Akki Project

8/19/2019 Akki Project

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Introduction:

Whenever there is uncertainty, there is risk .The risk cannot be averted. It involves

multi-faced losses. Risk is uncertainty of a financial loss. We do not have any

command on uncertainties. This makes it essential that we think in favor of a

device that becomes instrumental in spreading the loss .It is in this contet that we

think about insurance which is considered to be a social device to accumulate

funds to meet uncertain losses.

The main function of insurance is to provide protection against the possible

chances of generating losses. It eliminates worries and miseries of losses at

destruction of property and lives. !urther, it provides capital to national economy

since the accumulated funds are invested in productive heads. The industries,

businesses, individuals are considerably benefited by services that are provided by

insurance organi"ations. #any may not be aware that the life insurance industry of

India is as old as it is in any other part of the world. The first Indian life insurance

company was the $riental %ife Insurance &ompany, which was started in India in

'('( at )olkata'. * number of players +over in life and about ' in non-life/

mainly with regional focus flourished all across the country. 0owever, the

1overnment of India, concerned by the unethical standards adopted by some

players against the consumers, nationali"ed the industry in two phases in '23

+life/ and in '24 +non-life/. The insurance business of the country was then

brought under two public sector companies, %ife Insurance &orporation of India

+%I&/ and 1eneral Insurance &orporation of India +1I&/.

In line with the economic reforms that were ushered in India in early nineties, the

1overnment set up a &ommittee on Reforms +popularly called the #alhotra

&ommittee/ in *pril '225 to suggest reforms in the insurance sector. The


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&ommittee recommended throwing open the sector to private players to usher in

competition and bring more choice to the consumer. The ob6ective was to improve

the penetration of insurance as a percentage of 178, which remains low in India

even compared to some developing countries in *sia.

Reforms were initiated with the passage of Insurance Regulatory and 7evelopment

*uthority +IR7*/ 9ill in '222. IR7* was set up as an independent regulatory

authority, which has put in place regulations in line with global norms. o far in the

private sector, ' life insurance companies and 2 general insurance companies

have been registered.

With such a large population and the untapped market area of this population

Insurance happens to be a very big opportunity in India. Today it stands as a

business growing at the rate of '- per cent annually. Together with banking

services, it adds about 4 per cent to the country;s 178 .In spite of all this growth

the statistics of the penetration of the insurance in the country is very poor. #alhotra &ommittee? was

constituted by the government in '225 to eamine the various aspects of the

industry. The key element of the reform process was 8articipation of overseas

insurance companies with 3= capital. &reating a more efficient and competitive

financial system suitable for the re@uirements of the economy was the main idea behind his reform.

ince then the insurance industry has gone through many sea changes .The

competition %I& started facing from these companies were threatening to the


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eistence of %I&. ince the liberali"ation of the industry the insurance industry has

never looked back and today stand as the one of the most competitive and

eploring industry in India. The entry of the private players and the increased use

of the new distribution are in the limelight today. The use of new distribution

techni@ues and the IT tools has increased the scope of the industry in the longer

run.

Type of %ife Insurance 8olicies

TAR# %I!A I


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What if he survives the '-year periodC Well, then he is not entitled to any

paymentD the insurance company keeps the entire premium paid during the '-year

period.

o, there is no element of savings or investment in such a policy. It is a ' per

cent risk cover. It simply means that a person pays a certain premium to protect his

family against his sudden death. 0e forfeits the amount if he outlives the period of

the policy. This eplains why the Term Insurance 8olicy comes at the lowest cost.

W0$%A %I!A I


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'/ Traditional whole life insurance policy- gives you a guaranteed minimum

rate of return on your cash value portion.

/ Interest-sensitive whole life insurance policy -gives a variable rate on your

cash value portion, similar to an ad6ustable rate mortgage. With this you can have

more fleibility with your life insurance policy such as increasing your death

benefit without raising your premiums depending on the economy and the rate of

return on your cash value portion.

5/ ingle-premium -is for someone who has a large sum of money and would

like to purchase a policy up front. %ike other whole life insurance options, single-

premium whole life insurance accrues cash value and has the same ta shelter on

returns.

What are the benefits of choosing a whole life insurance policy over other types of

life insurance policiesC

Bnlike term life insurance, a portion of your premium money goes toward your

cash value which in turn could pay off your entire policy only after a few years.

*lso, your premium will remain constant during the time you are covered unless

you choose otherwise. *nd, unless you make a change to your whole life

insurance policy, you have lifelong coverage with no future medical eams. Whole

life is also a good choice because of the ta savings.


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B%I8 %I!A I


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B%I8 provides multiple benefits to the consumer

%ife protection

Investment and avings

!leibility

*d6ustable %ife &over

Investment $ptions

Transparency

$ptions to take additional cover against

7eath due to accident

7isability

&ritical Illness

urgeries

%i@uidity

Ta planning

!ew $ther Types of Insurance 8olicies


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%imited payment policy

8ay premiums for a stipulated period, usually or 5 years, or until you

reach a specified age +3/.

Eour policy then becomes >paid up? and you remain insured for life.

Gariable life policy

#inimum death benefit guaranteed, but the death benefit can be greater than

the minimum depending on earnings of the dollars invested in a separate stock or

bond fund.

*d6ustable life policy

* whole life insurance policy, but you can change your policy as your needs

change. !or eample, you can change your premium payments or the period of

coverage.


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Bniversal life - gives you more direct control

%ets you pay premiums at any time in almost any amount. The amount of

insurance can be changed more easily than a traditional policy.

The increase in the cash value of the policy reflects the interest earned on

short-term investments.

1roup life insurance

Term insurance.

$ften provided by an employer.


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&redit life insurance

7ebts such as car loan is paid off if you die. *lso protects lenders.Apensive protection.

!or the purpose of this regulation: *.

+'/ >*dvertisement? means material designed to create public interest in life

insurance or annuities or in an insurer, or in an insurance producerD or to induce the

public to purchase, increase, modify, reinstate, borrow on, surrender, replace or

retain a policy including: &omment: ee drafting note caveat immediately

following the definition of >insurance producer? in this section.

+a/ 8rinted and published material, audiovisual material and descriptive

literature of an insurer or insurance producer used in direct mail, newspapers,

maga"ines, radio and television scripts, telemarketing scripts, billboards and

similar displays, and the Internet or any other mass communication media.

+b/ 7escriptive literature and sales aids of all kinds, authored by the insurer,

its insurance producers, or third parties, issued, distributed or used by the insurer or

insurance producerD including but not limited to circulars, leaflets, booklets, web

pages, depictions, illustrations and form lettersD

+c/ #aterial used for the recruitment, training and education of an insurer;s

insurance producers which is designed to be used or is used to induce the public to

purchase, increase, modify, reinstate, borrow on, surrender, replace or retain a

policy.


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>*dvertisement? for the purpose of this regulation shall not include:

+a/ &ommunications or materials used within an insurer;s own organi"ation and

not intended for dissemination to the publicD

+b/ &ommunications with policyholders other than material urging

policyholders to purchase, increase, modify, reinstate or retain a policyD and

+c/ * general announcement from a group or blanket policyholder to eligible

individuals on an employment or membership list that a policy or program has

been written or arrangedD provided the announcement clearly indicates that it is

preliminary to the issuance of a booklet eplaining the proposed coverage.

*88%I&*9I%ITE

*. This regulation shall apply to any life insurance or annuity advertisement

intended for dissemination in this state. In variable contracts and other registered

products where disclosure re@uirements are established pursuant to federalregulation, this regulation shall be interpreted so as to eliminate conflict with

federal regulation.

9. *ll advertisements, regardless of by whom written, created, designed or

presented, shall be the responsibility of the insurer, as well as the producer who

created or presented the advertisement. Insurers shall establish and at all times

maintain a system of control over the content, form and method of dissemination

of all advertisements of its policies. * system of control shall include regular and

routine notification, at least once a year, to agents, brokers and others authori"ed

by the insurer to disseminate advertisements of the re@uirement and procedures for

company approval prior to the use of any advertisements that is not furnished by


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the insurer and that clearly sets forth within the notice the most serious

conse@uence of not obtaining the re@uired prior approval.

!$R# *deposit,? >epansion plan,? >profit,? >profits,?

>profit sharing,? >interest plan,? >savings,? >savings plan,? >private pension plan,?

>retirement plan? or other similar terms in connection with a policy in a contet or

under such circumstances or conditions as to have the capacity or tendency to

mislead a purchaser or prospective purchaser of such policy to believe that he will

receive, or that it is possible that he will receive, something other than a policy or

some benefit not available to other persons of the same class and e@ual epectation

of life.

7I&%$BRA


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*. The information re@uired to be disclosed by this regulation shall not be

minimi"ed, rendered obscure, or presented in an ambiguous fashion or

intermingled with the tet of the advertisement so as to be confusing or misleading.

9. *n advertisement shall not omit material information or use words, phrases,

statements, references or illustrations if the omission or use has the capacity,

tendency or effect of misleading or deceiving purchasers or prospective purchasers

as to the nature or etent of any policy benefit payable, loss covered, premium

payable, or state or federal ta conse@uences. The fact that the policy offered is

made available to a prospective insured for inspection prior to consummation of

the sale, or an offer is made to refund the premium if the purchaser is not satisfied

or that the policy or contract includes a >free look? period that satisfies or eceeds

regulatory re@uirements, does not remedy misleading statements.

&. In the event an advertisement uses >non-medical,? >no medical

eamination re@uired,? or similar terms where issue is not guaranteed, terms shall

be accompanied by a further disclosure of e@ual prominence and in 6utaposition

thereto to the effect that issuance of the policy may depend upon the answers to the

health @uestions set forth in the application.

7. *n advertisement shall not use as the name or title of a life insurance

policy any phrase that does not include the words >life insurance? unless

accompanied by other language clearly indicating it is life insurance. *n

advertisement shall not use as the name or title of an annuity contract any phrase

that does not include the word >annuity? unless accompanied by other language

clearly indicating it is an annuity. *n annuity advertisement shall not refer to an

annuity as a &7 annuity, or deceptively compare an annuity to a certificate of

deposit.


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A. *n advertisement shall prominently describe the type of policy advertised.

!. *n advertisement of an insurance policy marketed by direct response

techni@ues shall not state or imply that because there is no insurance producer or

commission involved there will be a cost saving to prospective purchasers unless

that is the fact. inepensive,? >low cost,? or other phrase

or words of similar import when the policies being marketed are guaranteed issue.

H. *nalogies between a life insurance policy or annuity contract;s cash values

and savings accounts or other investments and between premium payments and

contributions to savings accounts or other investments shall be complete and

accurate. *n advertisement shall not emphasi"e the investment or ta features of a

life insurance policy to such a degree that the advertisement would mislead the

purchaser to believe the policy is anything other than life insurance.

). *n advertisement shall not state or imply in any way that interest charged

on a policy loan or the reduction of death benefits by the amount of outstanding


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policy loans is unfair, ine@uitable or in any manner an incorrect or improper

practice.

%. If nonforfeiture values are shown in any advertisement, the values must be

shown either for the entire amount of the basic life policy death benefit or for each

', of initial death benefit.

#. The words > free,? >no cost,? >without cost,? >no additional cost, >at no

etra cost,? or words of similar import shall not be used with respect to any benefit

or service being made available with a policy unless true. If there is no charge to

the insured, then the identity of the payor shall be prominently disclosed. *n

advertisement may specify the charge for a benefit or a service or may state that a

charge is included in the premium or use other appropriate language.

J. Testimonials, *ppraisals, *nalysis, or Andorsements by Third 8arties

+'/ Testimonials, appraisals or analysis used in advertisements must be

genuineD represent the current opinion of the authorD be applicable to the policy

advertised, if anyD and be accurately reproduced with sufficient completeness to

avoid misleading or deceiving prospective insureds as to the nature or scope of the

testimonial, appraisal, analysis or endorsement. In using testimonials, appraisals or

analysisD the insurer or insurance producer makes as its own all the statements

contained therein, and these statements are sub6ect to all the provisions of this

regulation.

+/ If the individual making a testimonial, appraisal, analysis or an

endorsement has a financial interest in the insurer or related entity as a stockholder,

director, officer, employee or otherwise, or receives any benefit directly or

indirectly other than re@uired union scale wages, that fact shall be prominently

disclosed in the advertisement.


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policies or contracts on which the composite is based may be available in all states,

and shall provide a rating of the lowest rated insurer and reference the rating

agency, but need not identify each insurer. If an advertisement identifies the issuing

insurers, insurance issuer ratings need not be stated.

9. *n advertisement shall not use a trade name, an insurance group

designation, name of the parent company of the insurer, name of a particular

division of the insurer, a reinsurer of the insurer, service mark, slogan, symbol or

other device or reference without disclosing the name of the insurer, if the

advertisement would have the capacity or tendency to mislead or deceive as to the

true identity of the insurer or create the impression that a company other than the

insurer would have any responsibility for the financial obligation under a policy.

&. *n advertisement shall not use any combination of words, symbols or

physical materials that by their content, phraseology, shape, color or other

characteristics are so similar to a combination of words, symbols or physical

materials used by a governmental program or agency or otherwise appear to be of

such a nature that they tend to mislead prospective insurers into believing that the

solicitation is in some manner connected with a governmental program or agency.

HBRI7I&TI$


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9. *n advertisement may state that an insurer or insurance producer is

licensed in a particular state or states, provided it does not eaggerate that fact or

suggest or imply that competing insurers or insurance producers may not be so

licensed. .

*n advertisement shall not create the impression that the insurer, its financial

condition or status, the payment of its claims or the merits, desirability, or

advisability of its policy forms or kinds of plans of insurance are recommended or

endorsed by any governmental entity. 0owever, where a governmental entity has

recommended or endorsed a policy form or plan, that fact may be stated if the

entity authori"es its recommendation or endorsement to be used in an

advertisement.

I


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foreign companies are waiting in the line for the green signal to start their

operations. The Indian consumer should be ready now because the market is going

to give them an array of products, different in price, features and benefits. 0ow the

customer is going to make his choice will determine the future of the industry.

Overview of Insurance Industry :

It;s a business growing at the rate of '- per cent

annually and presently is of the order of Rs K billion. Together with banking

services, it adds about 4 per cent to the country;s 178. 1ross premium collection

is nearly per cent of 178 and funds available with %I& for investments are ( per

cent of 178. Eet, nearly ( per cent of Indian population are without life

insurance cover, health insurance and non-life insurance continue to be below

international standards. *nd this part of the population is also sub6ect to weak

social security and pension systems with hardly any old age income security. This

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

* well-developed and evolved insurance sector is needed for economic

development as it provides long term funds for infrastructure development and at

the same time strengthens the risk taking ability. It is estimated that over the net

ten years India would re@uire investments of the order of one trillion B dollar.

The Insurance sector, to some etent, can enable investments in infrastructure

development to sustain economic growth of the country.


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Insurance companies not only provide risk cover to infrastructure pro6ects, they

also contribute long-term funds. In fact, insurance companies are an ideal source of

long term debt and e@uity for infrastructure pro6ects. With long term liability, they

get a good asset- liability match by investing their funds in such pro6ects. IR7*

regulations re@uire insurance companies to invest not less than ' percent of their

funds in infrastructure and social sectors. International Insurance companies also

invest their funds in such pro6ects.

INSURANCE DEFINATION :

a !rom the viewpoint of the Individual : Insurance is an economic

device whereby the individual can substitute a small relatively

definite cost +premium/ for a large uncertain financial loss that

would have to be borne if insurance was not available.

b !rom the viewpoint of the ociety : Insurance is a mechanism

which relieves the individual citi"ens and the industry from the

burden of carrying on themselves the various risks , they are

likely to face from day to day.

T0A RI): There is risk insured against the policyholder .

T0A I


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%I!A I


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companies, including the ade@uacy of the bases of premia, scrutiny of the

various returns on investments, annual accounts, periodical actuarial valuations

etc. are re@uired to be submitted by the companies. The Insurance Regulatory

*nd 7evelopment *uthority *ct,'222 came into being effective '2th *pril

O!,ECTI(E OF IRDA :

> *n *ct to provide for the establishment of an *uthority to protect

the interests of holders of insurance policies, to regulate , promote and ensureorderly growth of the insurance industry and for matters connected therewith or

incidental thereto and further to amend the Insurance *ct, '25(, the %ife Insurance

&orporation *ct, '23.

FUNCTIONS OF IRDA :

To regulate , promote and ensure orderly growth of the insurance and

reinsurance business

Issue a certificate of registration, renew, modify, withdraw, suspend or cancel

such registration to the applicant i.e. insurance company

8repare a code of conduct for the agents, surveyors and loss assessors or the

intermediaries who take part in development of insurance business

To eercise all powers and perform all functions of the &ontroller of Insurance

under Insurance *ct '25(


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To promote efficiency in the conduct of insurance business

To promote and regulate professional organi"ations connected with the

insurance business

WI


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unbundled products with a variety of benefits as riders from which they can

choose. #ore customers are buying products and services based on their true needs

and not 6ust traditional money-back policies, which is not considered very

appropriate for long-term protection and savings. 0owever, there are still some key

new products yet to be introduced - e.g. health products.

&ustomer ervice:


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If one analyses the history of growth of the insurance industry since reforms, it is

marked by all-round growth of all players. #ore or less all players +including the

market leader %I&/ have aggressively recruited and trained advisors, appointed

agents, launched new products, improved customer service standards and

revampedLepanded their distribution networks. If at all there was any ma6or

difference between players it was only in time lag in launching of services. Avery

player would like the customers to believe that its service standards are the best or

that its agents are the most informed and ethical, but is debatable whether there are

any significant differences. In other words, each company is trying to be

Meverything to everybody;.

$ur argument is that the strategy of being everything to everybody is risky. ome

players 6ustify the above strategy on the basis that the Indian market is huge and it

can accommodate everybody. till, in a market where it is difficult to distinguish

oneself sufficiently on service or any other parameter to be able to charge a

premium, it will lead to unmitigated price competition to the detriment of all

players. $ne may achieve sales turnover, but margins and profitability will sufferseverely. In the insurance industry where large amounts of capital are re@uired, this

is risky.

While there is room for a few scale players with a finger in every pie, it is

profitable for other players to focus on different segments to survive and thrive in a

multi-firm open environment. While each company has to choose its own uni@ue

positioning based on its uni@ue strengths, the below-mentioned generic positioningalternatives appear worth considering.


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This type of positioning is based on varieties in products and services rather than

customer segments. It is a sensible strategy for those companies who have

distinctive advantages or strengths in offering certain products and services.

In the insurance industry too, it is possible to achieve a uni@ue position by focusing

on certain category of products. $ne such eample is 9irla unlife Insurance,

which has been placing particular focus on investment-related products since its

launch in India3. Through its superior fund management capabilities, the insurance

company can deliver better returns on its investment-linked products and thereby

carve for itself a leadership position in this segment.

Then there is the entire category of pension products which is widely touted to

have immense growth potential in India due to imminent pension reforms. It is

possible to achieve profitable positioning by focusing and ecelling in only

pension products.


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products tailored for different customer needs and there is no company focusing on

a particular customer need.

*n eample would be a life insurance company that focuses only on 0igh


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&0$$I


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In addition to such TG commercials, the private insurance companies were trying

to make their presence felt by organi"ing blood donation camps, contests and

sponsoring various events. I


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bringing out TG commercials and putting up hoarding and billboards, it entered

into a two-month long contract with hoppers top.

*llian" 9a6a6 kiosk that provided information about policies in order to attract

customers. *ccording to company sources, its plans were to try any kind of activity

that would generate awareness about company and its policies and >leads? +interest

by a prospective customer/ and converting the same into its customers. *llian"

9a6a6;s entire communication package included print advertisements, outdoor

media campaigns and direct marketing methods. *ll its print advertisements

carried a visual of human hands, which symboli"ed partnership and care to stress

on the concept of care.

imilarly, Tata *I1 entered into an agreement with Westside to set up information

kiosks in all its outlets in order to attract 8eople;s attention. *lso, Tata *I1 was

one of the first insurance companies to adopt the celebrity endorsement strategy.

Tata *I1 chose the 0indi movie star, Why does anyone need insuranceC Well,

why does a car need a spare tireC? *ccording to analysts, this advertisement

successfully pro6ected the importance of insurance for an individual. #et%ife;s

advertisements carried cartoons from the popular >8eanuts? series and carried

emotional messages.


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In addition to all the above, private players in the insurance sector charted out

various innovative marketing plans to establish their products. !or instance, I&I&I

8rudential launched the >Tru%ife &lub? for its high-value policyholders as part of

its marketing strategy. Through Tru%ife &lub, the company offered a wide range of

health-related products, health and fitness e@uipment and membership in gyms,

health resorts and clinics in India. 8olicyholders with a sum assured of Rs .

million or more were included into this club. *ccording to company sources, the

purpose of this whole eercise was to encourage a healthy life of its customers.

7uring the late-', when 9I %ife was concentrating on building its brand it was

offering packaged products to its customers.

#uralidharan, &hief of #arketing N ales, 9I %ife, said, >We are slowly and

steadily building our brand. Gery soon we will be launching print advertisements in

regional languages too. *s for launching a club for the premium segment, it;s

certainly a possibility which we are now evaluating.? *ccording to #uralidharan,

9I %ife was also eploring the possibility of advertising on the Internet in its bid

to reach out to its target audience.

*nother interesting development was regarding the punch lines used by private

insurance players that invariably tried to associate positive emotions with

insurance products. While I*dding life to insurance,? I&I&I

8rudential aid, >We cover you. *t every step in life.? imilarly, 07!& tandard

advertisements pro6ected a happy man assertingD >The 6oy of living life to the fullest, with a '5-year old epert taking care of your

insurance needs?. $m )otak highlighted its campaigns with >Heene ki a"aadi?

+!reedom to live/ and *llian" 9a6a6 stated *llian" 9a6a6, %ife insured by care.?


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. In Huly , IndiaOs state owned insurer, %ife Insurance &orporation of India

+%I&/ announced aggressive marketing plans with a budget of around Rs ' billion.

The aim of this unusual decision was to woo customers across the country through

a multimedia campaign including advertisements on the radio and the press media,

the outdoor media and the television. 0owever, this did not come as a ma6or

surprise to industry observers who said that %I& did not have too many options.

With the insurance bill being passed in , the Indian insurance sector saw a host

of private players enter the market with multinationals as their partners. These new

players resorted to aggressive marketing and advertisement strategies P something

the market had never seen earlier. This sudden spurt of advertisements and

awareness programs was visible on all the media channels.

8rint, electronic and outdoor advertisements of the new private insurers floodedcould be seen everywhere. This prompted many comparisons of such behavior of

insurance companies with the advertising fren"y of the dotcoms in India not too

long ago P with similar full-page advertisements, huge hoardings and costly

electronic media advertisements.

*ccording to a survey conducted by a leading marketing research firm, $R1

#arg, brand awareness of private insurers in India was increasing in the early 'st

century. The difference in the level of awareness of these new players as compared


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to the hitherto monopoly of %I& was decreasing fast because of the aggressive

advertising measures adopted by private insurers.

9ackground


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•Aasy settlement and protection against creditors:- a life insurance policy is

the only financial instrument the proceeds of which can be protected against

the claims of a creditors of the assured by effecting a valid assignment.

• *dministering the legacy for beneficiaries: - speculative or unwise epenses

can @uickly cause the s@uandered. everal policies have foreseen this

possibility and provide for payments over a period of years or in a

combination of installments and lump sum amounts.

• Ready marketability and suitability for @uick borrowing:- a life insurance

policy can after a certain time period +generally three years/ #ost cost

effective means to ensure that the important milestones in the children;s

lives are not hampered by the uncertainties of life.

• Investment: - life insurance also be an investment. *part from the ta

benefits that are also allowable by the government of India for investing in

life insurance, some life insurance policies offer returns on investment alongwith the cover for life. This can help you with long-term financial goals.


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• &harity:- life insurance is a great avenue to help a charitable cause. !or

people with philanthropic desire but short of means, life insurance provides

the option to contribute much more than is possible by the life insured.

• &ritical illness benefit:- many policy can also provide for cover against

&ritical illness.

• 0ospital cash benefit:- many policies can also provide for covering the

hospitali"ation epenses, along with cover for life.

• Ta benefit:- under the Indian income ta act, ta relief under section (( is

available for premium paid and section ''7 benefits are available for

7eathL maturityLsurrender proceeds from a life insurance policy.

A

*. Aach insurer shall maintain at its home or principal office a complete file

containing a specimen copy of every printed, published or prepared advertisement

of its individual policies and specimen copies of typical printed, published or

prepared advertisements of its blanket, franchise and group policies, hereafter

disseminated in this state, with a notation indicating the manner and etent of

distribution and the form number of any policy advertised. The file shall be sub6ect

to inspection by the department. *ll advertisements shall be maintained in the file

for a period of five +/ years after discontinuance of its use or publication.


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9. If the commissioner determines that an advertisement has the capacity or

tendency to mislead or deceive the public, the commissioner may re@uire an

insurer or insurance producer to submit all or any part of the advertising material

for review or approval prior to use.

&. Aach insurer sub6ect to the provisions of this regulation shall file with the

commissioner with its annual statement a certificate of compliance eecuted by an

authori"ed officer of the insurer stating that to the best of his or her knowledge,

information and belief the advertisements that were disseminated by or on behalf

of the insurer in this state during the preceding statement year, or during the

portion of the year when these rules were in effect, complied or were made to

comply in all respects with the provisions of these rules and the insurance laws of

this state as implemented and interpreted by this regulation.

G*RI$B *7GARTIA#A


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social feeds. *nd the onslaught has little to differentiate brands from the clutter of

ad campaigns.

!ather-son, !ather-daughter, on-old parents, 0usband-wife, most of these

relationships have formed the cru of life insurance campaigns since ages. o,

what can be done differently to stand out in the clutterC

0ere we look at how much Mdifferent; can one be, when it comes to promoting life

insurance in the digital space, with our focus on five ma6or life insurance brands

that have launched some interesting campaigns this ta-saving season:

$+ Tata AIA ./DaddyAur0ooey1

Tata *I* %ife insurance has started ' on a new note. The insurance company

has 6oined hands with &itibank in a bancassurance partnership under which the

company will launch products to be sold by &itibank. *long with wealth

management, life protection, saving and retirement solutions, the partnership will

see a digitisation process in place to aid smoother transactions and real-time instant

service options.

The change is being communicated through its newly launched brand makeover

campaign that is focussed on M#aking good happen;. %aunched in phases, the first

phase of the campaign uses storytelling to highlight brand values, while the later

phases will focus on the various product propositions for both new and eisting

customers.


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*t the heart of M#aking good happen; is the adorable story of a father and son P

7addy aur Qooey. The four-minute ad film conceptuali"ed by HWT tells the story

of their uni@ue relationship and what makes them family of the year.

The film begins in a hill station where a little boy is seen waking up his father in

the morning. *s the day wears on, we see the father trying his best to impress the

little boy through minor actions like getting a cookie 6ar from the top shelf and

more. The story proceeds through amusing failures by the father where we see him

being pushed around in @ueues or getting entangled in a blanket or being plain

6erky.

The boy is shown to be a big fan of superheroes making it even more mandatory

for the father to be his real life superhero.

*t the son;s birthday party, we see the father get upset as the son sits on the

shoulders of his favourite super hero, 6umping with 6oy. This makes him challenge

the superhero to an arm wrestling match which is obviously skewed towards the

stronger man.


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To the father;s surprise, his little son starts cheering for him, bringing tears to his

eyes. %ater we see the two sharing a laugh at a field, as we see the fathers; arm is

bandaged.

The voiceover in the end says, >0um 6eete haibas apno ke achche ke liye?.

The hashtag Sdaddyaur"ooey is displayed along with M#aking good happen;.

/ 9irla un %ife Insurance MS)hud)o)ar9uland;

With the ta season upon us, insurance brands are bracing up with new

communication campaigns. While some are taking the humour route, others are

leveraging pure storytelling to get their messages across. 9irla un %ife Insurance

+9%I/, the life insurance arm of *ditya 9irla !inancial ervices 1roup has come

up with the touching story of a single father;s grit and determination in raising his

autistic son.

With this positioning, the insurance brand seeks to celebrate the human spirit rather

than talk directly about how it can help you during the uncertainties of your life.

&onceptualised by Taproot India, the three-and-a-half minute film titled M)hud ko

kar buland; is already creating waves on social media.

The ad film opens rather sadly with a father learning that his son has autism. %ater

we see a photo frame of his wife with a tikka applied on it, implying she is no

more, as the little boy wails loudly for her.


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circumstances, we see this young father strive hard to take care of his son and his

special needs, while also managing the finances at home.

The story then moves on to a slightly grown up son who needs to be put into a

special school. *s destiny would have it, the factory at which the father is

employed has to shut down at the same time.

The scene then cuts to home where the son is upset at his father coming home late.

Right then the father promises him that he;ll never be late again P as the son has

been enrolled into the new program while he has started his own business venture.

* voiceover states, >0oni ko aap rok nahi sakte. 8ar honi bhi aap ko kaha rok

sakegi. *pno ko, apne sapno ko karo surakshit.?

5/ #a %ife Insurance MSecond &hance;

%ife;s uncertain. * freak accident while on a pilgrimage, a life threatening disease,

the demise of a loved one and you are reminded of the absolute uncertainty of life.

Juestions like, >Who will take care of my parentsC?, >Will my wife have to go

back to workC;, >Who will provide for my childrenC don;t take a moment to loom

large in our minds.

Time and again, we have heard of ama"ing stories of people who have had close

encounters with death. Eet the reality doesn;t settle in when it comes to facing

one;s own demise. #a %ife Insurance takes a realistic approach in its latest


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campaign titled Mecond &hance;. * 6oint venture between #a India and #, the

insurance brand is hoping to initiate awareness on the importance of life insurance

through Second&hance.

#a %ife;s econd &hance brings forth true stories of people who have had a close

encounter with death and how it 6olts them into reali"ation and not take their lives

for granted. 8artnering with creative agency $gilvy N #ather, 7elhi and digital

agency !lying &ursor for this storytelling campaign, the insurance brand has

chosen to leverage the social internet to spread second chance stories of *vani

9hati, 7r. Ra6 *nand and halabh 1oglani, all of whom have had a very close

brush with death.

*ll the films are housed at the #a %ife Mecond &hance; website. *part from

these short stories, the website also provides information on the #a %ife $nline

Term 8lan and how it can help secure one;s family and also about life cover

options available at #a %ife.

This is the real story of *vanti 9hati who has had a second chance at life. The

reali"ation of what she meant for her parents and her sister dawns on her to take

action. 8rotecting her family turned into a priority following which she can now

breathe a sigh of relief.


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7r. Ra6 *nand is a seasoned marathoner who believed he was immortal. The loving

father and husband was taken aback after surviving an unepected heart attack. 0e

shares his miraculous story of a second chance at life with story inputs from his

colleagues and family.

K/ 9I %ife Insurance S1reat7ad

%ife insurance companies are gearing up for the ta saving season. 9e it television,

radio, newspapers or the social media world, every life insurance brand is going

gung ho about the importance of having your life insured. 9I %ife Insurance P the

6oint venture life insurance company between tate 9ank of India +9I/, the largest

state-owned banking and financial services company in India, and 9


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%ike kids begin imitating their parents, this little guy follows his dad;s every action

including polishing his shoes. %ater when the son is about to fall asleep on the sofa,

tired from reading a storybook, the dad gets in 6ust in time to place a cushion

between his head and the sofa. * narrative all throughout the film takes the story

towards its message P it talks about how Mgreat dads; always make sure to be there

for their kids even in their absence.

/ 07!& %ife MS#y!amily#y8ride;

It;s the season of life insurance investments. While most working professionals are

on the lookout for ways to save their ta, life insurance companies have been

invading all forms of media in an attempt to woo them. The idea is to leave the

maimum impact while differentiating themselves from the clutter. 9ut, how much

Mdifferent; can one be, when it comes to selling life insuranceC

The recently launched, >*pno )o *pne 7um 8e Heena ikhao? is one campaign by

07!& %ife that makes sure to leave a lasting impact. 8owered by a long format 5-

minute film, it features a heart warming story of a father and his beloved daughter

who dreams of being a dancer. 0er prosthetic leg never comes in the way of her

dream, as the encouraging father instills a habit of independence and self pride in

her.

&onceptualised by %eo 9urnett and directed by filmmaker Gikramaditya #otwane

with music composed by 0anif haikh, the film opens with a little girl being

awakened lovingly by her father and then having breakfast together before fiing


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up her artificial leg. We see the two go to a dance class where she insists he put on

the dance anklets for her, while he argues that she should do it. he promises she

would do it the net time.

$n the big day when she has a group dance performance on stage, he isn;t there to

tie up her dance anklets. While she was accompanied by her grandma, he had

deliberately ecused himself with some work. *fter waiting aniously for him, she

ties it up herself 6ust before the curtains go up.

The father is actually standing backstage, as her performance goes on. It is only

when the performance ends to a loud applause and the curtains come down, that

she sees her father backstage beaming with pride. The two get into a tight hug, as

the narrative says later, >*pne parivaar ko apne dum pe 6eena sikhaosar utha ke

6iyo;. The hashtag S#y!amily#y8ride is displayed at the end.

Well aligned with the brand proposition, Mar Btha )e Hiyo;, the film has earned

positive appreciation for the brand, including the likes of veteran actor, *nupam

)her. The actor has called it a great film that portrays the father-daughter

relationship beautifully. Bploaded on 07!& %ife EouTube channel, the video hasgarnered more than 'K) views in days.


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ocial media was leveraged in a creative manner to build curiosity about the story

of a little girl and how she achieves her dream with a supportive father. 07!& %ife

began sharing teaser visuals on its social media pages, prior to releasing the ad

film. Aach of the visuals shared on its !acebook and Twitter pages took the story

forward, while creating bu"" for the new ad film.

1BI7A%I


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These guidelines issued with the above background are intended to protect the

interests of the insuring public, enhance their level of confidence on the nature of

sales material used and ultimately encourage fair business practices. They are to

be considered as the minimum standards to be adhered to, in addition to

compliance with the IR7* +Insurance *dvertisements and 7isclosure/

Regulations, +hereinafter referred to as M*dvertisement Regulations;/ and

the code of conduct prescribed by the *dvertisement tandards &ouncil of India

+*&I/ and any other regulations as applicable. These guidelines reinforce the

etant regulations on all promotional communications with

policyholdersLprospective policyholders or targeted market segment with the

ob6ective of soliciting insurance business or otherwise.

. &ategories of *dvertisements:

!or the purpose of these guidelines an advertisement may be classified into two

types:

.' Institutional *dvertisements

. Insurance *dvertisements

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