comparative studies on icici

1. A
PROJECT REPORT
ON
“A COMPARATIVE STUDY OF ULIP PLANS OFFERED BY
ICICI PRUDENTIAL AND OTHER LIFE INSURANCE
COMPANIES”
Submitted To:
PUNJAB TECHNICAL UNIVERSITY,
JALANDHAR
FOR THE PARTIAL FULFILLMENT OF THE AWARD OF
DEGREE OF MASTER OF BUSINESS ADMINISTRATION
(Session 2008-10)
UNDER GUIDANCE OF: SUBMITTED BY;
Mrs. Sukhmeet kaur Dixit Kumar
Roll No. : 80906317020
SVIET
Contact no. - 09017076571
SWAMI VIVEKNAND INSTITUTE OF ENGINEERING AND
TECHNOLOGY
PUNJAB TECHNICAL UNIVERSITY,
JALANDHAR

2. Preface
MBA is a stepping-stone to the Management carrier and to develop good Managers is
necessary that the theoretical must be supplement with exposure to the real
environment.
Theoretical knowledge just provides the base and it‟s not sufficient to produce a good
Manager that‟s why the practical knowledge is needed.
Therefore the Research Project is an essential requirement for the student of MBA.
This research project not only helps the students to utilize his skills properly and learn
field realities but also provides a chance to the organization to find out talent among
the building Managers in the very beginning.
In accordance with the requirement of MBA course I have done my research project
on the topic “COMPARATIVE STUDY OF ULIP PLANS OFFERED BY ICICI
PUDENTIAL AND OTHER LIFE INSURANCE COMPANIES” with special
reference to ICICI Prudential.

3. Certificate by the Faculty Guide
GUIDE‟S CERTIFICATE
This is to certify that Mr. /Ms. __________________bearing the Reg. No.
____________ currently undergoing IVth Semester MBA in Swami
Vivekanand Institute of Engineering and Technology affiliated to Punjab
Technical University, Jalandhar he carried out a project on “A
COMPARATIVE STUDY OF ULIP PLANS OFFERED BY ICICI PRUDENTIAL
AND OTHER LIFE INSURANCE COMPANIES” under my guidance and
supervision and the work done by her is original and outcome of her
sincere efforts.
Mrs. Sukhmeet Kaur
Date: ----------
(PROJECT GUIDE)

4. INDEX
I. PREFACE
II. CERTIFICATE
III. EXECUTIVE SUMMARY
IV. LITERATURE REVIEW
Sr.no Title
Chapter-1 INTRODUCTION
 Introduction - basics of insurance
 Need of life of insurance
 Roles of insurance
 Types of life insurance
Chapter-2 INDUSTY PROFILE
Chapter-3 COMPANY PROFILE
Chapter-4 RESEARCH METHODOLOGY
Chapter-5 COMPARATIVE STUDY
Chapter-6 DATA ANALYSIS & INTERPRETATIONS
Chapter-7 LIMITATIONS
(i) RECOMMENDATIONS
(ii) CONCLUSION
(iii) BIBLIOGRAPHY
(iv) ANNEXURE

6. Literature Review
How a company does announced a name change especially when the old name was
well known? How does the company explain itself to constituents who may have
known the company quite well in an earlier incarnation but may be struggling to
figure out what the new organization stands for? How can the company create a new
image while retaining the strengths of the old one? And what role might corporate
advertising play in all this? Corporate advertising can tell a story about a company as
a whole, large organizations may need to use corporate ads to simplify their image in
the minds of key constituents and to show what unifies the company, despite the
geographical spread and variety of its businesses.
We can very well understand the concept of corporate advertising by taking the
example of ICICI Prudential communication. When Company first began operations,
the task was to present the visiting card of the company to the public at large and
build credibility and stature and to give the consumer the confidence that ''here is a
company that can be trusted to invest funds with.''
This required a corporate campaign - to establish the brand, build awareness and give
the brand a larger-than-life image.
The advertising idea, which was encapsulated in symbols of protection from the initial
print campaign, culminated in the corporate film where sindhoor was used as an
endearing and lasting symbol of protection. Once the corporate image and brand
identity were established, and as the company expanded and its product range grew,
the next phase of communication was to give the
consumer a rational and tangible reason to buy - first of all insurance and secondly
from ICICI Prudential Life. This was tackled through product-specific advertising,
such as for ICICI Pru Smart Kid, retirement solutions or LifeTime.
Key Summery
 Create a good citizen image through consistent & dedicated effort.
 Convey the organizations commitment to the concerned publics as well as to
the masses & eliminate prejudices, if any held by opinion leaders in particular
& by the public in general.
 Boost both employee management relation & employee morale enabling all

7.  Members of the internal public to discover a new vitality.
EXECUTIVE SUMMARY
Title of the project:
Study ULIP in current market scenario/ Study customer response towards ULIP
Objectives:
 Working of the unit linked insurance plans
 Swot analysis of the product
 Comparative study of the competition
 Study tax planning solutions available in the market
 Study asset allocation through insurance plans
 Market interface
Comparative analysis done on:
 Life insurance corporation
 HDFC Stan Life
 Birla Sun Life
 Bajaj Allianz
Research Methodology:
Primary data collected by personally visiting these leading insurance players. Eg:
LIC, Max New York Life Insurance, Bajaj Alliance, Birla Sunlife, HDFC Stan life.

8. Data Collection:
 Primary data collected through direct intrection with customer.
 Sample size 100 people.
 Secondary database from different magazines.
 First and foremost, accumulating information from newspapers ,
Journals, Magazines, and company webside.
 Secondly, taking a sample size and doing a market survey by filling up
questionnaires from customers to find out what different companies are
offering in the ULIP section and how are they similar/different from ICICI
PRUDENTIAL products. Also keeping a track and taking down the
feedback regarding perception, attitude, taste and preferences of the
customer.
 Thirdly, analyzing the data collected. Comparing the ULIP products
offered by other insurance players.
 Critical analysis of consumer perception; their choice and preferences.
 Eventually, deciding on how to familiarize ULIP products in the market
and what all safeguards need to be taken while approaching the customers.

9. CHAPTER-1

10. INTRODUCTION TO INSURANCE
LIFE INSURANCE GENERAL
Insurance is a system to alleviate financial losses by transferring risk of loss from
one entity to another.
„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 insured person
should not make any gains out of insurance.
It is natural to think of insurance of physical assets such as motor car insurance or fire
insurance but often 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

11. 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. In return 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
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.

12. 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”.
NEED FOR LIFE INSURANCE
Risks and uncertainties are part of life's great adventure -- accident, illness, theft,
natural disaster - they're all built into the workings of the Universe, waiting to happen.
Insurance then is man's answer to the vagaries of life. If you cannot beat man-made
and natural calamities, well, at least be prepared for them and their aftermath.
Insurance is a contract between two parties - the insurer (the insurance company) and
the insured (the person or entity seeking the cover) - wherein the insurer agrees to pay
the insured for financial losses arising out of any unforeseen events in return for a
regular payment of "premium".
These unforeseen events are defined as "risk" and that is why insurance is called a
risk cover. Hence, insurance is essentially the means to financially compensate for
losses that life throws at people - corporate and otherwise.
The principle of insurance works on the concept of a large number of people exposed
to a similar risk making a contribution to a common fund. Those who suffer losses
due to the occurrence of these events are compensated for them from this fund.

13. ROLE OF LIFE INSURANCE
Life Insurance As An Investment: -
Insurance is an attractive option for investment. While most people recognize the risk
hedging and tax saving potential of insurance, many are not aware of its advantages as
an investment option as well. Insurance products yield more compared to regular
investment options, and this is besides the added incentives offered by insurers.
You cannot compare an insurance product with other investment schemes for the
simple reason that it offers financial protection from risks, something that is missing
in non-insurance products. In fact, the premium you pay for an insurance policy is an
investment against risk. Thus, before comparing with other schemes, you must accept
that a part of the total amount invested in life insurance goes towards providing for
the risk cover, while the rest is used for savings.
In life insurance, unlike non-life products, you get maturity benefits on survival at the
end of the term. In other words, if you take a life insurance policy for 20 years and
survive the term, the amount invested as premium in the policy will come back to you
with added returns. In the unfortunate event of death within the tenure of the policy,
the family of the deceased will receive the sum assured.
Now, let us compare insurance as an investment options. If you invest Rs 10,000 in
PPF, your money grows to Rs 10,950 at 9.5 per cent interest over a year. But in this
case, the access to your funds will be limited. One can withdraw 50 per cent of the
initial deposit only after 4 years.
The same amount of Rs 10,000 can give you an insurance cover of up to
approximately Rs 5-12 lakh (depending upon the plan, age and medical condition of
the life insured, etc) and this amount can become immediately available to the
nominee of the policyholder on death. Thus insurance is a unique investment avenue
that delivers sound returns in addition to protection.

14. TYPES OF LIFE INSURANCE PLANS
Life Insurance Plans:
Under Life insurance plans, ICICI Prudential offers plans under the following major
need categories:
Education Insurance Plans
Wealth Creation Plans
Premium Guarantee plans
Protection Plans
Education Insurance Plans
One of your most important responsibilities as a parent is to ensure that your child
gets the best possible education that can be provided.
ICICI Prudential offers a wide portfolio of education insurance plans that are designed
to provide peace of mind to you, as a parent, that your child's education will be
secure. These plans ensure that money is made available at the crucial junctures in a
child's education - Class X, Class XII, graduation and post-graduation - to fund
crucial commitments for the child's future.
Importantly, education insurance plans ensure that in the unfortunate event of the
death of a parent, the child's education continues unhampered.
Under the education insurance plans platform, ICICI Prudential brings the following
products to you. Please click on the product name to know more about the plans.
Plan Name
SmartKid New Unit-linked
Regular Premium
SmartKid New Unit-linked
Single Premium
SmartKid Regular Premium
Plan Type
Unit Linked
Unit Linked
Traditional

15. Wealth Creation Plans
Wealth Creation Plans give the customer the dual benefit of protection along with the
potentially higher returns of market-linked instruments. The most important benefit of
ULIPs is the flexibility they give the customer in choosing the premium amount and
also choosing the underlying fund in which this money is to be invested. Wealth
creation plans also offer the customer more liquidity options as compared to
traditional plans. As such, ULIPs are ideal for customers who want the protection of a
life cover to be allied to the returns of market linked instrument – giving them an
unmatched combination of benefits.
Under the wealth creation platform, ICICI Prudential brings the following products to
you. Please click on the product name to know more about the plans.
Plan Name
LifeTime Super
LifeLink Super
PremierLife Gold
LifeTime Plus
Plan Type
Unit Linked
Unit Linked
Unit Linked
Unit Linked
Premium Guarantee Plans
The latest addition to the life insurance product portfolio of ICICI Prudential is the
Premium Guarantee plan - InvestShield Life New. Premium Guarantee plans are the
ideal insurance-cum-investment option for customers who want to enjoy the
potentially higher returns of a market linked instrument, but without taking any
market risk.
Under the Premium Guarantee Plans platform, ICICI Prudential brings to you the
following products:

16. Plan Name
InvestShield Life New
InvestShield CashBak
Plan Type
Unit Linked
Unit Linked
Protection Plans
The sole objective of these plans, as their name indicates, is to serve the protection
needs of the customer and by doing so, safeguard one‟s family from the financial
implications of unfortunate circumstances than one cannot foresee.
Under the Protection Plans platform, ICICI Prudential brings to you the following
products:
Plan Name
LifeGuard
Save'n'Protect
CashBak
Home Assure
Plan Type
Traditional
Traditional
Traditional
Traditional

17. THE INSURANCE REGULATORY AND DEVELOPMENT
AUTHORITY (IRDA)
Reforms in the Insurance sector were initiated with the passage of the IRDA Bill in
Parliament in December 1999. The IRDA since its incorporation as a statutory body
in April 2000 has fastidiously stuck to its schedule of framing regulations and
registering the private sector insurance companies.
The other decision taken simultaneously to provide the supporting systems to the
insurance sector and in particular the life insurance companies was the launch of the
IRDA‟s online service for issue and renewal of licenses to agents.
The approval of institutions for imparting training to agents has also ensured that the
insurance companies would have a trained workforce of insurance agents in place to
sell their products, which are expected to be introduced by early next year. Since
being set up as an independent statutory body the IRDA has put in a framework of
globally compatible regulations. In the private sector 12 life insurance and 6 general
insurance companies have been registered.

18. WHY PRIVATE INSURANCE?
All the private companies have a lock in period of 3 yrs hence no disinvestments
possible.
Minimum net worth of 500 Cr required for acquiring license with a minimum paid
up capital of 100 Cr in their insurance venture.
Commitment to increase the paid up capital manifold in next five years.
Re insurance for all its policies worth more than 5 lakhs. Reinsurance partners,
best and the largest in the world – general cologne and Swiss reinsurance.
Audit of accounts by at least 2 independent approved auditors each year.
Products and pricing are cleared by IRDA, which looks into the financial visibility
of the product and the financial implication.
IRDA is now proposing a Pvt. Policy Protection fund.
Funds to be invested in only regulated and controlled areas with close to
80%being pumped into only gilts thereby assuring safety of funds.

19. CHAPTER-2

20. INDUSTRY PROFILE
Background
In 1912, the Indian life insurance companies Act was passed . This was the first
comprehensive legislation in India to regulate the business of insurance. it had been
observed that the provisions of Indian Company‟s Act did not meet the purpose. A
further legislation was passed in 1928, But a comprehensive legislation was passed in
1938. The amendments in the act were made in 1956 when insurance was nationalized
and LIC and GIC were formed.
Life insurance business was nationalized with effect from 19 January 1956
and 256 companies were merged. Insurance Act was further amended in 1999 and
IRDA was formed in view of the circumstances arising out of opening up of insurance
industry in 2000.IRDA authority to protect the interest of the holders of insurance
policies, to regulate , promote and ensure the working of all companies.
As we enter into the new millennium, economies of the world over are getting
redefined and remodeled with the new mindsets, new technologies, new riles and new
directions. Financial sector reforms received top priority ever since the Govt. of India
initiated the process of economic liberalization. These reforms are extending the
horizons of the financial services sector and have been transforming our capital
markets , banking and financial services industries.
In the last four decades , after nationalization of the insurance industry ,
certain socio-economic objectives were achieved through public ownership of the
insurance business. Yet, market oriented dynamism was missing as evidenced by the
lack of
product innovations, high premium rates and limited use of information
technology.

21. The insurance sector reforms have encouraged Blue-Bloods of Indian corporate sector
TATA,ICICI,HDFC,BIRLA,SBI,RELIANCE,KOTAK etc to tie up with world‟s
largest insurance majors to capture slice of the country‟s potential insurance market.
This has brought abuzz activities in insurance business. New players are wooing the
customer with promises of better services and customized products. The LIC and GIC
are countering the competition on the strength of their track records, distribution
networks and so on.
This new scenario will witness financially sound and experienced players
transforming the industry with best products in service and product development ,
operational efficiency, marketing capability, service plus and tech-savvy orientation.
As a result, the insurance business can become global with e-business applications.
It is awkward business playing value figures on people‟s lives. It is almost as
awkward as selling the likelihood of an event people do not want crossing their minds
. in India, it is rather a shrub. For this reason alone life insurance is no ordinary
market. Under the pressure of competitors differentiate their offerings, insurers no
longer sell life insurance as a product that meets a basic need , many of them sell
though the appeal of a wide variety of add on benefits ranging from tax saving to
investment return, sometimes pitying more emphasis on these basic benefits.
This assumes significance because India is witnessing foreign
competition in this sector after a long monopoly period.
There is consensus on success becoming a function of market strategy.
So far the market has been shaped by LIC . it is only recently that private
insurers with 74:26 joint ventures between Indian and foreign companies have
been formed under the watch of IRDA. ICICI prudential, HDFC slandered life
and Max New York Life were first off the block, followed by Kotak

22. Mahindra, Royal Sundram,TATA Aig,Birla Sunlife,SBI Life and ING Vyasa
which were started later.
Sudden burst of competition itself is a unique occurrence. The Indian
market distinguishes itself in other ways too, most notably in the areas of
consumer perception and investment option. So it is worth which will the
market move and what could be the winning strategies. Basic premise is clear
that “life insurance is a specialized business”.

23. LIFE INSURERS
1. BAJAJ ALLIANZ LIFE INSURANCE CO.LTD.
2. BIRLA SUNLIFE INSURANCE CO. LTD.
3. HDFC STANDARD LIFE INSURANCE CO. LTD.
4. ICICI PRUDENTIAL LIFE INSURANCE CO. LTD.
5. ING VYSYA LIFE INSURANCE CO.PVT.LTD.
6. LIFE INSURANCE CORPORATION OF INDIA.
7. MAX NEWYORK LIFE INSURANCE CO. LTD.
8. METLIFE INDIA INSURANCE CO. PVT.LTD.
9. KOTAK MAHINDRA OLD MUTUAL LIFE INSURANCE CO.
LTD.
10. SBI LIFE INSURANCE CO.LTD.
11. TATA AIG LIFE INSURANCE CO.LTD.
12. AVIVA LIFE INSURANCE CO. LTD.
13. SAHARA LIFE INSURANCE CO. LTD.

24. Life Insurance Companies
ICICI Prudential Life Insurance Company Limited
ICICI Prudential Life Insurance Company Limited was incorporated on July
20,2000.The authorized capital of the company is Rs 2300 million and the paid up
capital is Rs 1500 million. The Company is joint of ICICI (74%) and Prudential
plc UK (26%)
The company was granted certificate of registration for carrying out life insurance
business, by the insurance regulatory and development Authority on November
24,2000.it commenced commercial operations on December 19, 2000,becoming
one of the first few private sector players to enter the liberalized arena. ICICI
Prudential collected Rs.1584 corers as their premium during 2004-05 & the
market share of ICICI pru. as per their premium is 5.63% as a whole but in the pvt
.co .ICICI hold 40% of market share.
ING VYSYA LIFE INSURANCE COMPANY PVT. LTD.
ING Vysya Life Insurance is a joint venture between three
pioneers, ING Insurance Vysya Bank.
ING Group: Over the last 150 years, ING Group has grown to become one of the
largest life insurance organizations in the world. Today it touches the lives of over
50 millions people across 65 countries. It offers a range of financial services
including insurance, pensions, banking and asset management. In the year
2000,total assets of the group stood at over INR 28,42000 corers.

25. KOTAK MAHINDRA LIFE INSURANCE COMPANY LTD.
Kotak Mahindra life Insurance Company Limited is a joint
venture between Kotak Mahindra Finance Ltd and Old Mutual.
Kotak Mahindra Finance Ltd.
Kotak Mahindra is one of the India‟s leading financial
institutions, offering complete financial solution that encompasses every sphere of
life. From Banking, to stock Broking, to Mutual Funds, to Life Insurance, to
Investment Banking, the company caters to the financial needs of individuals and
corporates.
Old Mutual
Old Mutual, a company with over 157 years of experience in life
insurance business, has the largest financial services business in South Africa,
through its life assurance, asset management, banking and general insurance
operations. Being listed in London Stock Exchange and included in FTSE 100 list
of companies, old Mutual‟s assets under management are worth $208 billion.
Tata AIG Life Insurance Company:
Tata AIG General Insurance Company Ltd and Tata AIG Life Insurance Company
Ltd (collectively “Tata AIG”) are joint venture companies between the Tata group
India‟s most trusted industrial house and American International grouping (AIG), the
leading U.S based international insurance and financial services organization.
Both promoters have a deep and abiding interest in India‟s Insurance sector. Prior to
nationalization, the Tanta‟s pioneered private insurance in India when Sir Dorab Tata
set
up new India assurance in 1919.By 1973,when General Insurance was nationalized
the Tata company had a global presence with 56 overseas offices. Aig too has always

26. considered the Indian insurance sector to be of significance. The AIG companies
entered India in 1954 and had offices in several Indian cities prior to nationalization.
HDFC –Standard Life:
HDFC Standard Life Insurance company is a joint venture between India‟s
largest housing finance provider, HDFC and Europe‟s largest mutual life assurance
company The Standard Life Assurance Company (UK). HDFC Standard Life
Insurance Company Limited is the first private sector life insurance company to be
granted a license.
Standard Life, UK, found in 1825. The UK insurance industry for 175 years
by combining sound financial judgment with integrity and reliability. It is the largest
mutual life company in Europe and has total assets of Rs.5,50,000 crore sit is one of
the very few insurance companies in the world to have „AAA‟ rating from two of the
leading international credit rating agencies, Moody and Standard and Poor‟s. Standard
Life was recently voted „company of the decade‟ in UK by the independent Brokers
called IFAs.
LIFE INSURANCE CORPORATION OF INDIA (LIC)
The Life Insurance Corporation (LIC) was established about 49 (in1956)
years ago with a view to provide an insurance cover against various risks in life .A
monolith then, the corporation, enjoyed a monopoly status and become
synonymous with life insurance.Its main asset is its staff strength of 1.24 lakhs
employees and 2048 branches and over six-lakh agency force. LIC has hundred
divisional offices and has established extensive training facilities at all levels .At
the apex, is the Management Development Institute, Seven Zonal Training centers
and 35 Sales Training Centers.

27. At the industry level, along with the Government and GIC, it has helped established
the National Insurance Academy. It presently transacts individual life insurance
businesses, group insurance businesses, social security schemes and pensions,
grants housing loans through its subsidiary; and markets saving and investment
products through its mutual fund. It payoff about Rs 6000 crore annually to 5.6
million policyholders. Market share of LIC which is 82.3%.By the LIC 1.09 crores
policies has been sold that was in the 2004-05 & the total premium that are
collected by LIC in 2004-05 was Rs.9007 crores.
ALLIANZ BAZAZ LIFE INSURANCE COMPANY
Allianz AG with over 110 years of experience in over 70 countries and Bajaj
Auto, trusted for over 55 years in the Indian market ,together are committed to
offering financial solutions.
Characterized by global presence with a local focus and driven by
customer orientation to establish high earnings potential and financial strength,
Allianz Bajaj Life Insurance Co Ltd was incorporated on 12th
March 2001.The
company received the insurance regulatory and development Authority (IRDA)
Certificate of Registration on 3rd
August 2001 to conduct Life Insurance business in
India. The Market share of Bajaj Allianz in 2003-04 was .95% which has been
increases in 2004-05 and it is know 2.03% which depicts the financial position of
the co.

28. CHAPTER-3

29. COMPANY PROFILE
Overview
India‟s Number One private life insurer, ICICI Prudential Life Insurance Company is a joint
venture between ICICI Bank-one of India‟s foremost financial services companies-and
Prudential plc- a leading international financial services group headquartered in the United
Kingdom. Total capital infusion stands at Rs. 20.60 billion, with ICICI Bank holding a stake
of 74% and Prudential plc holding 26%.
We began our operations in December 2000 after receiving approval from Insurance
Regulatory Development Authority (IRDA). Today, our nation-wide team comprises of over
580 offices, over 234,000 advisors; and 22 bancassurance partners.
ICICI Prudential was the first life insurer in India to receive a National Insurer Financial
Strength rating of AAA (Ind) from Fitch ratings. For three years in a row, ICICI Prudential
has been voted as India‟s Most Trusted Private Life Insurer, by The Economic Times – AC
Nielsen ORG Marg survey of „Most Trusted Brands‟. As we grow our distribution, product
range and customer base, we continue to tirelessly uphold our commitment to deliver world-
class financial solutions to customers all over India.

30. Vision & Values
Our vision:
To make ICICI Prudential the dominant Life and Pensions player built on trust by world-class
people and service.
This we hope to achieve by:
Understanding the needs of customers and offering them superior products and
service
Leveraging technology to service customers quickly, efficiently and conveniently
Developing and implementing superior risk management and investment
strategies to offer sustainable and stable returns to our policyholders
Providing an enabling environment to foster growth and learning for our employees
And above all, building transparency in all our dealings.
The success of the company will be founded in its unflinching commitment to 5 core values –
Integrity, Customer First, Boundary less, Ownership and Passion. Each of the values describe
what the company stands for, the qualities of our people and the way we work.
We do believe that we are on the threshold of an exciting new opportunity, where we can play
a significant role in redefining and reshaping the sector. Given the quality of our parentage
and the commitment of our team, there are no limits to our growth.
Our values :
Every member of the ICICI Prudential team is committed to 5 core values: Integrity,
Customer First, Boundary less, Ownership, and Passion. These values shine forth in all we do,
and have become the keystones of our success.
The ICICI Prudential edge comes from our commitment to our customers, in all that we do –
be it product development, distribution, the sales process or servicing. Here‟s a peek into what

31. makes us leaders.
1. Our products have been developed after a clear and thorough understanding of customers‟
needs. It is this research that helps us develop Education plans that offer the ideal way to truly
guarantee your child‟s education, Retirement solutions that are a hedge against inflation and
yet promise a fixed income after you retire, or Health insurance that arms you with the funds
you might need to recover from a dreaded disease.
2. Having the right products is the first step, but it‟s equally important to ensure that our
customers can access them easily and quickly. To this end, ICICI Prudential has an advisor
base across the length and breadth of the country, and also partners with leading banks,
corporate agents and brokers to distribute our products
3. Robust risk management and underwriting practices form the core of our business. With
clear guidelines in place, we ensure equitable costing of risks, and thereby ensure a smooth
and hassle-free claims process.
4. Entrusted with helping our customers meet their long-term goals, we adopt an investment
philosophy that aims to achieve risk adjusted returns over the long-term.
5. Last but definitely not the least, our 16,000 plus strong team is given the opportunity to
learn and grow, every day in a multitude of ways. We believe this keeps them engaged and
enthusiastic, so that they can deliver on our promise to cover you, at every step in life.
Promoters
ICICI Bank
ICICI Bank (NYSE:IBN) is India‟s second largest bank and largest private sector bank with
over 50 years presence in financial services and with assets of over Rs 3446.58 bn (USD 79
billion) as on March 31, 2007. The Bank offers a wide range of banking products and
financial services to corporate and retail customers through a variety of delivery channels and
through its pecialized subsidiaries in the areas of investment banking, life and non-life
insurance, private equity and asset management. ICICI Bank is a leading player in the retail

32. banking market and services its large customer base through a network of over 950 branches
and extension counters, 3300 ATMs, call centers and internet banking (www.icicibank.com)
to ensure that customers have access to its services at all times.
Prudential Plc
Established in London in 1848, Prudential plc, through its businesses in the UK and Europe,
the US and Asia, provides retail financial services products and services to more than 20
million customers, policyholder and unit holders and manages over £251 billion of funds
worldwide (as of 31 December 2006). In Asia, Prudential is the leading European life
insurance company with life operations in China, Hong Kong, India, Indonesia, Japan, Korea,
Malaysia, the Philippines, Singapore, Taiwan, Thailand, Vietnam. Prudential is the second
largest retail fund manager for Asian sourced assets ex-Japan as at June 2006. Its fund
management business has expanded into a total of ten markets : China, Hong Kong, India,
Japan, Korea, Malaysia, Singapore, Taiwan, Vietnam and United Arab Emirates.
Fact Sheet
THE Company
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).
ICICI Prudential's capital stands at Rs. 20.60 billion with ICICI Bank and
Prudential plc holding 74% and 26% stake respectively. As of March 31, 2007, the
company garnered Rs. 4,843 crore of weighted retail + group new business
premiums and wrote over 1.96 million retail policies. The company has assets held

33. to the tune of over Rs. 15,000 crore.
ICICI Prudential is also the only private life insurer in India to receive a National
Insurer Financial Strength rating of AAA (Ind) from Fitch ratings. The AAA (Ind)
rating is the highest rating, and is a clear assurance of ICICI Prudential's ability to
meet its obligations to customers at the time of maturity or claims.
For the past six years, ICICI Prudential has retained its position as the No. 1
private life insurer in the country, with a wide range of flexible products that meet
the needs of the Indian customer at every step in life. To know more about the
company, please visit
Distribution
ICICI Prudential has one of the largest distribution networks amongst private life
insurers in India. As of March 31, 2007 the company has over 580 offices across
the country and over 234,000 advisors.
The company has over 22 bancassurnace partners, having tie-ups with ICICI Bank,
Federal Bank, South Indian Bank, Bank of India, Lord Krishna Bank, Idukki
District Co-operative Bank, Jalgaon Peoples Co-operative Bank, Shamrao Vithal
Co-op Bank, Ernakulam Bank, 9 Bank of India sponsored Regional Rural Banks
(RRBs), Sangli Urban Co-operative Bank, Baramati Co-operative Bank, Ballia
Kshetriya Gramin Bank, The Haryana State Co-operative Bank.
Flexible Rider Options
ICICI Pru Life offers flexible riders, which can be added to the basic policy at a
marginal cost, depending on the specific needs of the customer.
1.
Accident & disability benefit: If death occurs as the result of an accident
during the term of the policy, the beneficiary receives an additional
amount equal to the rider sum assured under the policy. If an accident
results in total and permanent disability, 10% of rider sum assured will
be paid each year, from the end of the 1st year after the disability date
for the remainder of the base policy term or 10 years, whichever is

34. lesser. If the death occurs while traveling in an authorized mass
transport vehicle, the beneficiary will be entitled to twice the sum
assured as additional benefit.
2.
Critical Illness Benefit: protects the insured against financial loss in the
event of 9 specified critical illnesses. Benefits are payable to the insured
for medical expenses prior to death.
3.
Waiver of Premium: In case of total and permanent disability due to an
accident, the future premiums continue to be paid by the company till
the time of maturity. This rider is available with LifeTime Super,
LifeTime Super Pension and CashPlus.
About the Promoters
ICICI Bank (NYSE:IBN) is India's second largest bank and largest private sector
bank with over 50 years presence in financial services and with assets of over Rs
3446.58 bn (USD 79 billion) as on March 31, 2007. The Bank offers a wide range
of banking products and financial services to corporate and retail customers
through a variety of delivery channels and through its specialised subsidiaries in
the areas of investment banking, life and non-life insurance, private equity and
asset management. ICICI Bank is a leading player in the retail banking market and
services its large customer base through a network of over 950 branches and
extension counters, 3300 ATMs, call centers and internet banking
www.iciciprulife.com to ensure that customers have access to its services at all
times.
Established in London in 1848, Prudential plc, through its businesses in the UK
and Europe, the US and Asia, provides retail financial services products and
services to more than 20 million customers, policyholder and unit holders and
manages over £251 billion of funds worldwide (as of 31 December 2006). In Asia,

35. Prudential is the leading
European life insurance company with life operations in China, Hong Kong, India,
Indonesia, Japan, Korea, Malaysia, the Philippines, Singapore, Taiwan, Thailand,
Vietnam. Prudential is the second largest retail fund manager for Asian sourced
assets ex-Japan as at June 2006. Its fund management business has expanded into a
total of ten markets : China, Hong Kong, India, Japan, Korea, Malaysia,
Singapore, Taiwan, Vietnam and United Arab Emirates.
The ICICI Prudential Life Insurance Company Limited Management team comprises
reputed people from the finance industry both from India and abroad.
Ms. Shikha Sharma, Managing Director & CEO
Mr. N. S. Kannan, Executive Director
Mr. Bhargav Dasgupta, Executive Director
Ms. Anita Pai, EVP – Customer Service & Technology
Mr. Azim Mithani, Chief Actuary
Mr. Puneet Nanda, Chief Investments Officer
Mr. Binayak Dutta, Chief – Sales and distribution
Mr. N. S. Kannan
Executive Director
ICICI Prudential
Life Insurance Company Limited
N. S. Kannan joined ICICI Prudential Life Insurance Company Ltd as Executive Director
in August 2005, where he has overall responsibility for sales, marketing, investments,
group business and business intelligence. Prior to joining ICICI Prudential, Kannan was
the Chief Financial Officer and Treasurer of ICICI Bank Limited where he was
responsible for investor relations and for the finance, performance management, accounts,
taxation, risk management, secretarial and credit middle office functions. The treasury
operations of ICICI Bank include Balance Sheet Management and Asset and Liability

36. Management. ICICI Bank is the second largest bank in India with an asset base of about
US$ 55 billion. The bank is listed on Indian national stock exchanges and the New York
stock exchange. Kannan joined ICICI group in 1991 as a project officer. During his
tenure at ICICI group, he has handled project finance operations, infrastructure financing,
structured finance and treasury operations. Prior to his current assignment, he has headed
the Telecom & Transportation group and Structured Finance group of the bank.Kannan is
a postgraduate in management from the Indian Institute of Management, Bangalore with a
gold medal for best all-round performance. He is also a Chartered Financial Analyst from
the Institute of Chartered Financial Analysts of India and an Honours graduate in
Mechanical Engineering. His work experience includes 3 years of industrial experience
with a large engineering group in India.
SWOT ANALYSIS OF ICICI PRUDENTIAL
STRENGTHS
ICICI PRUDENTIAL is the largest private player in the insurance industry in
India, with a market share of around 36% amongst the private players.
ICICI PRUDENTIAL has deposited a paid up capital of Rs. 925 crores with
IRDA as a caution deposit, the highest amongst all the life insurance
companies in India whereas LIC has deposited only 60 crores so far.
ICICI PRUDENTIAL is the first life insurance company to offer ECS debit
facility.
ICICI PRUDENTIAL is the first company to introduce unit linked life
insurance and pension products. Presently the maximum numbers of ranges
are under ULIP like life insurance, investment as well as pension plans.
Its Venture funds management co. Ltd is India‟s largest venture capital
company.
PRODUCTS:
 Flexibility to switch your fund value at your own discretion 4 times a
year

37. Viz Maximiser, Protector, Balancer, Preserver.
 Greater transparency- policyholder knows what is happening to his
money and where the company has invested the money.
 Liquidity option: you can make partial or complete withdrawals
anytime after 3 years.
 Life insurance plans are eligible for deduction under Sec. 80C.
 The proceeds or withdrawals of life insurance policies are exempt
under Sec 10(10D), subject to norms prescribed in that section.
 Riders are provided to give the policyholder the additional protection
at marginal cost- Accident and Disability rider, Critical Illness Rider,
Accidental benefit rider.
 Loan against the policy: After the policy has acquired a surrender
value
one can avail loan against the policy.
WEAKNESSES
Industry in nascent stage.
Rural areas still not covered.
Not very well known among the Indian population.
Lack of credibility in the public because ICICI being a private player.
Premiums are high as compared to its competitors.
Very few branches in the country.
PRODUCTS:
 The policy doesn‟t have the surrender option before the 3rd
year.
 Plan do not offer any guarantee or assured return
 The product profile is not very comprehensive.
 Mortality, management and administrative charges are sky-scraping as
compared to its competitors.
OPPORTUNITIES
Liberalization of Indian economy.

38. As the industry is growing the whole market is virgin.
The whole private sector is open to be tapped even though the competition is
fierce from government owned insurance companies.
It‟s a volume business that is even if the company has few good corporates
the turnover ceases to increase by manifold.
PRODUCTS:
 Preserver fund looks good due to comfortable liquidity in the economy
and there is little chance of any hike in short-term rates by RBI.
 Finance minister unveiled a budget-favoring consumer spending,
boosting demand and therefore higher economic growth
THREATS
The Govt. players will become aggressive thus growth is going to be tough.
Entry of other new players is not ruled out
Apprehension towards ICICI PRUDENTIAL being a private life insurance
company.
We expect the industry to rationalize in future that is mergers and acquisitions
will happen which will impact the industry and ICICI PRUDENTIAL
fortunes.
PRODUCTS:
 Past performance of these plans is not indicative of the future performance
of the plan
 The sum invested in the funds is subject to market risks and there can be
no assurance that the objective of the plans will be achieved.
 All benefits payable under the policy are subject to the tax laws and other
financial enactment, as they exist from time to time

39. MEANING OF ULIP
A policy, which provides for life insurance where the policy value at any time varies
according to the value of the underlying assets at the time. 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).
A ULIP structure looks like as follows:
Unit linked
insurance
plans
Units in
funds
Underlying
investment
Contribution

40. FEATURES OF ULIP
ULIP distinguishes itself through the multiple benefits that it provides to the
consumer. The plan is a one-stop solution providing:
· Life protection
· Investment and Savings
· Flexibility
- Adjustable Life Cover
- Investment Options
· Transparency
· Options to take additional cover against
- Death due to accident
- Disability
- Critical Illness
- Surgeries
Less charge
Investment represented as
units
Life cover

41. · Liquidity
· Tax planning
The two strong arguments in favour of unit-linked plans are:
Firstly, the investor knows exactly what is happening to his money
Secondly it allows the investor to choose the assets into which he wants his
funds invested.
An investor in a ULIP knows how much he is paying towards mortality, management
and administration charges. He also knows where the insurance company has invested
his money.
The investor gets exactly the same returns that the fund earns but he also bears the
investment risk. The transparency makes the product more competitive. So if you are
willing to bear the investment risks in order to generate a higher return on your
retirement funds ULIPs are for you. Traditional „with profits‟ policies too invest in
the market and
generate the same returns prevailing in the market. But here the insurance company
evens out returns to ensure that policyholders do not hold money in a bad year. In that
sense they are safer. ULIPs also offer flexibility. For instance a policyholder can ask
the insurance company to liquidate units in his account to meet to mortality charges if
he is unable to pay any premium installment. This eats into savings but ensures that
the policy will continue to cover his life.
ULIP came into play in the 1960s and became very popular in Western Europe and
Americas. The reason that is attributed to the wide spread popularity of ULIP is
because of the transparency and the flexibility which it offers. Unit- linked plans are a
contemporary product: transparent and flexible. Individuals have greater control over
their investments. The popularity of ULIPS stems from the fact that they offer
customers “integrated financial solutions with a transparent charge structure”. In
today‟s times, ULIP provides solutions for insurance planning, financial needs,
financial planning for children‟s future and retirement planning. Unit-linked insurance
plans (ULIPs) have become something of a rage with their 'promise' of market-linked
returns combined with the dual benefit of insuring your life from eventualities.
Why do insurers prefer ULIPs?

42. Insurers love ULIPs for several reasons. Most important of all, insurers can sell these
policies with lesser capital of their own than what would be required if they sold
traditional policies. In traditional „with profits‟ policies the insurance company bears
the investment risk to the extent of insured amount. In ULIPs the policyholder bears
most of the investment risk. Since ULIPs are designed to mobilize savings, they give
insurance companies an opportunity to get a large chunk of asset management
business which has been traditionally dominated by mutual funds. ULIPs are suitable
for individuals who are already adequately insured and are reasonably well-informed
and savvy to take active investment decisions by using the `switch option' that is
provided to a ULIP policyholder. Also policyholders with regular endowment plans
who are not satisfied with the 4-6% returns can consider taking a ULIP with a lower
equity component. It is best if insurance-seekers tread the middle path and choose
balanced plans (with about 50-60% equity
component). Ideally they need to avoid taking the aggressive 100% equity ULIP,
which could needlessly expose their assets to market volatility. So if insurances-
seekers/investors play their cards right, they can make this marriage work.
WORKING OF UNIT LINKED INSURANCE PLANS
UNIT LINKED PLANS
SUPER SMART KID
SmartKid offers an exclusive choice of 3 education insurance plans: SmartKid New
Unit-linked Regular Premium, SmartKid New Unit-linked Single Premium and
SmartKid Regular Premium. Take a look at the features and benefits of each plan:
1. SmartKid New Unit-linked Regular Premium
SmartKid New Unit-linked Regular Premium is a unit-linked plan, which enables you
and your child to accumulate wealth by virtue of the performance of the underlying
market-linked instrument. Take a look at the features of the plan:
Premium: The minimum premium to be invested is Rs. 10,000 per annum. After
deducting premium allocation charges from the premium, the remaining amount will
be invested in a fund of your choice.
Sum Assured: The minimum Sum Assured that the policyholder can opt for is Term
* Annual Premium/2, subject to a minimum of Rs 1 Lac

43. Policy term: The term of the policy will be calculated as the difference between your
child's current age and the age of your child when the policy matures.
Mortality, Policy Administration charges: These and other charges will be
deducted from the units in the fund.
2. SmartKid New Unit-linked Single Premium
SmartKid New Unit-linked Single Premium works in much the same way as
SmartKid New Unit-linked Regular Premium policy mentioned above. The only
different feature is the premium amount-you will be required to pay only a single
premium, which starts at as low as Rs. 50,000.
Additional Features and Benefits Common to All 3 Plans
Regular payouts: As your child approaches key educational milestones such as 12th
standard or graduation exams, he or she will receive regular payouts, guaranteeing he
or she continues to study, no matter what the circumstance.
Death Benefit: Your child will receive the Sum Assured immediately, should
something happen to you. ICICI Prudential will pay the remaining premiums,
ensuring your child continues to receive policy benefits, as always.
Income Benefit Rider: You can choose to add the benefits of this rider to your child's
education plan. Should you depart before your son's or daughter's education is
complete, you child will receive 10% of Rider Sum Assured, for the balance term of
the policy.
Add-on riders: 'Accidental Death and Disability Rider' and 'Waiver of Premium
Rider' ensure your child stays doubly protected, at all times. You can choose to add
these to your child's education policy.
Tax benefits: Premiums you pay for a SmartKid policy are eligible for tax savings
[u/s 80(C)]. Maturity and death benefits are eligible for tax exemptions [u/s 10(10D)].
3. SmartKid Regular Premium
Flexible investment option: Choose the amount of premium with which you wish to
safeguard your child's education.
Flexible policy tenure: The tenure of the plan will be calculated as the difference
between your child's current age and his or her age at which the policy matures.
Flexible premium options: The premium will be calculated based on 3 factors: Sum
Assured, policy tenure and your age.
Guaranteed bonus: A guaranteed bonus of 3.5% per annum is declared for the first 4
premium paying years plus an annual vested bonus declared in subsequent years.

44. LifeLink Super
Well-deserved financial incentives, rewarding business profits and even ancestral
money are precious amounts that you should invest immediately so they earn you
potentially higher returns in the long run.
Invest in ICICI Prudential's LifeLink Super policy-a single-premium unit-linked
policy
that works best for investors who have in mind long-term financial goals, such as the
education of a child or the purchase of a larger home.
Apart from the potentially higher returns that you can earn, LifeLink Super insures
your family against misfortunes with its protective insurance cover.
Read more about the features and benefits of this plan, right away.
LifeLink Super at a glance
Minimum/Maximum Entry Age
Maximum Age at Policy Maturity
Minimum Policy Term
Minimum Single Premium
Minimum Sum Assured
Tax Benefit
0 years to 65 years
70 years
5 years
Up to age 44: Rs. 25,000, age 45 and above: Rs.
50,000
Annual Premium x Term/2. Subject to a
minimum of Rs. 1,00,000
Premium payment up to 20% of the Sum
Assured is eligible for benefit under Sec. 80C.
Any amount paid to you will be eligible for tax
benefits under Sec. 10 (10D) exemption, if
premium paid in any year does not exceed 20%
of the Sum Assured.
Features and benefits of LifeLink Super

45. 2 options of Sum Assured: Choose to receive either 125% or 500% of the single
premium amount.
Flexible policy term: Decide how long you wish to invest in this policy. You can
invest for a minimum of 5 years and keep your investment growing for as long as you
wish after that.
Partial withdrawal of money: Withdraw funds in installments from the 4th year
onwards.
Attractive premium allocation rates: Enjoy 100% allocation for premium amounts
equal to or greater than Rs. 5 lacs.
6 investment funds: Select among Flexi-Growth, Maximiser, Flexi-Balanced,
Balancer,
Protector, and Preserver, based on your financial goals and risk profile.
Switch benefit: Switch between funds anytime to maximize on market movements.
You can switch funds 4 times a year, at no cost. For subsequent switches, you will be
required to pay a switch fee of Rs. 100.
Maturity benefit: Receive the Fund Value when your policy matures. Choose to take
this value as a single lump-sum amount or in monthly, bi-annual or annual
installments spread over 1 to 5 years.
Death benefit: Your family receives the higher of Fund Value or Sum Assured
should something happen to you.
Why LifeTime Super
As an individual who desires a lot from life-a car, a beautiful home and of course, the
comfort and contentment of your family-you would undoubtedly want to plan your
finances such that you can take care of all your requirements.
Invest in ICICI Prudential's LifeTime Super policy-a regular-premium unit-linked
policy, which offers potentially higher returns that systematically enable you to meet
your long-term financial objectives. In addition, LifeTime Super also provides the
protective benefit of an insurance cover, which keeps your family secure, always.
Read more about the features and benefits of this plan.
LifeTime Super at a glance

46. Minimum/Maximum Entry Age
Maximum Age at Policy Maturity
Minimum/Maximum Policy Term
Premium Payment Frequency
Minimum Premium
Minimum Sum Assured
Tax Benefit (8)
0 years to 65 years
75 years
10 years to 75 years
Monthly, half-yearly, yearly
Rs. 18,000 per annum
Annual Premium x Term/2. Subject to a
minimum of Rs. 1,00,000
Premium paid for the policy and critical illness
benefit rider will be eligible for tax benefit
under Sec. 80C and 80D respectively. Any
amount paid to you will be eligible for tax
benefits under Sec. 10 (10D) as per prevailing
Income Tax laws.
Features and benefits of LifeTime Super
Flexible policy term: Decide for how long you want your policy. You can invest for
a minimum of 10 years and a maximum of 75 years.
3 choices of premium payment: Opt to pay the premium on a monthly, bi-annual or
an annual basis.
6 investment funds: Select among Flexi-Growth, Maximiser, Flexi-Balanced,
Balancer, Protector, and Preserver, based on your financial goals and risk profile.
Systematic withdrawal of money: Withdraw money in installments from the 4th
year onwards.
Maturity benefit: Receive the Fund Value when your policy matures. Choose to take
this value as a single lump-sum amount or in monthly, bi-annual or annual
installments.
Death benefit: Your family receives the higher of Fund Value or Sum Assured
should something happen to you.
Switch benefit: Switch between funds anytime to adjust your portfolio, based on your
goals and risk profiles. You can switch funds 4 times a year, at no cost. For
subsequent switches, you will be required to pay a switch fee of Rs. 100.
ROLE OF AN ADVISOR IN UNIT LINKED INVESTMENT
PLANS
It is important for us to know that what is the role that an advisor will play. At ICICI
Prudential, you are an advisor is to

47. 1. Provide ongoing financial advice for his/her clients: You are an advisor and just
like a lawyer or a doctor you advice the client about insurance and finance.
2. Identify future clients: Life insurance is a business of contacts an the advisor
constantly need to know people so that his business expands.
3. Constantly make appointments: Just making contacts will not be enough to
develop a good life insurance business.
4. Advisor needs to meet these contacts and thus should make appointments on
constantly.
5. Conduct financial review meetings with prospects/ clients: As an advisor it is
necessary to meet with client not only for the purpose of selling but also to
review the need of the client and prospects. Many people would not be in for life
insurance today but as time moves they can be requiring one. Similarly an
existing client may also be in need of more insurance as responsibilities and
liabilities increase.
Close sale:
Ultimately success is defined as sales. The advisor should lead each
appointment towards a sale and close it effectively where in the client is happy
on purchasing the insurance solution and feels satisfied with it.
CHAPTER-4

48. RESEARCH METHODOLOGY
Research Methodology has many dimensions, it include not only research
methods but also considers the logic behind the methods used in the context of the
study and explains why only a particular method of technique had been used so that
research lend themselves to p[roper evaluations. Thus in a way it is a written game
plan for concluding research therefore in order to solve research problem it is
necessary to design a research methodology for the problem as the same may differ
from problem to problem. Research design is the conceptual structure within which
the research is conducted. Its functions are to provide for the collection of relevant
evidence with minimum expenditure of effort, time and money. But, how this can be
achieved depends on the research purpose. In my study the research purpose is
exploratory study i.e. to gain familiarity with phenomena or to achieve new insights in
it.
MARKET RESEARCH DESIGN : Descriptive type

49. DATA SOURCES : Primary source
RESEARCH APPROACH : Survey method
RESEARCH INSTRUMENT : Questionnaire
TYPE OF QUESTIONS : Close-ended
SAMPLE SIZE : 100 samples
MODE OF COLLECTING DATA: Respondents to be chosen randomly.
SAMPLE DESIGN:
Social phenomenon being very vast, it becomes impossible to contact each and every
individual of population due to limitation of essential resources like time and money.
Therefore, the study is preferably narrowed down to a representative sample to make
the study more manageable. Quota sampling is adopted in the exploratory study. It is
a non-probability study in which various insurance players are taken.
SAMPLING UNIT:
The data can be collected from primary sources. The basic premises of my study are
primary data but at the same time it is supplemented with the secondary data.
Sampling unit is a unit which would be considered for the purpose of study to conduct
the comparative study of the ICICI Prudential and other insurance companies with
special reference to Unit Link Plans.
SAMPLING SIZE:
It refers to the number of items to be selected from the universal, to constitute a
sample. To commence the study various insurance players are taken.
HOW DID I GO ABOUT THE PROJECT:-
SAMPLE SIZE
A sample size of 100 customers was selected to do this project, which was random
sampling keeping in mind the basic criteria.
FIELD WORK
The research was done for a period of 2 months in (students, government employee &
other) ambala. I started with MY MARKET 100 and thereafter I used to give cold

50. calls from the company‟s database and if seemed interested I take along with me the
representatives of the company for further information gathering.
1) Study of Secondary Data: The quickest and the most economical way for
researchers to find possible hypothesis is to take the advantage of the work done
earlier and thus utilize their efforts.
2) In-depth Interviews: I used in-depth interviews because it attempts to influence
respondents to talk freely about their subject of interest .A formal questionnaire
was made and according to which the questions were asked to the respondents.
Basic methods of collecting Primary Data:
1) Questionnaire Method: The questionnaire used by me for the purpose of data
collection were of structured type (Non-disguised).
2) Contact Method: In order to derive information from the intended organization,
it was elementary for me to search for a link which could enable me to conduct a
research in that organization.
OBJECTIVE OF THE STUDY
The project undertaken by me as a part of my Summar Training of M.B.A.course is an
effort made to study the ULIP policies and activities in ICICI PRUDENTIAL with
special emphasis on unit linked products of the company.
In this era of cut throat competition, any organization needs to select and retain the
best talent. People selected should have positive attitude, ability to inspire others and
must be dynamic.
The main objectives of this study are:
Working of Unit linked Insurance Plans
SWOT analysis of the product sold

51. Comparative study with the competitor.
Study tax planning solutions available in the market.
Study asset allocation through insurance plans.
Market interphase.
CHAPTER-5

52. COMPARATIVE STUDY WITH THE
COMPETITORS
LIST:
LifeTime Super Vs LIC BimaPlus
LifeTime Super Vs Birla SunLife Classic Life
LifeTime Super Vs HDFC Linked

53. PremierLife Vs Bajaj Allianz Unitgain Plus
LIFETIME SUPER VS LIC BIMAPLUS
Features LifeTime Super LIC BimaPlus
Age 0 – 60 years 12 - 55 years
Term Minimum premium payment term of
3years 10 years
Sum Assured Choose your sum assured, subject to
a minimum sum assured of Rs. 1
lakh
Maximum limit upto Rs. 2 lakhs
Survival benefit Value of units (3rd year onwards) Bid Value of the fund units
along with maturity bonus at 5%
of the Sum Assured

54. Death benefit Higher of Sum Assured or value of
units.
Death during the first 6 months -
30% of SA + value of units, next
6 months - 60% of SA + value
of units. Death after 1st year -
SA + value of units. Death
during the 10th year - 105% of
SA + value of units.
Withdrawal benefit Partial or complete withdrawals are
available from the 3rd year onwards
Premature withdrawal allowed
after one year (after applying
bid-offer spread.
Contribution Minimum: Rs. 18,000 p.a. Not specified
Flexible
contribution
Flexibility to increase or decrease in
contribution Not available
Investment options Maximiser, Balancer, Protector &
Preserver. Balanced, Secured & Risk
Increase / Decrease
of death benefit
Available. Not available
Bonus units Available Not Available.
Top-up Available. Minimum top-up of Rs.
5000. Charges - 1% of top-up.
Available (Charges: 1.5% of the
top-up)
Switch
4 free switches a year, with the
minimum switch amount being Rs.
2000.
No free switches. Cost of
switching is 2% of the fund
value.
Surrender value The policy will acquire a surrender
value after 3 complete premium-
paying years. The surrender value is
100% of the value of investments.
Partial surrender up to 50% of
bid value of units allowed after
3 years from date of
commencement
Initial Charge % Allocation of the premium Not Disclosed
18000- 49,999: 1st year - 80%; 2nd
year - 92.5% ; 3rd year onwards -
96%.
50000 and above: 1st year - 82%;

55. 2nd year - 92.5%; 3rd year onwards -
96%.
Admin Charge None Not applicable
Other Charges Not applicable Not applicable
Fund Management
Charges
The annual administrative and fund
management charge is 2.25% for
Maximiser, 2.25% for Balancer,
1.50% for Protector & 0.75% for
Preserver. 1% of the fund per annum
IFETIME SUPER VS HDFC LINKED
Features LifeTime Super HDFC Linked
Age 0 - 60 years 18 - 60 years
Term Minimum premium payment term of
3years
10 - 30 years
Sum Assured Choose your sum assured, subject to
a minimum sum assured of Rs. 1
lakh
Only 5,10, 20 (age-based)
multiples are allowed as Sum
Assured.
Survival benefit Value of units (3rd year onwards) Value of units
Death benefit Higher of Sum Assured or value of
units.
Higher of Sum Assured or value
of units.
Withdrawal benefit Partial or complete withdrawals are
available from the 3rd year onwards
Partial withdrawal available
from the 3rd year onwards,
provided that the Value of Units

56. does not go below the Sum
Assured.
Contribution Minimum: Rs. 18,000 p.a. Minimum: Rs. 10,000 p.a.
Flexible
contribution
Flexibility to increase or decrease in
contribution.
Available
Investment options Maximiser, Balancer, Protector &
Preserver.
5 Fund Options- Balancer,
Defensive Managed, Safe
Managed, Liquid & Growth
Increase / Decrease
of death benefit
Available. Not available
Bonus units Available Not available
Top-up Available. Minimum top-up of Rs.
5000. Charges - 1% of top-up.
Available
Switch 4 free switches a year, with the
minimum switch amount being Rs.
2000.
Switches are free as of now. But
the company reserves the right
to put a charge on the switches.
Surrender value The policy will acquire a surrender
value after 3 complete premium-
paying years.
The surrender charge is 25% of
3 years outstanding regular
premium. No charges after 3
years
Initial Charge % Allocation of the premium Charges
18000- 49,999: 1st year - 80%; 2nd
year - 92.5%; 3rd year onwards -
96%.
1st yr-27%, 2nd yr- 27%, 3rd yr
onwards- 1%
50000 and above: 1st year - 82%;
2nd year - 92.5%; 3rd year onwards -
96%.
Admin Charge None Admin charges of Rs.180 fixed
charge per annum.
Other Charges Not applicable Not applicable
Fund Management
Charges
The annual administrative and fund
management charge is 2.25% for
Maximiser, 2.25% for Balancer,
Investment charge of 0.80% of
the Fund Value across all the
funds.

57. 1.50% for Protector & 0.75% for
Preserver.
Rider ADBR, CIBR & MSAR ABR & CIBR
SUPER PREMIER LIFE VS BAJAJ ALLIANZ UNITGAIN PLUS
Features Super Premier Life Bajaj Allianz Unitgain Plus
Age 18 - 60 years 0 - 60 years
Term Premium paying term of 3 years, 5
years, 7 years or 10 years.
Minimum premium payment
term of 3 years
Sum Assured Sum Assured multiple is 1 - 25 times
the annual premium
Minimum Sum Assured is 5
times the premium paid.
Survival benefit Value of units Anytime after payment of 3
full year's premiums.
Death benefit Higher of Sum Assured decreased by
the amount of withdrawals made or
value of units.
Higher of Sum Assured or
value of units
Withdrawal benefit Partial withdrawals are available after
the 3rd policy year and after payment
of 3 years' premiums. Complete
withdrawals are available after the 1st
Partial or complete
withdrawals are available after
the 3rd years contribution

58. year premium. However surrender
penalties will apply.
Contribution Minimum: Rs. 60,000 p.a. Minimum: Rs. 10,000 p.a.
Flexible
contribution
Available
Available
Investment options Maximiser, Balancer, Protector &
Preserver.
Equity Index Fund, Equity Plus
Fund, Debt Fund, Balanced
Fund, Cash Fund
Decrease in death
benefit
Available. Available
Bonus units Available. Not available
Top-up Available. Minimum top-up of Rs.
5000. Charges - 1% of top-up.
Available. Charge are 2% of
the top-up amount
Switch 4 free switches a year. Three free switches every year.
Surrender value The policy will acquire a surrender
value from the 1st year onwards.
Withdrawals are only allowed
after payment of 3 full year's
premiums
Initial Charges % Allocation of the premium % Allocation of the premium
3 year premium paying term 1st year - 76%; 97% from year
2 onwards
Rs. 60.000 - Rs. 4,99,999: 1st year:
87%; 2nd and 3rd year: 96%
Rs. 5,00,000 and above: 1st year: 89%;
2nd and 3rd year: 96%
5, 7 and 10 year premium paying term
Rs. 60.000 - Rs. 4,99,999: 1st year:
88%; 2nd and 3rd year: 97%; 4th and
5th year: 98%;6th year onwards: 100%
Rs. 5,00,000 and above: 1st year: 90%;
2nd and 3rd year: 97%; 4th and 5th
year: 98%; 6th year onwards: 100%
Admin Charge Admin charge of Rs. 60 / month Annual admin charges of Rs.
20

59. Fund Management
Charges
The annual investment charge is 1.50%
for Maximiser, 1.00% for Balancer,
0.75% for Protector & Preserver.
1.5% p.a. for a Equity Plus
Fund, 1% p.a. for Equity Index
Fund, No specific charges in
case of Balanced Fund, 0.7%
p.a. for Debt Plus Fund and
0.7% in case of Cash Plus
Fund.
Rider ADBR & CIBR ABR, ADBR, CI & Hospital
Cash Benefit
STUDY TAX PLANNING SOLUTIONS
AVAILABLE IN THE MARKET
TAX BENEFITS ON INSURANCE AND PENSION
Life insurance and retirement plans are effective ways of saving taxes. The tax breaks
that are available under various insurance and pension policies are described below:
Life insurance plans are eligible for deduction under Sec. 80C
Pension plans are eligible for a deduction under Sec. 80CCC
Health riders are eligible for deduction under Sec. 80D
The proceeds or withdrawals of life insurance policies are exempt
under Sec 10(10D), subject to norms prescribed in that section.
Tax Rates for Individuals
The rates of income tax for FY 2007-08 are as follows:

60. Total Income (Rs.)
Rate of tax
Senior citizen Women below 65
years
Others
Upto Rs 1,00,000/- Nil Nil Nil
Above Rs 100,000/- to 145,000/- Nil Nil 10%
Above Rs 145,000/- to 150,000/- Nil 10% 10%
Above Rs 150,000/- to 195,000/- Nil 20% 20%
Above Rs 195,000/- to 250,000/- 20% 20% 20%
Above Rs 250,000/- 30% 30% 30%
Surcharge on Income Tax: In case where the Total Income exceeds Rs 10,00,000,
there would be a surcharge @ 10%.
Education Cess on Income Tax: Education Cess @2% will be payable on the
amount of income tax (including surcharge).
Benefits under insurance policy - Section 10(10D)
As per Section 10(10D) of Income tax Act, 1961, any sum received under a life
insurance policy, including the sum allocated by way of bonus on such policy is
exempt from tax. However, this rule does not apply to following amounts:
Sum received under Section 80DD (3), or
Any sum received under a Keyman Insurance Policy, or
Any sum received other than as death benefit under an insurance policy which has
been issued on or after April 1 2003 and if the premium paid in any of the years
during the term of the policy is more than 20% of the sum assured.

61. CHAPTER-6

63. DATA ANALYSIS & FINDINGS
1). Are you interested in products offered by the ICICI PRUDENTIAL?
Yes 61%
No 22%
Will think 17%
INTERPRETATION
The good thing is that atleast the corporates were quite eager to find out what ICICI
PRUDENTIAL has to offer whereas the major 39 % of the corporates were not even
interested in the products as they are quite satisfied by the LIC and they are not in
breaking their long relationship with them. The private players will have to play a
long battle in order to ensure that they are serious player in the market. Basically
corporates think that its too early to invest in private companies as they have just
entered the scene and they are unsure of the security they will have about their
investment.
61%
22%
17%
Yes
N o
W ill think

64. 2). Are you satisfied with your present insurer?
YES 65%
No 35%
INTERPRETATION
Here is where the challenge is. Inevitably most of the players are very satisfied with
their present insurer which makes it more tough for the private players to attract the
corporates. The remaining 35 % are also not very dissatisfied by the services but they
are just open to new avenues and are looking forward that private companies come
with good offers so that they may shift to them. Thus private players will have to be
very proactive and in this regard since LIC is the leader and ICICI PRUDENTIAL is
lagging behind its competitors in terms of competition.
65%
35%
Yes
N o

65. 3). Where would you like to insure if given chance?
LIC - 60
ICICI - 10
BAJAJ ALLIANZ - 5
TATA AIG - 15
SBI - 8
KOTAK MAHINDRA - 2
INTERPRETATION
Thus we see that the companies are comfortable in having business with govt. owned
companies as they feel its safe & secure to have business with them which is followed
by SBI as it is the biggest bank and then followed by TATA AIG as the name TATA
is associated with it which commands huge premium in the market . Whereas in the
case of ICICI PRUDENTIAL the figures represent mediocre performance after
compelling and coxing the corporates and creating a strong impression whether they
feel interested in doing business with the company.
60
8
15
10
5
2
0
10
20
30
40
50
60
L IC SBI T AT A AIG ICICI BAJAJ KOT AK
M AHINDRA
NO
OF
PEOPLE

66. 4). What is people‟s main concern while taking a insurance policy (ULIP)?
A) Security 40%
B) Returns 28%
C) Tax rebate 32%
0%
10%
20%
30%
40%
50%
SECURITY RETURNS TAX
REBATE
FACTOR
%AGE
Series1
INTERPRETATION
People invest in insurance mainly because of security concern.

67. 5). Are you aware of LifetimeSuper introduced by ICICI Prudential limited?
Yes 58%
No 42%
0%
20%
40%
60%
80%
YES NO
RESPONSE
%AGEOFPEOPLE
Series1
INTERPRETATION
The awareness level among the corporate about ICICI PRUDENTIAL offering
services is very low and the company needs to work on it. Today is the world of
marketing thus it is recommended that company should become more media friendly
by advertising more through television channels, radio, newspapers, magazines,
journals &editorials.

68. CHAPTER-7

69. LIMITATIONS
The geographical area was very much limited to residential area & so the
results are not particularly reflection of the current behavior.
Biases and non-cooperation of the respondents.
Due to limited time period and constrained working hours for most of the
respondents, the answers at times were vague enough to be ignored.
Most of the people in India take their policies in the period preceeding
March(for tax saving purposes) & so the response to initial contacts were not
all encouraging and that has been the primary reason in the inability to
quantify the results large enough so as to reduce any relevant outcomes.
Most of the results that are spelt out have been of qualitative aspects.
People are not interested in giving personal opinion.

71. RECOMMENDATIONS
More emphasis should be on promotional activities.
Plenty of advertisement should be done through T.V, Newspaper and Radio as
these media‟s are having maximum recall value.
Total financial planning and advice should be given to every customer.
More business opportunity seminars should be conducted to make people
aware of the offer given.
The company should quite frequently send their agent to the customer so that
they should be aware of the latest offer.
The company should attempt to open more and more of its branches in the
country so as to promote their product publicity.

73. CONCLUSION
LIC enjoys credibility over other private players in the industry People look
for security over returns in market linked plans .Lifetime is the most popular
product among the people who are aware about ICICI Prudential‟s products.
People are now showing more interest in ULIP as compared to some of the
traditional plans.
ICICI PRUDENTIAL has to counter the distribution network of LIC .The
product profile of ICICI PRUDENTIAL is not very comprehensive

75. BIBLOGRAPHY
www.iciciresearchcenter.org
www.tata-aig.com
www.iciciprulife.com
www.personalfn.com

77. ANNEXURE
1. Do you have any life insurance policies?
Yes No
If Yes: -
Name of the Company ________________
Name of the plan _________________
Annual Amount of premium _________________
Term of plan _________________
1. Are you satisfied with present insurer?
A) YES B) NO
2. Which are the main issues that you take into consideration while purchasing
any life insurance policy?
A) Security
B) Returns
C) Tax saving
D) Others please specify_________
3. Are you aware of Unit Linked Insurance Plans offered by various companies in
India?
A) ICICI B) OM KOTAK MAHINDRA
C) TATA AIG D) BAJAJ ALLIANZ
E) LIC F) SBI
G) MAX NEW YORK H) BIRLA SUNLIFE

78. 4. Do you know how a Unit Linked Insurance Plan works?
A) YES B) NO
5. Can you please highlight risk attached with them?
A) HIGH
B) MODERATE
C) LOW
6. What is your perception about the Unit link insurance plans, are they give you
a sense of security?
A) YES
B) NO
7. Are you aware of Lifetime pension plan introduced by ICICI Prudential
limited?
A) YES
B) NO
8. If you are given a choice, which one you take:
A) ICICI B) OM KOTAK MAHINDRA
C) TATA AIG D) BAJAJ ALLIANZ
E) LIC F) SBI
9. What other plans or flexibility you expect from Insurance companies?
A) Fewer premiums
B) More returns
C) Complementary gifts
10. Are you interested in buying products of ICICI Prudential?
A) YES
B) NO