Ranjeet Final

8/6/2019 Ranjeet Final

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1.1 COMPANY PROFILE

Unicon Investment Solutions

UNICON is a financial services company which has emerged as a one-stop investment solutions

provider. It was founded in 2004 by two visionary and flamboyant entrepreneurs, Mr. Gajendra

Nagpal and Mr. Ram M. Gupta, who possess expertise in the field of Finance. The company is

headquartered in New Delhi, and has its Corporate office in Mumbai with regional offices in

Kolkata, Chennai, Hyderabad and Noida.

UNICON is a professionally managed company, lead by a team with outstanding managerial

acumen and cumulative experience of more than 200 years in the financial markets. The company

is supported by more than 3500 Uniconians and has an extensive network of over 100 branches,

600 plus business partner locations & 2500 remisers providing it with a national footprint.

With a customer base of over 200,000, the UNICON Group has an eye for the intricate financial

needs of its clients and caters to both their short term and long term financial needs through a

comprehensive bouquet of investment services. These services range from offline & online

trading in equity, commodities, currency derivatives to debt markets to corporate finance and

portfolio management services. The company has a sizable presence in the distribution of 3rd

party financial products like mutual funds, insurance products and property broking. It also

provides expert Advisory on Life Insurance, General Insurance, Mutual Funds and IPOs. The

distribution network is backed by in-house back office support to provide prompt and efficient

customer service.

The Equity broking arm UNICON Securities Pvt. Ltd offers personalized premium services on

the NSE, BSE & Derivatives market. The Commodity broking arm Unicon Commodities Pvt. Ltd

offers services in Commodity trading on NCDEX and MCX. The UNICON group also has a PCG

division providing investments solutions for High Net Worth Individuals. UNICON can boast of

some of the most respected names in the Private Equity space like Sequoia Capital and Nexus

India Capital as its share holders.

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PRODUCTS AND SERVICES

Unicon customers have the advantage of trading in all the market segments

together in the same window, as we understand the need of transactions to be

executed with high speed and reduced time. At the same time, they have the

advantage of having all Advisory Services for Life Insurance, General

Insurance, Mutual Funds and IPOs also.

Unicon is a customer focused financial services organization providing a range

of investment solutions to our customers. We work with clients to meet their

overall investment objectives and achieve their financial goals. Our clients

have the opportunity to get personalized services depending on their

investment profiles. Our personalized approach enables clients to achieve their

Total Investment Objectives.

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VISION

To provide the most useful and ethical Investment Solutions - guided by

values driven approach to growth, client service and employee development.

MISSION

To create long term value by empowering individual investors through superior

financial services supported by culture based on highest level of teamwork,

efficiency and integrity.

VALUES

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Knowledge:

Knowledge leads to expertise; and our expertise is in helping people protect themselves. Perfectly

combining global expertise with local knowledge,

Caring:

Unicon is redefining the life insurance paradigm by focusing on customers first. The service

process is responsive, personalized, humane and empathetic. Every individual who represents the

company is for us our brand champion.

Honesty:

Honesty is the heart of the life insurance business. It is all about trust. Transparency, integrity and

dependability form the customers of the Unicon experience. The company ensures that everyone

who represents the brand carries a promise : we care in word as well as deed .

Excellence:

Excellence at Unicon implies the ability to perform at a consistently high level. Focused on the

value of continuous improvement in people, processes and the organization, the company strives for

the highest standards of quality in every aspect of its business.

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INTRODUCTION

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INTRODUCTION

Introduction of the Industry

Introduction of the Company

Company Profile

Achievements

Management

Insurance Plans


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Insurance is basically a sharing device. The losses to assets resulting from natural calamities like

fire, flood, earthquake, accidents, etc. are met out of the common pool contributed by large number

of persons who are exposed to similar risks. This contribution of many is used to pay the losses

suffered by unfortunate few. However the basic principle is that loss should occur as a result of

natural calamities or unexpected events which are beyond the human control. Secondly insuredperson should not make any gains out of insurance.

It is natural to think of insurance of physical assets such as motor car insurance or fire insurance but

often we forget that creator of all these assets is the human being whose efforts have gone a long

way in building up the assets. In that sense, human life is a unique income generating assets. Unlike

the physical assets, which decrease in value with passage of time, the individual becomes more

experienced and more matured as he advances in age. This raises his earning capacity and the

purpose of life insurance is to protect the income in the event of his premature death. The individual

himself also needs financial security for the old age or on his becoming permanently disabled when

his income will stop. Insurance also has an element of savings in certain cases.

How insurance works?

Suppose there are 1000 persons 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 indicated that

4 out of 1000 persons, at this age are expected to die during the year, expected amount of death

claim to be paid to the family of four persons would come to Rs. 2,00,000. The contribution to be

paid by each of the 1000 persons 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 one year have not lost

anything as they secured peace of mind and a feeling of security of their family.

While insurance cannot prevent accidents or premature death, it can help protect the

family of the decreased against the loss of income caused by the death of the main breadwinner. Inreturn for specified payments, insurance will provide protection against the incidence 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 risks, collect contribution (premium) from them on some equitable basis and pay the losses

(claims) to the unfortunate few who suffer.

Classification of Insurance

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Insurance business can be divided into two broad categories, life and non life. Life insurance is

concerned with making provision for a specific event happing to the individual, such as death

whereas non life (or general insurance) is more commonly concerned with the provision for a

specific event which affects a property, such as fire, flood, theft etc.In this course we will only

cover life insurance. So, let us now move on to the definition of life insurance.

Definition of Life Insurance

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.

Any body who has knowledge about life insurance will be tempted to say yes BUT.. In other

words, surely this is far too brief an explanation for a financial service that provides a very

sophisticated range of savings and investment products, as well as mere compensation for death.

Need for Life Insurance

The above definition captures the original, basic, intention of life insurance: i.e., to provide for

ones family and perhaps others in the event of death, especially premature death. Originally,

policies were to provide for short periods of time, covering temporary risk situations, such as sea

voyages. As life insurance became more established, it was realized what a useful tool it was for a

number of suitable, including:-

1) Temporary needs/threats

The original purpose of life insurance remains an important elements, namely providing

for replacement of income on death etc.

Regular Savings

Providing for ones family and oneself, as a medium to 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.

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2) Investment

Put simply, the building up of savings while safeguarding it from the ravages of

inflation. Unlike regular saving products, investment products are traditionally lump

sum investments, where the individual makes a one time payment.

3) Retirement

Provision for ones 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 ones old age.

This simple example illustrates the impact premature death can have on a family, where the main

earner has no life cover.

By now you should understand the obvious benefits life insurance could offer the typical family. A

simple life insurance policy (term assurance) could have provided Mr. Atols family with a lump

sum that could have been invested to provide an income equal to all or part of his income. We will

discuss how to analyze the need for life cover and the vale of life later in the course.

5) Benefit from Life Insurance

It is superior to a traditional saving vehicles

As well as providing a secure vehicle to build up savings etc, it provides peace of mid to the

policy holder. In the event of untimely death, of say the main earner in the family, the policy

will pay out the guaranteed sum assured, which is likely to be significantly more than the

total premiums paid. With more traditional savings vehicles, such as fixed deposits, the only

return would be the amount invested plus any interest accrued.

It encourage saving and forces thrift

Once an insurance contact has been entered into, the insured has an obligation to continue

paying premiums, until the end of the term of the policy, otherwise the policy will lapse. In

other words, it becomes compulsory for the insured to save regularly and spend wisely.In

contrast savings held in a deposit account can be accessed or stopped easily.

It provides easy settlement and protection against creditors

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Once a person is appointed for receiving the benefits (nomination) or a transfer of rights is

made (assignment), a claim under the life insurance contract can be settled easily. In

addition, creditors have no rights to my monies paid out by the insurer, where the policy is

written under trust. Under the Married Womens Properly Act (M.W.P Act), the money

available from the policy forms a kind of trust which creditors cannot claim on.

It helps to achieve the purpose of the Life Assured

It someone receives a large sum of money, it is possible that they may spend the money

unwisely or in speculative way. To overcome this, the person taking the policy can instruct

the insurer that the claim amount is given in installments. For example, if the total amount

to be received by the dependents is Rs.2,00,000 say Rs. 50,000 can be taken out as a lump

sum and the balance paid out in smaller installments, say Rs. 5,000 per month.

It can be encashed and facilitates borrowing

Some contracts may allow the policy can be surrendered for a cash amount, it a policyholder

is not in a position to pay the premium. A loan, against certain policies, can be taken for a

temporary period to tide over the difficulty. Some lending institutions will accept a life

insurance policy as collateral for a personal or commercial loan.

Tax Relief

The policy holder obtains income tax rebates by paying the insurance premium. The

specified forms of saving which enjoy a tax rebate, under section 88 of the income tax Act,

include Life Insurance Premiums and contributions to a recognized provident fund etc.

The role of Insurance in the development of the economy

Every rupee invested in life insurance contributes in three ways to the development of the economy.

Firstly, it relieves those insuring from the worry and anxiety they may have about how they or

their family would meet the cost of certain events, such as the marriage of the children, the

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premature death of the main income provider or maintaining a regular income in their

retirement. If an individual is free from these worries he can perform better in his job, which

helps the economy.

Secondly, it directs peoples savings. The insurer invests these funds in various businessenterprises, government bonds, and loans to public and private projects including

infrastructure

and socially orientated projects. Thus the insurance premium provides the much needed

funds for the development of the nations economy.

Thirdly, these savings act as a anti inflationary force in the nations financial structure.

Inflation happens when prices of goods go up. One of the causes is when a lot of buying

takes place, due to the spending of a major portion of income by people. Savings in

insurance reduce buying as people will have less money to spend.

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FUNDAMENTAL PRINCIPLES OF LIFE

INSURANCE

Contact of Life Insurance

Insurance is subject to the general principles of Law as is any other commercial activity.

There are, however, special legal principles, which apply to insurance and many are based

upon the law of contact.

The definition of the term contact as per the Indian Contract Act, 1872 reads as under: an

agreement enforceable by law is a contact. As per Section 10 of Contact Act, a contact is

an agreement entered into by two or more parties competent to contact with Free consent

for a lawful consideration and lawful objective and not expressively declared by law to bevoid. Life insurance contact satisfied all the ingredients of a valid contract.

In simple terms, a life insurance contact is an agreement that one party (the insurer) will pay

a sum of money, called the sum assured, on the happening of a specified event, usually the

death of an individual or the survival of an individual to the end of a specific term. In return

the individual (the insured) will pay an immediate smaller payment or a series of regular

smaller payments, called premiums.

The fundamental principles of Life Insurance are:

1. Utmost Good Faith

Definition of Utmost Goods Faith

A positive duty to voluntarily disclose, accurately and fully, all facts material to the risk

being proposed, whether requested or not.

The above is a definition of utmost good faith (Uberrimae fides) as opposed to Caveat

Emptor (let the buyer beware) applicable to non-insurance contracts.

The insurer needs to be aware of all the details of the health, family, history, habits and

other facts about the proposer. One party, the insured, knows all the facts and the other

party, the insurer, cannot know despite efforts. For example, medical tests may not disclose

blood pressure or diabetes at the time of the medicinal examination for insurance, if

medicines are taken to suppress the symptoms. As these facts would be relevant for the

assessment of risk, there is an inherent duty, laid down by law, on the proposer to disclose

and furnish all relevant information (material facts) to the insurer.

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Thus it is important that the proposer declares all the facts properly and in utmost good

faith.

Material Facts

A fact that would influence the judgment of a prudent insurer in deciding whether to insure

a particular risk, or the terms on which to insure it.

The declaration made by the proposer, while proposing for insurance, becomes important,

as the proposer certifies that the statements given by him are true and that they form the

basis of the contact.

Disclosure of Material Facts

The categories of facts that must be declared are the following:

Facts, which show that the particular risk represents a greater exposure than

normal. Lets consider the proposers occupation. Someone working at heights or

underground would be required to disclose this information as it will add to the risk

undertaken.

External factors, those situations, which make the risk greater than wouldnormally be expected. For e.g. a person with a dangerous hobby.

Any refusal (declinature) or special terms imposed on previous proposals by

other life insurers.

The existence of other life insurance policies.

Full facts relating to the health of the individual taking insurance.

Non Disclosure of Material Facts

There are some circumstances which are material but it is not necessary to disclose. Theareas concerned are:

Facts of law. The insurer is deemed to know the law of the land.

Facts of common knowledge. An insurer is deemed to know abut such things

as normal processes within a particular trade. For example, the work done by a military

personal.

Facts which lessen the risk. The fact that the proposer undergoes regular health

checks.

Facts which could be discovered by reasonable diligence. The occurs where an

insurer has been put on inquiry by a statement on a proposal form. The most common

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example of this would be where a proposer inserts a phrase see your records instead of

completing fully the previous claims history.

(2) The Declaration

Proposal forms contain a declaration by the proposer to the effect that all statements and

answers furnished by him in the proposal form are True. These statements and declarationsshall be the

basis of the contact. If any of the statements are False, the contract can be made null and

void, by the insurer, and premiums forteited. The policy documents also provides that such

a declaration shall be the basis of the contract. In view of such a certification (warranty) any

false statement is enough for the insurer to reject the contract and it will not be necessary for

the insurer to show whether the non-disclosure was material. This is subject to section 45 of

the Insurance Act 1938.

(3) Section 45 of Insurance Act, 1938

In accordance with the provisions of this section, the doctrine of warranty will not apply to a

policy after a period of 2 years from the date of acceptance of the risk. After the expiry of a

period of 2 years, it will be necessary for the insurer to establish the following points.

The statement by the proposer was inaccurate or false.

Such an inaccurate or false statement related to a fact that was material to the

contact.

Such an inaccurate or false statement was deliberately made. The proposer knew the correct facts at the time of making the false statement.

The burden of proving these points rests on the insurer.

2. Insurable Interest

We have seen earlier that a person may take a life insurance police on his life to provide

financial security for his wife and children. The motivating force is his interest in the

welfare of his family. His wife has insurable interest on her husbands life. This concept of

insurable interest differentiates a life insurance contract from a mere wagering contract

.without insurable interest an insurance contact becomes a contract and ; as such

;unenforceable by law. Usually, the applicant for life insurance and the life insured areone and the same person.

Definition of Insurable Interest

Relationship with the subject matter (a person) which is recognized in law and gives a legal

right in insure that person.

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A person is said to have an Insurable interest in anothers life if he or she can reasonably

expect to suffer financially from that persons death. For example, a wife depends upon her

husbands income and benefits from his living and suffers financial loss in the event of his

death. The wife is said to have insurable interest in the life of her husband.

Note : Insurable interest must be a monetary interest.

It is not necessary that insurable interest should arise from a family relationship. A person

who has lent money (creditor) has an insurable interest in the life of the person to whom he

has lent the money (debtor) because he stands to lose the money lent should the debtor die

before paying pack the money borrowed.

However, it must be noted that in this case, insurable interest is restricted to the amount of

debt plus a reasonable amount of interest

(1) Who all Have Insurance Interest

Every person has unlimited insurable interest in his own life. It must be noted

that life insurance contracts are not of indemnity.

Husband and wife have unlimited insurable interest in each others life.

A creditor has insurable interest in the life of a debtor to the extent of the

amount involved plus a reasonable amount of interest.

Surety has insurable interest in the life of the principal to the extent of the

surety amount involved.

Partners in a business have insurable interest in the lives of their co-partners.

A company has insurable interest in the lives of the key employee of the

company.

Other Features

The amount of insurable interest is not relevant in life insurance contracts

based on family relationships, as life insurance is not a contract of indemnity.

Insurable interest need only exist at the time of entering into the contract in life

insurance.

The existence of insurable interest is a question of fact in each case.

(2) What happens when the proposal is on the life of a person other than the

propser?

In this case, the question of insurable interest arises. As discussed above, in the case of

husband and wife insurable interest is presumed. In the case of any other relationship,

insurable interest is not established by mere relationship. For example, a sister may not have

insurable interest on the life of her brother because of the mere existence of the relationship.

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EXECUTIVE SUMMARY

In todays corporate and competitive world, I find that insurance sector has the maximum growth

and potential as compared to the other sectors. Insurance has the maximum growth rate of 70-80%while as FMCG sector has maximum 12-15% of growth rate. This growth potential attracts me to

enter in this sector and UNICON INVESTMENT SOLUTION has given me the opportunity to

work and get experience in highly competitive and enhancing sector.

The success story of good market share of different organizations depends upon the

availability of the product and services near to the customer, which can be distributed

through a distribution channel. In Insurance sector, distribution channel includes only agents

or agency holders of the company. If a company like MAX NEW YORK LIFE, BAJAJALLIANZ, TATA AIG, etc has adequate agents in the market they can capture big market

as compared to the other companies.

Agents are the best way for a company of Insurance sector through which policies and

benefits of the company can be explained to the customer

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THE HISTORY OF INDIAN INSURANCE INDUSTRY

The story of insurance is probably as old as the story of mankind. The same instinct that prompts

modern businessmen today to secure themselves against loss and disaster existed in primitive menalso. They too sought to avert the evil consequences of fire and flood and loss of life and were

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

is largely a development of the recent past, particularly after the industrial era past few centuries

yet its beginnings date back almost 6000 years.

Life Insurance

In 1818 the British established the first insurance company in India in Calcutta, the Oriental Life

Insurance Company. First attempts at regulation of the industry were made with the introduction of

the Indian Life Assurance Companies Act in 1912. A number of amendments to this Act were made

until the Insurance Act was drawn up in 1938. Noteworthy features in the Act were the power given

to the Government to collect statistical information about the insured and the high level of

protection the Act gave to the public through regulation and control. When the Act was changed in

1950, this meant far reaching changes in the industry. The extra requirements included a statutory

requirement of a certain level of equity capital, a ceiling on share holdings in such companies to

prevent dominant control (to protect the public from any adversarial policies from one single party),

stricter control on investments and, generally, much tighter control. In 1956, the market contained

154 Indian and 16 foreign life insurance companies. Business was heavily concentrated in urban

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areas and targeted the higher echelons of society. Unethical practices adopted by some of the

players against the interests of the consumers then led the Indian government to nationalize the

industry. In September 1956, nationalization was completed, merging all these companies into the

so-called Life Insurance Corporation (LIC). It was felt that nationalization has lent the industry

fairness, solidity, growth and reach.

Some of the important milestones in the life insurance business in India are:

1912: The Indian Life Assurance Companies Act enacted as the first statute to regulate the life

insurance business.

1928: The Indian Insurance Companies Act enacted to enable the government to collect statistical

information about both life and non-life insurance businesses.

1938: Earlier legislation consolidated and amended to by the Insurance Act with the objective of

protecting the interests of the insuring public.

1956: The market contained 154 Indian and 16 foreign life insurance companies.

General Insurance

The General insurance business in India started with the establishment ofTriton Insurance

Company Limitedin 1850 at Calcutta. In 1907, the first company, The Mercantile Insurance Ltd.

Was set up to transact all classes of general insurance business. 6General Insurance Council, a wing

of the Insurance Association of India in 1957, framed a code of conduct for ensuring fair conduct

and sound business practices. In 1968 the Insurance Act was amended to regulate investments and

to set minimum solvency margins. In the same year the Tariff Advisory Committee was also set up.

In 1972, The General Insurance Business (Nationalization) Actwas passed to nationalize the

general insurance business in India with effect from 1st January 1973. For these 107 insurers was

amalgamated and grouped into four companys viz., theNational Insurance Company Ltd., the

NewIndia Assurance Company Ltd., the Oriental Insurance Company Ltd., and the United India

Insurance Company Ltd. General Insurance Corporation of India was incorporated as a company

Some of the important milestones in the general insurance business in India are:

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1907: TheIndian Mercantile Insurance Ltd. set up, the first company to transact all classes of

general insurance business.

1957: General Insurance Council, a wing of the Insurance Association of India, frames a code of

conduct for ensuring fair conduct and sound business practices.

1968: The Insurance Act amended to regulate investments and set minimum solvency margins and

the Tariff Advisory Committee set up.

1972: The General Insurance Business (Nationalization) Act, 1972 nationalize the general

insurance business in India with effect from 1st January 1973. 107 insurers amalgamated and

grouped into four companies viz. the National Insurance Company Ltd., the New India

Assurance Company Ltd., the Oriental Insurance Company Ltd. and the United India

Insurance Company Ltd. GIC incorporated as a company.

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MAJOR POLICY CHANGES

Insurance sector has been opened up for competition from Indian private insurance companies with

the enactment of Insurance Regulatory and Development Authority Act, 1999 (IRDA Act). As per

the provisions of IRDA Act, 1999, Insurance Regulatory and Development Authority (IRDA) was

established on 19th April 2000 to protect the interests of holder of insurance policy and to regulate,

promote and ensure orderly growth of the insurance industry. IRDA Act 1999 paved the way for

the entry of private players into the insurance market which was hitherto the exclusive privilege of

public sector insurance companies/ corporations. Under the new dispensation Indian insurance

companies in private sector were permitted to operate in India with the following conditions:

Company is formed and registered under the Companies Act, 1956;

The aggregate holdings of equity shares by a foreign company, either by itself or through its

subsidiary companies or its nominees, do not exceed 26%, paid up equity capital of such Indian

insurance company;

The company's sole purpose is to carry on life insurance business or general insurance business or

reinsurance business.The minimum paid up equity capital for life or general insurance business is Rs.100 crores.

The minimum paid up equity capital for carrying on reinsurance business has been prescribed as

Rs.200 crores.

The Authority has notified 27 Regulations on various issues which include Registration of Insurers,

Regulation on insurance agents, Solvency Margin, Re-insurance, Obligation of Insurers to Rural

and Social sector, Investment and Accounting Procedure, Protection of policy holders' interest etc.

Applications were invited by the Authority with effect from 15th August, 2000 for issue of the

Certificate of Registration to both life and non-life insurers. The Authority has its Head Quarter at

Hyderabad.

Changing face of Indian insurance industry:

Indian life-insurance market is the target market of all the companies who either want to extend or

diversify their business. To tap the Indian market there has been tie-ups between the major Indian

companies with other International insurance companies to start up their business. The government

of India has set up rules that no foreign insurance company can set up their business individually

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here and they have to tie up with an Indian company and this foreign insurance company can have

an investment of only 24% of the total start-up investment.

Indian insurance industry can be featured by:

Low market penetration.

Ever growing middle class component in population.

Growth of customers interest with an increasing demand for better insurance products.

Application of information technology for business.

Rebate from government in the form of tax incentives to be insured.

Today, the Indian life insurance industry has a dozen private players, each of which

are making strides in raising awareness levels, introducing innovative products and increasing the

penetration of life insurance in the vastly underinsured country. Several of private insurers have

introduced attractive products to meet the needs of their target customers and in line with their

business objectives. The success of their effort is that they have captured over 28% of premium

income in five years.The biggest beneficiary of the competition among life insurers has been the

customer. A wide range of products, customer focused service and professional advice has become

the mainstay of the industry, and the Indian customers forms the pivot of each companys strategy.

Penetration of life insurance is beginning to cut across socio-economic classes and attract people

who have never purchased insurance before.

Life insurance is also now being regarded as a versatile financial planning tool. Apart

from the traditional term and saving insurance policies, industry has seen the entry and growth of

unit linked products. This provides market linked returns and is among the most flexible policies

available today for investment. Now products are priced, flexible, and realistic and sustain so

people in better position to understand the risk and benefits of the product and they are accepting

these innovative products.

So it is clear that the face of life insurance in India is changing, but with the changes

come a host of challenges and it is only the credible players with a long term vision and a robust

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business strategy that will survive. Whatever the developments, the future and the opportunities in

this industry will surely be exciting.

What Is Life Insurance?

Life insurance is a contract that pledges payment of an amount to the person assured (or his

nominee) on the happening of the event insured against.

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

The date of maturity, or

Specified dates at periodic intervals, or

Unfortunate death, if it occurs earlier.

Among other things, the contract also provides for the payment of premium periodically to the

Corporation by the policyholder. Life insurance is universally acknowledged to be an institution,

which eliminates 'risk', substituting certainty for uncertainty and comes to the timely aid of the

family in the unfortunate event of death of the breadwinner.

By and large, life insurance is civilisation's partial solution to the problems caused by death. Life

insurance, in short, is concerned with two hazards that stand across the life-path of every person:

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

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

Life Insurance Vs. Other Savings

Contract Of Insurance:

A contract of insurance is a contract of utmost good faith technically known as uberrima fides. The

doctrine of disclosing all material facts is embodied in this important principle, which applies to all

forms of insurance.

At the time of taking a policy, policyholder should ensure that all questions in the proposal form are

correctly answered. Any misrepresentation, non-disclosure or fraud in any document leading to the

acceptance of the risk would render the insurance contract null and void.

Protection:

Savings through life insurance guarantee full protection against risk of death of the saver. Also, in

case of demise, life insurance assures payment of the entire amount assured (with bonuses wherever

applicable) whereas in other savings schemes, only the amount saved (with interest) is payable.

Aid To Thrift:

Life insurance encourages 'thrift'. It allows long-term savings since payments can be madeeffortlessly because of the 'easy instalment' facility built into the scheme. (Premium payment for

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insurance is either monthly, quarterly, half yearly or yearly).

For example: The Salary Saving Scheme popularly known as SSS, provides a convenient method of

paying premium each month by deduction from one's salary.

In this case the employer directly pays the deducted premium to LIC. The Salary Saving Scheme is

ideal for any institution or establishment subject to specified terms and conditions.

Liquidity:

In case of insurance, it is easy to acquire loans on the sole security of any policy that has acquired

loan value. Besides, a life insurance policy is also generally accepted as security, even for a

commercial loan.

Tax Relief:

Life Insurance is the best way to enjoy tax deductions on income tax and wealth tax. This is

available for amounts paid by way of premium for life insurance subject to income tax rates in

force.

Assessees can also avail of provisions in the law for tax relief. In such cases the assured in effect

pays a lower premium for insurance than otherwise.

Money When You Need It:

A policy that has a suitable insurance plan or a combination of different plans can be effectively

used to meet certain monetary needs that may arise from time-to-time.

Children's education, start-in-life or marriage provision or even periodical needs for cash over a

stretch of time can be less stressful with the help of these policies.

Alternatively, policy money can be made available at the time of one's retirement from service andused for any specific purpose, such as, purchase of a house or for other investments. Also, loans are

granted to policyholders for house building or for purchase of flats (subject to certain conditions).

Who Can Buy A Policy?

Any person who has attained majority and is eligible to enter into a valid contract can insure

himself/herself and those in whom he/she has insurable interest.

Policies can also be taken, subject to certain conditions, on the life of one's spouse or children.While underwriting proposals, certain factors such as the policyholders state of health, the

proponent's income and other relevant factors are considered by the Corporation.

Insurance For Women

Prior to nationalisation (1956), many private insurance companies would offer insurance to female

lives with some extra premium or on restrictive conditions. However, after nationalisation of life

insurance, the terms under which life insurance is granted to female lives have been reviewed from

time-to-time.

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At present, women who work and earn an income are treated at par with men. In other cases, a

restrictive clause is imposed, only if the age of the female is up to 30 years and if she does not have

an income attracting Income Tax.

Medical And Non-Medical Schemes

Life insurance is normally offered after a medical examination of the life to be assured. However,

to facilitate greater spread of insurance and also to avoid inconvenience, LIC has been extending

insurance cover without any medical examination, subject to certain conditions.

With Profit And Without Profit Plans

An insurance policy can be 'with' or 'without' profit. In the former, bonuses disclosed, if any, after

periodical valuations are allotted to the policy and are payable along with the contracted amount.

In 'without' profit plan the contracted amount is paid without any addition. The premium rate

charged for a 'with' profit policy is therefore higher than for a 'without' profit policy.

Keyman Insurance

Keyman insurance is taken by a business firm on the life of key employee(s) to protect the firm

against financial losses, which may occur due to the premature demise of the Keyman.

Various types of life insurance policies:-

Endowment policies:

An endowment policy is a combination of insurance and investment: Endowment policy has

typical maturities of ten, fifteen or twenty years up to a certain age limit. The life of the individual

taking the policy is insured for a certain amount. This life cover is referred to as the sum

assured. Endowment Policy combines the risk cover with financial savings. Historically

endowment policies have been the most popular policy in the world of life insurance. This is

because people still consider endowment plan as an investment rather than pure insurance.

In an Endowment Policy, the sum assured is payable even if the insured survives the policy

term; if the insured dies during the term of the policy, the insurance firm has to pay the sum

assured like any other pure risk cover. A pure endowment policy is also a form of financial

saving, whereby if the person covered survives beyond the tenure of the policy; he gets back

the sum assured with some other investment benefits.

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An endowment policy may declare a bonus every year: The money that is invested generates a

certain return every year. This return may be declared as a bonus. The bonus is typically

generated as a certain proportion of sum assured or life cover as it is popularly known.

However, the bonus declared does not compound it, only accumulates over the life of

insurance; thus, returns are low.

For example- if an individual taking the policy has a policy of sum assured Rs. 20 Lakh and the

company declares a bonus of Rs. 10 per thousand of sum assured, then the bonus works out to

be Rs. 20,000. Now since this bonus is not compounding every year, it will remain Rs. 20,000

till it is paid out. Hence, you could see a disadvantage here that you are essentially loosing

interest on that money. This bonus may accrue to the insurance holder till the maturity or it maybe paid out before the maturity as well.

If premium payments are discontinued at any point of time before maturity, the policy

continues with a reduced sum assured proportionate to the premiums paid. One can also

surrender the policy at any time and get the surrender value, which is usually calculated as a

percentage of the premiums paid excluding the first year's premium and all extra premiums. It

is therefore not advisable to surrender the policy, as the amount realized will be much lower

than the premiums paid.

Different types of Endowment policy

The various types of endowment policy include:

1. Unit-linked endowment: Here the insurance premium is endowed in several units of a

specified unitized insurance fund. Moreover, the insurance holders can often select the funds

where they want to invest their premiums.

2. Full endowment: It is basically a with-profits endowment in which the basic amount

ensured is equivalent to the death benefit from the beginning of the policy. Later, assuming the

expansion or growth, the final payout or return would be much higher than the initial sum.

3. Low cost endowment (LCE): A low cost endowment is a blend of a particular investment

where an expected future growth rate will meet up a target amount and a declining life

insurance component to make sure that the entire target amount will be paid as a minimum if

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any accident occurs (any kind of physical illness or death).

4. Traded endowment: These endowment policies are also called second hand endowment

policies. These are traditional with-profits endowments that have been sold to a new owner part

way through their term. The Traded Endowment market enables buyers (investors) to buy

unwanted endowment policies for more than the surrender value offered by the insurance

company. Investors will pay more than the surrender value because the policy has greater value

if it is kept in force than if it is terminated early.

Benefits

Endowment Policy has the following advantages:Unlike term plans where one does

not get any benefit on maturity, the basic attraction of an endowment plan is the

maturity benefit. Therefore, the return generated on the premiums is an important

factor while choosing a plan. Returns depend on the bonuses that accrue on the

policy. Being an endowment assurance policy, this plan is apt for people of all ages

and social groups who wish to protect their families from a financial setback that may

occur owing to their demise.

In addition to the basic policy, insurers offer different benefits such as double

endowment and marriage/ education endowment plans. The cost of such a policy is

relatively higher. Other riders that can be attached to the main policy are CriticalIllness rider, Term and Major Surgical Assistance rider.

Money back policies: This type of policy is for periodic payments of partial survival

benefits during the term of the policy as long as the policy holder is alive.

Group insurance: This type of insurance offers life insurance protection under group

policies to various groups such as employers-employees, professionals, co-operatives etc it

also provides insurance coverage for people in certain approved occupations at the lowest

possible premium cost.

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Term life insurance policies: This type of insurance covers risk only during the selected

term period. If the policy holder survives the term, risk cover comes to an end. These types

of policies are for those people who are unable to pay larger premium required for

endowment and whole life policies. No surrender, loan or paid up values are in such

policies.

Whole life insurance policies: This type of policy runs as long as the policyholder is alive

and is covered for the entire life of the policyholder. In this policy the insured amount and

the bonus is payable only to nominee on the death of policy holder.

Joint life insurance policies: These policies are similar to endowment policies in maturity

benefits and risk cover, but joint life policies cover two lives simultaneously such as

married couples. Sum assured is payable on the first death and again on the death of

survival during the term of the policy.

Pension plan: a pension plan or annuity is an investment over a certain number of years

but does not provide any life insurance cover. It offers a guaranteed income either for a lifeor certain period.

Unit linked insurance plan: ULIP is a kind of insurance plan which provides life cover as

well as return on premium paid over a certain period of time. The investment is denoted as

units and represented by the value called as net asset value (NAV).

MAJOR PLAYERS IN THE INSURANCE INDUSTRY

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Life Insurance Corporation of India (LIC)

Life Insurance Corporation of India (LIC) was established on 1 September 1956 to spread

themessage of life insurance in the country and mobilise peoples savings for nation-buildingactivities. LIC with its central office in Mumbai and seven zonal offices at Mumbai,

Calcutta,Delhi, Chennai, Hyderabad, Kanpur and Bhopal, operates through 100 divisional offices in

important cities and 2,048 branch offices. LIC has 5.59 lakh active agents spread over the country.

The Corporation also transacts business abroad and has offices in Fiji,

Mauritius and United Kingdom. LIC is associated with joint ventures abroad in the field of

insurance, namely, Ken-India Assurance Company Limited, Nairobi; United Oriental Assurance

Company Limited,Kuala Lumpur; and Life Insurance Corporation (International), E.C. Bahrain. It

has also entered into an agreement with the Sun Life (UK) for marketing unit linked life insurance

and pension policies in U.K. In 1995-96, LIC had a total income from premium and investments of

$ 5 Billion while GIC recorded a net premium of $ 1.3 Billion. During the last 15 years, LIC's

income grew at a healthy average of 10 per cent as against the industry's 6.7 per cent growth in the

rest of Asia (3.4 percent in Europe, 1.4 per cent in the US).LIC has even provided insurance cover

to five million people living below the poverty line, with50 per cent subsidy in the premium rates.

LIC's claims settlement ratio at 95 per cent and GIC'sat 74 per cent are higher than that of global

average of 40 per cent. Compounded annual growthrate for Life insurance business has been 19.22

per cent per annum.

General Insurance Corporation ion of India (GIC)

The general insurance industry in India was nationalized and a government company known as

General Insurance Corporation of India (GIC) was formed by the Central Government in November

1972. With effect from 1 January 1973 the erstwhile 107 Indian and foreign insurers which were

operating in the country prior to nationalization, were grouped into four operatingcompanies,

namely,

(i) National Insurance Company Limited;

(ii) New India AssuranceCompany Limited;

(iii) Oriental Insurance Company Limited; and

(iv) United India InsuranceCompany Limited.

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(However, with effect from Dec'2000, these subsidiaries have been de-linked

from the parent company and made as independent insurance companies). All the above four

subsidiaries of GIC operate all over the country competing with one another and underwriting

various classes of general insurance business except for aviation insurance of national airlines and

crop insurance which is handled by the GIC.

Besides the domestic market, the industry is presently operating in 17 countries directly through

branches or agencies and in 14 countries through subsidiary and associate companies.

IN ADDITION TO ABOVE STATE INSURERS THE FOLLOWING

HAVE BEEN PERMITTED TO ENTER INTO INSURANCE

BUSINESS: -

The introduction of private players in the industry has added to the colors in the dull industry.The

initiatives taken by the private players are very competitive and have given immense competition to

the on time monopoly of the market LIC. Since the advent of the private players in the market theindustry has seen new and innovative steps taken by the players in this sector. The new players

have improved the service quality of the insurance. As a result LIC down the years have seen the

declining phase in its career. The market share was distributed among the private players. Though

LIC still holds the 75% of the insurance sector but the upcoming natures

of these private players are enough to give more competition to LIC in the near future. LIC market

share has decreased from 95% (2002-03) to 82 %( 2004-05).

Some major private players in life insurance industry.

1. HDFC Standard Life Insurance Company Ltd.

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HDFC Standard Life Insurance Company Ltd. is one of Indias leading private life insurance

companies, which offers a range of individual and group insurance solutions. It is a joint venture

between Housing Development Finance Corporation Limited (HDFC Ltd.), Indias leading housing

finance institution and The Standard Life Assurance Company, a leading provider of financial

services from the United Kingdom. Their cumulative premium income, including the first year

premiums and renewal premiums is Rs. 672.3 for the financial year, Apr-Nov 2005. They have

managed to cover over 11,00,000 individuals out of which over 3,40,000 lives have

been covered through our group business tie-ups.

2. Max New York Life Insurance Co. Ltd.

Max New York Life Insurance Company Ltd. is a joint venture between Max India Limited, one

of India's leading multi-business corporations and New York Life International, the international

arm of New York Life, a Fortune 100 company. The company has positioned itself on the quality

platform. In line with its vision to be the most admired life insurance company in India, it has

developed a strong corporate governance model based on the core values of excellence, honesty,

knowledge, caring, integrity and teamwork.

Incorporated in 2000, Max New York Life started commercial operation in 2001. In line with its

values of financial responsibility, Max New York Life has adopted prudent financial practices to

ensure safety of policyholder's funds. The Company's paid up capital as on 30th April, 2009 is Rs

1782 crore.

Max New York Life has multi-channel distribution spread across the country. Agency distribution

is the primary channel complemented by partnership distribution, bancassurance, alliance

marketing and dedicated distribution for emerging markets. The Company places a lot of emphasis

on its selection process for agent advisors, which comprises four stages - screening, psychometric

test, career seminar and final interview. The agent advisors are trained in-house to ensure optimal

control on quality of training. The company currently has around 92,667 agent advisors at 712

offices across 389 cities. The company also has 36 referral tie-ups with banks, 24 partnership

distribution and alliance marketing relationships each. Max New York Life has put in place a

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unique hub and spoke model of distribution to deepen our rural penetration. This is the first time

such a model has been put in place for rural marketing of insurance. The company has 137 offices

dedicated to rural areas.

Max New York Life offers a suite of flexible products. It now has 37 products covering both life

and health insurance and 8 riders that can be customized to over 800 combinations enabling

customers to choose the policy that best fits their need. Besides this, the company offers 6 products

and 7 riders in group insurance business.

3. ICICI Prudential Life Insurance Company Ltd.

ICICI Prudential Life Insurance Company is a joint venture between ICICI Bank, a premier

financial powerhouse and prudential plc, a leading international financial services group

headquartered in the United Kingdom. ICICI Prudential was amongst the first private sector

insurance companies to begin operations in December 2000 after receiving approval from Insurance

Regulatory Development Authority (IRDA). The company has a network of about 56,000 advisors;

as well as 7 banc assurance and 150 corporate agent tie-ups.

4. Om Kotak Mahindra Life Insurance Co. Ltd.

Kotak Mahindra Old Mutual Life Insurance Ltd is a joint venture between Kotak Mahindra Bank

Ltd., its affiliates and Old Mutual plc. A company that combines its international strengths and local

advantages to offer its customers a wide range of innovative life insurance products, helping them in

taking important financial decisions at every stage in life and stay financially independent. The

company is one of the fastest growing insurance companies in India and has shown remarkable

growth since its inception in 2001. Kotak Life Insurance employs around 5,565 people in its various

businesses and has 197 branches across 141 cities.

5.Birla Sun Life Insurance Company Ltd.

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Birla Sun Life Insurance Company is a joint venture between Aditya Birla Group

and Sun Lifefinancial Services of Canada.

6.Tata AIG Life Insurance Company Ltd.

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

formed by the Tata Group and American International Group, Inc. (AIG). Tata AIG Life

combines the Tata Groups pre-eminent leadership position in India and AIGs global

presence as one of the worlds leading international insurance and financial servicesorganization. The Tata Group holds 74 per cent stake in the insurance venture with AIG

holding the balance 26 per cent. Tata AIG Life provides insurance solutions to individuals

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

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

7.SBI Life Insurance Company Limited

SBI Life Insurance Company Limited is a joint venture between the State Bank of India and

BNP Paribas Assurance. SBI Life Insurance is registered with an authorized capital of Rs 2000

crores and a Paid-up capital of Rs 1000 Crores. SBI owns 74% of the total capital and BNP

Paribas Assurance the remaining 26%.

State Bank of India enjoys the largest banking franchise in India. Along with its 7 Associate

Banks, SBI Group has the unrivalled strength of over 14,500 branches across the country,

arguably the largest in the world.

BNP Paribas Assurance is the life and property & casualty insurance unit of BNP Paribas - Euro

Zones leading Bank. BNP Paribas, part of the worlds top 6 group of banks by market value

and a European leader in global banking and financial services, is one of the oldest foreign

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banks with a presence in India dating back to 1860. BNP Paribas Assurance is the fourth largest

life insurance company in France, and a worldwide leader in Creditor insurance products

offering protection to over 50 million clients. BNP Paribas Assurance operates in 41 countries

mainly through the bancassurance and partnership model.

SBI Life has a unique multi-distribution model encompassing Bancassurance, Agency and

Group Corporate.

SBI Life extensively leverages the SBI Group as a platform for cross-selling insurance products

along with its numerous banking product packages such as housing loans and personal loans.

SBIs access to over 100 million accounts across the country provides a vibrant base for

insurance penetration across every region and economic strata in the country ensuring true

financial inclusion.

Agency Channel, comprising of the most productive force of more than 63,000 Insurance

Advisors, offers door to door insurance solutions to customers.

8.ING Vysya Life Insurance Company Private Limited

ING Life was established in 2001 as a joint venture between ING Insurance International B.V.

(INGI), ING Vysya Bank Limited and GMR Industries Limited. Presently, INGI, Exide Industries

Limited, Ambuja Cement Ltd, Enam Group are the joint venture partners

9.Allianz Bajaj Life Insurance Company Ltd.

Bajaj Allianz Life Insurance is a union between Allianz SE, one of the largest Insurance Companyand Bajaj Finserv.

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Allianz SE is a leading insurance conglomerate globally and one of the largest asset managers in

the world, managing assets worth over a Trillion (Over INR. 55, 00,000 Crores). Allianz SE has

over 115 years of financial experience and is present in over 70 countries around the world.

10.Metlife India Insurance Company Pvt. Ltd.The MetLife companies are one of the world's largest and most respected financial services

organizations. For over 140 years, we've been helping people build financial freedom. For some,

this means protection for their families. For others, it means wealth optimization or preservation.

Combined with our innovation, this makes the MetLife companies truly formidable players in the

Life Insurance industry.

MetLife India Insurance Company Limited (MetLife) is an affiliate of MetLife, Inc. and was

incorporated as a joint venture between MetLife International Holdings, Inc., The Jammu and

Kashmir Bank, M. Pallonji and Co. Private Limited and other private investors. MetLife is one of

the fastest growing life insurance companies in the country. It serves its customers by offering a

range of innovative products to individuals and group customers at more than 600 locations through

its bank partners and company-owned offices. MetLife has more than 50,000 Financial Advisors,

who help customers achieve peace of mind across the length and breadth of the country. For more

information about MetLife, please visit the companys website at www.metlife.co.in.

MetLife, Inc., through its affiliates, reaches more than 70 million customers in the Americas, Asia

Pacific and Europe. Affiliated companies, outside of India, include the number one life insurer in

the United States (based on life insurance inforce), with over 140 years of experience and

relationships with more than 90 of the top one hundred FORTUNE 500 companies. The MetLife

companies offer life insurance, annuities, automobile and home insurance, retail banking and other

financial services to individuals, as well as group insurance, reinsurance and retirement and savings

products and services to corporations and other institutions

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11.AMP SANMAR Assurance Company Ltd.AMP Sanmar Life Insurance Company Limited was a 26:74 joint venture between AMP Australia

and Sanmar Group. The initial paid up capital of the joint venture was Rs. 125 crores and an initial

target of selling around 30,000 policies in the first year of its commencement.

Some important players in general insurance industry

1. Royal Sundaram Alliance Insurance Company Limited

The joint venture bringing together Royal & Sun Alliance Insurance and Sundaram FinanceLimited

started its operations from March 2001. The company is Head Quartered at Chennai, andhas two

Regional Offices, one at Mumbai and another one at New Delhi.

2. Bajaj Allianz General Insurance Company Limited

Bajaj Allianz General Insurance Company Limited is a joint venture between

Bajaj Auto Limitedand Allianz AG of Germany. Both enjoy a reputation of

expertise, stability and strength.Bajaj Allianz General Insurance received the

Insurance Regulatory and Development Authority (IRDA) certificate of

Registration (R3) on May 2nd, 2001 to conduct General Insurance business

(including Health Insurance business) in India. The Company has an authorized

and paid up capital of Rs 110 crores. Bajaj Auto holds 74% and the remaining

26% is held by Allianz, AG,Germany.

3.ICICI Lombard General Insurance Company Limited

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ICICI Lombard General Insurance Company Limited is a joint venture between ICICI Bank

Limited and the US-based $ 26 billion Fairfax Financial Holdings Limited. ICICI Bank is India's

second largest bank, while Fairfax Financial Holdings is a diversified financial corporate engaged

in general insurance, reinsurance, insurance claims management and investment management.

Lombard Canada Ltd, a group company of Fairfax Financial Holdings Limited, is one of Canada's

oldest property and casualty insurers. ICICI Lombard General Insurance Company received

regulatory approvals to commence general insurance business in August 2001.

4.Cholamandalam General Insurance Company Ltd.

Cholamandalam MS General Insurance Company Limited (Chola-MS) is a joint

venture of the Murugappa Group & Mitsui Sumitomo. Chola-MS commenced

operations in October 2002 and has issued more than 1.4 lakh policies in

its first calendar year of operations. The company has a pan-Indian presence

with offices in Chennai, Hyderabad, Bangalore, Kochi, Coimbatore, Mumbai,Pune, Indore, Ahmedabad, Delhi, Chandigarh, Kolkata and Vizag.

5.TATA AIG General Insurance Company Ltd.

Tata AIG General Insurance Company Ltd. is a joint venture company, formed from the Tata

Group and American International Group, Inc. (AIG). Tata AIG combines the strength and integrity

of the Tata Group with AIG's international expertise and financial strength. The Tata Group holds

74 per cent stake in the two insurance ventures while AIG holds the balance 26 per cent stake. Tata

AIG General Insurance Company, which started its operations in India on January 22, 2001, offers

the complete range of insurance for automobile, home, personal accident, travel, energy,

marine, property and casualty, as well as several specialized financial lines.

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6.Reliance General Insurance Company Limited.

Reliance General Insurance is one of Indias leading private general insurance companies with over

94 customized insurance products catering to the corporate, SME and individual customers. The

Company has launched innovative products like Indias first Over-The-Counter health & home

insurance policies. Reliance General Insurance has an extended network of over 200 offices spread

across 173 cities in 22 states, a wide distribution channel network, 24x7 customer service assistance

and a full fledged website. It is also Indias first insurance company to be awarded the ISO

9001:2000 certification across all functions, processes, products and locations pan-India.

7.IFFCO Tokio General Insurance Co. Ltd

IFFCO-Tokio General Insurance (ITGI) was incorporated on 4th December 2000 with a vision

of being industry leader by building customer satisfaction through fairness, transparency, and quick

response. It is a joint venture between the Indian Farmers Fertilizer Co-operative (IFFCO) and itsassociate and Tokio Marine and Nichido Fire Group, the largest listed insurance group in Japan

8.Export Credit Guarantee Corporation Ltd.

Export Credit Guarantee Corporation of India Limited, was established in the year 1957

by the Government of India to strengthen the export promotion drive by covering the

risk of exporting on credit.

Being essentially an export promotion organization, it functions under the administrative

control of the Ministry of Commerce & Industry, Department of Commerce,

Government of India. It is managed by a Board of Directors comprising representatives

of the Government, Reserve Bank of India, banking, insurance and exporting

community.

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ECGC is the fifth largest credit insurer of the world in terms of coverage of national exports. The

present paid-up capital of the company is Rs.800 crores and authorized capital Rs.1000 crores.

9. HDFC-Chubb General Insurance Co. Ltd.

HDFC ERGO General Insurance Company Limited is a 74:26 joint venture between HDFC

Limited, Indias premier Housing Finance Institution & ERGO International AG, the primary

insurance entity of Munich Re Group.

HDFC ERGO focuses on providing the Right Insurance Solution for all. We offer ourcustomers complete range of general insurance products ranging from Motor, Health, Travel, Home

and Personal Accident in the retail space and customized products like Property, Marine and

Liability Insurance in the corporate space.

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Marketing of Insurance In India

Insurance is in a manner of speaking the last frontier in the financial sector to open. It is also a

sector, which leads to benefits across the full spectrum, from the individual who now have wider

choices, to the economy, which see increased savings, to the infrastructure sector, which can look

forward to long term funding being available. In an under-insured economy, newer channels of

distribution have to be utilized to intensify the reach of insurance both in urban and rural markets.

This will create huge employment opportunities not only within insurance companies

but also as agents and consultants of insurance companies.

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MANAGEMENT

Mr. Gajendra Nagpal

Founder & CEO

Mr. Gajendra Nagpal is the founder and Chief Executive Officer of Unicon Financial

Intermediaries Pvt. Ltd. a financial services company which has emerged as a one-stop

investment solutions provider.

Under his dynamic leadership, Unicon has grown from strength to strength and he has helped

shape the company into one of the most recognized names in the financial services space. WithUnicon, Mr. Nagpal has brought to life his vision of a company that provides the most useful

and ethical investment solutions and which will be guided by values driven approach to

growth, client service and employee development.

Mr. Nagpal brings with him over 16 years of experience in the stock market including the rich

experience of building a retail broking network. He is well respected in the industry for his

stock broking experience. Prior to founding Unicon, Mr. Nagpal has held senior positions at

the regional and national levels with Kotak Securities and Indiabulls. At Indiabulls, Mr.

Nagpal was a member of the core management team and played a leading role in the growth of

the companys network to 100 locations and employee strength of 1500.

Mr. Nagpal is a management graduate by qualification. In his spare time he likes to swim and

listen to old Hindi film music.

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Mr. Ram M Gupta

Co-Founder & President

Mr. Ram M. Gupta is the President and Co-Founder, Unicon Group and a member of the coreleadership team of the organisation. Mr. Guptas key responsibility areas include driving sales

for Equity (Online and Offline), Commodity, PCG and the Business Alliances divisions. He

has over a decade of stock market experience behind him and has worked with some of the

most prominent names in the financial services space. He started his career with Karvy Stock

broking and went on to hold regional level positions with Indiabulls Securities. At UNICON,

Mr. Gupta has been instrumental in building the sales team from scratch to its current strength

of over 1000 relationship managers spread across 89 locations. With his aggression and

dynamism, Mr. Gupta brings energy to the team and he believes in leading by example. He

holds a Masters Degree in Business Management with specialisation in Finance. In his spare

time he enjoys swimming, playing cricket and spending time with his children.

Mr. Y.P. Narang

Head - Fixed Income Group

Mr. Y.P. Narang is the Head, Fixed Income (Debt) Group at UNICON. His areas of

responsibility include looking after Money Market, Government Securities and Bond Market,

Corporate Finance and Merchant Banking. Mr. Narang was instrumental in setting up and

providing strategic direction to the Fixed Income Vertical at UNICON. Under his aegis, the

vertical was converted into a profit centre within six months of its establishment.

Mr. Narang, a qualified Cost Accountant and certified Financial Planner, has a rich and varied

professional experience spanning over 36 years. His last assignment prior to joining the

UNICON Group was as General Manager & CFO, Punjab National Bank where he provided

leadership and direction for the overall financial management of the bank. Mr. Narang had

headed the Treasury department of Punjab National Bank for almost two decades starting from

1986 and he pioneered the banks investment in new investment products such as Interest Rate

Swaps, Floating Rate Notes, US Treasury Bonds etc. His areas of responsibility also included

handling public issues of the bank. He was founder Managing Director of PNB Gilts Ltd. and

held the position of Senior Executive Vice President, PNB Capital Services Ltd. where he

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handled Merchant Banking assignments, Inter-corporate Deposit & Investments.

Mr. Narang possesses domain expertise in Dealing in Sovereign Paper, Money market/ Fixed

Income instruments and Merchant banking. He has been a familiar presence at several

prestigious Analysts meets both in India & Abroad. His expertise has also been utilized in his

capacity as a member of various committees of IBA, NSE & FIMMDA. In recognition of his

manifold contributions, the Association of Financial Planners (AFP) India awarded him CFP

certification in February, 2004. In his spare time, Mr. Narang likes to read management books

especially those pertaining to investing.

Mr. Sandeep AroraChief Operating Officer

Mr. Arorabrings with him over 12 years of experience of managing operations of stock

broking company.Mr. Arora before taking over as head of operations at Unicon was

responsible for managing the operations of Indiabulls Securities Ltd. Mr. Arora is supported by

his team of over 350 people helping him to give world class service to the clients.

Mr. Vikas Mallan

Chief Financial Officer,

Head Distribution

Mr. Vikas Mallan is the Chief Financial Officer & Head Distribution, Unicon Group. Mr.

Mallan oversees all Finance and Accounting related aspects and also heads the Distribution of

Life Insurance, General Insurance, Mutual Fund, IPO & Real Estate. He is supported by a team

of around 1800 dedicated employees nationwide. Mr. Mallan is a qualified Chartered

Accountant, Company Secretary and Cost Accountant by profession. He has over 17 years of

experience in the area of finance. Prior to joining Unicon, Mr. Mallan has held senior level

positions with reputed companies like Rediff.com, Reliance Telecom and Koshika Telecom.

His extensive experience also includes the NASDAQ listing of an Indian internet company and

Head of Finance of a leading Law firm. Mr. Mallan is fond of sports and listening to music.

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Mr. Trinadh Kiran

National Head(E-Broking)

Mr.Trinadh Kiran is an MBA marketing professional from Aligarh Muslim University and

has done 10 months research in Capital Markets from IIM-Ahmedabad. He brings with him a

total work experience of 9 years and has worked with almost all big giants of capital market

like India Infoline, India Bulls and NetWorth Stock Broking. He is associated with Unicon

since June 2005.He has extensive knowledge of Retail Broking and expertise in E-Broking.

Mr. Subhash Nagpal

Director - Strategic

Planning & Distribution

Mr. Subhash Nagpal is the Director, Strategic Planning and implementation, Unicon Group.

An engineer by profession, Mr. Nagpal brings with him more than 18 years of experience in

Sales & Marketing in the automobile industry. He has worked with some of the most respected

names in the automobile sector including Honda, Yamaha and New Holland. During his tenure

in Honda and New Holland, he was a member of the core management team and played a

pivotal role in establishing the companys growth in its early years in India. His last assignment

was with Honda Motorcycles and Scooters India, where he was a Divisional Head of profit

centre in Sales & Marketing Division for more than eight years. Mr. Nagpal believes in the

power of teamwork towards achieving goals. He also believes in fostering a democratic culture

within teams wherein everyone has the freedom to express their opinions in the spirit ofpromoting healthy discussion before taking strategic decisions. Mr. Nagpal is fond of singing,

listening to old Hindi songs and watching movies. Kishore Kumar and Dev Anand are amongst

his favourite singers and actors respectively. He likes to wind up his day by watching Mr.

Beans and WWF-Smack down with his son.

Ms. Anjali Mukhija

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Chief Compliance Officer

Ms. Anjali Mukhija heads compliance. She brings with her 14 years of experience in the stock

markets.Her current job profile includes broking operations,client relations & grievanceredressal, coupled with Public dealings.Prior to joining Unicon, she was with the National

Stock Exchange,Delhi Regional Office for 10 years and had held senior position for a brief

period in a reputed broking house.

Mr. Sandeep Mahajan

Head (Equity Broking-Offline)

Mr. Sandeep Mahajan is the Head (Equity Broking-Offline), UNICON Group. Mr. Mahajan

heads a team of over 1000 dedicated resources and handles over 80 branches. He has a career span

of over 18 years embellished with vast and immaculate experience in financial services ranging

from Stock Broking, Investment Banking ,Debt Syndication & Asset Management . He has heldcritical positions at the regional & national level with some of the biggest names in financial

services arena like IL&FS Investsmart, Kotak Securities ,Sun F&C Mutual Fund & RR Financial

Consultants. His last assignment was with Citigroup Smith Barney. In his spare time, Mr. Mahajan

enjoys traveling and reading.

CONCEPT BEHIND UNICON

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Unicon provides a comprehensive platform, offering an investment avenue for a wide range of

asset classes. Its Endeavour is to change the way India transacts in financial markets and avails

financial services.

Unicon offers a single window facility, enabling you to access, amongst others. Equity, and

Commodity Derivatives Offshore Investments, IPOs, Mutual Funds, Life Insurance & General

Insurance Products.

Facilities Offered by Unicon

* De-materialization:

You can submit your physical shares at the Unicon branch for

dematerialization into electronic form.

* Re-materialization:

You can also request for Re-materialization which enables you to convert

the dematerialized shares into physical form.

* Transfer:

Inter and intra depository services are available through which you can

transfer shares.

* IPO:

You can apply for IPO using your demat account details and on allotment

the securities are transferred directly to your demat account.

* Corporate Actions:

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While holding your stock in demat account, in case you are eligible for

any bonus and rights issues the allotment would be transferred to your

demat account.

* Easi:

You can view your demat account over the Internet and avail a host of

services. This facility empowers our clients to view, download, print

updated holdings with respective valuations.

Why UNICON ?

Unicon is the most cost-effective, convenient and secure way to transact in a wide range of

financial products and services.

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INSURANCE PLANS

48

Unicon customers have the advantage of trading in all the market

segments together in the same window, as we understand the need of

transactions to be executed with high speed and reduced time. At the

same time, they have the advantage of having all Advisory Services for

Life Insurance, General Insurance, Mutual Funds and IPOs also.

Unicon is a customer focused financial services organization providing arange of investment solutions to our customers. We work with clients to

meet their overall investment objectives and achieve their financial

goals. Our clients have the opportunity to get personalized services

depending on their investment profiles. Our personalized approach

enables clients to achieve their Total Investment Objectives.

Our key product offerings are as follows:

Equity

Commodity

Depository

Distribution

NRI Services

Back Office

Fixed Income

BUSINESS PARTNER

Unicon Investment Solutions is one of the most revered and fastest

growing financial services powerhouse having several accolades to it'sname. We are determined to provide the best and state of the art basket of

investment products & solutions to our esteemed clients.

Unicon's name is backed by high caliber human resource and high end

infrastructure to address the ever growing needs of our clients and

partners. Unicon boasts of bringing the best of the products and services

with "Affordability & Quality" occupying the centrestage.

We have a PAN India network with strong team of over 450 BusinessPartners who are assisting us to tap the retail & corporate clientele and

make Unicon accesible in the nook and crannies of the nation.

Presently we have customer base of over 100,000 individual/ corporate/
http://www.uniconindia.in/ProdAndServ/InternetTrading.aspx?id=1http://www.uniconindia.in/ProdAndServ/Commodity.aspx?id=2http://www.uniconindia.in/ProdAndServ/Depository.aspx?id=3http://www.uniconindia.in/ProdAndServ/Distribution.aspx?id=11http://www.uniconindia.in/ProdAndServ/NriServices.aspx?id=8http://www.uniconindia.in/ProdAndServ/backOffice.aspx?id=9http://www.uniconindia.in/ProdAndServ/FixedIncomeVertical.aspx?id=10http://www.uniconindia.in/ProdAndServ/InternetTrading.aspx?id=1http://www.uniconindia.in/ProdAndServ/Commodity.aspx?id=2http://www.uniconindia.in/ProdAndServ/Depository.aspx?id=3http://www.uniconindia.in/ProdAndServ/Distribution.aspx?id=11http://www.uniconindia.in/ProdAndServ/NriServices.aspx?id=8http://www.uniconindia.in/ProdAndServ/backOffice.aspx?id=9http://www.uniconindia.in/ProdAndServ/FixedIncomeVertical.aspx?id=10


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Max New York Life Insurance

Protection Plans:

Five Year Renewable and Convertible Term Insurance

Max New York Life's Five Year Renewable and Convertible Term Insurance (Non-Participating)

plan not only provide you with a low cost insurance cover during its tenure of five years, it also

helps you plan in advance for various future needs and your family's financial security, should

anything unfortunate happen to you. Offering a guaranteed Death Benefit, this plan is particularly

useful as a short-term protection plan. An important feature of this policy is that it allows the

insured to convert the policy to a regular policy during the tenure of the policy.

Level Term (Non Participating) Policy

Max New York Life's Level Term (Non Participating) Policy is a plan that covers your life at a very

low cost and reduces the consequent hardship your family may have to bear in the unfortunate

event of your death. Incase of the unfortunate death of the policy holder during the term of the plan,

an amount equal to the sum assured is paid to the nominee.

Children Plans: b

Children's Endowment to 18 (Par) Plan

Max New York Life presents Children's Endowment Participating Insurance to age 18 with an

option to buy a permanent life insurance policy without medical underwriting (irrespective of

his/her health at that time). This policy which is especially designed to enable you to provide for

higher education of your child and take care of your childs future needs in case of spiraling costs.

Children's Endowment to 24 (Par) Plan

Max New York Lifes Children's Endowment Participating Insurance to age 24 provides an option

to buy a permanent life insurance policy without medical underwriting (irrespective of his/her

health at that time). This policy enables you to provide for various events in your childs life such

as a grand wedding of your child. This excellent plan is a participating plan, which is also eligible

for bonuses and Max New York Life may declare these bonuses from time to time and from the

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third policy year. An important feature of this plan is that the entire sum assured is paid out on

maturity and the plan automatically vests when the child turns 18.

Stepping Stones (Par) Plan

Max New York Lifes Stepping Stones is a smart way to plan your childrens education and their

future irrespective of whether you are there or not. It provides you with regular money when it is

required. This policy also builds cash value, which you can use during your lifetime to fund any

unforeseen needs by surrendering accumulated PUAs. This policy also entitles you to make partial

withdrawals for various unplanned expenses in the future.

SMART Steps Plan

Introducing Max New York Lifes regular premium unit linked life insurance childrens plan

SMART Steps, which will help you plan for your child's future in a SMART way and takes your

worries away. This plan offers the required financial protection for your loved ones if you are not

alive and provides an unmatched investment opportunity by way of well managed investment

funds. This policy also entitles you to make partial withdrawals for various unplanned expenses in

the future.

SMART Steps Plus

A regular premium unit linked life insurance plan, Max New York Lifes SMART Steps Plus

will help you plan for your child's higher education, marriage, and financial security. This plan

offers no-compromise 360 degree protection to your children even if you are not alive and provides

an unmatched investment opportunity by way of well managed investment funds. This policy alsoentitles you to make partial withdrawals for various unplanned expenses in the future.

SMART Steps Single Premium Plan

Max New York Lifes SMART Steps Single Premium policy will help you plan for your child's

future in a SMART and organized manner. Apart from offering 360 degree protection to your child

if you are not alive, this plan also provides an unmatched investment opportunity by way of well

managed investment funds. This policy

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