Abhishek Summer Training Report Recent

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A

PROJECT STUDY REPORT

ON

INTRODUCTION OF LIFE INSURANCE

INDUSTRY IN INDIA & PRODUCT DESCRIPTION

Six Weeks Summer Vacation Training With

FUTURE GENERALI INDIA LIFE INSURANCE CO.

LIMITED, JAIPUR

Session

2008-2010

Submitted in partial fulfillment for the Award of Degree of

MASTER OF BUSINESS ADMINISTRATION

Submitted To: Submitted By:Mr. Sharad Maheshwari Abhishek VijayH.O.D. M.B.A. Part II

Govt. Engineering College, Jhalawar


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(AFFILIATED TO RAJASTHANTECHNICAL UNIVERSITY)

PREFECE

It is a matter of great satisfaction and privilege for me to place before the

esteemed reader this report aimed at comparative analysis of other Depository

Participant with FUTURE GENERALI INDIA LIFE INSURANCE CO. LIMITED.

This project report is a concrete form of the knowledge, which is an acquired

during the Summer Training, during this training, which is a part of full time two year

Management course, the student gets the opportunity to apply his\her theoretical

knowledge in the corporate world, in short it emphasizes on Learning by Doing.

The Training paves the way for the student for his\her successful entrance in the

corporate world. The experience is very valuable for the student and plays a leading

and important role in the carrier life of the student.

Future Generali India Life Insurance Co. Limited is the insurance joint venture of

the Generali Group of the Italy & Future Group of India, in both life & General Insurance

Businesses. Future Generali is also registered with Insurance Regularity &

Development Authority (IRDA) situated in Delhi.

The Generali Group is one of the most significant participants in global insurance

and financial product markets and is ranked as the 30th largest company in the world by

fortune (2007). The Groups parent and principal operating Company is Assicurazioni

Generali, market leader in Italy, founded in 1831 in Trieste. Characterized from the

outset by a strong international outlook with presence in over 40 countries. Generali has

consolidated its leadership position Western Europe and has emerged strongly central-

eastern European and Far East markets, among which HK, Japan, Philippines,

Thailand, China and now India.

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ACKNOWLEDGEMENT

This report bears the imprint of many people that have been the source ofinspiration during the entire training and are helpful in the preparation of this report.

I owe to Mr. Rajeev Ranjan Sinha (Regional Manager), Future Generali India

Life Insurance Co. Limited, Jaipurfor his generous support throughout the Summer

Training. I also wish to acknowledge my debt to Mr. SURESH JAT.

I express my heartful gratitude to Mr. Shashikant Jain (Training & Operations)

for their help and advice during the training session.

My over riding debt continues to be the H.O.D., Mr. SHARADMAHESHWARI.

And all the faculty members who provided me with the time, support and inspiration

needed to prepare this report.

Last but not the least, I am fortunate enough to express my heartiest thanks to

the entire staff of Future Generali India Life Insurance Co. Limited. For their cordiality.

For so mission of Credit, where due, regrets are expressed.

ABHISHEK VIJAY

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EXECUTIVE SUMMARY

Over the last few years, the Indian economy has been slipping. Companies have been

shaken up and are now faced to wake up from the days of deep slumber. Now, as the

top echelons of India Inc some to grip with the continuing recession in the Indian

economy and as the prolonged fall in demand across industries becomes more evident,

the mood is subdued. A total change of mindset has taken place, as the chieftains of

corporate India wake up and come to terms with reality.

The Insurance sector has also not been alienated from the effects of widespread

recession and is vying hard to cope with the ever-changing environment as well as

competitive aura. As a result, the trio- convergence, competition and consolidation, has

been continuously dominating the insurance segment, and the same phenomenon is

envisaged in the forthcoming years as well.

This would however mean wider and better services for the customers. The term

insurance has now acquired a much larger meaning than just dealing with protection.

For the past few years, companies have been actively focusing on increasing theirdistribution channels by introducing facilities, like Banc assurance partners and

Corporate Agency.

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INTRODUTIONS OF RTU UNIVERSITY

ABOUT USRajasthan Technical University setup in 2005 by Govt. of Rajasthan to enhance

technical education in Rajasthan. The University is situated on Kota-Rawatbhata Road,

about 10 Km from Kota Bus Stand and 14 Kms from Kota Railway Station.

The university aims to cater almost all discipline related to technical education in

Rajasthan. At present 60 Engineering Colleges, 08 M.Tech Colleges, 21 MCA Colleges,

69 MBA Colleges and 03 Hotel Management and Catering Institute are affiliated to the

University.

MISSION

1. Providing vibrant, dynamic and cutting edge academic leadership for the growth

of Technical Education in the State.

2. Developing Centers of Excellence in Emerging and Thrust areas, in particular,

Biotechnology, Nanotechnology and Disaster Management.

3. Providing highly transparent, lean, professional and e-Governance system of the

administration in the University. Bringing all the existing / new technical

institutions / colleges in the State under one umbrella

4. Providing all the Institutions with a state - of - the art Curricula and Syllabi with a

provision for periodic/faster updating.

5. Preparing Providing excellent atmosphere and breeding ground for ideas and

talent

6. Course Material Packages for all the Programmes. Providing quality input to

students through combination lecture, print and electronic media. Promoting

entrepreneurship amongst the students of the University and its constituent /

affiliated colleges. Provide facility for distance education in consonance with

changing socioeconomic needs and emerging demands of the knowledge era.

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7. Training of all Teachers and orient them towards resource persons.

8. Career Development of Faculty through Post Graduate and Ph.D.Programmes.

9. Effective, efficient and transparent system of examination, evaluation and

publication of results.

10.Promoting Industry - Institute partnership and setting out time bound agenda for

updating curricula as per the need of the industry. Provide efficient service to all

the stake holders in particular the students community.

11.Providing non-negotiable academic calendar.

12.Making the University self sufficient.

Administration

Chancellor:H.E.Sh. Shailendra Kumar Singh, Honb'le Governor

Honb'le Vice Chancellor - Dr. P.L. Agrawal

Pro. Vice Chancellor - Dr. G.S.Raghuwanshi

Registrar - Shri Dwarka Lal Meena , R.A.S.

Finance Officer - Shri Devraj

Director University College of Engineering - Prof O.P. Chhangani

Controller of Examination - Dr. N.P. KaushikPof. Training & Placement - Prof. R.C.Gaur

Coordinator RPET-08 -Prof. K. V.S.Rao

Coordinator RMAT-08 - Prof. S. K. Rathore

Coordinator RMCAAT-08 - Prof. R. C. Gaur

Director Academics - Dr. G.S.Raghuwanshi

Chief Warden - Dr. H.D.Charan

Chief Proctor - Dr. D.M. Metha

ESF Advisor - Rajeev Rajora

Chairman Sports - Prof. K. V.S.Rao

Web Master - Deepak Bhatia

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Topics Page no.

Certificate of Future GeneraliPreface

AcknowledgementExecutive Summary

Introduction of RTU UNIVERSITYAbstract

Profile of Organizationa) Overview of Insuranceb) Overview of Future Generalic) Overview of IRDAd) Organization Structuree) Organization Chartf) Products of Future Generali

Project Worka) Past Performance of Company

b) Sales Forecastingc) Market Analysisd) Industry Sales & Profitabilitye) Ratios of Future Generalif) PEST Analysisg) Michael Porter's Five Forces Analysis

Resultsa) Conclusions

b) SWOT Analysisc) Sample Questionnaired) Insurance Glossarye) Market Concentration for Life Insurance Industry

References of Reporta) Bibliography

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PROFILE OF ORAGANIZATION

A) OVERVIEW OF INSURANCE

Insurance, in law and economics, is a form of risk management primarily

used to hedge against the risk of a contingent loss. Insurance is defined as the

equitable transfer of the risk of a loss, from one entity to another, in exchange for

a premium, and can be thought of as a guaranteed small loss to prevent a large,

possibly devastating loss. An insureris a company selling the insurance; an

insured orpolicyholderis the person or entity buying the insurance. The

insurance rate is a factor used to determine the amount to be charged for a

certain amount of insurance coverage, called the premium. Risk management,

the practice of appraising and controlling risk, has evolved as a discrete field of

study and practice.

It is one of those things that one would not like to think and talk about but

if you dont you may leave your family unprotected. In simple terms life insurance

provides money for my family in the event that I die.

It is a financial resource for my family and loved ones in case of my death.

A Contract between me and the insurance company. Insurance is sharing

the risk between company and individual

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In insurance two type of benefits risk cover and saving. Risks cover Consists of

death, accidental recovery and health.

Insurance

Risk cover Saving

1. Death 2. Accidental recovery 3. Health

When age is increase, risk is also increase, so premium is increase.

Why we need insurance?

Insurance is a basic need of an individual. Like every man eat food

forgiving so insurance is necessary for every human life. If a person not has life

insurance and he is died then his families face many financial troubles. So

insurance is necessary need.

History of Insurance: -

In some sense we can say that insurance appears simultaneously with the

appearance of human society. We know of two types of economies in human

societies: money economies (with markets, money, financial instruments and so

on) and non-money or natural economies (without money, markets, financial

instruments and so on). The second type is a more ancient form than the first. In

such an economy and community, we can see insurance in the form of peoplehelping each other. For example, if a house burns down, the members of the

community help build a new one. Should the same thing happen to one's

neighbors, the other neighbors must help. Otherwise, neighbors will not receive

help in the future. This type of

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Insurance has survived to the present day in some countries where

modern money economy with its financial instruments is not widespread (for

example countries in the territory of the former Soviet Union).

In India many life insurance companies are working. Some of companies are this -

SBI LIFE INSURANCE CO.LTD.

LIC OF INDIA

HDFC STANDARD LIFE INSURANCE CO.LTD.

ICICI PRUDENTIAL LIFE INSURANCE CO. LTD

BAJAJ ALLIANZ LIFE INSURANCE CO. LTD

SHRI RAM LIFE INSURANCE CO. LTD

RELIANCE LIFE INSURANCE CO. LTD

ING-VYASA LIFE INSURANCE CO. LTD

TATA AIG LIFE INSURANCE CO. LTD

MAX NEW YORK LIFE INSURANCE CO. LTD

FUTURE GENERALI LIFE INSURANCE CO. LTD

BHARTI AXA LIFE INSURANCE CO. LTD

AVIVA LIFE INSURANCE CO. LTD

OM KOTAK MAHINDRA OLD MUTUAL LIFE INSURANCE CO.

LTD

METAIFE INSURANCE CO. LTD

SAHARA LIFE INSURANCE CO. LTD

BIRLA SUN LIFE INSURANCE CO. LTD

RELIGARE LIFE INSURANCE CO.LTD

IDBI FORTISE LIFE INSURANCE CO. LTD

And so on.

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What is Life Insurance and a Life Insurance Company? Can a Life Insurance

Company Help Me?

Life Insurance is insurance for me and my family's peace of mind. Life

insurance is a policy that people buy from a life insurance company, which can

be the basis of protection and financial stability after one's death. Its function is to

help beneficiaries financially after the owner of he policy dies.

It can also be a form of savings in the long run if I purchase a plan, which

offers the option of contributing regularly. Additionally, a little known function of

life insurance is that it can be tied in with a person's pension plan. A person can

make contributions to a pension that is funded by a life insurance company.

In addition, you should also make a list of what you feel needs to be

protected in your family's way of life. With a life insurance policy in place, you

can:

Provide security for your family.

Protect your home mortgage.

Take care of your estate planning needs.

Look at other retirement savings/income vehicles.

INSURANCE VS ASSURANCE:-

The specific uses of the term insurance and assurance are sometimes confused. In

general, the term insurance refers to providing cover for an event that might happen

while assurance is provision of cover for an event that is certain to happen.

When a person insures the contents of their home they do so because of the event thatmight happen (fire, theft, flood, etc.) They hope their home be never be burgled, or burn

down, but they want to ensure that they are financially protected if the worst happens.

This example of insurance shows how it is way of spending a little money to protect

against the risk of having to spend a lot of money.

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When person insure their life they do so knowing one day they will die. Therefore a

policy that covers death is assuredto make a payment. The policy offers assurance on

death; even if the policy has a prescribed termination date the policy is still assured to

pay on death and therefore is an assurance policy. Examples include Term Assurance

Policyand Whole Life Assurance.An accidental death policy is not assuredto pay

on death.

THE FUNCTIONS OF INSURANCE:-

It can be bifurcated into three parts:

1. Primary Functions

2. Secondary Functions

1. The Primary Function

Provide Protection - The primary function of insurance is to provide protection against

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

but can certainly provide for the losses of risk. Insurance is actually a protection against

economic loss, by sharing the risk with others.

Collective bearing of risk - Insurance is a device to share the financial loss of few

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

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

which the persons exposed to a particular risk is paid.

Assessment of risk - Insurance determines the probable volume of risk by evaluating

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

also

Provide Certainty - Insurance is a device, which helps to change from uncertainty to

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

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2. The Secondary Function

Prevention of Losses - Insurance cautions individuals and businessmen to adopt

suitable device to prevent unfortunate consequences of risk by observing safety

instructions; installation of automatic sparkler or alarm systems, etc. Prevention of

losses causes lesser payment to the assured by the insurer and this will encourage for

more savings by way of premium. Reduced rate of premiums stimulate for more

business and better protection to the insured.

Small capital to cover larger risks - Insurance relieves the businessmen from security

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

Contributes towards the development of larger industries - Insurance provides

development opportunity to those larger industries having more risks in their setting up.

Even the financial institutions may be prepared to give credit to sick industrial units

which have insured their assets including plant and machinery.

TYPES OF INSURANCE POLICIES:-

Endowment Policy:

An endowment policy covers risk for a specified period, at the end of which sum

assured is paid back to the policy holder, along with the bonus accumulated during the

term of the policy or the maturity value (ULIP).

Whole Life Policy:

A typical whole life policy runs as long as the policyholder is alive. In other words, risk is

covered for the entire life of the policyholder, which is why such policies are known aswhole life policies.

In whole life policy, sum assured and bonus are payable only to the nominee of the

beneficiary upon the death of the policyholder. The policyholder is not entitled to any

money during his or her own lifetime, i.e. there is no survival benefit.

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Suppose, for instance, you buy a whole life policy at the age of 30, when your children

are young and the family needs protection. Conceivably, by the time you are 55 or 60,

your children maybe well settled, no longer truly needing the protection your whole life

policy provides. On the other hand, you would probably require the money for yourself

and your wife in your retired life, but this would not be possible since the sum assured is

payable only when the policyholder dies.

Term Life Policy:

Term life policies cover risk only during the selected time period. If the policyholder

survives the term, the risk cover comes to an end.

A term plan is designed to meet the needs of people who are initially unable to pay a

larger premium required for a whole life or an endowment assurance policy, but hope to

be able to pay for such a policy in the near future. Hence, they may leave the final

decision regarding the plan to a later date, when a batter choice can be made. No

surrender, loan or paid-up values are granted under these policies because reserves

are not accumulated. If the premium is not paid within the grace period, the policy will

lapse without acquiring paid-up value. However, a lapse policy may be revived during

the lifetime of the life assured but before the expiry of the period of certain time limit.

Money-back Policies:

Unlike ordinary endowment insurance plans, where the survival benefits are payable at

the end of the endowment period, money-back policies provide for periodic payments of

partial survival benefits during the term of the policy, as long as the policyholder is alive.

An important feature of this type of policies is that in the event of death at anytime within

the policy term, the death claim comprises the full sum assured, without deduction of

any of the survival benefit amounts, which may have already been paid as money-back

component. Similarly, the bonus is also calculated on the full sum assured.

Joint Life Policies:

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Joint life policies are similar to endowment policies in that they too offer maturity

benefits to the policyholders, apart from covering risk like all life insurance policies. But

joint life policies are categorized separately as they cover two lives simultaneously, thus

offering a unique advantage in some cases, notably, for a married couple or for partners

in a business firm.

Childrens Insurance Policies:

Childrens insurance policies include those through which parents or legal guardian can

provide for life insurance for their child from birth. The risk cover commences from the

child attaining the age of 12/17/18/21(known as the date of Risk), and will vest itself on

the child upon his or her attaining majority on completion of age 21, if the case demands

so.

Until the child attains majority, the parents are the owners of the policy and have to pay

the premium periodically. It is important that these policies are considered only after the

insurance portfolio of the parents has been completed.

Pension Plan or Annuities:

Annuity is an investment that you make, either in a single lump sum or through

installments paid over a certain number of years, in return for which you receive a

specific sum every year, every half-year or every month, either for life or for a fixed

number of years.

After the death of annuitant or after the fixed annuity period expires for annuity

payments, the invested annuity fund is refunded, perhaps along with small addition,

calculated at that time. Annuities differ from all the forms of life insurance in one

fundamental way- an annuity does not provide any life insurance cover but, offers a

guaranteed income either for life or certain period.

Typically, annuities are brought to generate income during ones retired life, which is

why they are also called pension plans. Annuity premiums and payments are fixed with

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reference to duration of human life. Annuities are investment, which can offer an income

you cannot outlive and provide a solution to on of the biggest financial insecurities of old

age; namely, of outliving ones income.

BENEFITS OF INSURANCE:-

Replacement of Income:

Life Insurance provides a lump sum or periodic payments to help replace the income

stream, in case of an unfortunate event or an untimely demise of the breadwinner.

Lifestyle Maintenance:

Life insurance products can help you build a corpus to protect and maintain your

lifestyle against fluctuations in your future income.

Costs of Education:

You need to support your child with a sound educational background, to help your child

achieve his/her dreams. Life insurance products can help you fulfill these needs,

whether you are there or not.

Retirement Expenses:

Retirement is an age when an individual has fulfilled almost all his responsibilities and

looks forward to relaxing. Life insurance products can help you lead a secure and

tension free retired life by ensuring that you get guaranteed pension.

Mortgage and Debt protection:

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With increasing consumerism and ever-rising demands, loans and debts are now part of

life. Life insurance products help you ensure that your family is not unduly burdened

with their repayments, in case of an unfortunate event or an untimely demise of the

breadwinner.

Introduction of LIC:

In 1956, Life insurance Company (LIC) of India was started. Up to 2000LICS no competitors establish in the market and after 2000 its many competitorsenter in the market. Its competitors in the India:-

SBI LIFE INSURANCE CO.LTD.

LIC OF INDIA

HDFC STANDARD LIFE INSURANCE CO.LTD.

ICICI PRUDENTIAL LIFE INSURANCE CO. LTD

BAJAJ ALLIANZ LIFE INSURANCE CO. LTD

SHRI RAM LIFE INSURANCE CO. LTD

RELIANCE LIFE INSURANCE CO. LTD

ING-VYASA LIFE INSURANCE CO. LTD

TATA AIG LIFE INSURANCE CO. LTD

MAX NEW YORK LIFE INSURANCE CO. LTD

FUTURE GENERALI LIFE INSURANCE CO. LTD

BHARTI AXA LIFE INSURANCE CO. LTD

AVIVA LIFE INSURANCE CO. LTD

OM KOTAK MAHINDRA OLD MUTUAL LIFE INSURANCE CO.

LTD

MET LIFE INSURANCE CO. LTD

SAHARA LIFE INSURANCE CO. LTD

BIRLA SUN LIFE INSURANCE CO. LTD

RELIGARE LIFE INSURANCE CO.LTD

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IDBI FORTISE LIFE INSURANCE CO. LTD

And so on. In the market 31 LIC companies is establish.

B) OVERVIEW OF Future Generali

Future Generali is a joint venture between the India-based Future Group and theItaly-based Generali Group. Future Generali is present in India in both the Life and Non-Life businesses as Future Generali India Life Insurance Co. Ltd. and Future Generali

India Insurance Co. Ltd.

Future Group:-

Future Group, led by Mr. Kishore Biyani, is positioned to cater to the entire Indianconsumption space. The Future Group operates through six verticals: Future Retail(encompassing all lines of retail business), Future Capital (financial products andservices), Future Brands (all brands owned or managed by group companies), FutureSpace (management of retail real estate), Future Logistics (management of supplychain and distribution) and Future Media (development and management of retail mediaspaces).

The groups flagship enterprise, Pantaloon Retail, is Indias leading retailcompany with presence in food, fashion and footwear, home solutions and consumerelectronics, books and music, health, wellness and beauty, general merchandise,communication products, E-tailing and leisure and entertainment. The company ownsand manages multiple retail formats catering to a wide cross-section of the Indiansociety and its width and depth of merchandise helps it capture almost the entireconsumption basket of the Indian consumer. Headquartered in Mumbai (Bombay), the

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company operates through 4 million square feet of retail space, has over 150 storesacross 35 cities in India and employs over 15,000 people. The companys revenues forFY 05-06 were Rs. 2017 crore

Founded in 1987, as a garment manufacturing company, Pantaloon Retail

forayed into modern retail in 1997 with the opening up of a chain of department stores,Pantaloons. In 2001, it launched Big Bazaar, a hypermarket chain, followed by FoodBazaar, a supermarket chain and went on to launch Central, a first of its kind, seamlessmall located in the heart of major Indian cities. Some of its other formats include,Collection I (home improvement products), E-Zone (consumer electronics), Depot(books, music, gifts and stationeries), aLL (fashion apparel for plus-size individuals),Shoe Factory (footwear) and Blue Sky (fashion accessories). It has recently launchedits etailing venture, futurebazaar.com.

Some of the groups subsidiaries include Home Solutions Retail India Ltd, FutureBazaar India Ltd and ConvergeM Retail India Ltd, which leads the groups foray into

home improvement, etailing and communication products, respectively. Other groupcompanies include, Pantaloon Industries Ltd, Galaxy Entertainment and Indus LeagueClothing. It has also entered joint venture agreements with a number of companiesincluding ETAM group, Gini & Jony, Liberty Shoes, Staples and Planet Sports, acompany that owns the franchisee of international brands like Marks & Spencer,Debenhams, Guess and The Body Shop in India.

Future Capital Holdings, the groups financial arm, focuses on assetmanagement through real estate investment funds (Horizon and Kshitij) and consumer-related private equity fund, Indivision. It also plans to get into insurance, consumercredit and offer other financial products and services.

Future Groups vision is to, "deliver Everything, Everywhere, Every time to EveryIndian Consumer in the most profitable manner." One of the core values at FutureGroup is, Indianess and its corporate credo is Rewrite rules, Retain values.

Generali Group :-

Established in Trieste on December 26, 1831, Generali is an international grouppresent in more than 40 countries with insurance companies and companies mostlyoperating in the financial and real estate sectors. Over the years, the Generali Group

has reconstructed a significant presence in Central Eastern Europe and has started todevelop business in the principal markets of the Far East, including China and India.

Identity Card

Generali Group ranks among the top three insurance groups in Europe and the30th largest company in the Fortune 500 international ranking, with a 2007premium income of over 66 billions

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High rating assigned by the international rating agencies:o A.M. BEST A+o Standard & Poors AA

o Fitch AAo Moodys Aa3

It is present in more than 40 countries It has over 50 millions clients worldwide It has 80,555 employees It has over 398 billions of total assets under management

Company's Visions and Values:-

a.) Vision Statement:

"Pledged to provide financial security to all people & enterprises through total

insurance solutions"

b.) Values:

Values that we observe while we work:

Respect : for all our stakeholders- employees, customers, for all rules andregulations both internal and external.

Indianess : We understand India in all its diversity and different facets and willuse for our local understanding to respond to our specific markets, design ourproducts and craft our processes.

Nimbleness : A combination of speed and quality, and ability to overcome allobstacles which come in the way of the achievement of our vision.

"Can Do" : An attitude which demonstrates our passion, entrepreneurship, andpositive thinking.

Company's Positioning & Objective & Mission:-

a.) Positioning:

Knowledge Organization with Leadership Approach

One Stop Total Insurance Solutions & Services Provider Customer Centric Model embracing Passion, Convenience and Service

Excellence

b.) Objective:

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To provide superior customer service through our knowledge-based business partnersand employees supported by innovative products and services.

c.) Mission:

To be the top new life insurance company in the market. This dose not just mean beingthe largest or the most productive company in the market, rather it is a combination of

several things like-

Customer service of the highest order

Value for money for customers

Professionalism in carrying out business

Innovative products to cater to different needs of different customers

Use of technology to improve service standards

Increasing market share

Company's Core Team Members:-

Mr. G. N. Bajpai (Chairman)Dr. Kim Chai Ooi (Country Manager, Future Generali)Mr. Jayant Khosla (MD & CEO)

Mr. G N Agarwal (Chief Actuary & Appointed Actuary)Mr. Nirakar Pradhan (Chief Investment Officer)Mr. Nagesh Rajanna (Chief - Sales & Business Development)Mr. Arnab Malik (Chief Marketing Officer)Ms. Shalaka Gadekar (Chief - Human Capital)Mr. Anup Chandak (CFO)Mr. Rajeev Shirodkar (CIO)

Careers:

1. Human Capital :-

Future Generali thrives on the support of employees who inherits and exhibits theFamily DNA of:

Pioneering spirit, Passion for clients, Responsibility, Respect, Integration,Professionalism, Transparency, Indian-ness, Visionary & Lifetime Learning.

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development program for our trainees has already had a significant impact incontributing to our success.

3. Recruitment :-

All CVs submitted are carefully examined even if there are no vacancies. The candidatemay then be contacted by Human Capital for a preliminary interview.

In case there is an active position and if the profile of the applicant matches with theorganization requirement, the candidate may be called for further rounds of selection.Candidates not suitable for a specific position will be retained in the database and maybe contacted for a relevant position at a future date.

Resume of candidates registered with Future Generali will be used strictly inaccordance with the personal data policy of the company and will be kept confidential.

It is Future Generalis policy to retain the personal data of candidates for futurerecruitment purposes. However, should candidates not wish their personal data to beused for future recruitment exercise, they may request their destruction by contactingour Human Capital Dept.

C) OVERVIEW OF ACT, 1999 (IRDA):-Role of IRDA:

IRDA is a revolutionary piece of legislation. The IRDA was established to regulate, promote

and ensure orderly growth of the life and general insurance industry.

The authority consists of the following members:

A chairperson

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Not more than 5 whole time members

Not more than 4 part time members

Inaction of IRDA:

To exercise all power and function of controller of insurance.

Protection of the interests of the policy holders

To issue, renew, modify, withdraw, or suspend certificate of registration

To specify requisite qualifications and training for insurance intermediaries

To promote and regulate professional organization connected with insurance

To conduct inspection/investigation, etc.

To prescribe method of Insurance Accounting

To regulate investment of funds and margins of solvency.

D) ORGANIZATIONAL STRUCTURE:-

F) PRODUCTS OF FUTUREGENERALI

Insurance products:

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Today there are many insurance products available in the market. Each company has its

set of products that it offers to the customers. This makes it difficult to keep track of all the

products at the same time. A better way to understand them is by way of classification. A

insurance products can be classified according to four basic categories:

The PIPS Standard:-

This classification is based on the needs of the customers. Accordingly, each of these

categories are classified by needs and all the products coming under that category aim to fulfi

that need, e.g. products coming under investment category aim to promote long-term rea

growth over the period. Thus, understanding these categories will not only help us t

understand various products but also help us to position our products strongly in a competitive

market.

Investment type of products:

In investment type of products, the focus is on maximizing returns for the customer ove

a period of time. In a way, it is opposite to protection type where the focus on maximizing the

risk cover is very low. The objective is to put maximum amount in investment. The underlying

principle is to commit money for a certain period of time and get the benefits of real long-term

growth. The products are usually single-premium policies where the entire premium is collected

in advanced.

PROTECTION INVESTMENT

PENSION SAVINGS

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Pension products:

It is another very popular type of product. Along with the risk of an untimely death o

disability, we also have the risk of living too long to outlive our source of income. In other words

one needs to ensure that she gets a decent income as long as she lives. This is where we have

pension products addressing the need for a comfortable retirement. One can opt for a

immediate pension or for a pension at a future date (also called as deferred pension) one can

have a range of options when selecting a pension plan. There is a great amount of flexibility

when it comes to selecting a pension product. The important point to note is that pension is a

part of ones present income that forms the basis for future consumption. Every year income is

accumulated and invested in a pension fund. The lump sum accumulated then is used fo

purchasing on the vesting date.

Saving type of products:

People like to save. Our saving rate is well above 20% of our GDP for last few years

They save for events like childs marriage, education, etc. Savings products aim to strike a good

balance between risk cover as well as returns. It acts as a protection on savings. Sum assured

is usually targeted savings that one looks for. She gets that amount at the end of the term along

with the bonuses if it is a participating policy. On the protection side, if any unfortunate even

happens during the term, the sum assured (targeted savings) is still paid so it encourages aperson to save for an event and at the same time it ensures that her savings are protected. Thi

is the unique advantage of savings through life insurance that no other financial product offers.

Protection type of products:

A typical protection type of product aims at protecting income earning capacity of th

customers on happening of uncertain events during the term of the product. These are the pure

risk product having no saving element. Naturally, these products do not have any maturity

benefits. High risk cover at low cost is the unique of this type of product that makes this

category most attractive for those who want high insurance cover without spending much for it

Usually offered for a definite term, all these products come under 4 broad categories. To

understand a product, it is essential to find out the category based on its features. Needless t

say, it will not be possible to compare one product category to another. Each category is unique

and caters to particular needs of the customers.

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The best approach is to find out what customers need and then suggest a solution

accordingly.

Our role

Insurance, as we have seen, is a basic need that every person has. Our role as insurance

service provider, is to make her aware of these underlying needs and help her to arrive a

appropriate solutions that would to her insurance needs. In this process, we will help her to

build up a financial plan for a sound future. It calls for high degree of professionalism, integrity

and strong faith in the company along with high customer orientation.

a. Future Care:-

A Pure Term Assurance Plan, offering high protection at low premium with an

attractive option of convertibility to an endowment plan. This type of insurance is well

suited to situations where you have:

A large insurance need and limited budget

A need for insurance over a defined period of time, say, to cover your

outstanding loans

A need for insurance for a specific purpose, such as covering the life of a key

employee

The plan is offered along with optional Accidental Death Rider and AcceleratedCritical Illness Rider with a Total of 11 conditions including Total and PermanentDisability due to Accident and Sickness.

Key Features:

Simplicity: Future Care is the simplest form of insurance for a stated period of

time.

Affordability: Future Care provides maximum insurance protection for your

premium amount.

Convertibility: Within a period specified in the policy, the term plan can be

converted into an endowment life insurance plan offered by Future Generali. The

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premium charged for the permanent plan will be based on age of the insured,

without furnishing any further evidence of insurability.

Product Parameters:

Minimum age/Maximum age at entry: 18/60 Years

Maximum age at maturity: 65 Years

Minimum Sum Assured: Rs. 3, 00,000

Maximum Sum Assured: No limits

Term: 5-25 Years

Premium payment mode: Yearly, Half-Yearly, Monthly (ECS mode only)

Minimum Premium Installment: Rs.1500/- p.a.

How The Plan Works:

This plan provides for the payment of a death benefit to your beneficiary during the

term. There is no maturity benefit.

Rider Benefit: You have the option to customize your policy by opting for one or all of

the following riders, viz. Accidental Death Rider (AD), Accelerated Critical Illness

Extended Rider (ACI).

These riders can dramatically increase the value of your coverage just for a modest

additional premium.

Tax Benefits:

Section 80C, 10(10D) of Income Tax Act would apply. Premiums paid for Critical Illness

Benefit qualify for benefits under Section 80D. These benefits are as per the currently

prevailing tax regulations and you are advised to consult your tax advisor for details.

b. Future Assure: -

A with-profit endowment plan is just the right plan, ensuring financial freedom

which your family deserves, even in your absence. The plan will be offered along

with 6 optional riders, namely, Term Assurance Rider, Waiver of Premium on

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Disability Rider, Life Guardian Rider, Accidental Death Rider, Accidental Total &

Permanent Disability Rider and a Critical Illness Rider.

Key Benefits Of Future Assure:

On death of life insured: Sum Assured plus accrued bonus

On maturity: Sum Assured plus accrued bonus

On Surrender of Policy: Surrender Value

Policy Loan available after the policy acquires Surrender Value

Bonus: The policy shall participate in the profits arising out of Company's 'with

profits' life insurance business. It gets a share of the profits emerging from this

business in the form of bonuses. Compounded Reversionary bonuses would be

declared as a percentage rate, which apply to the sum assured in respect of the

basic policy benefit (not on riders) and all attached bonuses. Reversionary bonus is

declared based on our long term view of investment returns, expenses, mortality and

other experience. Once declared, the Reversionary bonuses form a part of the

guaranteed benefits of the plan. Future bonuses are however not guaranteed and

will depend on future profits. A Terminal bonus may also be paid at maturity, earlier

death or surrender.

Bonus: The policy receives compounded reversionary bonuses which are added on

every valuation.

Tax Benefits:

You are entitled to the following tax benefits under Income Tax Act 1961: Your

premiums are eligible for deduction u/s 80C up to Rs.100, 000/- every year.

Your CI rider premiums are eligible for an additional deduction u/s 80D up to

Rs.10,000/-everyyear.

Your claim amounts (from death, on maturity or through surrenders) are eligible for tax

exemption u/s 10(10D).

Rider Benefits:

We offer you the flexibility to enhance the value of your policy by using the following

riders/options:

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1. Term Assurance Rider

2. Accidental Death Rider

3. Accidental Total & Permanent Disability Rider

4. Waiver of Premium on Disability Rider

5. Critical Illness (Core) Rider

6. Life Guardian Rider (in case of Juveniles)

Product Parameters

Minimum age/Maximum age at entry: 31 Days/65 Years

Maximum age at maturity: 70 Years

Minimum Sum Assured: Rs. 75,000

Maximum Sum Assured: No limits

Minimum Term: 5 Years

Premium payment mode: Yearly, Half-Yearly, Quarterly, Monthly (ECS mode only)

c. INSTA Life: -

Life Insurance is now made simple and easily accessible and spontaneously

deliverable. Future Generali brings you a product that is the very first if its kind. An

Over the Counter, Endowment plan providing protection cum savings with an ease of

issuance in just three simple and easy steps:

Fill in the Proposal form

Pay the Premium

Instant Issuance of policy bond over the counter

How to buy INSTAlife?

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Fill the health related questions in the application form. Submit the application form

along with cash / cheque / credit card, the required documents:

Photo-ID

Address proof

Age proof

and agreement to the declaration form. You get immediate life coverage over the

counter after this simple process.

Key Features of INSTAlife:

Hassle free Insurance cover without any Medical or Financial Underwriting

Minimal Paperwork

Guaranteed Coverage up to 5 lakhs till age 45 years

Policy available on Standalone Basis irrespective of previous insurance in other

Future Generali plans

Instant Processing & Issuance Over the Counter

Suitable for all customers providing long term Savings with an Insurance Cover

along with Convenience in Availability

Tax Benefits under section 80C and 10(10D) of the Income Tax Act.

Who can take INSTAlife?

Anybody falling between the age of 18 to 45 years, is eligible for this plan with maximum

maturing age being 65 years. You have an option to choose the coverage tenure

ranging from 5 to 25 years.

What are the various premium payment frequencies under INSTAlife?

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Death Benefit *: On the unfortunate death of the life assured, the nominee receives the

higher of the following

The Fund Value as on the date of death of the life assured

Sum Assured plus all applicable top up Sum Assured net of all Deductible Partial

Withdrawals, (if any)

* For purpose of determining the Death Benefit, the Deductible Partial Withdrawal

(s) mean, any partial withdrawal made in 12 months before the date of death will

be deducted from sum assured. Where the life assured has completed 60 years,

all the partial withdrawals made in 2 years prior to the completion of 60 years and

all partial withdrawal made after completion of age 60 years will be deducted

from the sum assured.

For minor life assured, death during the deferment period the Fund Value will be

paid.

Tax Benefits:

Premiums paid under this plan are eligible for tax benefits under

Section 80C of the Income Tax Act, 1961

Premiums paid for critical illness rider is eligible for tax deduction

under Section 80D of the Income Tax Act, 1961

Any sum received under this plan is exempt from tax under section

10(10D) of the Income Tax Act, 1961

The above is based on the current tax laws and is subject to

change.

e. Future Guarantee Plan:-

Key Features of Future Guarantee Plan:

Guaranteed Additions on maturity ranging from 150% to 400% of First Year

Annualized Premium depending on term.

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An ideal All-in-One Investment and Insurance package.

Gives you a choice of four investment funds, structured in a way to take care of

your financial liabilities and giving the flexibility to change fund allocation at any

time as per your requirement.

Additional allocation of fund (s) to your kitty through optional Top-Up Single

Premium, providing you a comprehensive financial solution.

Tax benefits on regular premiums paid and the benefits received, as per the

prevailing Income Tax Rules

Choice of Investment Fund : Your premium is invested in unit funds of your

choice. Currently you have a choice of four investment funds, providing you the

flexibility to direct your investments in any of the following unit linked funds of the

Company. The funds invest in a mix of cash/other liquid investments, fixed

interest securities and equity investments in line with their risk profile.

Maturity Benefit : On maturity i.e. on completion of the policy term, the Fund Value +

Guaranteed Additions at maturity specified as a percentage of First Years Premium

mentioned above, becomes payable and the policy is terminated thereafter.

Under Settlement Option, the maturity benefit may be taken in lump sum or installments

spread over a period of up to five years from the date of maturity.

Death Benefit: On the unfortunate death of the life assured, the nominee receives the

higher of the following

Sum Assured

Fund Value less deductible partial withdrawals made during the last 2 years prior

to the date of death

A discounted value of the guaranteed addition at maturity will also be paid on

death after 8 years, provided atleast 5 full years of premiums are paid.Tax Benefits:

Regular Premiums paid under this plan are eligible for tax benefits under Section

80C of the Income Tax Act, 1961

Any sum received under this plan is exempt from tax under section 10(10D) of

the Income Tax Act, 1961

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The above is based on the current tax laws and is subject to change.

f. Future Child Benefit Plan:-

A caring parent, you always want to be there for your children. That you want to

be around to ensure that their education, careers and lives shape up well. This plan

helps you make sure that your children will be adequately supported and that their

financial needs will be taken care of even after your lifetime.

Key Features of Future Child Benefit Plan:

Flexibility in terms of planning for your childs future with wide range of solutions

offered under the plan as,

Option1: Future Child Benefit Plan Option @ 21 or

Option 2: Future Child Benefit Plan Option @ 23

Depending upon the option selected, regular payouts to provide money to meet

educational expenses at different stages

Sum Assured as a lump sum on the earlier of your unfortunate demise or total

and permanent disability arising out of accident prior to maturity, whichever is

earlier. The policy remains in-force for the remaining term and will continue to

accrue guaranteed additions and future bonuses. Premiums are waived for the

remaining term

Guaranteed Additions @3.5% of Sum Assured per annum at a compounding rate

at the end of each of the first five policy years.

Compounded Reversionary bonuses thereafter

Large Sum Assured Discount

Tax benefits on premiums paid

Benefits received are non-taxable

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Benefits:

Regular Payouts As per the type of option selected under the plan

Fixed Benefits in form of regular payouts as per the options selected under the plan.

Option 1:

Future Child Benefit Plan @ 21:

Payable on the policy anniversary % of Sum Assured3 years prior to maturity 15%2 years prior to maturity 25%1 year prior to maturity 25%

At maturity35% + Guaranteed additions +

vested bonusesOption 2:

Future Child Benefit Plan @ 23:

Payable on the policy anniversary % of Sum Assured5 years prior to maturity 10%4 years prior to maturity 15%3 years prior to maturity 15%2 years prior to maturity 15%1 year prior to maturity 20%

At maturity25% + Guaranteed additions +

vested bonuses

The benefits stated above will be payable at the specified intervals even if the life

assured is not alive or is accidently totally and permanently disabled and the payment of

premiums have been waived.

Guaranteed Additions

The compounding annual guaranteed additions under the policy are 3.5% per annum of

the sum assured for the first five years of an in-force policy. This amount will become

payable only at maturity of the policy.

Bonuses Accrued

From sixth year onwards, the policy shall participate in the profits arising out of the

Companys with profits life insurance business. It gets a share of the profits emerging

from this business in the form of bonuses. Compounded reversionary bonuses would be

declared as a percentage rate, which apply to the sum assured and guaranteed

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additions in respect of the basic policy benefit and all attached bonuses. Reversionary

bonus will be declared based on our long term view of investment returns, expenses,

mortality and other experience. Once declared, the reversionary bonuses form part of

the guaranteed benefits of the plan. Future bonuses are, however, not guaranteed and

will depend on future profits.

Sum Assured on Death or Accidental Total and Permanent Disability Inbuilt

Benefit:

On the policyholders unfortunate demise or total and permanent disability arising out of

accident (whichever of two is earlier) before maturity, the sum assured is payable as a

lump sum immediately. However, the policy will continue to remain in-force and will

continue to accrue guaranteed additions and future bonuses, as the case may be. No

further premiums will be payable.

Fixed assured benefits shall be paid on policy anniversaries prior to maturity and on

maturity of the policy, the last installment along with the guaranteed additions plus

bonuses accrued will be paid to the beneficiary.

The Life Assured will be regarded as Totally and Permanently disabled if, as a result of

accidental bodily injury, resulting solely and directly from an accident caused by

outward, violent and visible means, he /she has been rendered totally incapable of being employed or engaged in

any work or any occupation whatsoever for remuneration or profit, or

he/she has been rendered unable to perform (whether aided or unaided) at least

3 of the following 6 Activities of Daily Living :

Activities of Daily Living

Washing: the ability to wash in the bath or shower (including

getting into and out of the bath or shower) or wash satisfactorily by other

means;

Dressing: the ability to put on, take off, secure and unfasten all

garments and, as appropriate, any braces, artificial limbs or other surgical

appliances;

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Transferring: the ability to move from a bed to an upright chair or

wheelchair and vice versa; -Mobility: the ability to move indoors from room

to room on level surfaces;

Toileting: the ability to use the lavatory or otherwise manage bowel

and bladder functions so as to maintain a satisfactory level of personal

hygiene;

Feeding: the ability to feed oneself once food has been prepared

and made available, or

He / She has suffered the loss of (or the total and permanent loss of use of) both

hands, and both feet, or both eyes, and a combination of any two.

The above disability must have lasted, without interruption, for at least six consecutive

months and must be deemed permanent by an appropriate medical practitioner

appointed by the Company.

Large Sum Assured Discount

Sum Assured

FutureChild

BenefitPlan @ 21

SinglePremium

Future ChildBenefit Plan @

21 RegularPremium


23 SinglePremium


23 RegularPremium

>= Rs 2 lakh;< Rs 5 lakh

50.00 10.00 70.00 10.00


55.00 11.00 75.00 12.00


57.00 11.50 77.00 12.50

>= Rs 10 lakh 58.00 11.70 78.00 12.70

Tax Benefits: As per prevailing Income Tax laws.

g. Future Anand Plan:-Life is always full of surprises and delights as you move ahead in your life.

Future Anand Plan moves along with you as your life shapes up. However one cannot

avoid unpleasant surprises and misfortunes in life. This plan is a combination of

Endowment Assurance and Whole Life plans which safeguards you, during and after

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your lifetime. Protect yourself against financial difficulties throughout your lifetime and

beyond because life after all is to Rejoice!!!

Key Features of Future Anand Plan:

Financial security with the coverage for life time.

You can select your premium payment mode, sum assured and premium

payment term as per your age and choice

Guaranteed Additions @3.5% of Sum Assured per annum compounding at the

end of each of the first 5 policy years

Compounded Reversionary bonuses thereafter

Endowment Benefit of 100% of Sum assured plus guaranteed additions plusvested bonus (if any) on survival at the end of premium paying term

125% of the Sum Assured and terminal bonus (if any) as a lump sum on your

unfortunate death after premium paying term

Sum Assured with accrued guaranteed additions plus vested bonus (if any) plus

terminal bonus (if any) on your unfortunate demise payable during the premium

paying term

Discount on large Sum Assured.

Choice of five riders to top up your basic plan

Auto Cover available after the Policy is in-force for 3 years

Tax benefits on premiums paid and benefits received.

Benefits :

Endowment Benefit We will pay 100% of Sum Assured along with Guaranteed

Additions and Vested Bonus (if any) at the end of the premium paying term.

Death Benefits during Premium Paying Term In case of your unfortunate demise,

we will pay an amount equal to Sum Assured along with Guaranteed Additions and

Vested Bonus (if any) and Terminal Bonus (if any).

Death Benefits after Premium Paying Term In case of your unfortunate demise, we

will pay an amount equal to 125% of the Sum Assured and Terminal Bonus (if any) to

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any of these critical illness conditions.

PROJECT WORK

a.) Past Performance of Company:-

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d.) Industry Sales & Profitability:-

-20000

-15000

-10000

-5000

0

5000

Rs. in lakhs

Sales & Profitabilty

Trend Of Insurance Industry

Profit/los

sales

e.) Ratios of Future Generali:-

44

2007-8 2006-07 2005-06 2004-05 2003-04

Profit/loss -14420 -16545 -15348 -5574 -693

sales 2125 1082 719 748 763


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\

f.) PEST Analysis:-

This includes the following factors:

i.) Political Factors:-

Increased service tax on premium.

5% discount on corporate premium.

Hike in FDI limit.

Pricing control in general insurance.

Favorable regulation for rural insurance.

ii.) Economic Factors:-

C u r r e n t R a t i o0 . 4

F i x e d A s s e t R a t0 . 9 2

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Increase in Gross Domestic Savings.

New schemes with equity touch (ULIP).

iii.) Social Factors:-

Low insurance coverage

Rise in elderly population

Changing Indian perception

Growth of Islamic insurance

Increase in lifestyle diseases

iv.) Technological Factors:-

Automation of processes

Increase in CRM solutions

Internet driven information era

Business Process Monitoring (BPM)

g. Michael Porter's Five Forces Analysis:-

i.) Buyer/Customer Power:-

Widening Product Range

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Large Corporate Clients

Sale of Bank assurance

Price Sensitive Buyers

Multiple Distribution Channels

ii.) Suppliers Power:-

Limited Actuaries in the Market

Reinsurance Concentration

Cession to the National Insurer

Dependence on IT Providers

iii.) Rivalry among Competitors:-

Industry Concentration in Life and Non-life

Low Penetration of Insurance

Regulation Restricts Competition

iv.) Barriers to Entry:-

FDI Ceiling

Capital Requirements

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Elaborate Distribution Requirements

Lock-in of Buyers

v.) Threat of Substitutes Products:-

Government Pension Scheme

Tax Saving Instruments

Emerging Substitutes

Dependence on Children in Rural India

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CONCLUSION

Future Generali has established itself as a distinctive life insurance brand with

an innovative, attractive and customer-friendly portfolio ranging from protection,

savings, retirement and investment plans; which it sells through a unique tool-

The Life Maker.

Agent must have full knowledge of the products of company and good Public

Relation & communication skills.

Agent must be engrossed with marketing & selling techniques and must have

friendly approach towards his customers and must keep the insurers records for

long- term usage.

Customer shall be satisfied with the services of an Agent & Agents efforts should

be distinguished appreciated by the company.

Agent shall work in the direction of providing its customer maximum comfort &

best of services.

Future Generali is rich in services & produces a wide range of products for

various needs. Further it requires making more efforts to advertise its products

through Agents & other Media.

MARKET EXPANSION:

There has been an overall expansion in the market. This has been possible due

to increased awareness levels, thanks to the large number of advertising campaign

launched by the players. The scope for expansion is still unlimited as virtually all the

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SWOT ANALYSIS

STRENGTHS:

The strengths are:

Future Generali is the third largest player in the insurance industry in India

Generali is a 176 years old company (founded in Italy)

The Future Group operates through five verticals:

1. Future Retail 2. Future Capital 3. Future Brands

4. Future Space 5. Future Logistics 6. Future Media

Generali is an international group present in more than 40 countries with insurance

companies

WEAKNESSES:

The weaknesses are:

Some customers are not satisfied with the service of Future Generali

Only 24 branches all over India

High insurance-period duration

High premium

Low awareness of Future Generali in rural areas

OPPORTUNITY:

The opportunities are:

Huge opportunity in insurance market.

Better products as compared to other industries.

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Due to increase in literacy rates, literate people prefer Future Generali.

Future Generali gives opportunity to other businesses to grow in the market.

THREATS:

The threats are:

Tough competition from LIC, ICICI, BAJAJ ALLIANCE, HDFC SLIC and BIRLA SUN

LIFE

Due to low premium, rural markets prefer LIC

Threat for Future Generali because over 12 new companies are entering the market

Currently, HDFC SLIC is the 7th player in the market, and the major threat is to sustainthat position in the face of competition

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SAMPLE QUESTIONNAIRE

Please (Tick Any One)

1. Do you have knowledge about insurance?

No knowledge Below Average Average Good

2. Do you think insurance is necessary?

Yes No Cant Say

3. How do you think insurance as a saving/investment option?

Not Good Good Very Good

4. Where do you prefer to invest your money?

Bank MF/Share Market Insurance

5. What type of insurance do you think is good?

Short Term (less than 5 years) Long-Term (greater than 5 years)

6. Do you have any insurance policy?

Yes No

7. What do you expect in terms of benefit from your insurance policy?

Safety of money invested Return Risk covered

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Bonus: The amount paid as return in a with-profit policy. The bonus expressed as

percentages of the sum assured, is declared every year.

Compound Interest: Interest compounded on principal plus interest accrued duringthe previous periods of the investment

Corpus: The amount of money available with a scheme for investing. If already

invested, the corpus is the current value of the schemes portfolio.

Cover: It refers to the amount of insurance.

Critical Illness Rider: A rider that provides a policyholder financial protection in the

event of a critical illness.

Death Benefit: The amount payable to the nominee on death of policyholder. The

amount paid is the sum assured plus benefits applicable (if any) less outstanding loans.

Deferred Annuity: An annuity plan where the first annuity payment becomes

payable after a chosen period that exceeds one year.

Endowment Plans: An insurance that provides a policyholder risk cover and some

return on investment.Usually suitable for the risk-averse.

Equity: The actual ownership interest in a specific asset or group of asset.

Liquidity: The quality of assets that can be easily and quickly converted into cash

without any loss, or significant loss in value.

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Lock-in-period: The period of time for which investment made in as investment

option cannot be withdrawn.

Market Value: The monetary value an asset will fetch if sold in the market today.

Maturity Date: The date on which a policy term comes to an end.

Net Asset Value (NAV): The simplest measure of how a scheme is performing, it

tells how much each unit of it is worth at any point in time. A schemes NAV is its net

assets (the market value of the financial securities it owns minus whatever it owes)

divided by the number of units it has issued.

Nominee: The person(s) nominated by the policyholder to receive the policy benefits

in the event of his death.

Riders:Additional covers that can be added to a life policy, for a cost.

Nominee:Any person to who surrender benefit is to be given in case of death.

Beneficiary: The person to whom benefits is paid.

Market: Share Market.

Net Asset Value (NAV): The price or value of one unit of a fund. It is calculated by

summing the current market values of all securities held by the fund, adding in cash an

any accrued income, then subtracting liabilities and dividing the result by the number of

units outstanding.

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Policy: The legal document issued by an insurance company to a policyholder terms

and conditions of an insurance contract.

Policy term: The period for which an insurance policy provides cover.

Premium: The amount paid by the insured to the insurer to buy cover.

Sum assured: The amount of cover taken under a life insurance policy, it is the

minimum that will be paid on death of the policyholder during the policy term.

Surrender value: The amount payable by the insurer to the owner of an investment-

based plan in case he opts to terminate the policy after three years (the mandatory lock-

in-period).

Survival Benefit: The amount payable to a policyholder under an investment-based

plan if he survives the policy term.

Vesting Date: It is a date signifying a milestone in a policy. In pension plan it is a

date from which the policyholder starts receiving pension.

With-profit-policy: An insurance plan in which the policyholder gets a share of the

insurers profit (in the form of guaranteed additions/bonus) along with the Sum Assured.

Assurance: To ensure an event is which is certain to happen.

Risk: Often defined as the standard deviation of the return on total investment.Degree

of uncertainty of return on an asset.

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Returns: The change in the value of portfolio over an evaluation period, including any

distributions made from the portfolio during that period.

GDP: The market value of goods and services produced over time, generally one year,in the country.

Top-Ups: One time investment made above and over regular premium.

Portfolio:A group of securities in a common account. The term is used as a synonym

for fund.

Mortality Charges: Charges deducted against providing life cover.

Fund value: Net Assets Value on particular date and multiplied by number of units

available in the fund.

Redirection: A facility by which investor can redirect his future premium in different

selection of funds.

Lapse: The temporary termination of policy due to inability to pay premium within

grace period.

Revival:Amount charged to renew the lapsed policy.

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Market Concentration for Life Insurance Industry

Market concentration is a function of the number of firms in a market and their

respective market shares. As an aid to the interpretation of market data, the Agency willuse the Herfindahl-Hirschman Index ("HHI") of market concentration. The HHI is

calculated by summing the squares of the individual market shares of all the

participants, unlike the four-firm concentration ratio, the HHI reflects both the distribution

of the market shares of the top four firms and the composition of the market outside the

top four firms. It also gives proportionately greater weight to the market shares of the

larger firms, in accord with their relative importance in competitive interactions.

The Agency divides the spectrum of market concentration as measured by the

HHI into three regions that can be broadly characterized as unconcentrated (HHI below

1000), moderately concentrated (HHI between 1000 and 1800), and highly concentrated

(HHI above 1800). Although the resulting regions provide a useful framework for merger

analysis, the numerical divisions suggest greater precision than is possible with the

available economic tools and information. Other things being equal, cases falling just

above and just below a threshold present comparable competitive issue.

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BIBLIOGRAPHY AND REFERENCES

BOOKS:

The investment pattern of Indian Consumer, P.R. Desai, BPB publications

Financial Management, I M Pandey

Marketing of Insurance Products, V K Badya, Rustagi publihers

Annual Report of IRDA 2007

IC Life Insurance Text Book 2007

WEBSITE:

www.futuregenerali.in

www.irda.org

www.sebi.org

www.thehindubisunessline.com
http://www.futuregenerali.in/http://www.irda.org/http://www.sebi.org/http://www.thehindubisunessline.com/http://www.futuregenerali.in/http://www.irda.org/http://www.sebi.org/http://www.thehindubisunessline.com/

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