Project Report Smu Window

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SUMMER TRAINING PROJECTREPORT

ON

Comparative study of different life insurance

policies of TATA AIA with different major

Operation player in Lucknow .

SUBMITED IN PARTIAL FULFILLMENT OF MASTERS DEGREE OF

BUSINESS ADMINISTRATION FROM Sikkim Manipal University

Companys Guide Faculty GuideMR. Payre PRIYE Mr. Santosh Kumar Mishra

BRANCH OPRATION INCHARGE

TATA AIA LIFE INSURANCE CO.LTD

Ratan Squaier Lucknow

SUBMITTED BY: OMKAR SHUKLAM.B.A 4TH SEM


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ACKNOWLEDGEMENT

I sincerely thank TATA AIA Life Insurance for providing me with an opportunity

to pursue my internship at their organization. I extend my thanks to my guide Mr.

Payre priye Branch Operation Incharge at TATA AIA Life Insurance and other

members of the Division, TATA AIA Life Insurance, Lucknow for providing me

the necessary guidance.

That project was a great experience for me. As is made aware of professional

culture that exists in an organization, about the Operation, qualities required work

and how to deal with the customers. I am extremely thankful to our respected

faculty Guide Mr. Santosh Kumar Mishra SMU HAZARATGANJ LUCKNOW

for giving me there wholehearted support, guidance and encouragement to me at

every step of this project. There valuable suggestions and advices have been a

constant source of inspiration to me in completing this project.

Omkar Shukla student ofSikkim Manipal university, hereby declare that the summer

training project report having the title comparison of Operations Work And ULIP &

Traditional Insurance plan & policies of TATA AIA vis--vis competitors is the


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outcome of my own work and the same has not been submitted to any other

University/College/Institution for the award of any Degree/Diploma/Certificate for any

professional course.

PREFACE

EXECUTIVE SUMMARY

CHAPTER INTRODUCTION TO INSURANCE

INTRODUCTION

FUNCTION OF LIFE INSURANCE

LIFE INSURANCE

ROLE OF INSURANCE

IMPORTANT OF INSURANCE

INSURANCE CYCLE

CHAPTER INTRODUCTION TO INDIAN INSURANCE

INDUSTRY

INDIAN INSURANCE INDUSTRY

A BRIEF HISTORY OF INSURANCE SECTOR

HOW BIG INSURANCE MARKET IS

INDIAN SCENERIO

CHAPTER INTRODUCTION OF TATA AIA

TATA GROUP

TATA GROUP IN INSURANCE

AIA

THE JOINT VENTURE

ABOUT THE TATA AIA

ORGANIZATION OF TATA AIA


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CHAPTER INTRODUCTION TO THE RESEARCH STUDY

POLICIES OF TATA AIA

CHAPTER OPRATION PLAYER

ABOUT INSURANCE COMPANYCUSTUMER SERVIES

CHAPTER 5 RECOMMENDATION & BENEFIT

RECOMMENDATION TO THE COMPANY

BENEFITS TO THE COMPANY AND US

CHAPTER 6 CONCLUSION & REFRENCE

CONCLUSION

REFERENCE


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PREFACE

The liberalization of the Indian insurance sector has been the subject of much

heated debate for some years. The policy makers wherein the catch 22

situations where in for one they wanted competition ,development and growth

of this insurance sector which is extremely essential for channeling the

investment into the infrastructure sector. At the other end of the policy makers

had the fear that the insurance premium, which is substantial, would seek out

of the country; and wanted to have a cautious approach of opening for foreign

participation in the sector.

Whether the insurer is old or new, private or public, expanding the market will

present multitude of challenges and opportunities, but the key issues, possible

trends, opportunities and challenges that insurance sector will have still

remains under the realms of the possibilities and speculation.

The large scale of operations, public sector bureaucracies and cumbersome

hampers nationalized insurers. Therefore potential private entrants expect to

score in areas of customer service, speed and flexibility.

Since insurance is a volume game. Therefore, private insurer would be best

serve by a middle market approach, targeting customer segments that are

currently untapped


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EXECUTIVE SUMMERY


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TOPIC: Comparativestudy of different life insurance policies of TATA AIA withdifferent major operation player in Lucknow.

EXECUTIVE SUMMARY

About Tata AIA Life-

This project has been a great learning experience for me; at the same time it gave me enough

scope to implement my analytical ability. Tata Group is one of the India's largest and most

respected business groups. Tata Group's name is synonymous with India's industrialization.

Tata AIA Insurance Solutions is one of the leading insurance companies that provide both life

insurance as well as general insurance. This pioneer company is a joint collaboration betweenthe, Inc. (AIA) and Tata Group. They own the company in the ratio of 26:74. It is a leading

financial institution that has carved a niche for itself all over the world. Tata AIA Insurance

Company is having different insurance policies. At the end of the project people will be

knowledgeable about various insurance organizations and different products taking into

considerations hundred sample sizes in Lucknow city. Project is on the market potential study

of Tata AIA Insurance Company in Lucknow city. To get to know a questionnaire has been

prepared which contains open ended and close ended questions. Firstly pilot study has been

done through hundred questionnaires. For collecting the data field survey method, personal

interview technique has been used. Secondary data has been collected from the company. The

data collected are represented into suitable tabular forms for drawing inferences. Quantitative

techniques like averages, percentages, range, two-way tables, chi- square tests analysis has

been applied as per the requirement. The level of preference, perception of the customers about

the product and company were identified by means of a scoring scheme. For the representation

of data various charts and graphs are used as per requirement. .

Tata Group-

The Tata group comprises over 100 operating companies in seven business sectors:

communications and information technology, engineering, materials, services, energy,

consumer products and chemicals. The group has operations in more than 80 countries across

six continents, and its companies export products and services to 85 countries.


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The total revenue of Tata companies, taken together, was $100.09 billion (around Rs. 475, 721

crore) in 2011-12, with 58 percent of this coming from business outside India. Tata companies

employ over 450,000 people worldwide. The Tata name has been respected in India for more

than 140 years for its adherence to strong values and business ethics.

Every Tata company or enterprise operates independently. Each of these companies has its

own board of directors and shareholders, to whom it is answerable. There are 32 publicly listed

Tata enterprises and they have a combined market capitalisation of about $92.74 billion (as on

February 21, 2013), and a shareholder base of 3.8 million. The major Tata companies are Tata

Steel, Tata Motors, Tata Consultancy Services (TCS), Tata Power, Tata Chemicals, Tata

Global Beverages, Tata Teleservices, Titan, Tata Communications and Indian Hotels.

AIA-

AIA Group Limited and its subsidiaries (collectively "AIA" or "the Group") comprise the

largest independent publicly listed pan-Asian life insurance group. It has operations in 16

markets in Asia Pacific wholly owned branches and subsidiaries in Hong Kong, Thailand,

Singapore, Malaysia, China, Korea, the Philippines, Australia, Indonesia, Taiwan, Vietnam,

New Zealand, Macau, Brunei, a 92 per cent subsidiary in Sri Lanka and a 26 per cent joint-

venture in India.

The business that is now AIA was first established in Shanghai over 90 years ago. It is a

market leader in the Asia Pacific region (ex-Japan) based on life insurancepremiums and holds

leading positions across the majority of its markets. It had total assets of US$119, 494 million

as of 31 May 2012.

AIA meets the savings and protection needs of individuals by offering a range of products and

services including retirement savings plans, life insurance and accident and health insurance.

The Group also provides employee benefits, credit life and pension services to corporate

clients. Through an extensive network of agents and employees across Asia Pacific, AIA

serves the holders of more than 24 million individual policies and over 10 million participating

members of group insurance schemes.


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AIA Group Limited is listed on the Main Board of The Stock Exchange of Hong Kong Limited

under the stock code "1299" with American Depositary Receipts (Level 1) traded on the over-

the-counter market (ticker symbol: "AAGIY").

Our Distributors-

1-Agents

2-Details of all our active advisors

3-Corporate Agents

Details of all our advisors with whom the contracts have been severed due to reasons of

indiscipline

OBJECTIVE:

To find the major Operation player of life insurance policies in Lucknow city.

Sub objective:

To study the features of different life insurance policies of TATA AIA.

To compare the different insurance plans of TATA AIA.

To compare the TATA AIA plans and other market player

RESEARCH METHODOLOGY

RESEARCH STATEMENT: This research is mainly focused on the comparison

between life insurance policies of TATA AIA. According to customer preferences.

My research is based on primary & secondary data in Lucknow region only

1. Field survey method

2. Operations survey method


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3. Secondary sources viz company database

The data collected are represented into suitable tabular forms for drawing inferences

TYPE OF RESEARCH

The type of research is Exploratory Research because its not a very new issue. A lot of

work already had been done in this regard.

DATA COLLECTION

Primary Data . Questionnaire

Secondary data-

1) Websites

2) Magazines

3) Journals

4) Books

5) Newspapers

Universe- The type of universe selected in Lucknow city.

Sample of study- Sample of the persons of Lucknow City.

Sample size 50 PERSONS

Sample Area: Lucknow city

Sampling unit - Sampling unit in the research project is mobile customers, dealers,

teleshop keepers.


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ANALYTICAL TOOLS USED

I will used Tabulation, Statistical tools, Graphs & Charts in my project.

FINDINGS :

According to analysis many people do not have insurance policy and out of hundred only

forty seven people have bought the policy.

Twenty seven people would like to invest in mutual fund rather than investing in fixed

deposit or insurance policy. Out of hundred people out of many companies twenty four

people have policies in Tata AIA.

SUGGESTIONS:

As I have done my training in Tata AIA there I found that may be their policy are

beneficial for the people but they are not letting people aware for them as they provide

very less advertisements. They do not have large market to capture because of it.

CONCLUSION:

Insurance sector is likely to register unprecedented growth of 200% and attain a size of

Rs2000 billion by 2009-2010 in which a private sector insurance business

Will achieve a growth rate of 140% as a result of aggressive marketing technique being

adopted by them against 35-40% growth rate of state owned insurance companies. The

private sectors insurance players have started exploring the rural markets in which until

recently, the state owned companies had the monopoly.

.


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CHAPTER 1

INTRODUCTION TO INSURANCE

1.1. INTRODUCTION

"Insurance is a contract between two parties whereby one party called insurer undertakes in

exchange for a fixed sum called premiums, to pay the other party called insured a fixed amount

of money on the happening of a certain event." Insurance may be described as a social device

to reduce or eliminate risk of life and property. Under the plan of insurance, a large number of

people associate themselves by sharing risk, attached to individual. With the help of Insurance,

large number of people exposed to a similar risk makes contributions to a common fund out of

which the losses suffered by the unfortunate few, due to accidental events, are made good.

Insurance is a tool by which fatalities of a small number are compensated out of funds

collected from plenteous. Gradually as competition increased benefits given by industry to its

customers increased by leaps and bounds. Insurance is a basic form of risk management which

provides protection against possible loss to life or physical assets. Person who seeks protection

against such loss is termed as insured, and company that promises to honor claim, in case such

loss is actually incurred by insured, is termed as Insurer. In order to get insurance, insured is

required to pay to insurance company a certain amount called premium. Premium is collected

by insurance companies which acts as trustee to pool created through contributions made by

persons seeking to protect themselves from common risk. Any loss to the insured in case of

happening of an uncertain event is paid out of this pool. Insurance business is divided into four

classes:

Life Insurance

Fire

Marine

Miscellaneous Insurance.

Insurance provides:


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Protection to investor.

Accumulation of savings.

Channeling these savings into sectors needing huge long term investment.

1.2. FUNCTION OF INSURANCE:

Provide protection: The primary function of insurance is to provide protection against future

risk, accidents and uncertainty. Insurance cannot check the happening of the risk, but can

certainly provide for the losses of risk. Insurance is actually a protection against economic loss,

by sharing the risk with others.

Collective bearing of risk: Insurance is an instrument to share the financial loss of few

among many others. Insurance is a mean by which few losses are shared among larger number

of people. All the insured contribute the premiums towards a fund and out of which the persons

exposed to a particular risk is paid.

Assessment of risk: Insurance determines the probable volume of risk by evaluating various

factors that give rise to risk. Risk is the basis for determining the premium rate also.

Provide certainty: Insurance is a device, which helps to change from uncertainty to certainty.

Insurance is device whereby the uncertain risks may be made more certain.

Small capital to cover larger risk: Insurance relieves the businessmen from security

investments, by paying small amount of premium against larger risks and uncertainty.

Contributes towards the development of industries: Insurance provides development

opportunity to those larger industries having more risks in their setting up. Even the financial

institutions may be prepared to give credit to sick industrial units which have insured their

assets including plant and machinery.Means of savings and investment: Insurance serves as savings and investment, insurance is a

compulsory way of savings and it restricts the unnecessary expenses by the insured's For the

purpose of availing income-tax exemptions also, people invest in insurance.

Source of earning foreign exchange: Insurance is an international business. The country can

earn foreign exchange by way of issue of marine insurance policies and various other ways.


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Risk free trade: Insurance promotes exports insurance, which makes the foreign trade risk

free with the help of different types of policies under marine insurance cover.

1.3. LIFE INSURANCE:

Life insurance is a contract under which the insurer (Insurance Company) in Consideration of

a premium paid undertakes to pay a fixed sum of money on The death of the insured or on the

expiry of a specified period of time Whichever is earlier. In case of life insurance, the payment

for life insurance policy is certain. The Event insured against is sure to happen only the time of

its happening is not known. So life insurance is known as Life Assurance. The subject matter

of

insurance is life of human being. Life insurance provides risk coverage to the life of a person.

On death of the person insurance offers protection against loss of income and compensate the

titleholders of the policy.

1.4. ROLES OF THE LIFE INSURANCE:

Life insurance as an investment: -

Insurance products yield more than any other investment instruments and it also provides

added incentives or bonus offered by insurance companies.

Life insurance as risk cover: -


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Insurance is all about risk cover and protection of life. Insurance provides a unique sense of

security that no other form of invest can provide.

Life insurance as tax planning: -

Insurance serves as an excellent tax saving mechanism

1.5. IMPORTANCE OF THE LIFE INSURANCE:

Protection against untimely death: -

Life insurance provides protection to the dependents of the life insured and the family of the

assured in case of his untimely death. The dependents or family members get a fixed sum of

money in case of death of the assured.

Saving for old age: -

After retirement the earning capacity of a person reduces. Life insurance enables a person to

enjoy peace of mind and a sense of security in his/her old age.

Promotion of savings: -

Life insurance encourages people to save money compulsorily. When life policy is taken, the

assured is to pay premiums regularly to keep the policy in force and he cannot get back the

premiums, only surrender value can be returned to him. In case of surrender of policy, the

policyholder gets the surrendered value only after the expiry of duration of the policy.

Initiates investments: -

Life Insurance Corporation encourages and mobilizes the public savings and canalizes the

same in various investments for the economic development of the country. Life insurance is an

important tool for the mobilization and investment of small savings.

Credit worthiness: -

Life insurance policy can be used as a security to raise loans. It improves the credit worthiness

of business.

Social Security: -

Life insurance is important for the society as a whole also. Life insurance enables a person to

provide for education and marriage of children and for construction of house. It helps a person

to make financial base for future.


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Tax Benefit: -

Under the Income Tax Act, premium paid is allowed as a deduction from the total income

under section 80C.

1.6. INSURANCE CYCLE:

Policy Renewal/Change Options/Application:-

The Insurance Cycle begins each year with the insurance offer. Actuarial documents are

published annually by the Risk Management Agency (RMA). The actuarial documents list the

plan of insurance, crop, type, variety, and practice that may be insured in a state and county,

and show the amounts of insurance, available insurance options, levels of coverage, price

elections, applicable premium rates, and subsidy amounts. The Special Provisions of Insurance

list program calendar dates, and general and special statements which may further define, limit,

or modify coverage.

Sales Closing/Cancellation/Termination Dates:-

Insurance applications must be completed and signed no later than the sales closing date

specified in the crop actuarial documents. Applications signed after the crop sales closing date

may be rejected by the insurance provider.

Insurance coverage is continuous and can be cancelled by either the insurance provider or the

policyholder for the following crop year by providing a written notice to the other party no


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later than the cancellation date specified in the crop policy. For a policyholder insured the

previous crop year, any changes he or she wishes to make to the policy coverage must be made

on or before the crop sales closing date. The policy will automatically renew for the subsequent

crop year unless the policyholder cancels the policy in writing on or before the crop

cancellation date. Insurance coverage may be terminated by the insurance provider for the

following crop year for nonpayment of outstanding debt by providing a written notice to the

policyholder no later than the termination date specified in the crop policy. The insurance

provider may terminate coverage on a crop if no premium is earned for three consecutive

years.

Acceptance:-

Upon receipt of a properly completed and timely submitted insurance application, the

insurance provider will accept and process the application, unless the applicant is determined

to be ineligible under the contract or Federal statute or regulation. The insurance provider will

issue a summary of coverage and the appropriate policy documents to the applicant. After the

application is accepted, the policyholder may not cancel the policy for the initial crop year.

Insurance Attaches: -

For annual crops, insurance attaches annually when planting begins on the insurance unit. The

crop must be planted on or before the crop's published final planting date unless late or

prevented planting provisions apply. If prevented planting provisions apply, and the crop

cannot be timely planted due to the causes specified in the crop provisions, such acreage may

be eligible for a prevented planting payment.

Acreage Reports:-

The policyholder must annually report for each insured crop in the county the number of

insurable and uninsurable acres planted or prevented from being planted if prevented planting

is available for the crop, the date the acreage was planted, share in the crop, the acreage

location, farming practices used, and types or varieties planted to the insurance provider on or

before the applicable acreage reporting date specified in the crop actuarial documents.

Summary of Coverage:-

The insurance provider will process a properly completed and timely filed acreage report, and

issue to the policyholder a summary of coverage that specifies the insured crop, the insured


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acres and amount of insurance or guarantee for each insurance unit. The policyholder may

make changes to the filed acreage report, if permitted by the insurance provider.

Premium Billing:-

The annual premium is earned and payable at the time insurance coverage begins. The

insurance provider shall issue a premium billing based upon the information contained in the

acreage report no earlier than the premium billing date specified in the crop actuarial

documents. The premium billing will specify the amount of premium and any administrative

fees that may be due. If the premium or administrative fees are not paid by the date specified in

the actuarial documents or policy, the insurance provider may assess interest on the

outstanding premium balance.

Notice of Damage or Loss: -

A written notice of damage or loss for each unit is to be filed by the policyholder within 72

hours of the policyholder's initial discovery of damage or loss but not later than 15 days after

the calendar date for the end of the insurance period unless otherwise stated in the individual

crop policy. The policyholder should refer to the individual crop provisions for additional

requirements in the event of damage or loss. These notifications provide the opportunity for the

insurance provider to inspect the crop and determine the extent of damage or potential

production before the crop is harvested or otherwise disposed of.

Inspection:-

After the insurance provider receives the written notice of damage or loss, it will be processed

and, if necessary, a loss adjuster will be sent to inspect the damaged crop and gather pertinent

information concerning the damage. If the policyholder wishes to destroy or not harvest the

crop,the loss adjuster will gather the appropriate information, conduct an appraisal to establish

the crop's remaining value and complete any forms needed. If the crop has been harvested or

will not be harvested by the end of the insurance period, and the policyholder wishes to file a

claim for indemnity, the loss adjuster will gather the appropriate information and assist the

policyholder in filing the claim for indemnity. It is the policyholder's responsibility to establish

the time, location, cause, and amount of any loss.

Indemnity Claim:-


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After the claim for indemnity is processed by the insurance provider, an indemnity check and a

summary of indemnity payment will be issued showing any deductions to the amount of

indemnity for outstanding premium, interest, or administrative fees.

Contract Change Date:-

Changes to the insurance program may be made by RMA from one year to the next. The

insurance provider will notify the policyholder in writing of any changes to the policy,

actuarial documents, or the Special Provisions of Insurance prior to the calendar date for

contract changes specified in the crop policy. The policyholder will have the opportunity to

review the changes and, if he/she desires, continue the insurance coverage for the following

crop year, change the policy coverage, or cancel the insurance coverage. Any changes to the

policy coverage that the policyholder makes must be made no later than the crop sales closing

date. If the policyholder wishes to cancel the policy, a written notice must be submitted to the

insurance provider on or before the crop cancellation date.

History of insurance:

Insurance began as a way of reducing the risk of traders, as early as 5000 BC

and 4500 BC in. Life insurance dates only to ancient Rome; "burial clubs" covered the

cost of members' funeral expenses and helped survivors monetarily. Modern life

insurance started in late 17th century, originally as insurance for traders: merchants, ship

owners and underwriters met to discuss deals at Lloyd's Coffee House, predecessor to the

famous.

The first insurance company was formed in 1732, but it provided only fire insurance. The

sale of life insurance in the U.S. began in the late 1760s. The Synods in and created the

Corporation for Relief of Poor and Distressed Widows and Children of Presbyterian

Ministers in 1759; Episcopalian priests organized a similar fund in 1769. Between 1787

and 1837 more than two dozen life insurance companies were started, but fewer than half

a dozen survived. Prior to, many insurance companies in the United States for their


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owners, in response to bills passed in 2001 and in 2003, the companies have been

required to search their records for such policies for example reported that Nautilus sold

485slaveholder life insurance policies during a two-year period in the 1840s; they added

that their trustees voted to end the sale of such policies 15 years before the.

General information:

Human have always sought securities. This quest for security was an important

motivating force in the earliest formation of families, clans, tribes, and other groups.

Indeed, groups have been the primary source both emotional and physical security since

the beginning of humankind. They ensured a less volatile source of life necessities then

that which ensures isolated human & families could provide and help their less fortunate

members in the time of crises.

Human today continue their quest to achieve security and reduce risk uncertainty.

We still rely on group for financial stability. The group may be our employer, the

government, or an insurance company, but concept is the same. In some ways however,

we today are more vulnerable that our ancestors. The physical and economical securities

formerly provided by the tribes or extended family diminished with industrialization. Our

income dependent, wealth acquiring lifestyle renders and our families more vulnerable to

environment and societal changes over which we have no control.

Humans are exposed to many serious perils, such as property loss from fire or

windstorm, and personal losses from incapacity and death. All through individual cannot


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predict or completely prevent such occurrences, they can provide for their financial

effects.

Encyclopedia of finance and banking defines insurance as the elimination of or

protection against risk amenable to actual calculation, voidance or reduction of losses

occurring through misfortunes such as death, fire, accident, tornado, shipwreck, etc.

insurance is a contact between an insurer and insured where by the insurer identifies the

insured against loss due to specific risks such as from fire, storm and death. Insurance

contracts require an agreement, considerations, capacity, legality, compliance with the

status of frauds and delivery. Insurance is an integral part of most enterprises, risk

management program. Insurance does not prevent losses, it substitutes a small certain

loss (premium) for a possible or contingent large loss. The insured is indemnified for the

amount of loss, for the insured amount, or for the face of his policy, in return for payment

of periodic premiums.

The principle kinds of insurance are as follows:

Life-term, ordinary, endowment, limited payment, group industrial and annuities,

with a variety of combinations of the four basic forms.

Fire & marine-fire, ocean marine, motor vehicle, inland navigation, and

transportation, tornado and windstorm, sprinkler leakage, earthquake, riot and

civil commotion, explosion rain, hale, flood, aircraft, etc.

Causality and surety -automobile liability, liability other than automobile workers,

compensation, fidelity and surety, burglary and theft, automobile property

damage, accident in health, steam boiler, machinery, plate glass, etc.


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All mutual and legal reserves life insurance companies provide for a participation in

dividends by all policy holders. In this way the cost of insurance to the insured is

reduced.

Four classes of insurance business:

Life insurance

Fire insurance

Marine insurance

Miscellaneous insurance.

CHAPTER 2

Brief history of insurance sector in India:

The insurance sector in India has come full circle from being open competitive

market to nationalization and back to liberalized market again. Tracing the developments

in India, insurance sector reveals the 360-degree turn witnessed over a period of almost

two centuries.

1818 Oriental insurance company was established.

1870 Bombay Mutual Life Assurance Society, the first Indian life insurance

company started its business.

1912 Indian life insurance companies act as the first statute to regulate the life

insurance business


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1928 The Indian insurance companies act enacted to enable the government to

collect statistical information about both life and non life insurance business.

1938 Earlier legislation consol dated and amended to by the insurance act with

the objective of protecting the interest of insuring public.

1956 245 Indian and foreign insurers and provident societies taken over by the

central government were nationalized.

Insurance sector reforms:

In 1993 Malhotra committee, headed by former finance secretary and RBI

governor R N Malhotra was formed to evaluate the Indian insurance industry and

recommended its future direct on. The Malhotra committee was set up with the objective

of complimenting the reforms initiated in the financial sector. Recommendation included

in the report submitted by the committee

Structure:

Government stake in the insurance companies to brought down to 50%

Government should takeover the wordings of GIC and its subsidiaries, so that

these subsidiaries can act as independent companies.

All the insurance companies should be given greater freedom to operate.

Competition:

Private companies with minimum paid up capital of Rs. 1 billion should be

allowed to enter the industry; no company should deal in both life and general

insurance through single entity.

Foreign companies may be allowed to enter the industry collaboration with

domestic companies.


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Postal life insurance should be allowed to operate in rural areas

Only one state level life insurance company should be allowed to operate in each

state.

Regulatory body:

The insurance act should be changed

An insurance regulatory body should be set up.

Life insurers transact life insurance business; general insurers transact the rest. No

companies are permitted as per law.

Legislation (as on 1-4-2000):

Insurance is a federal subject in India; the primary legislation that deals with

insurance business in India is;

Insurance Act, 1938 and Insurance Regulatory & Development Authority Act,

1999

Fire and miscellaneous insurance business are predominant motor and vehicle

insurance is compulsory.

Tariff Advisory Committee (TAC) lays down tariff rates for some of the general

insurance products.

2.1. INDIAN INSURANCE INDUSTRY

The Insurance sector in India governed by Insurance Act, 1938, the Life Insurance

Corporation Act, 1956 and General Insurance Business (Nationalization) Act, 1972, Insurance

Regulatory and Development Authority (IRDA) Act, 1999 and other related Acts. With such a

large population and the untapped market area of this population Insurance happens to be a


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very big opportunity in India. Today it stands as a business growing at the rate of 15-20 per

cent annually. Together with banking services, it adds about 7 per cent to the countrys GDP

.In spite of all this growth the statistics of the penetration of the insurance in the country is very

poor. Nearly 80% of Indian populations are without Life insurance cover and the Health

insurance. This is an indicator that growth potential for the insurance sector is immense in

India. It was due to this immense growth that the regulations were introduced in the insurance

sector and in continuation Malhotra Committee was constituted by the government in 1993

to examine the various aspects of the industry. The key element of the reform process was

Participation of overseas insurance companies with 26% capital. Creating a more efficient and

competitive financial system suitable for the requirements of the economy was the main idea

behind this reform. Since then the insurance industry has gone through many sea changes .The

competition LIC started facing from these companies were threatening to the existence of

LIC .since the liberalization of the industry the insurance industry has never looked back and

today stand as the one of the most competitive and exploring industry in India. The entry of the

private players and the increased use of the new distribution are in the limelight today. The use

of new distribution techniques and the IT tools has increased the scope of the industry in the

longer run.

2.2. A BRIEF HISTORY OF THE INSURANCE SECTOR:

The business of life insurance in India in its existing form started in India in the year 1818

with the establishment of the Oriental Life Insurance Company in Calcutta. Some of the

important milestones in the life insurance business in India are given in the following table.


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Table: 1

The General insurance business in India, on the other hand, can trace its roots to the Triton

Insurance Company Ltd., the first general insurance company established in the year 1850 in

Calcutta by the British. Some of the important milestones in the general insurance business in

India are given in the following table

.

Years Important milestones in the Indian life insurance business

1912: The Indian Life Assurance Companies Act came into force for regulating the life insuran

The Indian Insurance Companies Act was enacted for enabling the government to colleinformation on both life and non-life insurance businesses.

The earlier legislation consolidated the Insurance Act with the aim of safeguarding thethe insuring public.

245 Indian and foreign insurers and provident societies were taken over by the central and they got nationalized. LIC was formed by an Act of Parliament, viz. LIC Act, 1956. Iwith a capital of Rs. 5 crore and that too from the Government of India.


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Table: 2

1996 setting up of (interim) Insurance Regulatory Authority (IRA) Recommendations of the

IRA. 1997 Mukherjee Committee Report submitted but not made public 1997 The Government

gives greater autonomy to LIC, GIC and its subsidiaries with regard to the restructuring of

boards and flexibility in investment norms aimed at channeling funds to the infrastructure

sector. 1998 The cabinet decides to allow 40% foreign equity in private insurance companies-

26% to foreign companies and 14% to NRIs, OCBs and FIIs

. 1999 The Standing Committee headed by Murali Deora decides that foreign equity in private

insurance should be limited to 26%. The IRA bill is renamed the Insurance Regulatory and

Development Authority (IRDA) Bill. 1999 Cabinet clears IRDA Bill. 2000 President gives

Assent to the IRDA Bill.

2.3. INDIAN INSURANCE MARKET (HISTORY):

Years

Important milestones in the Indian general insurance

business

The Indian Mercantile Insurance Ltd. was set up which was

the first company of its type to transact all general insurance

business.General Insurance Council, an arm of the Insurance

Association of India, framed a code of conduct for

guaranteeing fair conduct and sound business patterns.

The Insurance Act improved for regulating investments and

set minimal solvency levels and the Tariff Advisory

Committee was set up.

The General Insurance Business (Nationalization) Act, 1972

nationalized the general insurance business in India. It was

with effect from 1st January 1973.


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Insurance has a long history in India. Life Insurance in its current form was introduced in 1818

when Oriental Life Insurance Company began its operations in India. General Insurance was

however a comparatively late entrant in 1850 when Triton Insurance company set up its base in

Kolkata. History of Insurance in India can be broadly bifurcated into three eras: a) Pre

Nationalization b) Nationalization and c) Post Nationalization. Life Insurance was the first to

be nationalized in 1956. Life Insurance Corporation of India was formed by consolidating the

operations of various insurance companies. General Insurance followed suit and was

nationalized in 1973. General Insurance Corporation of India was set up as the controlling

body with New India, United India, National and Oriental as its subsidiaries. The process of

opening up the insurance sector was initiated against the background of Economic Reform

process which commenced from 1991. For this purpose Malhotra Committee was formed

during this year who submitted their report in 1994 and Insurance Regulatory Development

Act (IRDA) was passed in 999. Resultantly Indian Insurance was opened for private companies

and Private Insurance Company effectively started operations from 2001.

2.4. HOW BIG IS THE INSURANCE MARKET?

The insurance sector was opened up for private participation four years ago. For years now,

the private players are active in the liberalized environment. The insurance market have

witnessed dynamic changes which includes presence of a fairly large number of insurers both

life and non-life segment. Most of the private insurance companies have formed joint venture

partnering well recognized foreign players across the globe. There are now 29 insurance

companies operating in the Indian market 14 private life insurers, nine private non-life

insurers and six public sector companies. With many more joint ventures in the offing, the

insurance industry in India today stands at a crossroads as competition intensifies and

companies prepare survival strategies in a detariffed scenario. There is pressure from both

within the country and outside on the Government to increase the foreign direct investment

(FDI) limit from the current 26% to 49%, which would help JV partners to bring in funds for

expansion. There are opportunities in the pensions sector where regulations are being framed.

Less than 10 % of Indians above the age of 60 receive pensions. The IRDA has issued the first

license for a standalone health company in the country as many more players wait to enter. The

health insurance sector has tremendous growth potential, and as it matures and new players


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enter, product innovation and enhancement will increase. The deepening of the health database

over time will also allow players to develop and price products for larger segments of society.

Insurance is a Rs.400 billion business in India, and together with banking services adds about

7% to India's Gap.

2.5 INDIAN SCENERIO:-

Indian economy is the 12th largest in the world, with a GDP of $1.25 trillion and 3rd largest in

terms of purchasing power parity. With factors like a stable 8-9 per cent annual growth, rising

foreign exchange reserves, a booming capital market and a rapidly expanding FDI inflows, it is

on the hinge of an ever increasing growth curve. Indians have a tendency to invest in properties

and gold followed by bank deposits. They selectively invest in shares also but the percentage is

very small--4-5%. This in itself is an indicator that growth potential for the insurance sector is

immense. It s a business growing at the rate of 15-20% per annum and presently is of the order

of $47.9 billion. India is a vast market for life insurance that is directly proportional to the

growth in premiums and an increase in life density. With the entry of private sector players

backed by foreign expertise, Indian insurance market has become more vibrant.Competition in

this market is increasing with company s continuous effort to lure the customers with new

product offerings. However, the market share of private insurance companies remains very low

-- in the 10-15% range. Even to this day, Life Insurance Corporation (LIC) of India dominates

Indian insurance sector. The heavy hand of government still dominates the market, with price

controls, limits on ownership, and other restraints. The upward growth trend started from 2000

was mainly due to economic policies adopted by the then Indian government. This year saw

initiation of an era of economic liberalization and globalization in the Indian economy

followed by several reforms and long-term policies that created a perfect roadmap for the

success of Indian financial markets.


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Figure: 1

The general insurance industry grew by 16% in 2006-07 as private insurers continued their

robust performance, while public sector players like New India Assurance and Oriental

Insurance improved their show. Despite continuous fall in business of government-owned

National Insurance, the 12 non-life insurers collected Rs 20,378 crore in first year premium inthe last fiscal compared to Rs 17,531 crore collected in 2005-06, according to data compiled by

regulator IRDA. New India Assurance collected Rs 4,762 crore in premium and continued to

lead the non-life sector by cornering 23.36% of the market. National Insurance was at the

second spot by collecting Rs 3,524 crore in premium, a decline of 7%, but had a market pie of

17.29%. Oriental Insurance mopped up Rs 3,518 crore in premium income after logging 16.6%

growth in business to corner a market share of 17.26%. Another PSU insurer United India grew

by a modest 6.8% to collect Rs 3,147 crore in premium and had 15.44% of the market. The

eight private players expanded their business by 52% to collect Rs 5,427 crore in premium

income and increased their combined market share to 26.6% from 20.2% a year ago. ICICI

Lombard led the private players by logging 80% growth in premium at Rs 1,592crore,

followed by Bajaj Allianz, which grew by 50% to collect Rs 1,287 crore in premium. ICICI

Lombard had a market share of 7.81% and Bajaj Allianz had 6.31% of the market.


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INTRODUCTION TO TATA AIA

3.1 TATA AIA INSURANCE COMPANY

Tata Enterprises with 82 companies, spread over seven sectors and with an annual turnover

exceeding US $ 8.8 billion, employs more than 262,000 people. Tata Group has shown over

years that it is a value driven company and has pioneering contributions in various fields

including insurance, aviation, iron and steel. In terms of capital market performance as many as

40 listed Tata companies account for nearly 5% of the total market capitalization of all listed

companies. The Group has had a long association with India's insurance sector having been the

largest insurance company in India prior to the nationalization of insurance.

Tata AIA Life Insurance Company Limited (Tata AIA Life) is a joint venture company,

formed by the Tata Group and AIA, Inc. (AIA). Tata AIA Life combines the Tata

Groups pre-eminent leadership position in India and AIAs global presence as the

worlds leading international insurance and financial services organization.

The Tata Group holds 74 per cent stake in the insurance venture with AIA holding the

balance 26 per cent. Tata AIA Life provides insurance solutions to individuals and

corporates. Tata AIA Life Insurance Company was licensed to operate in India on

February 12, 2001 and started operations on April 1, 2001

UNIT LINK PLAN


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Unit linked insurance plan (ULIP) is life insurance solution that provides for 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 Asset Value (NAV). The policy

value at any time varies according to the value of the underlying assets at the time.

ULIP provides multiple benefits to the consumer. The benefits include:

Life protection

Investment and Savings

Flexibility

Adjustable Life Cover

Investment Options

Transparency

Options to take additional cover against

Death due to accident

Disability

TATA AIA UNIT LINK PRODUCTS

1. Inve

2. Invest assure future

3. Invest assure health

4. Invest assure gold

5. Invest assure plus


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6. Invest assure optima

3.2. TATA GROUP IN INSURANCE:

Tata AIA General Insurance Company Ltd, and Tata AIA Life Insurance Company Ltd.,

(collectively "Tata AIA") are joint venture companies between the Tata group India's most

trusted industrial house and AIA, Inc. (AIA), the leading U. S. based international insurance

and financial services organization. The Late Sir Dorab Tata, was the founder Chairman of

New India Assurance Co. Ltd., a group company incorporated way back in 1919. Government

of India took over the management of this company as a part of nationalization of general

insurance companies in 1972. Not deterred by the move, Tata group have ventured into risk

management services having tied up with AIA group, back in 1977, with the incorporation of

Tata AIA Risk Management Services Pvt. Ltd. The Tata Group is one of India's largest and

most respected business conglomerates, with revenues in 2006-07 of $28.8 billion (Rs129,994

crore), the equivalent of about 3.2 per cent of the country's GDP, and a market capitalization of

$72.2 billion as on December 6, 2007. Tata companies together employ some 289,500 people.

3.3. AIA:

Tata AIA Life Insurance Company Limited (Tata AIA Life) is a joint venture company,

formed by Tata Sons and AIA Group Limited (AIA). Tata AIA Life combines Tata's pre-

eminent leadership position in India and AIA's presence as the largest, independent listed pan-

Asia life insurance group in the world spanning 16 markets in Asia Pacific. Tata Sons holds a

majority stake (74 per cent) in the company and AIA holds 26 per cent through an AIA Group

company. Tata AIA Life Insurance Company Limited was licensed to operate in India on

February 12, 2001 and started operations on April 1, 2001.


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Company Background:

AIA Group Limited and its subsidiaries (collectively "AIA" or "the Group") comprise the

largest independent publicly listed pan-Asian life insurance group. It has operations in 16

markets in Asia Pacific wholly owned branches and subsidiaries in Hong Kong, Thailand,

Singapore, Malaysia, China, Korea, the Philippines, Australia, Indonesia, Taiwan, Vietnam,

New Zealand, Macau, Brunei, a 92 per cent subsidiary in Sri Lanka and a 26 per cent joint-

venture in India.

The business that is now AIA was first established in Shanghai over 90 years ago. It is a

market leader in the Asia Pacific region (ex-Japan) based on life insurance premiums and holds

leading positions across the majority of its markets. It had total assets of US$119, 494 million

as of 31 May 2012.

AIA meets the savings and protection needs of individuals by offering a range of products and

services including retirement savings plans, life insurance and accident and health insurance.

The Group also provides employee benefits, credit life and pension services to corporate

clients. Through an extensive network of agents and employees across Asia Pacific, AIA

serves the holders of more than 24 million individual policies and over 10 million participating

members of group insurance schemes.

AIA Group Limited is listed on the Main Board of The Stock Exchange of Hong Kong Limited

under the stock code "1299" with American Depositary Receipts (Level 1) traded on the over-

the-counter market (ticker symbol: "AAGIY").


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3.4. THE JOINT VENTURE:

Tata AIA Life Insurance Co. Ltd. is capitalized at Rs. 185 crores of which 74 per cent has

been brought in by Tata Sons and the American partner brings in the balance 26 per cent. Mr.

George Oommen has been named managing director of Tata AIA Life. Tata-AIA plans to

provide broad array of life insurance plans to cover to both individuals and groups. The

company headquartered in Mumbai, with branch operations in Delhi, Chennai, Hyderabad,

Bangalore Calcutta, Pune and Chandigarh.

3.5. ABOUT TATA-AIA:

Tata AIA Insurance Solutions is one of the leading insurance companies that provide both life

insurance as well as general insurance. This pioneer company is a joint collaboration between

the AIA, Inc. (AIA) and Tata Group. They own the company in the ratio of 26:74. It is a

leading financial institution that has carved a niche for itself all over the world. Tata AIA

Insurance provides facilities to both corporate and individuals. Starting its operations on April

1, 2001, it seeks to serve different categories of people. It acquired its license for carrying out

operations in India on February 12, 2001. Tata AIA Insurance Solutions is one of the most

prestigious organizations in the business world. It employs thousands of employees and offers

various opportunities to people to build a prospective career. As a leading name in the financial

world, it identifies the potential and experience of the individual. This insurance company

identifies the clients needs and works accordingly. It stresses on innovative aspect and

opening of new markets. It believes in new economy and latest Internet technology. Tata AIA

Insurance offers a number of products for the General Insurance holders. General insurance

products include:

Individual insurance


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Small business insurance

Corporate insurance

Tata AIA Insurance offers flexible life insurance to the individuals, business organization and

other association. For the corporate, there are various insurance products like group pensions,

employee benefits, work place solutions and credit life. For the individuals, Tata AIA

Insurance offers various products for adults, children and for retirement planning.

At Tata AIA Life Insurance Company Ltd., customer convenience is given utmost

priority. We now offer you the facility to check your policy details and make an online

premium payment towards your policy.

Check your policy details by following step 1. For making an online premium payment,

please follow Step 1 to 3.

1. Provide your policy details

Enter your policy number, Date of Birth of Insured and click on "Verify".

Check your policy details. In case you do not want to make an online payment for

your policy, click on the 'Exit' button. For making online payment, select your Credit /

Cash Card or Online Bank Account from the "Pay from" drop-down, accept the "Terms

and Conditions" and click on "Pay Now" button.

You will be securely redirected to the Card/ Bank payment interface of your

chosen option.

2. Confirm payment (at Card/ Bank Gateway)

Enter your authentication details [viz Card details or Bank user id/ password]

Confirm your payment amount to Tata AIA Life Insurance Co. Ltd..


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Your account will get debited online.

3. Receive online confirmation

You will receive an online transaction confirmation and a Transaction Reference

Number.

Corporations

For any corporation, its employees and customers are its greatest assets. And it is

important for the organization to take the necessary measures from time to time to

maintain their motivation levels. Offering security to them and their families with

insurance cover is one way to show that you care.

We also offer solutions for managing the liabilities on Gratuity and Superannuation

products for the employees.

Our range of corporate life insurance products include:

Employee Benefits

Credit Life

Group Pensions

Workplace Solutions

Discover how each product can be a tool for increasing employee loyalty along with

providing tax benefits.


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3.6 ORGANIZATION STRUCTURE OF TATA AIA:-

Risk and uncertainty are part of life great adventures accident, illness, thefts, natural

disaster. They are built into the working of universe, waiting to happen. Insurance that is

main answer to the vagaries of life. If you cannot beat the manmade and natural

calamities, wealth, at least be prepared for them and aftermath.

Insurance is contract between two parties one is insurer (insurance company) and

insured (the person or entity seeking the coverage). Where the insurer agrees to pay the

insured for the financial loses arising out of any unforeseen events in return for a regular

payment of the premium.


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These unforeseen events are determined as risk and that is why insurance is called

is the risk cover. Hence the insurance is the essential means to financially compensate for

loses that life throws at people- corporate and otherwise.

India at glance:

Economy: India is 5th largest economy in the world in terms of purchase.

GDP Growth rate: over 6% per year on an average for the last decade.

Savings rate: around 26% of GDP

Estimated middle class population: 300 million

Insured population: 70 million

India has an enormous middle class that can afford to by life, health and disability and

pens on plan products. The level of penetration of life insurance in India compared to

other developed nations can be judged by a comparison of per capita life premium.


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CHAPTER 3

POLICIES OF TATA AIA

Tata AIA Life Assure 10 Years / 20 Years / 30 Years Security & Growth Plans

This endowment policy enables your dependants to receive the sum assured in theunfortunate event of your death while this policy is still in force. If you should outlive thepolicy term, you will still receive the sum assured, along with a range of bonuses. Thisplan is ideal as a retirement planning tool.

Key features include:

A guaranteed addition of 10% of the sum assured if the policy has been in force

for 10 years or more, is payable on death or maturity. A reversionary bonus is payable on death or maturity.

A Terminal bonus paid on maturity or death if the policy has been in force for a

minimum 10 years. Reversionary and Terminal bonuses are non-guaranteed and are dependent on

Company performance.

Tax Benefits, Riders and Age Eligibility

Premiums paid under this plan are eligible for tax benefits under Section 80C of

the Income Tax Act, 1961. Any sum received under this plan is exempt from tax

under section 10(10D) of the Income Tax Act, 1961.* Term, Accident, Disability and Critical Illness riders are available for added

protection. Policy duration can be 10, 20 or 30 years. A 10 year policy is available for all

persons between 18 and 65 years of age. 20 year policies are available for personsbetween the ages of 18 and 55. 30 year policies are available for persons betweenthe ages of 18 and 45.

Tata AIA Life Assure 21 years Money Saver

This savings plan gives you the cash payments at specified intervals to fund your familysneeds at critical milestones or support your financial obligations. You get the dualbenefits of life insurance coverage plus the flexibility of periodic payments.



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10% of the sum assured is paid on survival on the 3rd /6th /9th /12th /15th and

18th policy anniversaries. 40% of the sum assured will be paid on maturity (i.e. on the 21st anniversary of

this policy). The entire sum assured is distributed to your beneficiaries, irrespective of cash

payments already made, in the unfortunate event of your death before the end ofthe policys term. A 10% Guaranteed Addition is payable on death or maturity, if the policy has

been inforce for 10 years. A reversionary and terminal bonus payable on death or maturity. Terminal bonus

is available only if policy is in force for more than 10 years. Bonuses are paid depending on performance of the company.



the Income Tax Act, 1961. Any sum received under this plan is exempt from taxunder section 10(10D) of the Income Tax Act, 1961.*

Term, Critical Illness, Accident and Disability riders are available for added

protection at a nominal extra cost. Minimum age to qualify for this product is 30 days. Maximum age limit is 55

years. For juveniles only Payor benefit rider is available.

Tata AIA Life Assure One year/ Five Years/10 Years/ 15 Years / 20 Years / 25 Years

Lifeline Plans, and Term to age 60 known as Assure Lifeline to Age 60

If you are looking for high coverage at an affordable cost, this policy is for you. Yourfamily can maintain their current lifestyle, even if something happens to you.


Coverage is available for 1, 5, 10, 15, 20 and 25 years or until age 60.

Term plans can be converted into any of our select savings plans, at attained age

premium rates.


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Policy is available to persons between the ages of 18 and 60 years and variesbased on the term of the policy.

Tata AIA Life Assure Golden Years Plan

Tata AIA Life Assure Golden Years(Assure Golden Years) is an endowment policy thatprovides both safety and steady returns. In the unfortunate event of your death, yourdependants will receive the sum assured; otherwise your savings will continue to grow.Should you live past the term of the policy, you will receive both the sum assured as well

as a host of bonuses.




A Terminal bonus paid on maturity or death if


Premiums paid under this plan are eligible for tax benefits under Section 80C ofthe Income Tax Act, 1961. Any sum received under this plan is exempt from taxunder section 10(10D the policy has been in force for a minimum 10 years.

Reversionary and Terminal bonuses are non-guaranteed and are dependent on

Company performance.) of the Income Tax Act, 1961.* Term, Accident, Disability and Critical Illness riders are available for added

protection. Policy duration runs from the time of purchase up to age 60.

Policy is available for persons between 18 to 50 years of age

Tata AIA Life Easy Retire

Today, you are busy working hard to achieve your goals. You are going to retire one day.No matter how you want to live your life after retirement you need to plan and arrangefor a regular income.

Tata AIA Life Insurance Company Ltd presents Tata AIA Life Easy Retire(Easy Retire)


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an individual immediate annuity, the ideal solution to convert your corpus to regularincome. The regular income helps you cope with the expenses that continue even whenyou stop working and in fact increase with age as a result of mounting health bills andincreasing prices.

Easy Retire is an immediate annuity plan with Return of Purchase Price (RoPP) whichcan be purchased through a single premium payment. The plan provides for annuitypayments which are paid throughout the life time of an annuitant.

How does the Plan Work?

All you have to do is pay a single premium to Tata AIA Life Insurance Company

Ltd. (This amount is your purchase price) Choose annuity payment modes [the frequency at which you want the income] -

monthly, quarterly, half-yearly or yearly

Tata AIA Life Insurance Company Ltd guarantees you a rate per thousand at thetime of purchase and this depends on the age as well as purchase price.

Opt for either receiving post dated cheques or a direct credit into your bank

account. i.e. PDCs / ECS

Tata AIA Life InvestAssure Health Plus

The economic consequences of ill health are devastating for most families. Surveys

conducted by IMRB+

show that a single episode of hospitalization

Costs a family about 60 per cent of the annual income, on average

40-60 per cent of hospitalized patients borrow heavily at high interest, and

Majority of them end up lowering their standard of life on account of healthcare

costs

The mounting cost of hospital care, increasing out-of-pocket expenditure, and itscatastrophic impact on family finances do demand a planned approach to cover thesemonumental expenses.

Keeping this in mind, we present Tata AIA Life InvestAssure Health Plus, a unit linkedhealth investment plan with a comprehensive health coverage to help you recover worry-free when you are ill. The investment component takes care of the rising medical costswhile the health coverage ensures your peaceful recovery.

Tata AIA Life Invest Assure Health Plus thus can prove to be a source of support for youand your family.


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+Indian Market Research Bureau


More than 700 days of Hospital Benefit Cover#

No Yearly or Annual Limit on Surgical Benefit More than 900 surgeries covered

Guaranteed Maturity Addition of up to 7% on Regular Premium Fund Value

Optional health coverage for spouse and up to 2 dependent children

Benefit inflation by 5% p.a. (simple addition) on Daily Hospital Benefit &

Surgical Benefit** Choice of SMART & Automatic Asset Allocation as investment strategies

Choice of 5 Riders for added protection - Tata AIA Life Surgical Benefit Rider

(UIN: 110C021V01), Tata AIA Life Accidental Death Benefit (ADB) Rider(UIN: 110C003V01), Tata AIA Life Accidental Death and Dismemberment(Long Scale) (ADDL) Rider (UIN: 110C004V01), Tata AIA Life Critical Illness

(Lumpsum Benefit) Rider (UIN: 110C012V01), Tata AIA Life Yearly RenewableTerm Rider (UIN: 110C020V01) (including for spouse)

7 Fund Options to suit your risk profile Whole Life Mid Cap Equity Fund,

Whole Life Income Fund, Whole Life Short Term Fixed Income Fund, WholeLife Aggressive Growth Fund, Whole Life Stable Growth Fund, Large CapEquity Fund & Super Select Equity Fund

#subject to yearly and lifetime limits**Based on Daily Hospital Benefit and Surgical Benefit from second year onwards upto

a maximum of 150% of the original benefit.

Eligibility:

Minimum/ Maximum Entry age Self & Spouse: 18 years- 55yearsChild: 5 years- 17 years

Maximum Maturity Age 65 years

Policy Term 10 and 15 - 40 years

Premium Paying Term Regular Pay

Minimum Premium Rs. 18,000 p.a.Daily Hospital Benefit Limit Ranges from Rs.500 - Rs.3000

( in multiples of 500 only)

Health Benefits available with Tata AIA Life InvestAssure Health Plus:^


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DHB & ICU Benefit:

Benefits Sum Assured Yearly Limit Lifetime (till

policy end)

DailyHospitalisationBenefit (DHB)

Choose from Rs.500 tomaximum Rs.3000 (inmultiples of Rs.500)

120 days 730 days

ICU Benefit Double the DHB~ 15 days 90 days

~Includes DHB benefit

Surgical Benefit:

20 times of Daily Hospital Benefit opted for individual.

For spouse and children (maximum 2 children) it would be 100% & 50%respectively of basic coverage

^ Please refer to product brochure for detailed terms & conditions

Tax Benefits

As per the current tax rules, premiums paid in respect of morbidity are eligible for

tax deduction under section 80D of the Income Tax Act, 1961 (the Act). Thebalance of premium is eligible to tax deduction under section 80C of the Act,provided the annual premium during the year does not exceed 20% of the sumassured. The benefits under this plan and riders are tax exempt under section10(10)D of the Act subject to conditions.

Tata AIA Life InvestAssure II+

Tata AIA Life introduces InvestAssure II+, a unique non-participating investment linkedendowment insurance plan for flexibility and protection.

Given a choice, many people would like to increase the earning potential of theirinsurance premium by deciding their own investment and risk limitations. InvestAssureII+ is a unique, flexible insurance plan that combines the security of a life insurancepolicy with the opportunity to exploit the upside of market returns by investing indifferent kinds of securities through multiple fund options.

What's more, you can direct the investments by creating your own investment fund


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portfolio from a range of options to suit your needs and preferences.


Guaranteed Maturity Addition* of 5% of Regular Premium Fund Value

Flexibility of choosing a life cover for a term of 15 years, 20 years, 25 years or 30years

Flexibility of eight Fund Options to choose from Top 50 Fund, Top 200 Fund,

Aggressive Flexi Fund, Stable Flexi Fund, Bond Fund, Large Cap Equity Fund,Infrastructure Fund & Super Select Equity Fund

Optimize market returns through investment Options like Systematic Money

Allocation & Regular Transfer Investment (SMART) and Automatic AssetAllocation (AAA)

* Provided that all the regular premiums due under the policy are paid and the policy is inforce.

Eligibility:

Minimum Entry age 0 years (30 days) to 60 years

Maximum Entry age 45 years for Term 30

50 years for Term 25



Maximum Maturity Age 75 yearsPolicy Term 15/20/25/30 years

Premium Paying Term Same as policy term

Minimum AnnualisedPremium:

Rs. 15,000 p.a.

Minimum Sum Assured 5 * Annualized premium

Maximum Sum Assured Policy Term * AnnualizedPremium

Riders

Choose from 5 available riders for added protection at a nominal extra charge -

Tata AIA Life Accidental Death Benefit (ADB) Rider (UIN: 110C003V01), TataAIA Life Accidental Death and Dismemberment (Long Scale) (ADDL) Rider(UIN: 110C004V01), Tata AIA Life Critical Illness (Lump sum Benefit) Rider(UIN: 110C012V01), Tata AIA Life Payor Benefit Rider (Only For Juvenile


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Policy) (UIN: 110C002V01) & Tata AIA Life Waiver of Premium Rider (UIN:110A017V01)

Tax Benefits

Premiums paid under this plan are eligible for tax benefits under section 80C ofthe Income Tax Act, 1961. Moreover, life insurance proceeds enjoy tax benefitsas per section 10(10D) of the

Tata AIA Life InvestAssure Insta+

In todays fast paced life, we all like to keep things simple. At Tata AIA Life InsuranceCompany Limited we understand this fact and endeavour to come up with solutions thatwill make your life simpler.

Tata AIA Life presents an easy and instant solution: Tata AIA Life InvestAssure Insta+, asimple unit linked endowment insurance plan. It is easy to understand and easy to buy.You just have to choose your premium, term and funds to avail of the dual benefits ofinsurance coverage and wealth creation. This plan enables you to grow your investmentthrough high allocation and a Guaranteed Maturity Addition.


Guaranteed Maturity Addition* of 5% of Regular Premium Fund Value Six Investment Fund Options to choose from Top 50 Fund, Top 200 Fund,

Aggressive Flexi Fund, Stable Flexi Fund, Bond Fund, Large Cap Equity Fund

*Provided that all the regular premiums due under the policy are paid and the policy is inforce

Eligibility:

Minimum Issue age 0 years (30 days)

Maximum issue age 60 years


Policy Term 10/15 years

Premium Paying Term Same as policy term

Annualized Premium Options Rs. 20,000 - Rs. 50,000

Sum Assured 5 times the Annualizedpremium


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Tax Benefits

Premiums paid under this plan are eligible for tax benefits u/s 80C of the Income

Tax Act, 1961*. Moreover, life insurance proceeds enjoy tax benefits as persection 10(10D) of the said Act.

Tata AIA Life InvestAssure Flexi Plus

Each one of us has our own set of financial needs, aspirations and priorities. In manyways these needs are unique and so they need to be addressed in a unique way.

We may have different time horizon for investments as they depend on the underlyingneeds. For example, you may need money for your childs education after say 10 years or15 years or 20 years depending on the present age of your child. This may be true for

many other needs as well.

Your insurance requirements may also be different depending on your age and financialposition in the family. How long you want to pay the premium is also an importantconsideration as this depends on your future earning capacity.

Keeping this in mind, Tata AIA Life Insurance Company brings to you Tata AIA LifeInvestAssure Flexi Plus. This plan is a unit linked endowment investment plan andprovides you with ample flexibility to suite your needs and priorities and to help you toachieve your financial goals.

Key features include: Flexible Policy Term 10, 15 to 40 years

Limited Pay Option starting from as low as 3 years

Choice of coverage from 5 times the annualized premium to 60 times the

annualized premium Guaranteed Maturity Addition* of upto 7%$ of Regular Premium Fund Value

Seven Fund Options to choose from: Whole Life Mid Cap Equity Fund, Whole

Life Aggressive Growth Fund, Whole Life Stable Growth Fund, Whole LifeIncome Fund, Whole Life Short-Term Fixed Income Fund, Large Cap EquityFund & Super Select Equity Fund

Choice of 5 riders for added protection

* Provided that all the regular premiums due under the policy are paid and the policy is inforce.$ Depending on the Policy Term chosen and provided the policy is in force.

Eligibility:


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Minimum Issue Age 0 years (30 days)

Maximum Issue Age 70 years


Policy Term 10, 15 40 years

Premium Payment TermRegular & Limited 3, 5 &multiples of 5

Minimum Annualised

Premium

Rs. 60,000 for PremiumPaying Term 3



Tata AIA Life ShubhLife

Have you been delaying getting life insurance because you cannot afford to pay highmonthly premiums? Then we have the ideal product for you.

Tata AIA Life ShubhLife(ShubhLife) provides you 100% life insurance protection and arange of bonuses but the premiums you pay are among the lowest of any similar

endowment policy.


Term policies just give you death cover. This policy gives you bonuses along with

death cover. You can choose a term of 10, 15, 20, 25 or 30 years.

Apart from full premium paying term, you can pay your premiums over 3, 5, 7 or

10 years. Guaranteed addition of 3% of sum assured of the Basic Policy is added on the

first (1st) policy anniversary and on every alternate policy anniversary thereafter

up till a maximum of half the policy term. The GA will be payable if the insureddies while the policy has been in force or if the policy matures.

A simple reversionary bonus will be credited from the sixth policy anniversary

until the end of the plan term depending on the performance of our Company.



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Attach Disability, Accident, Term, Waiver of premium and Critical Illness riders

to this policy for added protection.

Endowment Plan Age Eligibility

10 Years 18 to 65 Years





Tata AIA Life Raksha 10/15/20/25

A simple term plan ideal for young families with large financial obligations at extremelylow premiums and yet providing high life coverage.


Policy terms of 10, 15, 20 and 25 years.

Multiple premium payment options annual, semi-annual, quarterly or monthly.

Tax Benefits and Age Eligibility



Policy is available to persons between the ages of 18 and 50 years.

The policy is renewable up to a maximum age of 59, and expires when the insured

attains the age of 60.

Tata AIA Life MahaLife Gold

This unique policy is an ideal planning vehicle to fund your retirement. It provides asteady income and insurance coverage for life. Premiums are payable only for the first 15


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years, and can be used to cover the future expenses of your children.


A guaranteed annual coupon of 5% of the sum assured every year for the rest of

the insureds term from the 10th policy anniversary. Yearly cash dividends are available from the 6th policy anniversary onwards

(depending on Company performance). The entire sum assured is paid tax-free as per current Income Tax Laws.


The guaranteed 5% coupon and non-guaranteed cash dividends are tax free as per

current Income Tax Laws. Premiums paid under this plan are eligible for tax benefits under Section 80C of

the Income Tax Act, 1961. Any sum received under this plan is exempt from tax

under section 10(10D) of the Income Tax Act, 1961.* Disability, Accident, Term and Critical Illness riders are available for added

protection at a nominal extra cost. (For juveniles, only Payor Benefit Rider isavailable).

Policy available for persons between 0 years and 60 years of age.

Tata AIA Helth first

Quality healthcare is expensive; you need a policy that covers all contingencies. Tata

AIA Life HealthFirst(HealthFirst) provides you with security by guaranteeing a lump

sum irrespective of your medical bills. You can purchase this policy while your existing

medical insurance policy is still in force and renew it until age 64 without additional

medical examinations.


The benefits shown below are for a policy purchased for 10 units Daily Hospitalization Benefit (DHB): During hospitalization, we will pay an

allowance of Rs. 2,500 per day. Surgical Benefit: A lump sum of Rs. 1,25,000 is paid for specified surgical

procedures. We pay the complete amount, even if the procedures costs less. Thisbenefit is payable only if DHB is payable.


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Post-hospitalization Benefit: After hospitalization, we will pay Rs. 1,250 a day for

follow-up treatment (up to a maximum of 3 days). This benefit is payable only ifDHB is payable.

Tax Benefits and Age Eligibility

Premiums paid for Health Insurance Benefits are eligible for tax benefits under

section 80D, while premiums for Life Insurance Benefits are eligible for taxbenefits under section 80C of the Income Tax Act, 1961.*

Policy available for persons between 18 and 60 years of age.

Treatment must occur at a pre-approved hospital

Tata AIA Security&Growth Plan

Tata AIA Life Assure 10 Years / 20 Years / 30 Years Security & Growth PlansThis endowment policy enables your dependants to receive the sum assured in theunfortunate event of your death while this policy is still in force. If you should outlive thepolicy term, you will still receive the sum assured, along with a range of bonuses. Thisplan is ideal as a retirement planning tool.




A Terminal bonus paid on maturity or death if the policy has been in force for aminimum 10 years.

Reversionary and Terminal bonuses are non-guaranteed and are dependent on

Company performance.


Premiums paid under this plan are eligible for tax benefits under Section 80C ofthe Income Tax Act, 1961. Any sum received under this plan is exempt from tax

under section 10(10D) of the Income Tax Act, 1961.* Term, Accident, Disability and Critical Illness riders are available for added

protection. Policy duration can be 10, 20 or 30 years. A 10 year policy is available for all

persons between 18 and 65 years of age. 20 year policies are available for personsbetween the ages of 18 and 55. 30 year policies are available for persons betweenthe ages of 18 and 45.


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Tata AIA Life Assure 21 years Money Saver

This savings plan gives you the cash payments at specified intervals to fund your familysneeds at critical milestones or support your financial obligations. You get the dualbenefits of life insurance coverage plus the flexibility of periodic payments.


10% of the sum assured is paid on survival on the 3rd /6th /9th /12th /15th and

18th policy anniversaries. 40% of the sum assured will be paid on maturity (i.e. on the 21st anniversary of

this policy). The entire sum assured is distributed to your beneficiaries, irrespective of cash

payments already made, in the unfortunate event of your death before the end ofthe policys term.

A 10% Guaranteed Addition is payable on death or maturity, if the policy has

been inforce for 10 years.

A reversionary and terminal bonus payable on death or maturity. Terminal bonusis available only if policy is in force for more than 10 years.

Bonuses are paid depending on performance of the company.




Term, Critical Illness, Accident and Disability riders are available for added

protection at a nominal extra cost.

Minimum age to qualify for this product is 30 days. Maximum age limit is 55years.

For juveniles only Payor benefit rider is available.

Media ReleaseFor immediate publicationLife Insurance with NAV InsuranceTata AIA Life launches limited offer plan: Tata AIA Life InvestAssure Apex

Unit linked insurance plan with a Guaranteed Maturity Unit Price (GMUP) ensuringguaranteed returns at the highest declared NAV over 100 months.*

Flexibility to reduce premium in second and third year

Riders for additional protection Tax benefits under under Section 80C, 10(10D) & 80D (for Critical Illness Rider)

Mumbai, February 18, 2009: Tata AIA Life Insurance Company Limited (Tata AIALife) today announced the launch of Tata AIA Life InvestAssure Apex, a novel unitlinked insurance plan that enables the policyholder to enjoy returns based on thehighest NAV declared over 100 months.This is achieved through a unique feature called the Guaranteed Maturity Unit Price


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(GMUP). GMUP captures the highest Unit Price of the Apex Return Lock-in Fundrecordedon the one hundred (100) Reset Dates*. This means that on predecided date in eachcalendarmonth the NAV of the Apex Return Lock-in Fund will be recorded for 100 calendar

months and the highest NAV among the 100 NAVs will be guaranteed to the investor ifthepolicy remains in force till maturity.This limited offer plan gives the customer the convenience of- Paying for 3 years for a 10 year plan and- Flexibility to review premium payable in 2nd and 3rd year subject tominimum premium- Purchase by adults up to the age of 70- Partial withdrawals after 3 yearsSpeaking at the launch, Mr. Trevor Bull, Managing Director, Tata AIA LifeInsurance Company Limited said, The name says it all. Tata AIA Life InvestAssure

Apex simply guarantees the upside for the customer. By locking in the highestdeclared NAV*, the Apex Lock-in Fund provides the opportunity to lock yourreturns at the highest returns that the market provides over the 100 month period.This flexibility encourages participation and the guarantee will provide customersthe confidence in this volatile market. We expect a very enthusiastic response fromcustomers to this truly innovative solution for its limited period of availability.Tata AIA Life InvestAssure Apex works with the following funds:

Apex Investment Fund The investment objective for Apex Investment Fund is toprovide capital protection with a high level of safety and liquidity through judiciousinvestment in high quality short-term debt.

The Apex Return Lock-in Fund The investment objective for Apex Return Lock-inFund is to use the participation in an actively managed well diversified equityportfolio of large cap companies to generate capital appreciation and use high creditquality de

Project Report Smu Window

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