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A PROJECT REPORT ON

COMPARATIVE STUDY OF ICICI PRUDENTIAL

ULIP INVESTMENT PLAN WITH OTHER COMPANIES

INVESTMENT PLAN AND MARKET ANALYSIS

A Dissertation submitted to INDIA INFOLINE PVT. LTD.

Prepared by:

PRADEEP KUMAR

Roll No.-21-V

PGP

INDIRA SCHOOL OF CAREER DEVELOPMENT

ACADEMIC SESSION

2008 2010

Corporate Guide: Academic Guide:

Mr. ANKUR VAISHNAV Prof. RAMESH ANANDIKAR

CLUSTER AND SALES MANAGER

INDIA INFOLINE PVT.LTD.

LOHIA IT JAIN PARK, CHANDANI CHOWK

KOTHRUD, PUNE

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ACKNOWLEDGEMENT

I take this opportunity to express my deep sense of gratitude to all those who have

contributed significantly by sharing their knowledge and experience in the

completion of this project work.

My first word of gratitude is due to Mr. ANKUR VAISHNAV, Cluster and Sales

Manager, INDIA INFOLINE PVT.LTD. LOHIA IT JAIN PARK, CHANDANI CHOWK,

KOTHRUD, PUNE, my corporate guide, for his kind help and support and for his

valuable guidance throughout the project. I am thankful to him for providing me with

necessary insights and helping me out at every single step.

I am greatly obliged to Mr.B.S.GUHA, (Centre Head), I.S.C.D Pune. For providing

me the right kind of opportunity and facilities to complete this venture.

My heartfelt thanks to my respected Faculty Guide namely Prof.RAMESH

ANANDIKAR Without his continuous help the project would not have been

materialized in the present form. Her valuable suggestions helped me at every step.

Finally, I would also like to thank all my dear friends for their kind cooperation,

advice and encouragement during the long and arduous task of preparing this report

and carrying out the project.

PRADEEP KUMAR

ROLL NO-21V

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TABLE OF CONTENT

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Sr.No. Topics Page No.

1 EXECUTIVE SUMMARY 04

2 INTRODUCTION 06

3 COMPANY PROFILE 13

4 SWOT ANALYSIS 20

5 PRODUCT PROFILE 21

6 OBJECTIVE OF THE STUDY 38

7 SCOPE 39

8 RESEARCH METHODOLOGY 41

9 ANALYSIS & FINDINGS 58

10 CONCLUSIONS 74

11 RECOMMENDATIONS 75

12 LIMITATIONS 76

14 BIBLIOGRAPHY 77

15 ANNEXURE 78


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Executive Summary

The objective of the project was to comparatively analyze various insurance

company and find the market potential of ULIPs (UNIT LINKED INSURANCE

PLANS) in Pune. India Info line got the research carried out to find what the current

trends are in the market and what the competitors product offerings are. Also,

market share of different Insurance was to be found and the recommendations to

increase the market share for ICICI Prudential were to be given.

The purpose of the study is to find out the market potential of ULIPs and position ofICICI Prudential as compared to other Insurance company. ICICI Prudential is

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interested in finding out the sales potential of its ULIPs. Specifically, the research

objectives are to:

Gauge the consumer sentiment on the various services provided by the

various Insurance company in the city.

Identify areas of improvement on the various services provided by theInsurance company.

Determine the type of services needed by the consumers.

Identify the important and attractive attributes in services to retain the existing

consumers.

Determine the type of Insurance parameters most popular with the consumer.

Evaluate the sales potential of ICICI Prudential ULIPs by the year 2010.

Gather and analyze the future aspirations of the customers with respect to the

insurance services and ULIPs plan.

Rank and evaluate the relative importance the various insurance parameters.

For this purpose a primary research was conducted in the region of Pune regions.

The target consumers were of various age group, sex, monthly income and

occupation. The total field work was done for 60 days in which a total sample size of

100 consumers was covered. The questions cover a wide range of issues including:

Identifying the types of Investments maintained by a consumer and whether

he or she is happy with the services.

Obtain the likelihood of the respondent applying for a specific type of

services while investing the money. Determine the characteristics of the various insurance features that are

important for customer

For the purpose of this research it was absolutely imperative for me to find out what

the consumers want from their insurance company. It was also necessary to find out

the consumers profile, i.e. his age, monthly income, occupation and sex . This

required me to get a detailed questionnaire filled by the concerned person. All the

analysis in the report is drawn out of these questionnaires. For carrying out the

competitor analysis further help was taken from insurance company websites andjournals. This research will provide ICICI Prudential with information like the current

market share and also a detailed analysis of the services offered by other insurance

companies and what are the most important criteria for selecting a particular

insurance company. The insurance company can also get data on prospective

customers by designing its product offerings and marketing strategy in a way so as

to attract more clients in the near future.

The following vital conclusions were derived:

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Trust needs to be developed among the customers both as far as the ULIP as

a product is concerned and also regarding private players (ICICI Prudential)

particularly in our study.

Some respondents despite of knowing about ULIP were hesitant to talk on it

because they were not too confident about their knowledge. This very factcompletely declines the concept of providing switches as a lucrative feature in

ULIP (which is done by most of the companies). The reason is that very rarely

people have the ability or time to use these features.

Awareness was missing.

Mainly all income groups, business class people and corporate employee

have invest in ICICI Prudential.

Important Recommendations that were suggested are:

Building trust by providing the customers with adequate knowledge about the

company and then the products.

Enhancing the level of awareness in terms of the company, their Partners and

then the product and special emphasis among the female chunk of the

population.

INTRODUCTION

INTRODUCTION TO ULIP

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Unit linked insurance plan (ULIP )is the Product Innovation of the

conventional Insurance product. With the decline in the popularity of traditional

Insurance products & changing Investor needs in terms of life protection, periodicity,

returns & liquidity, it was need of the hour to have an Instrument that offers all these

features bundled into one.

ULIP is life insurance solution that provides for the benefits of protection and

flexibility in investment. The investment is denoted as units and is represented by

the value that it has attained called as Net Asset Value (NAV). The policy value at

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

attempt to fulfill investment needs of an investor with protection/insurance needs of

an insurance seeker.

ULIPs work on the premise that there is class of investors who regularly

invest their savings in products like fixed deposits (FDs), coupon-bearing bonds,debt funds, diversified equity funds and stocks. There is another class of individuals

who take insurance to provide for their family in case of an eventuality. So typically

both these categories of individuals (which also overlap to a large extent) have a

portfolio of investments as well as life insurance. ULIP as a product combines both

these products (investments and life insurance) into a single product. This saves the

investor/insurance-seeker the hassles of managing and tracking a portfolio of

products. Presently there are 200 plus ULIP Schemes in the market.

ULIPs offer a variety of options to the individual depending on his risk profile.

For instance, an individual with an above-average risk appetite can choose a ULIP

option that invests upto 60% of premium in equities. Likewise, an individual with a

lower risk appetite can select a ULIP that invests up to 20% of premium in equities.

INTRODUCTION OF INSURANCE

First of al the word insurance is derived from the Latin word for security. A quick

and simple definition of the insurance can be as follows.

Reimbursement in the situation of loss

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Life insurance is a plan in themselves which large number of people associate and

transfer to the shoulders of all, risk that attach to individuals. JOHN MAGEE

Why Life Insurance?

We all hope to live a full till old age. To do the very last for our parents and watch out

children stand on their own feet. But, what if fate cuts life short? Who would pay for

our childrens education? Their marriage?

Ensure lifes continuity for them. Why not plan for lifes adversities? What if a sudden

disability of illness puts us out of action? If we were unable to attend office for a

while y would take care of all the medical expenses? Who would pay the mounting

bills?

Should these adversities occur, are we equipped to face the situation? Where would

we get the money to face the crisis? Would life continue smoothly for our children?

Since we have no control over lifes ebbs and flows, why not do something over

which we do have control.

Do we Need Life Insurance?

Life is most valuable asst. this is easily proved if we were to assign a monetary valueto life. This value depends on income-earning potential or Human Life Value. our

income supports our family. Helps them to get the most out of life.

Month after month, year after year, we and our dependent live the best way we can

use the money we earn. This money enables our household to run smoothly, our

children to go to college, takes care of the medical bills, our vacations and helps

maintain our life style. On the basis of our income or earning potential.

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How much insurance do I need?

The main purpose of life insurance is to provide a financial cushion to your loved

ones in the event that something unfortunate should happen to you. One must

provide enough, so as to generate a future income stream that will take care of the

financial needs of their dependants.

How much insurance you need depends on your annual income, your expenses and

your existing assets. Use our Insurance Calculator to get a rough estimate of how

much you should insure yourself for.

Benefits of Insurance

Safeguards oneself and one's family for future requirements

If you are married without children or single, then you may need life insurance

to protect your partner or surviving family members against the costs

associated with your death. Funeral expenses, probate and administrative

fees, outstanding debts, special obligations to charities, and federal and state

taxes are costs thatall

of us must consider.

Disability Benefits Death is not the only hazard that is insured; many polices

also include disability benefits. Typically, these provide for waiver of future

premiums and payment of monthly installments spread over certain time

period.

Accidental Death Benefits

Many policies can also provide for an extra sum to be paid. (Typically equal to

the sum assured) if death occurs as a result of accident)

Tax Relief

Under the Indian Income Tax Act, the following tax relief is available

1) 20 % of the premium paid can be deducted from your total income tax

liability.

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2) 100 % of the premium paid is deductible from your total taxable income.

When these benefits are factored in, it is found that most polices offer returns

that are comparable or even better than other saving modes such as PPF,

NSC etc. Moreover, the cost of insurance is a very negligible.

Ready Marketability and Suitability for Quick Borrowing

A life insurance policy can, after a certain time period (generally three years), be

surrendered for a cash value. The policy is also acceptable as a security for a

commercial loan, for example, a student loan. It is particularly advisable for housing

loans when an acceptable LIC policy may also cause the lending institution to give

loan at lower interest rates.

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HISTORY OF INSURANCE

Early insurance goes back to the Egyptians times. It was known that around 3000

B.C., Chinese merchants dispersed their shipments among several vessels to avoid

the possibility of damages or loss. There are some insurance companies around

today in the united states that provide insurance back in mid 1970s as well as some

that provided relief to banks during the 1930s had the great depression.

The insurance industry can accurately trace its formation to the great fire of London

on Sept. 2, 1966. Most industries evolve overtime. While there have been risk-

sharing mechanisms dating back to the days of Phoenician ship captains splitting up

their cargoes at the mouth of the then raging Nile river, the insurance industry.

Insurance industry can accurately trace its beginning to one event. The event was

the great fire of London, on sept.2, 1966.

The city of London began the long and arduous task of rebuilding. It was a task that

would take many years. As new buildings began springing up from the ruins, so did

something else. The following year, 1667, rising from the ashes of London like the

mythical Phoenix bird, was the worlds first insurance company. The 1966 the great

fire of London finally and forcibly demonstrated the need of life insurance.

Insurance protection as we know it today can be traced to the aftermath of that

tragedy and to a man calls Nicholas Barbon, Profoundly shaken by the great fire,

Barbon promptly opened an office, to insure buildings. This venture was apparently

successful, because in 1680 he founded a partnership and established Englands

first fire insurance company, the fire office, to insure brick and frame houses. The

second company to be formed, the friendly society, was organized in 1683

incorporating some mutual characteristics. Policyholders had to agree to contribute

towards settlement of each loss incurred, although the founders retained a

predominate interest in the profits.

It was decided to allow competition in a limited way by stipulating the minimum

capital requirement of Rs-100 Cr. The amphora committee felt the need to provide

greater autonomy to insurance companies in order to improve their performance and

enable them to act as independent companies with economic motives. For this

purpose, it had proposed setting up an independent regulatory body.

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INSURANCE IN INDIA

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

1818 with the establishment of the oriental life insurance company in Calcutta.

Some of the important milestones are: -

1870:

The first Indian insurance company, the Bombay mutual life insurance was started.

1912:

The Indian life insurance companies Act enacted as the first statute to regulate thelife insurance business.

1928:

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

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

1938:

Earlier legislation consolidated and amended to by the insurance act with theobjective of protecting the interest of the insuring public.

1956:

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

central government and nationalized. LIC formed by an act, 1956, with a capital

contribution of 5crore from the government of India.

In 2000 finally government decides to give permission to private players in the

insurance industry. But each and every private player has to come up with a foreign

partner to do the business in the Indian insurance industry. The stake of the foreign

partner not exceeds 49%. The IRDA as a regulatory body keep eye on the

companies who are in the industry and time to time give proper instructions and give

necessary support to the companies.

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CLASSIFICATION OF INSURANCES

There are basically two types of insurance:

Life insurance

Life insurance is related with the human life. Basically life insurance is taken for thehead or breadwinner of the house. It gives the security to the whole family andavoids the risk or the uncertainty of any person or it is also taken for the otherobjectives also e.g. Childrens future, retirement etc.

Non life insurance

Non life insurance is related with the physical damages or loss of any property orbusiness losses. For E.g. motor insurance, fire insurance, shipment insurance etc.

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Insurance

Life Insurance Non life insurance


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COMPANY PROFILE

The India Info line group, comprising the holding company, India Info line Ltd (NSE:

INDIAINFO, BSE: 532636) and its subsidiaries, is one of the leading players in the

Indian financial services space. India Info line offers the entire gamut of financial

services covering investment products ranging from Equities and derivatives,

Commodities, Portfolio Management Services, Mutual Funds, Life Insurance, Fixed

deposits, Loans, Investment Banking, Goo bonds and other small savings

instruments. It owns and manages the website, www.indiinfoline.com, which is one

of Indias leading online destinations for personal finance, stock markets, economy

and business.

A forerunner in the field of equity research, India Info lines research is

acknowledged by none other than Forbes as Best of the Web and a must read

for investors in Asia. India Info lines research is available not just over the internet

but also on international wire services like Bloomberg (Code: IILL), Thomson First

Call and Internet Securities where it is amongst the most read Indian brokers.

A network of 753 business locations spread over 346 cities across India, facilitates

the smooth acquisition and servicing of a large customer base. All these offices are

connected with the corporate office in Mumbai with cutting edge networking

technology. The group caters to a customer base of over 500,000 over a variety of

mediums viz. online, over the phone and at our branches. The Group is

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strengthening its institutional broking and investment banking services and has built

a team of experienced research analysts, sales and trading professionals.

India Info line refers to India Info line Ltd and its subsidiaries. The consolidated

figures will give a more meaningful picture of the Company to the investors.

Reference to the company or India Info line is to the business done by the company

and its subsidiaries, unless otherwise specified. We are a one-stop financial services

shop, most respected for quality of its advice, personalized service and cutting-edge

technology.

Vision

Our vision is to be the most respected company in the financial services space.

India Info line Group

The India Info line group, comprising the holding company, India Info line Limited

and its wholly-owned subsidiaries, straddle the entire financial services space with

offerings ranging from Equity research, Equities and derivatives trading,

Commodities trading, Portfolio Management Services, Mutual Funds, Life Insurance,

Fixed deposits, GoI bonds and other small savings instruments to loan products and

Investment banking. India Info line also owns and manages the websites

www.indiainfoline.com and www.5paisa.com The Company has a network of 596

branches spread across 345 cities and towns. It has more than 500,000 customers.

India Info line Ltd

India Info line Limited is listed on both the leading stock exchanges in India, viz. the

Stock Exchange, Mumbai (BSE) and the National Stock Exchange (NSE) and is also

a member of both the exchanges. It is engaged in the businesses of Equities

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broking services in the Cash and Derivatives segments of the NSE as well as the

Cash segment of the BSE. It is registered with NSDL as well as CDSL as a

depository participant, providing a one-stop solution for clients trading in the equities

market. It has recently launched its Investment banking and Institutional Broking

business.

India Info line Media and Research Services Limited

The content services represent a strong support that drives the broking,

commodities, mutual fund and portfolio management services businesses. Revenue

generation is through the sale of content to financial and media houses, Indian as

well as global. It undertakes equities research which is acknowledged by none other

than Forbes as 'Best of the Web' and 'a must read for investors in Asia'. India Info

lines research is available not just over the internet but also on international wire

services like Bloomberg (Code: IILL), Thomson First Call and Internet Securities

where India Info line is amongst the most read Indian brokers.

India Info line Commodities Limited

India Info line Commodities Pvt. Limited is engaged in the business of commodities

broking. Our experience in securities broking empowered us with the requisite skills

and technologies to allow us offer commodities broking as a contra-cyclical

alternative to equities broking. We enjoy memberships with the MCX and NCDEX,

two leading Indian commodities exchanges, and recently acquired membership of

DGCX. We have a multi-channel delivery model, making it among the select few to

offer online as well as offline trading facilities.

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India Info line Marketing & Services

India Info line Marketing and Services Limited is the holding company of India

Infoline Insurance Services Limited and India Info line Insurance Brokers Limited.

India Info line Insurance Services Limited is a registered Corporate Agent

with the Insurance Regulatory and Development Authority (IRDA). It is the

largest Corporate Agent for ICICI Prudential Life Insurance Co Limited, which

is India's largest private Life Insurance Company. India Info line was the first

corporate agent to get licensed by IRDA in early 2001.

India Info line Insurance Brokers Limited India Info line Insurance Brokers

Limited is a newly formed subsidiary which will carry out the business of

Insurance broking. We have applied to IRDA for the insurance broking

license and the clearance for the same is awaited. Post the grant of license,

we propose to also commence the general insurance distribution business.

India Info line Investment Services Limited

Consolidated shareholdings of all the subsidiary companies engaged in loans and

financing activities under one subsidiary. Recently, Orient Global, a Singapore-

based investment institution invested USD 76.7 million for a 22.5% stake in India

Info line Investment Services. This will help focused expansion and capital raising in

the said subsidiaries for various lending businesses like loans against securities,

SME financing, distribution of retail loan products, consumer finance business and

housing finance business. India Info line Investment Services Private Limited

consists of the following step-down subsidiaries.

(a) India Info line Distribution Company Limited (distribution of retail loan products)

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(b) Money line Credit Limited (consumer finance)

(c) India Info line Housing Finance Limited (housing finance)

The Management

Mr. Nirmal Jain

Nirmal Jain, MBA (IIM, Ahmadabad) and a Chartered and Cost Accountant, founded

Indias leading financial services company India Info line Ltd. in 1995, providing

globally acclaimed financial services in equities and commodities broking, life

insurance and mutual funds distribution, among others. Mr. Jain began his career in

1989 with Hindustan Levers commodity export business, contributing tremendously

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Board ofDirectors

Mr. Nirmal JainManagingDirector &chairman of Indiainfoline

Mr. R.VenkataramanExecutive Director

Mr. NileshVikamseyIndependentDirector

Mr.Bharat ParajiaDirector of sales

Mr.Satpal KhattarNon Executive Director

Mr. Kranti SinhaIndependent Director


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to its growth. He was also associated with Inquire-Indian Equity Research, which he

co-founded in 1994 to set new standards in equity research in India.

Mr. R Venkataraman

R Venkataraman, co-promoter and Executive Director of India Info line Ltd., is a B.

Tech (Electronics and Electrical Communications Engineering, IIT Kharagpur) and

an MBA (IIM Bangalore). He joined the India Info line board in July 1999. He

previously held senior managerial positions in ICICI Limited, including ICICI

Securities Limited, their investment banking joint venture with J P Morgan of USA

and with BZW and Tibia Capital Corporation Limited. He was also Assistant Vice

President with G E Capital Services India Limited in their private equity division,

possessing a varied experience of more than 16 years in the financial services

sector.

The Board of Directors

Apart from Nirmal Jain and R Venkataraman, the Board of Directors of India Info line

comprises:

Mr. Sat Pal Khattar (Non Executive Director)

Mr. Sat Pal Khattar, - Board member since April 2001 - Presidential Council of

Minority Rights member, Chairman of the Board of Trustee of Singapore Business

Federation, is also a life trustee of SINDA, a nonprofit body, helping the under-

privileged Indians in Singapore. He joined the India Info line board in April 2001. Mr.

Khattar is a Director of public and private companies in Singapore, India and Hong

Kong; Chairman of Guocoland Limited listed in Singapore and its parent Guoco

Group Ltd listed in Hong Kong, a leading property company of Singapore, China and

Malaysia. A Board member of India Info line Ltd, Gateway Distriparks Ltd both

listed and a number of other companies he is also the Chairman of the Khattar

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Insurance Academy, Pune apart from various other such bodies. Mr. Sinha is also

on the Board of Directors of Hindustan Motors Limited, Larsen & Toubro Limited.

SWOT ANALYSIS

Strengths:

Flexible products

Partners having experience in different markets of the world

Synergy with their existing operations

Expertise in the field of insurance

Professional management

Good customer service

Create a brand name

Weakness:

Yet to build strong distribution networks

Cannot tap rural markets

Opportunity:

Untapped market

Company ready to tie up for as a readymade distribution network for a small

fee.

Threat:

Large distribution network of LIC

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PRODUCT PROFILE

ICICI Prudential Life Insurance offers a range of innovative, customer-centricproducts that meet the needs of customer at every life stage. Its variousproducts can be enhanced with top riders, to create a customized solution foreach policyholder.

We as management trainee were given three products of ICICI Prudential on thebasis of which we undertook our study.

Saving Benefit

Protections Benefit

LSA Plans

ISCB Plans

Child Plans

Retirement Plans

Health Plans

Smart kids Plan

LIFE STAGE ASSURE

ICICI Pru Life Stage Assure, A ULIP plan giving guaranteed returns (maturityadditions) on first year premium which means that investment, gets an unmatchedstart to long term wealth creation.ICICI Pru Life Stage Assure also comes with an option of life cycle based portfoliostrategy that re-distributes money across various assets classes based on life stageand risk tolerance. Thus, with this policy investor can look forward to a great start torealize all aspirations.

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KeyBenefits of ICICI Pru Life Stage Assure

Guaranteed returns of 100-450% of investor first year premium at maturity. Life cycle based portfolio strategy to invest in right assets allocation

depending on the stage of the policy holder. Low premium allocation charge on the second year on wards. Cover continuance option(cco) is avlible which ensures continuance of life

insurance cover, even if investor wish to take a break in premium payment. Option to with draw investor money systematically over a period of 5 years on

a maturity of the policy. Avail tax benefits on premiums paid and benefits as per the income Tax

Act,1961.

Guaranteed Maturity Addition

Guaranteed Maturity Addition is a percentage of the first year premium as per

the table below & shall be payable at the end of the policy term.

Term(Years) Policies that have paid allthe premiums

Policies that haveopted for cco

10 125% 100%

15 180% 140%

20 270% 180%

25 350% 250%

30 450% 300%

Charges:

1. Premium Allocation Charges:

Year 2-3 4-5 6-10 Thereafter

Charge 5% 2% 1% 0%

2. Mortality Charges:

Age(Yrs)-Male 20 30 40 50

Age(Yrs)-Female 22 32 42 52

Rs. 1.33 1.46 2.48 5.91

3. Fund Management Charges

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Funds R.I.C.H.

IV

FlexiGrowth

IV

Multiplier

IV

FlexiBalanced

IV

Balancer

IV

Protector

IV

Preserver

IV

Charges 1.50% 1.50% 1.50% 1.00% 1.00% 0.75% 0.75%

4. Policy Administration Charges:

There is a policy administration charges of Rs.60/-pm and is deducted bycancellations of

Units.

5. Switching Charges:

4 free switches are allowed every policy year. Subsequent switches wouldcharges at

Rs.100/- per switches.

ICICI Pru Smart kid

As parents, your biggest concern is that of securing the future of your child. Intoday's world, with ever-increasing competition, escalating cost of education anduncertain financial markets, it is very important to plan for your child's future.

Invest Shield CashBak

As a market-linked plan with premium guarantee and enhanced life insurance, InvestShield Cash Bak offers a host of benefits to the policyholder.

Key Benefits:

Premium Guarantee: Sum of all premiums paid minus the partial withdrawals isguaranteed on maturity of the policy or death of the policyholder. This value isreferred to as Guaranteed Value. The Guaranteed Value will come into play only if

all the premiums due from the policyholder have been paid.Partial Withdrawals: From the 6th year onwards, you are allowed one partialwithdrawal per year, up to a maximum of 10% of your fund value till the end of thetermMaturity Benefit: On completion of term of the policy, the higher of the fund value orguaranteed value is paid to the policyholderDeath Benefit: On death of the policyholder, Sum Assured PLUS higher of fundvalue or guaranteed value at the time of death, will be paid out to the nominee of the

life assured.

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Tax Benefits: The premiums paid towards this policy are eligible for tax deductionsu/s 80 C. Maturity proceeds and death benefits are eligible for tax exemption u/s 10(10 d) as per prevailing tax laws.

Life Time Super

Lifetime super was known as LIFE TIMEand is/was one of the best plans. Its like aPancake. This plan is one of the best selling plans and was the first plan when ICICIPrudential came into existence. Then on 1st July this plan was re-launched but withslight difference viz. the lock-in period was changed to 5 years from 3 years, aminimum of term was fixed, few charges laid etc.

Life Time Super at a glance

Minimum/maximum entry age 0-65 yearsMaximum age at maturity 75 yearsMinimum/maximum policy term 10-75 yearsPremium payment mode Yearly, half yearly, monthlyMinimum premium Rs.18000 per annumMinimum sum assured Annual premium x term/2, subject to a

minimum of Rs.100000Tax benefit Premium payment up to 20% of the

sum assured is eligible under tax

benefit under Sec.80C. Any amountpaid to you will be eligible for taxbenefit under Sec.10 (10D) exemptionas per prevailing income tax laws.

As per the changes there is also the option of settlement i.e. on maturity of thepolicy, you can choose to take the fund value as a structured benefit. With thisfacility, you can opt to get payments on a yearly, half yearly quarterly or monthlybasis for a period of 1,2,3,4 or 5 years. any time during the settlement period youhave the option to withdraw the entire fund value.

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Life Time Super Pension

Unique features of his plan: -

Accumulate savings and create a retirement kitty by investing regularly in unit-linkedpolicy.Get regular income (pension) post retirement.Choose your retirement age from which youll start receiving your pension.Receive up to one-third of the accumulated value as a tax-free lump sum on vestingdate.

Lifetime super pension at a glance

Minimum/maximum entry age 18-65 years

Maximum age at maturity 75 yearsMinimum/maximum policy term 10-57 yearsPremium payment mode Yearly, half yearly, monthlyMinimum premium Rs.10000 per annumMinimum/maximum vesting age 45-75 yearsFree look period 15 days from which you receive the

policy documentsTax benefit Under Sec80CCC as per prevailing

income tax laws on premium paid, forbase policy.

You can switch between the various fund options at any time. There is a provision of

4 free switches every policy year, subject to the condition that the minimum switch

amount is Rs.2000.

RIDERS/ADD-ON

ICICI Prudential offers one the unique opportunity of designing ones own life

insurance policy. The freedom of selecting from any of the add-on benefits that one

may need. One can choose to take all, some or none at all.

Critical Illness Rider

A rider added to a life insurance policy to protect the insured in the event of a critical

illness. 9 medical conditions are covered by this benefit. This ensures living benefits

payable to the insured for medical expenses prior to death.

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Major Surgical Assistance Rider

A rider added to a life insurance policy to provide financial support in the event of

medical emergencies. 43 specified surgical procedures are covered under this rider.

This benefit is payable on more than one occasion when the life assured undergoessurgery. However the total benefit payable in case of all the procedures is restricted

to a maximum of 50% of the sum assured.

Accident and Disability Benefit Rider

Accident Benefit:

This benefit is payable in case of death that occurs as a result of an accident.

The death must have occurred:

When the policy is in force for the full sum assured any time before the expiry

of the policy

Before the age of 65 (whichever is earlier.)

Disability Benefit:

This benefit is payable in case of disability that occurs as a result of an accident.

The disability must have occurred:

When the policy is in force for the full Sum Assured

Any time before the expiry of the policy

Before the age of 65 (whichever is earlier.)

Accident Benefit Cover

An amount equal to sum assured under the rider is payable in the event of death of

the Life assured due to accident.

The premium charged is Re. 0.80 per Rs.1000 sum assured.

The following terms and conditions are applicable to Accident Benefit Rider.

The life assured should be in the age group of minimum 18 years and

maximum 55 years.

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Maximum cover ceasing age is 65 years.

The maximum aggregate of Accident Benefit Rider as well as Accident Disability

Benefit Rider granted by the company under all the policies of the life assuredshould not exceed Rs. 10,00,000

All premiums paid under this rider are eligible for tax benefits under Sec.88.This rider is available with Sevens' Protect, Cash Bak, Secure Plus, Cash Plus,

Smart Kid Child Plans, Life Guard (Regular Premium plans), Assure Invest and

Reassure.

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COMPETITORS DETAILS

Name of the Competitors in the Market:

Following are the various competitors in the markets:

Kodak Mahindra Old Mutual Life Insurance Limited

Birla Sun Life Insurance Company Ltd.

Tata AIG Life Insurance Company Ltd.

SBI Life Insurance Company Limited

ING Vysya Life Insurance Company Private Limited

Bajaj Allianz Life Insurance Company Limited

MetLife India Insurance Company Pvt. Ltd.

HDFC Standard Life Insurance Company Ltd.

Max New York Life Insurance Co. Ltd.

Aviva Life Insurance Co. Ltd.

Here information of some competitors In the Insurance Industry is given in somedepth. Its is as below:

Life Insurance Corporation Of India

Spread Life Insurance widely and in particular to the rural areas and to the

socially and economically backward classes with a view to reaching allinsurable persons in the country and providing them adequate financial cover

against death at a reasonable cost.

Maximize mobilization of people's savings by making insurance-linked

savings adequately attractive.

Bear in mind, in the investment of funds, the primary obligation to its

policyholders, whose money it holds in trust, without losing sight of the

interest of the community as a whole; the funds to be deployed to the best

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advantage of the investors as well as the community as a whole, keeping in

view national priorities and obligations of attractive return.

Conduct business with utmost economy and with the full realization that the

moneys belong to the policyholders. Act as trustees of the insured public in their individual and collective

capacities.

Bajaj Allianz Life Insurance Company Limited

Bajaj Allianz Life Insurance Co. Ltd. is a joint venture between two leading

conglomerates-, Bajaj Auto, one of the biggest 2 and 3 wheeler manufacturers in the

world and Allianz AG, one of the world's largest insurance companies.

Bajaj Allianz Life Insurance Is the fastest growing private life insurance company

in India.

Currently has over 3,00,000 satisfied customer.

We have customer care centers in 155 cities with 28000 Insurance. Consultants

providing the finest customer service.

One of India's leading private life insurance companies.

TATA AIG Life Insurance Co. Ltd.

Review of AIG (American Int. Group):

Reaching approximately 130 countries and jurisdictions throughout the world,

American International Group, Inc. (AIG) is the world's leading US-based insurance

and financial service organization. They are currently the largest underwriter of

commercial and industrial insurance in the United States, and the second-largest

U.S. life insurer. In regards to their auto insurance, AIG is well established within the

industry as a low price leader, especially for those with good driving records.

Max New York Life :

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Max India Limited is a multi-business corporate, driven by the spirit of Enterprise,

focused on Knowledge, People and Service oriented businesses of Healthcare and

Life Insurance. Max also maintains interests in Clinical Research, IT and Telecom

Services, and Specialty Plastic Products businesses.

Healthcare

Life insurance

Uncial Research

IT & Telecom Services

Specialty Plastic Products

Max is a young, modern Indian corporation, with a strong capability of recognizing

opportunities ahead of their time. Max has been able to form and strengthen

international alliances with global leaders across a wide spectrum of management

activity.

Max India is led by a skilled team of professional managers and is recognized for

commercially successful manufacturing and service delivery businesses.

Max has created enviable history marked by tremendous growth in various fields

and has been ranked among the "Top Two Hundred Most Valuable Indian

Companies" by Business India (October 2000).

MetLife Life Insurance :

The over 137 years of experience, the MetLife companies serve millions of

customers in the Americas and Asia with one goal in mind to build financialfreedom for everyone.

The MetLife companies are a leader in-group benefits that serve 88 of the top one

hundred FORTUNE 500* companies, and provide benefits to 37 million employees

and family members through its plans sponsors in the U.S. The MetLife companies

are also ranked #1 in-group life and #1 in commercial dental in the U.S. The MetLife

companies are the number one life insurer in the U.S. with approximately US $2.8

trillion of life insurance in force.

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In India, MetLife was incorporated in 2001, and aims to differentiate itself through

customized need based selling, simple and innovative products, and technology-

backed service experience, to tread its path to build financial freedom for everyone.

ING Vysya Life Insurance:

ING Vysya Life Insurance Company Private Limited (the Company) entered the

private life insurance industry in India in September 2001, and in a short span of 3

years has established itself as a distinctive life insurance brand with an innovative,attractive and customer friendly product portfolio and a professional advisor force. It

also distributes products in close cooperation with the ING Vysya Bank network.

Currently, it has over 10,000 active advisors working from 46 branches (in 30 cities)

across the country and over 1200 employees.

The Company with a customer base of over 1,50,000, is headquartered at

Bangalore and has established a national presence in the following cities:

Ahmedabad, Bangalore, Baroda, Belgaum, Bhopal, Calicut, Chandigarh, Chennai,

Cochin, Coimbatore, Delhi, Goa, Guntur, Gurgaon, Hubli, Hyderabad, Indore,

Jaipur, Kolkata, Ludhiana, Mangalore, Mumbai, Mysore, Nagpur, Pune,

Secunderabad, Surat, Trivandrum, Vadodara, Vijaywada, Vizag.

The Companys portfolio offers products that cater to every financial requirement, at

any life stage. We believe in continuously developing customer-driven products and

services and value being accessible and responsive to the needs of our customers.

Aviva Life Insurance

Aviva Plc is UKs largest and the worlds fifth largest insurance Group. It is one of the

leading providers of life and pensions products to Europe and has substantial

businesses elsewhere around the world. With a history dating back to 1696, Aviva

has a 30 million-customer base worldwide. It has more than 273 billion of assets

under management.

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In India, Aviva has a joint venture with Dabur, one of India's oldest, and largest

Group of companies. A professionally managed company, Dabur is the country's

leading producer of traditional healthcare products.

Aviva pioneered the concept of Bancassurance in India, and has leveraged its global

expertise in Bancassurance successfully in India. Currently, Aviva has

Bancassurance tie-ups with ABN Amro Bank, American Express Bank, Canara

Bank, The Lakshmi Vilas Bank Ltd. and Punjab & Sind Bank.

Aviva has 34 Branches (including rural branches) in India supporting its distribution

network. Through its Branches and its Bancassurance partner locations, Aviva

products are available in 165 towns and cities across India. Aviva has also openedfour rural branches in Faridkot, Udaipur, Nasik and Nagpur.

REGULATORY FRAMEWORK

HISTORY

Prior to 1912, the Indian Companies Act governed Insurance Companies. In 1912,

the Insurance Act was passed which set down rules and regulations specific to the

insurance industry. Amendments to the act were made in 1919 and 1928 but the

most fundamental shake up came in 1938 and many of the rules introduced are still

valid today.

THE INSURANCE ACT 1938

To protect the interest of insuring public, earlier legislation was consolidated andamended by the Insurance Act 1938. Comprehensive provision for detailed andeffective control over the activities of insurers is provided. In order to administer theaforesaid legislation, an insurance wing was established and attached withthe Ministry of Finance. This

wing was responsible for deciding policy matters pertaining to insurance. The

Controller of Insurance looked after the actuarial and operational matters relating to

insurance. The Act was amended in 1950, making far-reaching changes, such as:

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Requirement of equity capital for companies carrying on life insurance business,

Ceiling on share holding in such companies

Stricter controls on investments of life insurance companies

Submission of periodical returns relating to investments and such other

information the controller as he may call for.

Appointment of administrators for mismanaged companies,

Ceiling on expenses of management and agency commission,

Incorporation of the Insurance Association of India and formation of councils and

committees thereof,

LIC ACT, 1956

The next significant piece of legislation was the introduction of the LIC Act 1956.

(01/07/1956) Section 30 of the act provided the Life Corporation of India Exclusive

rights to carry out life insurance business in India.

IRDA (INSURANCE REGULATORY AND DEVELOPMENT

AUTHORITY)

Composition of Authority under IRDA Act, 1999

As per the section 4 of IRDA Act' 1999, Insurance Regulatory and Development

Authority (IRDA, which was constituted by an act of parliament) specify the

compositionofAuthority.

The Authority is a ten-member team consisting of Chairman; five whole-time

members; four part-time members, (all appointed by the Government of India)

MISSION OF IRDA

To protect the interests of the policyholders, to regulate, promote and ensure orderly

growth of the insurance industry and for matters connected therewith or incidental

thereto.

DUTIES, POWERS AND FUNCTIONS OF IRDA

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Section 14 of IRDA Act, 1999 lays down the duties, powers and functions of IRDA.

Subject to the provisions of this Act and any other law for the time being in

force, the Authority shall have the duty to regulate, promote and ensureorderly growth of the insurance business and re-insurance business.

Without prejudice to the generality of the provisions contained in sub-section

The powers and functions of the Authority shall include: -

1) Issue to the applicant a certificate of registration, renew, modify, withdraw,

suspend or cancel such registration;

2) Protection of the interests of the policy holders in matters concerning

assigning of policy, nomination by policy holders, insurable interest,

settlement of insurance claim, surrender value of policy and other terms and

conditions of contracts of insurance;

3) Specifying requisite qualifications, code of conduct and practical training for

intermediary or insurance intermediaries and agents;

4) Specifying the code of conduct for surveyors and loss assessors.

5) Promoting efficiency in the conduct of insurance business;

6) Promoting and regulating professional organizations connected with the

insurance and re-insurance business;

7) Levying fees and other charges for carrying out the purposes of this Act;

8) Calling for information from, undertaking inspection of, conducting enquiries

and investigations including audit of the insurers, intermediaries, insurance

intermediaries and other organizations connected with the insurance

business;

9) Control and regulation of the rates, advantages, terms and conditions that

may be offered by insurers in respect of general insurance business not so

controlled

and regulated by the Tariff Advisory Committee under section 64U of the

Insurance Act, 1938 (4 of 1938);

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10) Specifying the form and manner in which books of account shall be

maintained and statement of accounts shall be rendered by insurers and

other insurance intermediaries;

11) Regulating investment of funds by insurance companies;

12) Regulating maintenance of margin of solvency;

13) Adjudication of disputes between insurers and intermediaries or insurance

intermediaries;

14) Supervising the functioning of the Tariff Advisory Committee;

15) Specifying the percentage of premium income of the insurer to finance

schemes for promoting and regulating professional organizations referred to

in clause

16) Specifying the percentage of life insurance business and general insurance

business to be undertaken by the insurer in the rural or social sector.

Major Policy Changes

Reforms in Insurance Sector

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

companies with the enactment of Insurance Regulatory and Development Authority

Act, 1999 (IRDA Act). As per the provisions of IRDA Act, 1999, Insurance

Regulatory and Development Authority (IRDA) was established on 19th April 2000 to

protect the interests of holder of insurance policy and to regulate, promote and

ensure orderly growth of the insurance industry.

IRDA Act 1999 paved the way for the entry of private players into the insurance

market that was hitherto the exclusive privilege of public sector insurance

companies/ corporations. Under the new dispensation Indian insurance companies

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

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

www.irdaindia.org The aggregate holdings of equity shares by a foreign

company, either by itself or through its subsidiary companies or its nominees,

do not exceed 26%, paid up equity capital of such Indian insurance company;

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The companys sole purpose is to carry on life insurance business or general

insurance business or reinsurance business.

The minimum paid up equity capital for life or general insurance business is

Rs.100 cr.

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

been prescribed as Rs.200 cr.

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

Registration of Insurers, Regulation on insurance agents, Solvency Margin,

Re-insurance, Obligation of Insurers to Rural and Social sector, Investment

and Accounting Procedure, Protection of policyholders interest etc.

Applications were invited by the Authority with effect from 15th August 2000

for issue of the Certificate of Registration to both life and non-life insurers.

The Authority has its Head Quarter at Hyderabad. Detailed information on

IRDA is available at their web site

Insurance companies:

IRDA has so far granted registration to 12 private life insurance companiesand general insurance companies. If the existing public sector insurance

companies are included, there are currently 13 insurance companies in the

life side and 13 companies operating in general insurance business. General

Insurance Corporation has been approved as the "Indian reinsurer" for

underwriting only reinsurance business.

Protection of the interest of policy holders:

IRDA has the responsibility of protecting the interest of insurance

policyholders. Towards achieving this objective, the Authority has taken the

following steps:

IRDA has notified Protection of Policyholders Interest Regulations 2001 to

provide for: policy proposal documents in easily understandable language;

claims procedure in both life and non-life; setting up of grievance redressed

machinery; speedy settlement of claims; and policyholders servicing. The

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Regulation also provides for payment of interest by insurers for the delay in

settlement of claim.

The insurers are required to maintain solvency margins so that they are in a

position to meet their obligations towards policyholders with regard to

payment of claims.

It is obligatory on the part of the insurance companies to disclose clearly the

benefits, terms and conditions under the policy. The advertisements issued by

the insurers should not mislead the insuring public.

All insurers are required to set up proper grievance redress machinery in their

head office and at their other offices.

The Authority takes up with the insurers any complaint received from the

policyholders in connection with services provided by them under the

insurance contract.

Problems

The main problem faced by the company was these time economy crisis .The

companies own product had very less market as compare to its third party selling.

The insurance company does a third party selling for all the investment products.

So, the study which I had done has the following problems:

1. To identify critical factors that influences the buying behavior of individuals.

2. To know the customer acceptance of the services and Investment products

like ULIPs of ICICI Prudential in Pune regions.

3. To asses the problem volume of future sales.

4. To analyze the consumer perception about the quality of the product, so thatthe steps can be taken to maximize the consumer satisfaction.

5. To find the position of ICICI Prudential vis--vis its competitors.

6. To find the awareness regarding the ULIPs.

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7. To maintain and enhance the position further, the company decided to have a

thorough insight into Its Insurance products. As this industry depends upon

the Investor perception of the product and their views towards the service

provider, thus, the feedbacks from the customers become all the more

important.

OBJECTIVE OF THE STUDY

The Research project has been carried out to aid the ICICI Prudential in offering

services that the customer needs and also to improve on some of the existingservices of the company.

The objective of this project is to find out:

Comparing other insurance company with ICICI Pru on various charges

parameters.

Trying to find out the various factors of insurance on which the company

lags/leads.

Finally to find the requirement of the customer by segmenting them on the

basis of:

o Age

o Sex

o Profession

o Monthly Income

The ULIP, s (UNIT LINKED INVESTMENT PLANS) potential in todays

market scenario as a whole.

The Market Potential of ICICI Pru.ULIPs.

Analyzing the data as per the given objectives and finally reaching a conclusion and

the factors that the insurance company should consider in case of improving the

investment.

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SCOPE

The Scope of the Research study would include the Geographic & Demographic

region of Pune.

The Sample of 100 has been taken from areas such as Commercial Complex &

Offices in Hinjewadi(Rajiv Gandhi IT Park,Phase-1,2 & 3), Yarwada,Shivajee

Nagar,Sangavi,Anudh e.t.c. These areas have been identified to give the actual

picture of the investment behavior of the Office goers who invest in such

Instruments.

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PURPOSE OF THE STUDY

To maintain and enhance the position further, the company decided to have a

thorough insight into the investment in ULIPs. As it is service industry, which

depends upon the customer perception of the product conception and their views

towards the service provider, thus ,the feedback from the customers thus become s

all the more important.

The purpose of the undergone study is to study the ULIP services and its rates of

different insurance company and evaluate the competitive position of ICICI Pru. so

as to suggest ways to increase its market share.

The insurance company wants to strengthen its customer base by gathering

information about the market scenario for investment and ULIPs. ICICI Prudential

needs to know about the competitors moves and the customers preference in this

sector.

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RESEARCH OBJECTIVES

Primary Objectives:

To compare the ICICI Prudential endowment plans with other investment

alternatives of other companies.

Secondary Objectives:

1) To find out the preferences of investors among various investment

alternatives.

RESEARCH METHODOLOGY

The projected objectives were considered and as per the requirement a market

survey was done.

Procedure:

The procedure that followed can be enlisted as below:

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Decide objective

Developing Survey products

Conducting personal interviews of different age-groups, sex, monthly income

and occupation through a Questionnaire.

Finally analyzing the data of various Geographic areas and trying to studywith the other player.

Process adopted:

1. Gaining knowledge about the product:

Reading about the product was the first step undertaken. This gave not only in

depth knowledge about what is been offered by other players but also proved

useful while developing the questionnaire.

2. Steps of development survey:

The main instruments required for survey was a well-developed questionnaire.

The questionnaire development took place in a series of steps as described

below:

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Transforming all the research objective into information objective.

Determine that how to collect data.

Determine the required information about each objective.

Developed the format of specific questions.

Evaluation of questions.

Determined the information which is need.

Evaluation of questionnaire and layout.


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3. Customer Survey:

The people play an important part as a clear perception of people about the

product can be estimated and known. Studying the need levels of the people

regarding the Insurance product can be observed. It was very useful in knowing

about the requirements of the people.

4. Referred to brochures and websites of competitors:

To understand the competitors product brochures and websites of various

players were referred and a competitive analogy of all the information is been

made.

Research Design:

A two stage Research was conducted:

1. Secondary Research:

Data was collected from websites and catalogues to understand the product of

the different players

2. Primary Research:

A Primary Research was conducted:

The questionnaire was prepared for the companies and following areas covered:

Competitors

Features of competitors

Consumer profile

Level of satisfaction

Reasons behind the investment

Valuable features of the product.

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The Questionnaire format is being finalized.


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Sampling Plan:

Elements:

The target population of the study included the general population above the

age of 21 yrs. It will further be based on Stratified Random Sampling.

Sample size: 100 people.

PRIMARY DATA COLLECTION METHOD

Data Collection Plan:

The first of Research consisted of secondary data search from the following sources:

Catalogues

Websites

In this, information about different players, their features were collected.

For the conclusive research, questionnaires were developed on the basis of

secondary data to gather information on the research objective.

A pilot study was conducted to test these questionnaires. In this sample of 10

people was picked up from the target population on convenience basis, so as to

determine the limitation and deficiencies in the questionnaires.

The final draft of the questionnaire (see Appendix) was then prepared on the basis

of the observations from the pilot study. These were then finally filled by 200

consumers, for the conclusive study.

Types of Primary Data collected: Socio-economic Characteristics:

Socio-economic characteristics are sometimes called states of being in that

they represent the type of people. The factors on which we are working are

age, sex and occupation. Monthly income is also an important parameter but it

is difficult to verify. Although the amount of money that an individual earns in a

month is an absolute, not a relative quantity but it is a sensitive topic in our

society and it is difficult to determine.

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Through the questionnaire we have tried to get hold of individuals preference,

inclination and requirement from the products that the company delivers to its

Investors. Attitude is an important notion in the marketing literature, since it is

generally thought that the attitudes are related to the behavior of individual.

Awareness/Knowledge:

They are used in marketing research refers to what respondents do or do

not know about the product.

Intentions:

A persons intentions refer to the individuals anticipated or planned

behavior. We have tried to find out through the collected primary data the

intentions of the people in general about the product called ULIP. In this

project we have segregated the people as per their intentions about the

ULIP of ICICI Prudential. The intentions gathered are divided into the

following groups:

1. Definitely would like to take ULIP of ICICI Prudential.

2. Probably would like to take ULIP of ICICI Prudential.

3. Undecided

4. Probably would not like to take ULIP of ICICI Prudential.5. Definitely would not like to take ULIP of ICICI Prudential.

Motivation:

Through the questionnaire we have tried to find the hidden need or want of an

individual and have tried to find if these people can be tapped as the potential

customer for ICICI Prudential.

Behavior:

Behavior concerns what subjects have done or are doing. Through the questionnairewe have tried to find out the behavior of the individuals regarding the product and

their responses. If the responses are favorable then the person can be said to be our

potential customer. The primary data serves as an important tool to measure the

behavioral trend of the customer. It helps in answering some of the vital Questions.

Thus, it helps to draw a comparison between the Purchase and the observed

behavior of the individuals.

Obtaining the Primary Data:

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The data collection was primarily done through communication. Communication

involves questioning respondents to secure the desired information, using a

data collection instrument called questionnaire. The questions were in writing

and so were the responses.

Versatility:

It is the ability of a technique to collect the information on the many types of

primary data of interest to marketers. It has also been found that some of the

people do not answer truthfully to all the questions especially in the case of the

personal details.

Analysis and Findings

V/S

Features ICICI Prudential Lifetime Birla Sun Life Classic Life

Age 0 - 60 years 1 - 65 years

Term Choice rests with the

consumer with a minimum

premium payment term of

3years

Choice rests with the consumer with a

minimum premium payment term of 3

years

Sum

Assured

Choose your sum assured,

subject to a minimum sum

assured of Rs. 1 lakh

Depends on the contribution.

Survival

benefit

Value of units (3rd year

onwards)

Value of units

Death

benefit

Higher of Sum Assured or

value of units. However,

the value of units will be

treated as death benefit if

the Life Assured is less

than 7 years of age or

more than 70 years of age.

Higher of Sum Assured or value of

units. However, the value of units will

be treated as death benefit if the Life

Assured is less than 7 years of age.

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Withdrawal

Benefit

Partial or complete

withdrawals are available

from the 3rd year onwards

Partial or complete withdrawals are

available from the 3rd year onwards. In

a year 2 withdrawals are free of

charge. For every additional withdrawala charge of Rs. 100 will be levied.

Contribution Minimum : Rs. 18,000 p.a. Minimum premium of Rs. 25,000 p.a.

Flexibility to

increase or

decrease

your

contribution

The maximum decrease in

the premiums can be upto

20% of the initial premium

chosen by the policyholder

at the time of inception of

the policy. However, in no

circumstances can the

premium be reduced to

below Rs. 18, 000 or 80%

of the initial chosen premiu

Not available

Investment

options

Maximiser, Balancer,

Protector & Preserver.

Protector, Builder, Enhancer, Creator

Increase /

Decrease of

death benefit

Available. LifeTime lets you

increase your death benefit

during special events 3

times or every 3rd year up

to 3 times. The increase is

@25% of original death

benefit or Rs. 1 lakh

whichever is lower, each

time. Any additional

increase in Sum Assured,

is

Available

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Bonus units Declared as a % of unit

value. Paid at the end of

4th, 8th and 12th policy

year. The allocation of theunits would only be made if

the annual contribution till

that date were made in

total.

Loyalty additions in the form of

additional units will be credited to the

policy fund at the end of the 10th policy

year and at the end of every 5th yearthereafter.


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3rd year onwards - 96%.

50000 and above : 1st

year - 82% ; 2nd year -92.5% ; 3rd year onwards -

96%.

Rs. 50,000 to Rs.99,999: 1st year:

14%; Subsequent years: 4%

Rs. 1,00,000 and above: 1st year:

13%; Subsequent years: 4%

Admin

Charge

None Policy admin fees of Rs. 60 per month.

Other

charges

Not applicable A charge of Rs. 2 per thousand of the

face amount will be deducted in the

first policy year.Bid-Offer

spread

Not applicable Not applicable

Fund

managemen

t Charge

The annual adminstrative

and fund management

charge is 2.25% for

Maximiser, 2.25% for

Balancer, 1.50% for

Protector & 0.75% for

Preserver.

Investment mgmt fee of 1 per cent per

annum for Protector, Builder and

Enhancer funds and 1.25 per cent for

the Creator Fund.

Riders ADBR, CIBR & MSAR Term / ADBR / CIBR

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FeaturesICICI Prudential Life Time HDFC Linked

Age 0 60 years 18 - 60 years




3years

10 - 30 years

Sum Assured Choose your sum assured,

subject to a minimum sum


Only 5,10 ,20 (age-based) multiples

are allowed as Sum Assured.

Survival

benefit


onwards)

Value of units

Death benefit Higher of Sum Assured or

value of units. However, the

value of units will be treated

as death benefit if the Life

Assured is less than 7 years

of age or more than 70

years of age.

Higher of Sum Assured or value of

units. However, the value of units

will be treated as death benefit if the

Life Assured is more than 70 years

of age.

Withdrawal

Benefit

Partial or complete



Partial withdrawal available from the

3rd year onwards, provided that the

Value of Units does not go below the

Sum Assured.

Contribution Minimum : Rs. 18,000 p.a. Minimum: Rs. 10,000 p.a.Flexibility to

increase or

decrease your

contribution

The maximum decrease in

the premiums can be up to

20% of the initial premium

chosen by the policyholder

at the time of inception of

the policy. However, in no

circumstances can the

premium be reduced to

below Rs. 18, 000 or 80% of

the initial chosen premium

Available

Investment

options

Maxi miser, Balancer,


5 Fund Options- Balancer,

Defensive Managed, Safe Managed,

Liquid & Growth

Increase /

Decrease of

death benefit

Available. Life Time lets you



times or every 3rd year up to

3 times. The increase is



Not available


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Features ICICI Prudential LifeTime TATA AIG InvestAssure

Age 0 - 60 years Varies with the term chosen. For a

15 year term: 30 days - 60 years;

For a 20 year term: 30 days to 55

years; For a 30 year term: 30 days

to 45 years.




3years

15, 20 or 30 years with a minimum

premium paying term of 6 years.

Sum Assured Choose your sum assured,subject to a minimum sum


Sum Assured is a multiple of theannual premium payable, which

varies with age.

Survival

benefit


onwards)

Value of Fund

Withdrawal

Benefit

Partial or complete



Complete withdrawals are allowed

after the 6th policy year. However,

premature withdrawal is allowed

after 2 years, at an additional

charge.

Contribution Minimum : Rs. 18,000 p.a. Minimum: Rs. 12,000 p.a.

Investment

options

Maximiser, Balancer,


Pure Funds: Equity Fund, Income

Fund and Liquid Fund. PrePackaged

Fund: Growth Fund: Invests in the

Pure Fund in the proportion of 50%

to 80% in the Equity Fund, 20% to

50% in the Income Fund and 0% to

25% in the Liquid Fund. Balanced

Fund: Invests in the

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Increase /

Decrease of

death benefit

Available. LifeTime lets you



times or every 3rd year up to3 times. The increase is



whichever is lower, each

time. Any additional increase

in Sum Assured, is

Not available

Increase /

Decrease of

death benefit


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Premium

Holiday

Post 3 years premium

payment , the policy will not

lapse on non-payment of

subsequent premiums. Thecover will continue.

Available after the 2nd policy year.

However, a there will be a small

charge on the automatic cover

continuance facility.

18000- 49,999 : 1st year -

80% ; 2nd year - 92.5% ; 3rd

year onwards - 96%.

30 year term: First year - 50 %;

Second year - 25%; Third year

onwards - 1%.

50000 and above : 1st year -

82% ; 2nd year - 92.5% ; 3rd

year onwards - 96%.

20 year term: 0 - 45 years - First

year - 50 %; 46 - 54 years - First

year - 50 % less 2.5% each age; 55

years - First year - 25 %; Second

year - 25%; Third year onwards -

1%.

15 year term: 0 - 45 years - First

year - 40 %; 46 - 49 years - First

year - 40 % less 2.5% each age; 50

years - First year - 27.5 %; Second

year - 20%; Third year onwards -

1%; 51 - 54 years - First year - 27.5

% less 1.5% each age; Second year

- 20% les

Admin Charge None A monthly admin fee of Rs. 38 per

month.

Other charges Not applicable Not applicable

Bid-Offer

spread

Not applicable Not applicable

Fund

management

Charge

The annual adminstrative

and fund management

charge is 2.25% for

Maximiser, 2.25% for

Balancer, 1.50% for

Protector & 0.75% for

Preserver.

Fund Management Charges are as

given below: Equity - 1.75%, Growth

- 1.60%, Balanced - 1.40%, Income

- 1.25% and Liquid - 0.90%.

Riders ADBR, CIBR & MSAR Not available

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Conclusions

ICICI Prudential with Birla Sun Life

Birla Sun Life Classic Life does not provide flexibility to opt for a Sum Assured

due to the restricted SA limits. This would mean that consumer desirous of higher

cover couldnt opt for this product.

Life Time has no restrictions on the number of withdrawals in case of Life

Time.

Life Time offers a much lower premium than Birla Sun Life Classic Life.

Life Time gives you the additional protection of increase or decrease of death

benefit at various stages of your life, wherein your liabilities may increase

such as marriage, children, a new home, children's higher studies etc.

Life Time levies lower charges on top-ups as compared to Birla Sun Life

Classic Life.

Life Time offers you an additional 2 free switches.

Life Time has other charges on the sum assured chosen. So, for a sum

assured of Rs. 10 lakhs, the charge works out to Rs. 2000.

ICICI Prudential with HDFC Linked:

Lifetime can even be taken for a child and can be continued throughout his

life.

Lifetime does not have a restriction on the term of the policy.

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HDFC does not provide flexibility to opt for a Sum Assured due to the

restricted SA limits. This would mean that consumer desirous of higher cover

cannot opt for this product.

HDFC does not provide flexibility in withdrawals. Firstly, the consumer cannot

make a partial withdrawal for quite many years till the time VOU>SA, also the fact

that the withdrawals would be limited to a maximum of VOU-SA. This severely

restricts the flexibility and usage of the plan.

We do not have as many fund choices as HDFC, but the asset allocation of

our three funds also range from 100% debt to 100% equity gives you investment

options. Additionally a mix of our two funds can give the almost the desired asset

mix in the funds of HDFC.

HDFC does not provide the flexibility of changing the SA. Thus a consumer

can't change SA with a change in his lifestyle / life stage. This also means that if

the consumer wants more insurance later, he will have to buy a new product and

pay the initial charges once more. While Life Time gives you increase or

decrease death benefit.

Although switches are free (as of now) with HDFC, the consumer does not do

many switches in a year. In such a scenario 4 free switches would not be

disadvantageous to the consumer.

ICICI Prudential with TATA AIG Invest Assure:

Life Time does not have any entry age restrictions based on the term chosen.

Life Time gives you the option to choose your own term based on your

requirements. Life Time also gives you the flexibility to choose your premium paying

term and still continue the policy as long as you wish to.

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Life Time gives you the flexibility to completely withdraw the units from the 3rd

year onwards, in case of any eventuality.

Customization of the funds is possible even by offering investment options in

case of Life Time, by using the premium allocation benefit wherein the premium

can be invested in each fund based on your requirement.

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FINDINGS OF THE STUDY

GENDERWISE DISTRIBUTION

Among the 100 respondents, females represented 28% only. The reason being

females are generally less active and aware about insurance services and

investment options. Moreover, during the survey it was revealed that females are

less responsive for such surveys.

AGEWISE DISTRIBUTION:

Among the 100 respondents, maximum respondents are from age group 21-30yrs

they cover around 22% of total population. This is because people in this age group

do not more responsive.

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OCCUPATION WISE:

In total 100 respondents 48% are in private service and 20% of them are in

business, th24% of the total pie is owned by the government servant and

professional hold the least i.e 8% of the total sample.

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PEOPLE WITH LIFE POLICY:

CUSTOMER FOR VARIOUS INSURANCE COMPANIES :

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The survey shows that the LIC is the most preferred insurance company, covering

30% of the total population. The next preferred insurance company is ICICI (16%)

and the third most preferred bank is HDFC.

MINIMUM INVESTING IN INSURANCE OF CUSTOMERS:

When I ask about how many amount invest in insurance sector after that many

person do not invest money because do not aware about insurance. Its main cause

death rate is very low in India.

FEATURES AFFECT CHOICE OF LIFE INSURANCE PLAN:

Company name

Annual premium

Premium paying options

Tax benefits

Advertisements

Agent

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IMPORTANCE OF INSURANCE:

Financial protection of family

Method for saving

Investment option

Tax saving

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Inference: Life insurance is seen most importantly as a financial protection of

family of policy holder by nearly half of the people. A major slice of the sample

also values it as a tax saving option

Rank the following insurance companies as per given criteria:

Brand

Name

Reliability Customer

Service

Ease of

Processes

Claim

Settlement

LIC

ICICI

Prudential

Aviva

Bajaj

AllianceHDFC

Standard

Life

TATA AIG

Reliance

Any other

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Inference:

LIC and ICICI banks upon a good brand name.

LIC is most trusted for reliability

ICICI is able to satisfy customers through great customer

service. Bajaj Alliance takes the highest share in ease of processes

and faster claims settlement.

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Cumulative Ranking

LIC 1

ICICI Prudential 2

HDFC Standard 3Bajaj Alliance 4

TATA AIG 5

Reliance 6

Aviva 7

Any other 8


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AWARENESS ABOUT THE PRODUCTS OF ICICI PRUDENTIAL:

The ICICI Pru has very strong market coverage and most of the populations know

about the products. ICICI is strong brand image and it service is also good.

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RISK PREFERNCE OF SAMPLE :

Moderate risk takers are 50%, this shows that they benefit from the Bull Run as well

as safe capital.

26% represents low risk takers which are due to their old fixated mindset.

High risk takers are mostly those in Business who are willing to go an extra mile for

Returns. They hold 16% market share.

Other 8% with no risk appetite wants to play really safe

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DISTRIBUTION OF SAMPLE IN ACCORDANCE WITH THE

PREFERNCE FOR TIME HORIZON OF INVESTMENT:

Only 2% of the total respondents wants to invest for the period of 10-15 yrs.

Respondents belong to new breed who do not want to block their money that long.

Mostly (50%) they invest for 4-7 yrs to get maximum benefits. It is here that they

double their amount paid on required first 3 premiums, even after not paying any

more premiums.

Those investing for just 3 yrs want to reap benefits from current Bull Run.

Investors for 7-10 yrs (8%) have to some obligation materializing in that maturity

period like daughter marriage etc.

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VARIOUS AVENUES OF INVESTMENT :

Survey shows that FDs are most popular among the respondents,

around 24% of the total sample population invest in them. In case of

ULIPs, only 11% of the total respondents are investing, and that

investment is also due to its tax benefit.

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REASONS FOR INVESTMENT :

Survey shows that income growth is the prime reason for the investment, 44% of the

respondents invest for income growth, the second next reason for the investment is

tax rebate, comprises of 33% of the total respondents. Thus, these two benefits can

act as strong motivator for attracting people for investment for ULIPs

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AGEWISE PREFERNCE OF THE REASONS FOR THEINVESTMENT :

In the age group 21-30 yrs, most of the respondents want Tax rebate & Income

growth.Other benefits come second in importance.

Age group 31-40 yrs prefer besides above two also childs education. This shows

that investors in this age group are more family oriented & value ULIP investmentcrucial for social obligations. For them pension is least fanciful. This age group is

well dispersed (excluding pension).

Age group 41-50 yrs also prefers Tax rebate & Inc

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