an annuity –
to provide you with regular income for life.
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POWER TO CHOOSE THE PROTECTION LEVELChoose from either a Zero sum assured or a sum assured, which will be equal to the
product of your annual contribution and term.
POWER TO CHOOSE THE RETIREMENT DATETake advantage of market movements by choosing a vesting age between 45 – 75 years
of age.
POWER TO INCREASE YOUR INVESTMENTSUse your surplus funds to – up your investments during the deferment period.
POWER TO INVEST IN A PLAN BASED ON YOUR PRIORITIESChoose from among four funds, based on your investment objectives and risk appetite. If
at a later stage your financial priorities change, you can switch between the various fund
options, absolutely free, 4 times a year.
POWER TO INCREASE / DECREASE YOUR CONTRIBUTIONBased on your requirements, increase or decrease your contribution.
TAX BENEFITTax benefit u/s 80CCC(1)...up to Rs 10,000/- deducted from your taxable income and
health riders have tax benefit under sec 80 D.
Annuity once given is guaranteed and annuity taxable as per current
income tax rules.
Commutation and death claim wherein the sum assured or purchase price
is paid, the amount is tax – free.
ICICI LIFE LINK PENSION II
Life Link pension II gives you the freedom to choose the amount of premium, and invest
in market – linked funds, to generate potentially higher returns. On a future retirement
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date, the accumulated value of the units will be used to purchase an annuity that will
provide you with regular income for life.
POWER TO CHOOSE THE RETIREMENT DATE
Choose a vesting age between 45 – 75 years of age.
POWER TO INCREASE YOUR INVESTMENTS
Use your surplus funds to top – up your investments during the deferment period.
POWER TO INVEST IN A PLAN BASED ON YOUR PRIORITES
Choose from among four funds, based on your investment objective and risk appetite. If
at a later stage your financial priorities change, you can switch between the various fund
options, absolutely free, 4 times a year.
TAX BENEFIT
Tax benefit u/s 80CCC (1)..... up to Rs 10,000/- deducted from your taxable income and
health riders have tax benefit under sec 80 D.
Annuity once given is guaranteed and annuity is taxable as per the current
income tax rules.
Commutation and death claim wherein the sum assured or purchase price
is paid, the amount is tax – free.
CHILD PLANSAs a responsible parent, you will always strive to ensure a hassle – free, successful life
for your child. However, life is full of uncertainties and even the best – laid plans can go
wrong. Here’s how you can give your child a 1000% safe and assured tomorrow,
whatever the uncertainties. Smart Kid is especially designed to provide flexibility and
safeguard your child’s future education and lifestyle, taking all possibilities into accounts.
Choose from amongst a basket Of 3 Plans:
1) SMARTKID unit – linked regular premium
2) SMARTKID unit – linked regular premium II
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3) SMARTKID unit – linked single premium II
All these plans offer you:
FINANCIAL BENEFITSRegular payments at critical stages in your child’s life, like Board Examinations,
graduation and post – graduation.
TOTAL PEACE OF MIND, EVEN IF YOU ARE NOT AROUND
SUM ASSURED IS PAID IMMEDIATELY
Ensures that your loved ones stay financially secure, even in your absence.
ALL FUTURE PREMIUMS ARE WAIVED
Ensuring that your family is not financially burdened in your absence.
POLICY BENEFITS CONTINUE
The educational benefits of policy continue, ensuring that your child can realize his or her
dreams without any hassles.
DEVELOPMENT ALLOWANCE
Smartkid quarantines regular income to secure your child’s education career and also
ensure his or her all – round development, for a nominal additional amount. The income
rider takes care of this through an annual payment of 10% of sum assured, to your child,
till the maturity of the policy, in the unfortunate event of the death of the parent.
SAVING’S PLAN
LIFE TIME & LIFE TIME II
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Presenting Life Time & Life Time II – unit – linked plans that meet your changing needs
over a lifetime. These solutions have been developed to meet your savings, protection
and investment needs at every stage in life.
PROTECTION
* Choose specified level of protection (available only with Life Time).
* Two levels of Sum Assured to choose from (available only with Life Time II).
* Flexibility to increase or decrease your sum assured.
* Add – on riders to protect you against any eventuality.
SAVINGS
Flexibility to increase or decrease your contribution.
Facility of Premium Holiday, wherein the policy continues even if there is
temporary breaks in the payment of annual contribution (available only with Life
Time).
Facility of Automatic cover Continuance, wherein the policy continues even if there
is a temporary break in the payment of annual contribution (available only with Life
Time II).
Facility to top – up your investment any time you have surplus funds.
Additional allocation of units on a periodic basis.
Objectives:1) To know the factor that influence the investor while selecting the a ULIP.
2) To study customer awareness and preference towards the ULIP.
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3) To study the performance of the ULIP.
4) To know the reason for dissatisfaction among the investor.
5) To know the investment pattern of the people in terms of savings.
Research Design
Exploratory design:
In this project we are using explorative research design which help to gain the back
ground information about the ICICI prudential life insurance
Source of Data : Primary Data
Secondary Data
Primary Data Observation
Survey
Telephonic survey
Secondary Data
Internet
Business magazines
Research Methodology
We are using survey method to collect primary data. The followings are the details of our
survey.
Sample: 100 people as a respondents for survey who may represent the population of
Hubli city.
Sample Unit: Hubli
Sampling frame: customer data base
Sampling extent: Hubli city
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Insurance as an investment tool with regards to ULIP at ICICI LTD
Sampling procedure: Descriptive sampling
Management problem
“Difficult to convince the customer”
Research problemInsurance as an investment tool with regards to ULIP
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DATA ANALYSIS
Which of these are important while choosing the life insurance?
Frequency Percent Valid Percent
Cumulative Percent
Valid Investment 21 21.0 21.0 21.0
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Insurance as an investment tool with regards to ULIP at ICICI LTD
Security 19 19.0 19.0 40.0
Saving 8 8.0 8.0 48.0
Tax benefits 16 16.0 16.0 64.0
Return 22 22.0 22.0 86.0
Financial future need
14 14.0 14.0 100.0
Total 100 100.0 100.0
Analysis: Out of 100 respondent 21% of respondent said that Investment is the important while
choosing the insurance and 19% of respondent said that security is important and 8% of
respondent said saving is important while choosing the life insurance.16% of respondent said Tax
benefits is importent,22% and 14% of respondent are said that return and financial future need is
important while choosing the life insurance.
Rank the following based on your priority?
Return
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Frequency Percent Valid Percent
Cumulative Percent
Valid 2 2.0 2.0 2.0
Return 1 1 1.0 1.0 3.0
Return2 5 5.0 5.0 8.0
Return 3 12 12.0 12.0 20.0
Return 4 35 35.0 35.0 55.0
Return 5 45 45.0 45.0 100.0
Total 100 100.0 100.0
Analysis: out of 100 respondent 45% of respondent are give more priority to the returns
Security
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Frequency Percent Valid Percent
Cumulative Percent
Valid 2 2.0 2.0 2.0
Security 1 12 12.0 12.0 14.0
Security 2 22 22.0 22.0 36.0
Security 3 19 19.0 19.0 55.0
Security 4 19 19.0 19.0 74.0
Security 5 26 26.0 26.0 100.0
Total 100 100.0 100.0
Analysis: Out of 100 respondent 26% of respondents are give more priority to the Security.
Service
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Frequency Percent Valid Percent
Cumulative Percent
Valid 2 2.0 2.0 2.0
Service 1 31 31.0 31.0 33.0
service 2 33 33.0 33.0 66.0
service 3 25 25.0 25.0 91.0
service 4 8 8.0 8.0 99.0
service 5 1 1.0 1.0 100.0
Total 100 100.0 100.0
Insurance as an investment tool with regards to ULIP at ICICI LTD
Analysis: Out of 100 respondents 33% of respondent are give Less priority to the service.
Premium
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Frequency
Percent Valid Percent
Cumulative
Percent Valid 2 2.0 2.0 2.0
premium 1
57 57.0 57.0 59.0
premium 2
29 29.0 29.0 88.0
premium 3
10 10.0 10.0 98.0
premium 4
2 2.0 2.0 100.0
Total 100 100.0 100.0
Insurance as an investment tool with regards to ULIP at ICICI LTD
Analysis: Out of 100 respondent 57% of respondent are give less priority to the premium amount.
Tax benefits
Frequency Percent Valid Percent
Cumulative Percent
Valid 2 2.0 2.0 2.0Tax
benefits 11 1.0 1.0 3.0
Tax benefits 2
11 11.0 11.0 14.0
Tax benefits 3
31 31.0 31.0 45.0
Tax benefits 4
28 28.0 28.0 73.0
Tax benefits 5
27 27.0 27.0 100.0
Total 100 100.0 100.0
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Analysis: Out of 100 respondent 31% of respondent are give more priority to the tax benefits.
What Factor influence you to invest in the insurance plan?
Frequency Percent Valid Percent Cumulative Percent
Valid Savings 49 49.0 49.0 49.0
financial need 23 23.0 23.0 72.0
Tax benefits 27 27.0 27.0 99.0
Others 1 1.0 1.0 100.0
Total 100 100.0 100.0
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Insurance as an investment tool with regards to ULIP at ICICI LTD
Analysis: In 100 respondent 49% of respondent are said that savings influence for invest in the
insurance, and 23% of respondent are said future financial need influence for invest in the
insurance. Out of 100 respondent 27% of respondent said that Tax benefits influence them for
investing in the insurance and 1% of respondent said other factor influence them invest in the
insurance.
Are you aware ULIP in ICICI prudential life insurance?
Frequency Percent Valid Percent
Cumulative Percent
Valid Yes 80 80.0 80.0 80.0
No 20 20.0 20.0 100.0
Total 100 100.0 100.0
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Insurance as an investment tool with regards to ULIP at ICICI LTD
Analysis: Out of 100 respondent 80% of respondent are aware of ULIP in ICICI prudential, and
20% of respondent are unaware of ULIP in ICICI prudential.
Why prefer ULIP in ICICI prudential?
Frequency Percent Valid Percent
Cumulative Percent
Valid Returns 31 38.8 38.8 38.8
Safety 17 21.3 21.3 60.0
Risk Cover 19 23.8 23.8 83.8
Tax benefits 13 16.3 16.3 100.0
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Total 80 100.0 100.0
Analysis: Out of 80 respondent 39% of respondent said that they prefer ULIP for Return,21% of
respondent prefer for Safety purpose. 24% and 16% of respondent said that they prefer ULIP for
Risk cover and Tax benefits.
How did you come to know about the ULIP in ICICI prudential?
Frequency Percent Valid Percent
Cumulative Percent
Valid Friends 18 22.5 22.5 22.5
Advertisement 23 28.8 28.8 51.3
Advisor 14 17.5 17.5 68.8
News paper 15 18.8 18.8 87.5
Others 10 12.5 12.5 100.0
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Insurance as an investment tool with regards to ULIP at ICICI LTD
Total 80 100.0 100.0
Analysis: In 80 respondent 23% are know about the ULIP in ICICI through friends, 29% and 19%
of respondent are know about ULIP through Advertisement and News paper and 12% of
respondent are said that they know about the ULIP through other sources ,17% of respondent are
know through advisors.
Are you satisfied with the performance of the ULIP in ICICI prudential?
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Analysis: Out of 80 respondent 41% of respondent are said that the are Highly satisfied with the
performance of the ULIP in the ICICI.48% are responded that they are satisfied with the ULIP in
ICICI 9% are said moderate and 1% of respondent said dissatisfied with the ULIP performance
and another 1% of respondent said highly dissatisfied with the ULIP in ICICI prudential.
In which insurance plan would like to invest in ICICI prudential?
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Frequency Percent Valid Percent
Cumulative Percent
Valid Highly satisfied 33 41.3 41.3 41.3
Satisfied 38 47.5 47.5 88.8
Moderate 7 8.8 8.8 97.5
Dissatisfied 1 1.3 1.3 98.8
Highly Dissatisfied
1 1.3 1.3 100.0
Total 80 100.0 100.0
Insurance as an investment tool with regards to ULIP at ICICI LTD
Frequency Percent Valid Percent
Cumulative Percent
Valid Smart kid 34 42.5 42.5 42.5
Life time gold
16 20.0 20.0 62.5
Retirement Solution
30 37.5 37.5 100.0
Total 80 100.0 100.0
Analysis: In 80 respondent 42% of respondent are interested to invest in Smart kid for their
children’s and 20% are interested in life time gold for higher return, 38% of respondent are
interested to invest in retirement solution for future purpose.
Are you satisfied with the advisor service in ICICI prudential?
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Insurance as an investment tool with regards to ULIP at ICICI LTD
Frequency Percent Valid Percent
Cumulative Percent
Valid Excellent 14 17.5 17.5 17.5
Good 18 22.5 22.5 40.0
Average 32 40.0 40.0 80.0
Bad 13 16.3 16.3 96.3
vast 3 3.8 3.8 100.0
Total 80 100.0 100.0
Analysis: In 80 respondent 18% of respondent are said that advisor service is excellent,23% are
said good and 40% of respondent said advisor service is average. 16% and 3% of respondent
are said bad and vast.
Satisfaction level towards ULIP in ICICI prudential?
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Insurance as an investment tool with regards to ULIP at ICICI LTD
Frequency
Percent Valid Percent
Cumulative Percent
Valid Highly satisfied 19 23.8 23.8 23.8
Satisfied 38 47.5 47.5 71.3
Nether satisfied or Dissatisfied
18 22.5 22.5 93.8
Dissatisfied 4 5.0 5.0 98.8
Highly Dissatisfied 1 1.3 1.3 100.0
Total 80 100.0 100.0
Analysis: Out of 80 respondent 24% of respondent are highly satisfied with the ULIP in ICICI,
47% of respondent are satisfied with the ULIP in ICICI.23% of respondent are nether satisfied or
dissatisfied with the ULIP, 5% are highly dissatisfied with the ULIP in the ICICI and 1% of
respondent said highly dissatisfied with the ULIP in ICICI prudential.
Are you satisfied with the service provided by the ICICI prudential?
Babasabpatilfreepptmba.com Page 78
Insurance as an investment tool with regards to ULIP at ICICI LTD
Frequency Percent Valid Percent
Cumulative Percent
Valid Highly satisfied
16 20.0 20.0 20.0
Satisfied 9 11.3 11.3 31.3
Moderate 26 32.5 32.5 63.8
Dissatisfied 21 26.3 26.3 90.0
Highly Dissatisfied
8 10.0 10.0 100.0
Total 80 100.0 100.0
Analysis: Out of 80 respondent 20% of respondent are said that they are highly satisfied with the
service provided by the ICICI prudential,11% of respondent are satisfied with the service of ICICI
and 33% of respondent are moderate with the service of the ICICI. 26% and 10% of respondent
are said they are dissatisfied and highly dissatisfied with the ICICI prudential service.
In future would like invest in?
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Insurance as an investment tool with regards to ULIP at ICICI LTD
Frequency Percent Valid Percent
Cumulative Percent
Valid Insurance 45 45.0 45.0 45.0
Mutual fund 6 6.0 6.0 51.0
Equity 6 6.0 6.0 57.0
Share market
9 9.0 9.0 66.0
Investing in gold
3 3.0 3.0 69.0
Bank deposits
31 31.0 31.0 100.0
Total 100 100.0 100.0
Analysis: In 100 respondent 45% of respondent are said they invest money in future in
insurance and 6% of respondent are interested invest in mutual fund, and another 6% of
respondent are interested to invest in equity, 9%,3%,31% of respondent are interested to invest
in share market, investing in gold and bank deposits.
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What kind of investment you prefer?
Frequency Percent Valid Percent
Cumulative Percent
Valid High risk, High return 20 20.0 20.0 20.0
Medium risk, Medium return 46 46.0 46.0 66.0
Low risk, low return 34 34.0 34.0 100.0
Total100 100.0 100.0
Analysis: Out of 100 respondent 20% of respondent are prefer high risk, high return .And 46% of
respondent are prefer medium risk .medium return and 34% of respondent are prefer low risk and
low return.
.
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How much of money invested in above mentioned investment?
Frequency Percent Valid Percent
Cumulative Percent
Valid Less than 10,000 27 27.0 27.0 27.0
10,000-50,00045 45.0 45.0 72.0
50,000-1,00,00010 10.0 10.0 82.0
More than 1,00,000 18 18.0 18.0 100.0
Total100 100.0 100.0
Analysis: Out of 100 respondent 27% of respondent said less than 10000 amount of money
invested in above mentioned invesment.45% are 10000 to 50000 and 10% of respondent are
said they invest 50000 to 100000 in above mentioned investments. 18% of respondent are
invested more than 100000 in above mentioned investments.
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If you save 10000 per month how you divide your savings? Investment in mutual fund
Frequency
Percent Valid Percent
Cumulative Percent
Valid mutual fund 10% 42 42.0 50.6 50.6
mutual fund 20% 29 29.0 34.9 85.5
mutual fund30% 5 5.0 6.0 91.6
mutual fund 40% 3 3.0 3.6 95.2
mutual fund50% 3 3.0 3.6 98.8
mutual fund 60% 1 1.0 1.2 100.0
Total 83 83.0 100.0Missing System 17 17.0
Total 100 100.0
Analysis: Out of 100 respondent 42% of respondent are 10% of the savings will be
invested in mutual fund, and 29% of respondent are 20% of the saving swill be invested
in mutual fund, 5% of respondent are said they invest 30% in mutual fund. 3 and 3% of
respondent are interested to invest in mutual fund that is 40% and 50% and 1% of
respondent are interested 60% in mutual fund.
Investment in Equity
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Frequency
Percent Valid Percent
Cumulative Percent
Valid 19 19.0 19.0 19.0
Equity 10% 44 44.0 44.0 63.0
Equity20% 29 29.0 29.0 92.0
Equity 30% 3 3.0 3.0 95.0
Equity 40% 5 5.0 5.0 100.0
Total 100 100.0 100.0
Analysis: Out of 100 respondent 44% of respondent are interested to invest there savings
of 10% in equity and 29 of respondent are interested 20% in equity, 3% of respondent are
interested in equity, only 5% of respondent are interested 40% in equity.
Investment in fixed deposits
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Frequency
Percent Valid Percent
Cumulative
Percent Valid 17 17.0 17.0 17.0
F D 10% 2 2.0 2.0 19.0
F D 20% 10 10.0 10.0 29.0
F D 30% 7 7.0 7.0 36.0
F D 40% 14 14.0 14.0 50.0
F D 50% 15 15.0 15.0 65.0
F D 60% 19 19.0 19.0 84.0
FD 70% 16 16.0 16.0 100.0
Total 100 100.0 100.0
Analysis: out of 100 respondent 2% of respondent are interested invest 10% in fixed
deposits, and 10% of respondent are interested invest 20% in fixed deposits, 7% of
respondent are interested invest in 30% in fixed deposits, 14% , 15%, 19%, 16% of
respondent are interested in invest that is 40%, 50%,60% ,70%.
Investment in Share market
Frequency Percent Valid Cumulative
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Percent Percent Valid 17 17.0 17.0 17.0
share market 10%
38 38.0 38.0 55.0
share market 20%
26 26.0 26.0 81.0
share market 30%
10 10.0 10.0 91.0
share market 40%
3 3.0 3.0 94.0
share market 50%
2 2.0 2.0 96.0
share market 60%
4 4.0 4.0 100.0
Total 100 100.0 100.0
Analysis: Out of 100 respondent 38% of respondent are interested 10% of there savings
in share market, and 26% of respondent are interested 20% in share market, 10% of
respondent are interested in share market that is 30%.And 3%, 2%, 4% of respondent are
interested to invest 40%. 50% , and 60% of there savings in share market.
Findings
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1) 80% of respondent are aware about the ULIP and 20% of respondent are unaware
about the ULIP in ICICI prudential.
2) 41% of the respondent are highly satisfied with the performance of the ULIP,
47% of the respondent are satisfied with performance, 8% of respondent are
moderate with the performance 1%of respondent are dissatisfied, and another 1%
of respondent are highly dissatisfied with the performance of ULIP
3) 17% respondent are said advisor service is Excellence, and 22%of respondent are
said good, 40% of respondent are said average , 16% and 3% of respondent are
said bad and vast.
4) 23% respondent are highly satisfied with the ULIP, and 47% of respondent are
Satisfied with the ULIP, 22% respondent are moderate with the ULIP, 5% and
1% of respondent are dissatisfied and highly dissatisfied with ULIP.
5) 20% of respondent are highly satisfied with the service provided by the ICICI
Prudential,11% of respondent are satisfied with the service of the ICICI
prudential, 32 % of respondent are moderate with the service and 26% and 10%of
respondent are highly dissatisfied and highly dissatisfied with the service of the
ICICI prudential.
6) Out of 80 respondent 43% of respondent are interested to invest in the smart kid,
and 20% of respondent are interested in life time gold remaining 38% of
respondent are interested in retirement plans in ICICI prudential. 7) 49% of respondent are prefer ICICI for savings and 23% of respondent are prefer
for future financial need, 27% of respondent are prefer for tax benefits and 1% are
prefer for other purpose
Suggestions
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The management should introduce more plans of Retirement policy because many
of them are salaried & Business Men to cover the un tapped market.
Management has large scope for Child plans. As we have seen earlier in the
purpose of savings table that most of the people invest their savings in Education
& Most of the business men invest in insurance for the tax purpose also. So the
management concentrate on these plans for attract the customer.
Management should use Newspaper as one of source of creating aware &
motivate it’s advisor to create awareness
Respondent are dissatisfied with the service of the advisor in the ICICI prudential,
so Company take step to improve the service of the advisor and the company
should concentrate more on the communication of the advisor.
Management has to conduct Awareness program to create awareness among
another 20% available customers can be tapped by expanding its Business.
BIPLIOGRAPHY
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1) Brochures
2) Intranet
4) Internet
WWW .iciciprulife.com
WWW .google.com
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ANNEXURE
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Questionnaire
1) Name: _________________________________________________
2) Age :
3) Gender: Male Female
4) Occupation: Business man Professional
Student Others__________________
5) Annual Income: Below & 1,00,000 1,00,000 – 2,00,000
3,00,000 – 4,00,000 5,00,000 & Above
6) Address:_______________________________________________________
_______________________________________________________
_______________________________________________________
7) Contact number: _______________________________
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8) Which of these are important while choosing the life insurance?
Investment Security Savings
Tax Benefits Returns Financial future need
9) Rank the following based on your priority?
(1 is less priority) ( 5 is more priority)
Returns
Security
Service
Premium
10) What factor influences you to invest in the insurance plan?
Savings personal financial
Need
Tax benefits if others specify____________
11) Are you aware of ULIP in ICICI prudential life insurance?
Yes No
If no go to question number 19
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12) Why you prefer ULIP in ICICI prudential?
Returns Safety
Risk cover Tax benefits
13) How did you come to know about the ULIP in ICICI prudential?
Friends Advertisement
Advisor News paper
Others
14) Are you satisfied with the performance of the ULIP in ICICI prudential?
_______________________________________________________________
Highly Satisfied Moderate Dissatisfied Highly
Satisfied Dissatisfied
15) In which insurance plan would like to invest in ICICI prudential?
Smart kid Life time Gold
Retirement solution if other specify_________
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16) Are you satisfied with the advisor service in ICICI prudential?
_______________________________________________________________
Excellent Good Average Bad vast
17) Satisfied level towards ULIP s in ICICI prudential?
_______________________________________________________________
Highly Satisfied nether satisfied Dissatisfied Highly
Satisfied or dissatisfied Satisfied
18) Are you satisfied with the service provided by the ICICI prudential?
______________________________________________________________
Highly Satisfied Moderate Dissatisfied Highly
Satisfied Dissatisfied
19) In future you would like to invest in?
Insurance Mutual fund Equity
Share market Investing in gold Bank Deposits
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20) What kind of investment you prefer?
High risk High return
Medium Risk Medium Return
Low risk Low Return
21) How much of money invested in above mentioned investments?
Less than 10,000
10,000-50,000
50,000-1,00,000
More than 1,00,000
22) If you save 10,000 per month how you divide your savings?( In percentage)
Mutual fund
Insurance
Equity
Fixed Deposits
Share market
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