Documenti di Didattica
Documenti di Professioni
Documenti di Cultura
ING
In 1990, the legal restrictions on mergers between insurers and banks were lifted. This prompted insurance company Nationale-Nederlanden and banking company NMB Postbank Group to enter into merger negotiations. The merger took place in 1991. The newly formed company called itself 'Internationale Nederlanden Group'. The name ING Group soon became widely used. The company followed suit by changing the statutory name to 'ING Groep N.V.'
Nationale-Nederlanden
Nationale-Nederlanden was formed on 3 April 1963 by merging the Nationale Levensverzekering-Bank (1863) with De Nederlanden van 1845. In the years to follow, the company experienced strong growth, autonomously as well as Babasabpatilfreepptmba.com Page 1
Babasabpatilfreepptmba.com
Page 2
View
ING 's view on Corporate Social Responsibility (CSR)
Corporate Social Responsibility is a fundamental part of ING 's strategy. As a global financial-services provider, ING is deeply embedded in the international financial systems and has responsibilities towards a wide range of stakeholders. ING is committed to be a responsible and reliable partner for all its stakeholders. ING wants to contribute to the socio-economic development of the communities where it does business, within its available resources. ING believes there is a clear business case for corporate social responsibility (CSR) provided that CSR is viewed as a long-term commitment. Maximizing financial performance is a prerequisite for future growth, but financials are not the only driver. The intangible benefits of CSR include building corporate credibility, social acceptance and employee retention. Having an eye for the needs of its stakeholders enables ING to stay in touch with outside developments. Awareness of ethical, social and environmental aspects of business transactions minimizes risks at an early stage in credit-lending, insurance and investment activities. ING understands CSR as a commitment to pursue profit and commercial opportunities in an ethical as well as a socially and environmentally acceptable manner. This mission is based on four pillars: 1) Stakeholder dialogue 2) Business Principles Babasabpatilfreepptmba.com Page 5
Babasabpatilfreepptmba.com
Page 7
Babasabpatilfreepptmba.com
Page 8
Terms of insurance
What is Insurance?
Insurance is the method of spreading and transfer of risks. Loss of the unfortunate few is shared by the fortunate many who are exposed to same or similar risk. Insurance does not protect the assets but only compensates the economic or financial loss.
Classification of Insurance
Insurance can be classified into two basic categories: 1) Life Insurance. 2) Non-life (General Insurance) Babasabpatilfreepptmba.com Page 9
Insurance Documents
1) Proposal Form. Babasabpatilfreepptmba.com Page 10
6) Renewal Premium Receipt : Except for single premium policy, as per the contract, the assured is obliged to pay the premium periodically during the term of the policy on due date or within the days of grace to maintain the risk cover intact, for which the renewal premium receipt is issued. 7) Policy Documents : After the issue of FPR the policy document is issued. The policy document is an evidence of the contract and notes the contract itself. The policy is signed by the authorized officer/authority and stamped according to the Indian Stamp Act.
Babasabpatilfreepptmba.com
Page 12
Claims
Claim is the demand for performance of the promise made by the insurer at the time of making the contract. Life insurance claims are of two types: 1) Death claims (made on the death of a policy holder during the policy term). 2) Maturity claims (made when the policy holder survives the policy term).
Claim Documents
Maturity Claims
The insurers call for the following documents: 1) Policy Bond. 2) Age proof, if age not already admitted. 3) Deed of assignment, if any. 4) Discharge form, duly signed by the life assured/assignee and witnessed.
Death Claims
On receipt of death intimation, the insurer will ask for the following documents. 1) Policy documents. 2) Deed of assignment, if any. 3) Proof of age, if age not admitted. 4) Certificate of death issued by municipality or the local board. 5) Legal evidence of the title, if there is no nomination/assignment. 6) Claimants statement.
Babasabpatilfreepptmba.com
Page 13
Death Claim In case of proper nomination or assignment, no further proof of title of the client is needed. If there is no nomination or assignment, legal evidence of title to the estate of the deceased from a competent court is required. In case of death due to an accident the incident has to be reported to the police. Additionally a copy of FIR flied with the police, a police enquire Babasabpatilfreepptmba.com Page 14
ORIGINS
With the marine route being the bedrock of trade and commerce in those days, the practice of bottomry evolved, and spread. With the growth towns and trade in Europe, medieval guilds (groups organized on the basses of some common objective like traders) pooled in money to protect their members from loss by fire and ship wreck, to pay ransom if they were captured by pirates and to provide burial and support in sickness and poverty. By the middle of 14 th century, as evidences by earliest known insurance contract (Genoa, 1347) marine insurance was common among maritime nations of Europe. Lioyds of London, the largest marine insurer today, was found in 1688, in a coffee shop in London. Lioyds coffee house became preferred place for merchants, ship owners and underwriters to transact business. Insurance develop rapidly with growth of British commerce in 17 th and 18 th century, and started becoming organized, along the way going through a period of defaults and closures. The British brought insurance to India in 1818, replete with imperialist prejudices. The oriental life insurance company, the first insurance company in the country, insured only European widows. British insurers eventually begin insuring Indian lives, but for a premium that was 15% to 20% higher than that payable by British. It was only in 1870 that the disparity was corrected. Six Indians peeved by this second-class treatment, set-up Bombay Mutual Life Assurance Society, and Babasabpatilfreepptmba.com Page 16
NATIONALSATION
Post-Independence, discontent against insurers reached a pitch. Business was chaotic, foreign insurers were leaving the country, and Indian insurers, driven by greed and business considerations, werent earning much credibility. The cry for nationalizing insurance grew louder a move that insurers were, of course, opposed to. On 19 th January 1956, the life insurance business was nationalized. In one swoop, the government snapped up 245 insurers and provident societies. Eight months later, the life insurance corporation of India (LIC) was formed, which took over the business of the erstwhile private insurers, and started expanding at a frenetic pace. Today, this monolith has 2100 branch offices, 8 lakh agents and offers a bevy of insurance investment products. LIC marketed insurance less has a risk management tool and more has savings instruments with tax edge. A look at LIC policy profile shows that 18% of policies in force currently are protection plans. Insurance cum investment plans account for 60%, with balance being pure investment plans. Still house holds embraced these safe investment avenues, with the sum assured (or the total value of cover) increasing from Rs. 1476cr in 1957 to Rs. 459201cr to 1998 to 1999. Babasabpatilfreepptmba.com Page 17
PRIVATISATION
There were various reasons given by the government to nationalise the insurance sector was to take insurance to the mass, facilitate the flow of long term funds (which insurance companies, by virtue of the business they are in, have ready access to) into development of infrastructure in the country, and safe guard the interest of the policy holders. Towards this end, state insurers did develop the insurance sector, though most experts believe that these monopolies could have done much, much more. In the early nineties is, the government went on a reforms binge and started loosing controls on Indian industry. In 1993 the government appointed the Malhotra committee headed former RBI governor R.N. Malhotra, to draw up a blue print for insurance sector reforms. The panel submitted its report a year later, recommending privatization, backed by stiff entry guidelines and stringent regulations, so as to avoid a repeat pre nationalization free for all. The insurance regulatory and development authority (IRDA) was founded to regulate the sector and over see the process of privatization. In 2000, the IRDA started giving out licenses, and a year later, the first of the private players started operation. The wheel had come full circle. Under state control, the insurance sector, both life and non-life, grew steadily. Still, Indians are not adequately insured and lag behind most countries. Babasabpatilfreepptmba.com Page 18
Insurance in India
1818 The British introduce to India, with the establishment of the Oriental Life Babasabpatilfreepptmba.com Page 19
Babasabpatilfreepptmba.com
Page 20
Insurance Aviva Life insurance avivaindia.com HDFC Standard Life hdfcinsurance.com Insurance ICICI Prudential Life iciciprulife.com Insurance ING Vysya Insurance Life Life ingvysyalife.com
Insurance licindia.com
Corporation Max New York Life maxnewyorklife.com Insurance MetLife India metlifeindia.com
J&K Bank, Pallonji & Metropolitan co Kotak Insurance Mahindra Old Mutual Plc
Insurance OM Kotak Mahindra omkotakmahindra.com Life SBI Life Insurance Tata-AIG Insurance sbilife.co.in
Life tata-aig.com
(first year and single premium in 2003-2004) % Growth 203.70 Market share 0.12 Page 21
Babasabpatilfreepptmba.com
Vision statement
The vision of the company is to become a leading private life insurance company in the first five years of operation and a corner stone of integrated financial services in the years there after. At ING Vysya Life Insurance, It strongly believes that as life is different at every stage, life insurance must offer flexibility and choice to go with that stage. We are fully prepared and committed to advice you on insurance products and services you require through our well-trained advisers supported by marketing and customer services in the best possible way.
Share Holders
ING Vysya Life Insurance is a joint venture between ING Insurance, ING Vysya Bank and GMR Group. Babasabpatilfreepptmba.com Page 24
ING Group
Over the last 150 years, ING Group has grown to become one of the largest life insurance organizations in the world. Today it touches the lives of over 50 million people across 65 countries. It offers a range of financial services including insurance, pensions, banking and asset management. In the year 2000, total assets of the group stood at over INR 28, 42,000 crores. ING Group has wide and deep experience in setting up companies in new markets, which require substantial investments underlining ING's long-term commitment. In the last 20 years, ING Group has established successful life insurance companies in 15 countries contributing to the development of insurance services in these countries.
GMR Group
It has a solid track record of over two decades of growth and has wide-ranging interests in fields such as power generation, infrastructure, manufacturing, software and banking. GMR group has an excellent reputation of being able to successfully develop ventures from scratch.
Branch Location
Babasabpatilfreepptmba.com Page 26
New
Branches :
Hubli,
Coimbatore,
Guntur,
Secunderabad,
Trivandram.
Babasabpatilfreepptmba.com
Page 27
CEO
Customer Care
Actuary
Finance
HR
Marketing
Sales
Admin
Finance
Compliance officer
Legal
Branch
Under writers
Customer Care
ORM
Commercial
Babasabpatilfreepptmba.com
Page 28
UNDERWRITER Department
Underwriter Sr Doctor Jr Doctor
Staff
Functions of underwriters
Underwriters will be checking the documents related to the health. If underwriter thinks that it needs medical then their ask doctor to raise medical. These underwriters have the authority to accept the policy or reject the policy. If the documents doesnt satisfy their demands, or if they are not according to the normas. If Underwriters do not find the detail information in the documents provided, may in turn ask the commercial department to execs for more information regarding the health. If Underwriter finds all the documents are correct and are satisfied, they forward their order to the issuing department to issue the policy.
Babasabpatilfreepptmba.com
Page 29
Executive
Executive
Executive
COMMERCIAL Department
Manager Commercial
Jr
comm.
Comm. Executive
Sr
Comm.
Executive
Executive
Sr Sales Manager
Advisory team
Advisory team
Advisory team
Babasabpatilfreepptmba.com
Page 31
ISSUING Department
Dept Head
Staff
DISPATCH department
Dept Head
Staff
Babasabpatilfreepptmba.com
Page 32
Babasabpatilfreepptmba.com
Page 33
Protection : First life insurance helps you to protect your income and your
familys financial future in case you are not around.
Savings : Second, life insurance works as a long term savings, thus giving you
the financial strength to achieve your life goals. it also gives you tax benefits.
Investment: Third, life insurance is the safe long-term investment, free from
risk of market swings. At the end of the term you or your family get added return on your investment. Depending on your personal needs, priorities and individual responsibilities, you can go for a protection, savings or investment plan or a combination. If you have children, you must have a creating life child protection plan. This plan ensures that your childs future is secured in case of your untimely death. Creating life also creates a financial asset for your child. The creating life child protection plan. What is it all about? The creating life plan is ideal because it provides the sum assured to your child immediately in case of your untimely death. Whats more, on maturity, an additional sum assured is paid with an accumulated compound reversionary bonus and a final additional bonus. Babasabpatilfreepptmba.com Page 34
Additional Benefits
Loan benefit Maturity benefits After paying a premium for three years, you will be eligible for a loan Your child can either receive a
lumpsum or receive the amount in 3or 5 equal installments after the maturity Tax benefit date. Tax benefits u/s 88 and sections 10 (10D) are available on all our life Look in period insurance plans and riders. This is a 15 days period for you to go through the terms and conditions and decide upon taking or canceling the policy.
Babasabpatilfreepptmba.com
Page 35
Product Features
Eligibility Minimum entry age: 18 years Maximum entry age: 55 years Premium payment term Maximum maturity age: 65 years Based upon your current age, and the life cover period, you can choose to Premium payment option Minimum premium payable pay premium between 10-25 years. Annual, half yearly, quarterly monthly. Annual Rs.6000 Half yearly Rs. 3000 Quarterly Rs.1500 Monthly Rs.750 or
Babasabpatilfreepptmba.com
Page 36
Additional Benefits
Tax benefits Tax benefits under section 88 and section 10 (10 D) are available on all our life Look in period Babasabpatilfreepptmba.com insurance plans and riders. This is a 15-day period for you to go Page 37
Product Features
Eligibility Minimum age for application: 18 years Maximum age for application: 50 years Maximum age up to which premium can be Premium payment term paid: 65 years Based upon your current age, and the life cover period you can choose to pay premiums Life coverage term Premium payment options Minimum premium payable between 10 25 years. This period is the same as the premium payment term. Annual, half yearly, quarterly. Annual Rs.2500 Half yearly Rs.1500 Processing fee Quarterly Rs.1000 Rs.700 (A nominal non-refundable one time fee).
Babasabpatilfreepptmba.com
Page 38
Additional Benefits
Loan benefit Babasabpatilfreepptmba.com After paying a premium for three years, Page 39
Product Features:
Eligibility Minimum entry age: 12 years Maximum entry age: 50 years Maximum entry age upto which you can Flexible Premium payment term pay your premium: 65 years Based upon your current age, you can choose to pay your premium in 15, 20 or Life coverage term Premium payment options Minimum premium payable 25 years. Upto the age of 85 years Annual, half yearly, monthly. Annual Rs.6000 Half-yearly Rs. 3000 Quarterly Rs.1500 Monthly Rs. 750
quarterly
or
Babasabpatilfreepptmba.com
Page 40
Maturity benefits:
Babasabpatilfreepptmba.com
Page 41
Additional benefits:
Loan benefit Tax benefits After paying a premium for three years, you will be eligible for a loan. Tax benefits under section 88 and section 10 (10 D) are available on all our life Look-in-period insurance plans and riders. This is a 15-day period for you to go through the terms and conditions and decide upon taking or canceling the policy.
Product features:
Eligibility Minimum entry age: 18 years Maximum entry age : 49 years Maximum age upto which premium can Premium payment term be paid : 65 years Depending on your current age and when you want to receive your money, you can Life coverage term Premium payment options Minimum premium payable opt for a 16, 20 or 24 year payment plan. Upto the age of 85 years Annual, half-yearly, quarterly or monthly. Annual Rs.8000 Half yearly Rs. 4000 Quarterly Rs. 2000 Monthly Rs. 1000 Babasabpatilfreepptmba.com Page 42
Maturity benefits: You will receive 40% of he sum assured on maturity. Death benefit: Your family will receive the sum assured if your death occurs during the coverage term. Cash bonus:
Babasabpatilfreepptmba.com
Page 43
Additional benefits
Loan benefit Tax benefits After paying a premium for three years, you will be eligible for a loan. Tax benefits under section 88 and section 10 (10 D) are available on all our life Look-in-period insurance plans and riders. This is a 15-day period for you to go through the terms and conditions and decide upon taking or canceling the policy.
Product features
Eligibility Minimum entry age: 12 years Maximum entry age: 49 years Maximum age upto which premium can Premium payment term be paid: 65 years Depending on your current age and when you want to receive your money, you can Life coverage term Premium payment options Minimum premium payable opt for a 16, 20 or 24 year payment plan. Upto the age of 85 years Annual, half-yearly, quarterly or monthly. Annual Rs.6000 Half yearly Rs. 3000 Quarterly Rs. 1500 Monthly Rs. 750 Babasabpatilfreepptmba.com Page 44
The powering life limited payment endowment plan. What is it all about?
The powering life plan is ideal because you get a life cover and your family enjoys long-term financial security. And thanks to a high reversionary bonus, your investment grows over time. You can even customize your coverage term and choose from a range of premium payment terms.
Additional benefits
Loan benefit Tax benefits After paying a premium for three years, you will be eligible for a loan. Tax benefits under section 88 and section 10 (10 D) are available on all our life Look-in-period insurance plans and riders. This is a 15-day period for you to go through the terms and conditions and decide upon taking or canceling the policy.
Product features
Eligibility Minimum entry age: 18 years Maximum entry age: 60 years Premium payment options Minimum premium payable Maximum age: 70 years Annual, half-yearly, monthly. Annual Rs.24000 Half yearly Rs. 12000 Quarterly Rs. 6000 Monthly Rs. 3000 quarterly or
Cash bonus: This plan has the advantage of an annual cash bonus which you may receive based upon the performance of the company. You have the option to accumulate it, withdrawal it or adjust it against payment of future premiums.
Additional benefits
Loan benefit Tax benefits After paying a premium for three years, you will be eligible for a loan. Tax benefits under section 88 and section 10 (10 D) are available on all our life Look-in-period insurance plans and riders. This is a 15-day period for you to go through the terms and conditions and Babasabpatilfreepptmba.com Page 47
Product features
Eligibility Minimum entry age: 12 years Maximum entry age: 55 years Maximum age upto which premium can Premium payment term be paid: 65 years Based upon your current age and the life cover period, you can choose premiumLife coverage term Premium payment options Minimum premium payable paying terms from 10 30 years. This period will be the same as the premium payment term. Annual, half-yearly, monthly. Annual Rs.4000 Half yearly Rs. 2000 Quarterly Rs. 1000 Monthly Rs. 500 quarterly or
Additional benefits
Loan benefit Tax benefits After paying a premium for three years, you will be eligible for a loan. Tax benefits under section 88 and section 10 (10 D) are available on all our life Look-in-period insurance plans and riders. This is a 15-day period for you to go through the terms and conditions and decide upon taking or canceling the policy.
Product features:
Babasabpatilfreepptmba.com Page 49
Babasabpatilfreepptmba.com
Page 50
during the policy term The policy coverage terms are fixed at 10, 15, and 20 years
Babasabpatilfreepptmba.com
Page 51
The investment income, realized gains/losses earned or realized during the year by the company on the investments net of all costs, expenses and taxes if any, will be distributed among policy holders as bonus interest. The bonus interest will be in proportion to the period for which the monies are invested in the ING Vysya capital guaranteed plan during the year and will be credited to your IPA on 31st of march each year.
Main benefits
The benefit amount under this plan on the vesting date or on earlier death of policyholder is the balance amount in the IPA. On your attaining the chosen vesting date, up to 1/3 rd of the benefit amount can be withdrawn and it is tax free under sec 10(10A) of the IT Act. The balance amount will be utilized to purchase an annuity. In case of death during the term, yours spouse were have the following option in respect of the benefits under the policy. - To defer the purchase of annuity if the age of the spouse is less than 45 year, - To encash up to 5% (or such % decided by the company depending upon the investing return) of the benefit amount outstanding each year up to the age of 45 and than apply the balance if any, at age 5 to purchase annuity. In case there is no spouse, the benefit amount will be paid in lump sum to the nominee/legal hires. Balance in your IPA is guaranteed on chosen retirement date or on death. You also have the flexibility - To choose the regular contribution to be made each year Babasabpatilfreepptmba.com Page 53
Additional benefits
Term Rider Benefits The cover shall equal to the lower of five times the regular contribution or Rs 1,00,000. The sum assured under this rider will be used to increase the benefit Term rider premium Tax benefit amount under the basic policy. Premium will be paid by way of deduction from the IPA on each due date. Tax benefits under sec 80CCC of the income tax act, 1961 are available on this plan. Any lump sum received at chosen retirement date or on death is exempted from tax under sec 10 (10A) at the income tax act.
Other features
Eligibility Minimum entry age 18yrs Page 54
Babasabpatilfreepptmba.com
Applicable charges
Initial one time charges Contribution related charge All first year contributions On subsequent contributions Annual management will be laved on each the IPA and will be as follows: Balance in IPA Up to Rs 50,000 50,001- 75,000 75,001-1,00,000 Above 1,00,000 Annual management fee per annum 2.5% 2.0% 1.75% 1.5% 10% 3% 31 st march on the IPA after crediting Rs 700
bonus interest. The annual management fee will be depend on the size of balance in
These charges are not guaranteed and are subject to periodic review after approval of the regulatory authority. The annual management fee shall however, not exceed 3% per annum.
Babasabpatilfreepptmba.com
Page 55
Top-up contributions
Make contributions over and above the regular contribution in any year before the vesting age. The minimum amount of such a top-up shall be at least Rs 2,000.
Lapse
If you are unable to meet your regular contributions in any year for any reason the policy will nit lapse and will continue to exist and accrue benefits, based on the investment performance of the ING Vysya capital guaranteed plan.
Surrender
The policy can be surrendered for cash after 3 years. The surrender value will be the accumulated balance in the IPA at the time of surrender less a surrender penalty as determined by the company from time to time. The guaranteed surrendered value is 60% of the balance in the IPA at the time of surrender.
Riders
Riders are the optional contracts, which offer additional benefits for policyholder. They are always attach to basic policy. They cannot be brought separately or independently of a basic policy. Each rider will have its own premium rate and separate policy conditions.
Babasabpatilfreepptmba.com
Page 56
Definition of Accident
Death, which results from bodily injury, occurs within 180 days from the date of injury resulting from an accident. FEATURES SPECIFICATIONS Term Subject to premium paying term under the basic policy Minimum: 10 years Maximum: 30 years Maximum applicable age 65 years Maximum cover Equal to sum assured under the basic Babasabpatilfreepptmba.com Page 57
Exclusions
This Rider shall not cover the death of the life Assured being caused directly or indirectly by any of the following: Any disease or infection. Intentional self-inflection injury, suicide or attempted suicide, while sane or insane. Life Assured being under the influence of alcohol, narcotics, psychotropic substances or drugs unless taken in accordance with the lawful directions and prescriptions of a qualified and registered medical practitioner. War (declared or undeclared), war-like operations, innovation, civil commotion, riots or revolution. Participation in any flying activity, except as a bonafide passenger in a commercially licensed aircraft. Participation in a criminal or unlawful act. Any injury sustained before the effective date of this Rider. Participation in hazardous sports, hobbies or pastimes including (but not limited to) racing, parachuting, mountaineering etc. Atomic energy explosion or radiation of any kind.
Babasabpatilfreepptmba.com
Page 58
Schedule of payment
Total and permanent Disability Benefit
Payment in % of sum Assured 10% of Sum Assured 30% of Sum Assured 30% of Sum Assured 30% of Sum Assured Schedule of payment On the date of Admission of claim After 180 days of disability Paid after 1 year of disability Paid after 2 years of disability
Total disability
Resulting from accident or sickness and disability occurring within 180 days of the accident or sickness. The disability should last for at least 180 consecutive days. Applicable only when, the disability completely and continuously prevents life assured from engaging in any occupation to earn any wages. Term Maximum Maximum benefit available Description Premium term of the basic policy not exceeding age of 60 years Till age 65 if the said disability occurs before age 60
Exclusion : The benefit of this life insurance plan will not be payable if death
occurs due to suicide, within one year from the date of commencement of risk.
Withdrawal : if you are unable to pay your premium for some reason within the
specified period, and have paid full premium for at least 3 years, and the plan has acquired a cash surrender value, we will continue your plan without further Babasabpatilfreepptmba.com Page 60
Introduction
Babasabpatilfreepptmba.com Page 61
The study was done by collecting the secondary data from all the companies. The study is restricted only to the similar policies, with the help of leaflets.
Babasabpatilfreepptmba.com
Page 62
(Child plan)
ICICI PRUDENTIAL I Survival Benefits/Maturity benefits Flexibility of withdrawal whenever you require them. It allows you a max of 5 withdrawals Viz. up to 20% up to 25% up to 30% up to 35% up to 40% Premium Holiday If he has paid min of 5 years & then misses out any of the subsequent premium payment, his policy does not lapse. To keep the policy in force, the mortality charges are deducted from his fund. II. i. child. ii. All the future Page 63 Death Benefit The sum assured is paid to
Babasabpatilfreepptmba.com
Additional Benefits
ICICI
ii. Accident & disability benefit raider iii. Waiver of premium raider II. Tax benefit, U/S 88 & sec 10(10D). III. Choice of investment plan. IV. Change in investment plan (Switch Option).
Product Features
ING VYSYA Eligibility (Parents age) Min 18 Max 55 Premium payment term Maturity age of parents Min premium payable 10-25 yrs. 65yrs Mthly- 750 ly 1,500 ly 3,000 Babasabpatilfreepptmba.com 4,500 9,000 Page 64 ICICI PRUDENTIALS 20-60 years (Child) (1-15) Yrs 10 25 yrs 70 yrs
CONCLUSION
ICICI prudential in a single child plan having 3 options or offers. o Unit linked premium. o Unit linked single premium. o Regular premium smart kids. Were as ING VYSYA has single plan with no option or offer. There is premium holiday given in ICICI, provided after paying 5 yrs of premium. Were as there is no such premium holiday in ING VYSYA. ICICI prudential has given withdrawal options for which certain % of surrender value is given. Were as in ING VYSYA certain % of surrender value is paid in the case of lapse of policy. ICICI prudential has left the option to customers, to customize their investments. Like; a). Maximizer. b). Protector. c). Balancer. ING VYSYA are assuring for more bonus in case if the company performs more than expected. Babasabpatilfreepptmba.com Page 65
Babasabpatilfreepptmba.com
Page 66
ICICI
Any time after 3 yrs of policy commencement (provided you have paid premium for 3 full years) you can make partial or complete withdrawal
at no panelty.
Total sum assured + bonus is Switch benefit. Premium holiday benefit. Total sum assured + bonus is given. Additional bonus is given at 85 Death benefit.
ICICI
Accident & disability rider Critical illness rider Major surgical assistance benefit Page 67
Babasabpatilfreepptmba.com
Product Features
ICICI
Min 1 [Age is considered for the first day of the baby] Max 60 -4,500 9,000 18,000 70years
CONCLUSION:
Options are left open to customize their investments in ICICI PRUDENTIALS. There is no premium holiday in ING VYSYA. ICICI PRUDENTIAL is covering critical illness and major surgical assistance benefit with the nominal cost in rider benefits. Administrative and other charges are higher in ICICI PRUDENTIAL compared to ING VYSYA. Risk of investment is imposed on customers as the investment option is customized in ICICI PRUDENTIAL. ICICI PRUDENTIAL is providing top-up facility. Unit linked plans are totally market driven, there is no guarantee of the principle as the case in ICICI PRUDENTIAL. Babasabpatilfreepptmba.com Page 68
(Money back)
ICICI PRUDENTIALS Survival Benefits/ maturity benefits At specific intervals of the premium payment terms you yould receive certain % of sum assured viz. END of 3rd years 6th years 9th years 12th years 15th years P.P.T. (16 years) 10% 15% 20% 25% 50% + guaranteed additional + vested bonus
receive certain % of the sum assured. END of 4th years 8th years 12th years 16th years P.P.T. (16 years) 20% 20% 20% 40%
You will receive 40% of sum Cash bonus is paid annually (if You have the option to
assured + Bonus (if any) declared) accumulate it, withdraw it, or adjust it against payment of future premium. Death Benefits Nominee will receive sum Death Benefits
Babasabpatilfreepptmba.com
Additional benefits
ING VYSYA 1. Rider Benefits Term Rider Accident death rider Disability & dismemberment. ICICI PRODENTIALS 1. Rider Benefits Critical illness rider Major surgical rider Accident & Disability benefits
2. Loan upto 90% 3. Tax Benefits 4. Look in period of 15 days. 2. Exit option
Product Features
CONCLUSIONS
ICICI is providing guaranteed additional bonus at the rate of 3.5% compounded annually for the first 4 years. ICICI is covering critical illness riders & major surgical riders. Page 70
Babasabpatilfreepptmba.com
(Endowment plan)
ICICI PRODENTIALS 1. Survival Benefits ICICI prudential offers 3 levels of cover (in the form of sum assured) 1. Basic (Term 5) x Premium 2. Std Term x premium 3. Enhanced (Term +5) x Premium Bonus is paid every annually. Flexibility of receiving your maturity proceeds as a lump sum or in equal annual installments over 3 or 5 yrs.
Babasabpatilfreepptmba.com
Product Features
ING VYSYA Eligibility Max age covered Premium payment term Min premium payable Min 70yrs 10-30yrs yearly 4,000 1/2ly 2,000 12yrs Min Max Max 55yrs ICICI PRODENTIALS 0yr 60yrs 75yrs 10-30yrs 8,400 4,200 Page 72
Babasabpatilfreepptmba.com
CONCLUSION
There is no option like level of coverage in ING VYSYA as the ICICI prudential is providing. ICICI is providing both lump sum & installment payment to the beneficiary. ICICI prudential is covering critical illness & major surgical assistance in additional benefits with a nominal cost. ICICI is guaranteeing the bonus of 4% for first year. Administrative & investment charges are more in ICICI compare to ING VYSYA.
Babasabpatilfreepptmba.com
Page 73
Babasabpatilfreepptmba.com
PRODUCTS FEATURES
ING VYSYA Eligibility Vesting age Annual management age First contribution Subsequent contribution 10% 3% 20% 18% Min 18yrs 45-70yrs Min Max Max 65yrs ICICI PRUDENTIALS 18yrs 60yrs 45-70yrs
CONCLUSION:
ING VYSYA has only one plan in the policy, were as ICICI prudential has different plans within the policy. ING VYSYA has fixed investment option plan were in customer has no option to customize there investments.
Babasabpatilfreepptmba.com
Page 75
Babasabpatilfreepptmba.com
Page 76
LIC
Min 1 (child age) Max 12 15-35 45
Babasabpatilfreepptmba.com
Page 77
ING VYSYA covers the life of father were as in LIC only Childs life is covered. In case of death of parents in LIC the premium need to be continued by other family members or the policy would lapse. In LIC they pay back the premium, in case of a death of a child, where as ING VYSYA dont pay any amount. ING VYSYA pays the amount in lump sum or in 3 or 5 equal installment after the maturity date. Were as LIC gives it in last 4 equal installments to the holder before the maturity date.
Babasabpatilfreepptmba.com
Page 78
ING VYSYA
Survival benefits At specific intervals of the premium payment term yould receive certain % of the sum assured. End of 5th years 10th years 15th years 20th years P.P.T. (20 years) 20% 20% 20% 40% + bonus End of 5th year 10 th years 15 th years 20th years to Tax benefit. Permanent 20% 20% Survival benefits
LIC
Certain amount is received back even during continuation of the policy term. P.P.T. (20 years) 20%
40% + bonus
There is also 16 and 24 years term You will receive 40% of sum Cash bonus is paid annually You have the option assured + Bonus (if any)
disablement
benefit.
accumulate it, withdraw it, or adjust it against payment of future premium. Death Benefits Death benefits In case of natural death nominee will
Your family will receive sum assured (if receive full sum assured + bonus. the death occurs during the coverage In case of death by accident nominee will term + Bonus (if any). Babasabpatilfreepptmba.com get double the sum assured + bonus on Page 79
Additional benefits
ING VYSYA 1. Rider Benefits Term Rider Accident death rider Disability Rider. 2. Loan Benefit 3. Tax Benefits 4. Look in period of 15 days. & 1.Accidental LIC death and accidental disablement benefit is covered in basic policy itself with the basic premium. Dismemberment 2. Tax benefits 3. Loan benefits
Product Features
ING VYSYA
Eligibility Min Max Max age of Maturity 12yrs 49yrs 65yrs Min 13yrs Max 50yrs 70 yrs
LIC
CONCLUSION:
Babasabpatilfreepptmba.com
Page 80
ING VYSYA
1. Survival /maturity benefits A large lump sum payment to Cash bonus Beneficiary will receive sum assured reversionary performs) + accumulated bonus (Bonus you when the policy matures. 2. Death Benefits 1. Survival /maturity benefits
LIC
Policyholder will receive the sum assured and bonus accrued. 2. Death benefits Sum assured will be given to the nominee. In case of death by accident double the sum assured will be given to the nominee. 3. Other Benefits Accidental death is assured in basic policy only. Highest bonus paid in LIC.
Babasabpatilfreepptmba.com
Page 81
Product Features
ING VYSYA
Eligibility Premium payment term Max Age of Maturity Minimum sum assured Premium payment option Monthly Min Max 12 yrs 55 yrs 65 yrs 1 lakh yearly, 1/2ly, 1/4ly, Min 12 yrs Max 65 yrs 5-55 yrs 75 yrs 10,000
LIC
10-30 yrs
CONCLUSION :
ING has not covered accidental death in the basic policy. LIC is giving guaranteed bonus. Page 82
Babasabpatilfreepptmba.com
Babasabpatilfreepptmba.com
Page 83
ING VYSYA
. Survival /maturity benefits 1. It covers major 10 deceases. . Survival /maturity benefits 1. It covers only 5 deceases.
LIC
2. Ones the claim is made for any 2. Ones the claim is made for any deceases, You need not pay further deceases, You need not pay further premium Death Benefits assured. between the total sum assured & critical illness claim paid (of any). premium. Death Benefits 2. In case of accident double the sum
1. The family will get the total sum 1. The nominee will get the sum assured. 2. The family will receive the difference assured is given.
Product Features
Babasabpatilfreepptmba.com
Page 84
CONCLUSION :
ING has covered 10 major deceases, were as LIC covers only few deceases. Double the sum assured is given in case of accidental death, This benefit is available with both the companies, [Provided Accidental Benefit rider is taken/attached to the basic plan] Loan facility is given in LIC, were as ING is not providing a loan facility. Maximum sum assured in LIC is 3 lakhs, were as in ING Max 20 lakhs. ING VYSYA is providing the rider benefit with extra nominal cost. Were as LIC is covering it within the basic policy.
Babasabpatilfreepptmba.com
Page 85
ING VYSYA
On the attaining of chosen 1. Insured will be getting vesting date, upto 1/3 of the pension. benefit amount can be withdrawn and it is tax-free. The balance Death Benefits amount will be utilized to purchase an annuity. the term, your spouse will have the following option (i) To defer the purchase of annuity if the age of the 1. It has option within the plan. spouse is < 45 years. (ii) To encash upto 5% or (such % as decided by the 2. Option of paying the premium. i. ii. Option. Annually Lump sum Other Benefits
LIC
monthly
company) of the benefit 3. 5 different option for getting monthly amount O/S each year upto the age of 45 years and then apply the balance if any at age 45 to purchase annuity. In case there is no spouse, the benefit amount will be paid in lumpsum to the nominee. You have the flexibility like To choose the regular Page 86
Babasabpatilfreepptmba.com
seizing term is 5 years To postpone your retirement date the option is available one in the term of the policy.
Product Features
INGVYSYA
Eligibility Vesting age Min 18yrs Max 65yrs Min 45yrs Max 70yrs Min 25yrs Max 60yrs Min 55yrs Max 70yrs
LIC
CONCLUSION :
ING is providing top-up facility, were in LIC is not providing top-up facilities. ING gives contribution holiday in case you are unable to meet the regular contribution. There is no such option in LIC. Babasabpatilfreepptmba.com Page 87
Babasabpatilfreepptmba.com
Page 88
(Child plan)
compound according
reversionary to the
Babasabpatilfreepptmba.com
Page 89
Product Features
Babasabpatilfreepptmba.com
Page 90
CONCLUSION :
ING VYSYA is providing the benefit of sum assured in one lump sum. Were as AMP SANMAR is providing in 4 equal installments. ING VYSYA provides the bonus & the final additional bonus (if any) at maturity or at death. AMP SANMAR pays it in the 4 th installment. There is no such additional bonus given. Additional benefits in AMP SANMAR covers major illness with accident cover provided with nominal extra cost. The brochure is self explanatory giving full details about rider benefit, S/A benefits age applicable, sum assured for critical & accident benefit are given clearly. Were as in case of ING VYSYA the Riders broachers give us the full details required
Babasabpatilfreepptmba.com
Page 91
AMP SANMAR Survival Benefits At specific intervals of the premium payment terms, you would receive certain % of sum assured at the end of 4 th year & then after every 3 yrs
Maturity Benefits Remaining % of sum assured + Bonus. Cash Bonus It is paid at the last on maturity.
Page 92
Additional benefits
ING VYSYA 1. Rider Benefits Term Rider Accident death rider Disability & dismemberment. 2. Loan benefit 3. Tax Benefit 4. Look in period of 15 days. 1. Rider Benefits Critical condition covers 10 major illnesses. Accident cover Tax Benefit AMP SANMAR
Product Features
AMP
Babasabpatilfreepptmba.com
Babasabpatilfreepptmba.com
Page 94
Babasabpatilfreepptmba.com
Page 95
(Endowment plan)
A large lumsum payment to Cash bonus 2. Death Benefits Full sum assured + bonus till the date of death. If death occurs before the end of P.P.T One more sum assured + bonus. 1. Rider Benefits Critical condition cover Accident cover Beneficiary will receive sum + accumulated bonus (if the
Additional benefits
1. Rider Benefits Term Rider Accident death rider Disability rider etc. Babasabpatilfreepptmba.com &
Product Features
CONCLUSION :
ING VYSYA is allowing flexible life cover term & flexible premium payment options. AMP SANMAR has no option, as 5 yrs more life is covered. AMP SANMAR covers 10 major illness (specified in leaflet) in additional benefits. Bonus is compounded in both the companies.
Babasabpatilfreepptmba.com
Page 97
AMP SANMAR 1. Survival Benefits Life is insured even after premium-paying term concludes [PPT] Vested bonus is added to sum assured.
2. Death Benefits The total sum assured + Additional bonus is given on bonus is given the death or at maturity.
Additional benefits
ING VYSYA 1. Rider Benefits Term Rider Accident death rider Disability & dismemberment 1. Rider Benefits Critical condition. Accident cover. Disability benefit Page 98 AMP SANMAR
Babasabpatilfreepptmba.com
Product Features
AMP
15, 20 or 25 yrs
5 40 yrs
CONCLUSION :
Additional coverage is less compare to AMP SANMAR. Both have compounding bonus system. All the details of other benefits, its min sum assured, age limit, and Maturity age are given in AMP SANMAR. 10 major critical condition cover option is available in the policy with the nominal cost.
Babasabpatilfreepptmba.com
Page 99
(Pension plan)
(iii) To defer the purchase of Fixed risk cover annuity if the age of the Decreasing risk cover spouse is < 45 years. (iv) To encash upto 5% or You have choice in investment also
(such % as decided by the Capital secure fund company) of the benefit Balanced fund amount O/S each year upto the age of 45 years and then apply the balance if any at age 45 to purchase annuity. In case there is no spouse, the benefit amount will be paid in lumpsum to the nominee. You have the flexibility like To choose the regular (20% equities) You will also have switch option One switch every year is You have option to add on force of cost. accidental death and disablement benefit with the extra nominal cost. You also have the exit option from Capital secure fund option and balanced fund option. Page 100
Babasabpatilfreepptmba.com
vesting age as 5 yrs. To postpone your retirement date option available one once.
Product Features
ING VYSYA Eligibility Resting age Applicable Charges Additional charges Subsequent contribution Up to 50,000 2.5% 2% 1.75% 10% 3% 10% 5% Investment charges Capital Secure fund Min 1.5% Max 2% Balanced fund Page 101 Min Max Min Max 18 years 65 years 45 years 70 years AMP SANMAR 18 years 65 years 45 years 70 years
Management Charges Annual Mgmt. Fees (p.a) 50,001 75,000 75,001 1, 00,000
Babasabpatilfreepptmba.com
CONCLUSION :
The customer is left with option to customize his investment. In ING VYSYA customer is given rider benefit in lump sum, long with the sum assured were as in AMP SANMAR, customer if liable, is paid in 10 equal installments every year. Customer in AMP SANMAR has 1 free switchover option every year.
Babasabpatilfreepptmba.com
Page 102
COMPARISON OF SBI LIFE & ING VYSYA CREATING LIFE / SCHOLAR Benefits
ING VYSYA Survival / maturity benefits
(Child plan)
SBI LIFE
Survival / maturity benefits The sum assured will be paid in 4 equal installments when the child attains 18 years of age or a lumpsum. Last installment includes additional vested bonus. Death benefits receive sum Child will receive sum + vested bonus assured
The sum assured + accumulated compound reversionary bonus + final additional bonus (If the company performance is good) Death benefits Child will assured immediately. Policy continues even after the sum assured on death is paid. Waiver of premium is in built Child will be eligible for one more S/A + Bonus until the end of the term.
immediately after death. Waiver of premium is in Additional another sum will be paid on built assured
Babasabpatilfreepptmba.com
Page 103
Term rider, accident death rider, accidental death, disability and dismemberment rider and waiver of premium rider Loan benefit Maturity benefit can either
Child
Child can either receive a lumpsum or receive 4 equal installment after his attainment of 18 years Tax benefits Lock-in-period of 30 days
lumpsum or receive the amount in 3 or 5 equal installment after the maturity date Tax benefits Lock-in-period of 15 days
Product Features
CONCLUSION :
Babasabpatilfreepptmba.com Page 104
(Endowment plan)
A large financial asset for you and your beneficiaries once the policy matures. Death benefits will + receive sum accumulated
A large sum of money at the time of maturity is paid to the customer. Death benefits
The beneficiary will get in 10 equal installments for 10 years. Cash bonus Cash bonus is added back to sum assured. Thus increase in total accumulation sum assured + Bonus every year.
reversionary bonus in whole. An annual cash bonus will be paid which may be received based upon the performance of the company. You have the option to Babasabpatilfreepptmba.com Page 105
Additional benefits
ING VYSYA Rider Benefit SBI Life Rider Benefit
Term rider, accident death rider, accidental death, disability and dismemberment rider and waiver of premium rider Loan benefit Tax benefit Lock in period of 15 days
Term rider, accidental death and total permanent disability cover. Critical illness covers six Tax benefits V/S 88 Lock in period of 30 days major illnesses
Product Features
ING VYSYA Eligibility Max maturity age Premium Payment Term Life Coverage Term Min Max 12 yrs 55 yrs 65 yrs 10-30 yrs Same as the premium Payment term Premium Payment Option Yrly, 1/2, 1/4 mthly SBI Life 12 yrs 60 yrs 70 yrs 5-30 yrs same as the premium payment term Yrly, 1/2, 1/4 mthly
CONCLUSION :
Babasabpatilfreepptmba.com
Page 106
Babasabpatilfreepptmba.com
price) to draw pension payments from SBI life under one of several choices. (a) Fixed, annuity Page 108
Babasabpatilfreepptmba.com
progressively higher pension by 3% every year to keep up with the increasing cost of living. (c) amount Fixed for a annuity minimum
guaranteed period of 5, 10 or 15 years and there after the nominee would receive for the remaining guaranteed period. The annuity could be payable yearly, 1/2, 1/4, monthly as you wish.
Product Features
CONCLUSION :
SBI life is guaranteeing at least 4.5% of returns per annum. Were as there is no such guaranteed return highlighted by ING VYSYA. SBI life has left option to the customers to withdraw with a view to select the annuity payment benefit from any other insurance company. A similar option is also available with ING VYSYA along with a option for Term Rider with a maximum limit of Rs. 1.00.000 [One Lakh only].
Babasabpatilfreepptmba.com
Whole of life
Insurer AMP SANMAR ICICI PRUDENTIAL ING VYSYA Policy Nitya Shree Life time Rewarding Entry age 20-60yrs 0-60yrs 12-50yrs Payment period 5- 40 yrs 15,000 (min 15, 20, 24 contribution) 18,103 Premium (Rs)
life yrs LIC Whole of life 18-60yrs 30yrs 11,852 SBI LIFE For 30 years of old male, for sum assured of 5 lakhs and maximum premium payment period.
Endowment plan
Insurer Policy Entry age Policy term AMP SANMAR ICICI PRUDENTIAL ING VYSYA Subha shree Save and protect Reassuring life (Cash bonus) Reassuring life LIC (Reversionary bonus) Endowment plan (with 12-55yrs 12-65yrs 10-30yrs 5-55yrs 22,778 23,977 20,208 12-65yrs 0-60yrs 12-55yrs 10-40yrs 10-30yrs 10-30yrs Annual premium (Rs) 37,625 22,833 22,171
profit) SBI LIFE Sudarshan 12-65yrs 5-30yrs For 30 years old male, for the sum assured of Rs 5 lakhs term 20 years.
Babasabpatilfreepptmba.com
Page 112
(c) 0-15yrs For 30 years old parent, for sum assured of Rs 5 lakhs ands 20 years term
Money back
Insurer AMP SANMAR ICICI PRUDENTIAL ING VYSYA LIC SBI LIFE Policy Dhana shree Cash back Maximizing life Money back Young Entry age 30-55yrs 16-55yrs 12-49yrs 13-50yrs 25-60yrs Policy term 19 15yrs, 20 yrs 16yrs, 20yrs, 24yrs 20yrs 10yrs Annual premium (Rs) 36,200 33,099 29,293 31,398 3.46 lakhs
sanjeevan For the 30 years old male, for sum assured of 5 lakhs and 20 years term.
Pension plan
Insurer AMP SANMAR ICICI Policy Bhagya shree Forever life Entry age 18-65yrs 18-60yrs Vesting age 45-70yrs 50-70yrs Minimum contribution 10,000 Tax treatment 40% tax free at
Babasabpatilfreepptmba.com
50-70yrs 50-70yrs
45-70yrs
18,000 (with 20% tax free at out unit link) out unit link)
5,000
LIC
Jeevan suraksha
18-65yrs
50-79yrs
33,000
SBI LIFE
Life pension
long 18-65yrs
50-7-yrs
3,000
Babasabpatilfreepptmba.com
Page 114
Findings
There are no much changes in the plans, but there is very the premium payable comparatively with other companies. There is cut throughout competition in the insurance market, and there is huge potentiality as well. Various tax benefit is given in all the plans. It is found that there is more sales of endowment plan of all the companies. All the companies are giving loan benefit on the policy, except SBI Life. LIC is having almost 87% of market share. Rest of which, 13% is shared by private companies. ING VYSYA stands at 10 th place among the private sector (premium collection) in 2003-04. It is found that major customer purchase the plan for tax rebate. It is found that most of the customers are satisfied with the service provided by ING VYSYA. ING VYSYA has a market share of 0.39% with the growth rate of 311.15% and the income of 72.60 crores for the year 2003-04. Babasabpatilfreepptmba.com Page 115 variation in
Recommendations
Make aggressive advertisements of the company and plans. Try to cover major critical illnesses in all the plans, so that customer may have option to get more coverage in nominal charges. Increase the advisory strength to broaden your customer base. Set the targets to the advisors at least 3 per month. Concentrate more on bank assurance, so that the customer of the bank may purchase your plans and hence will increase your growth rate. Try to have the awareness program in rural areas, so that people living there come to know the importance of the insurance and also the company. Motivate the advisors to take up the advisory work as full time job rather than as a part time one. Try to change the perception of the customers that life insurance is for unfortunate happenings and not for only tax rebate. Have some promotional activities between the advisors, so that they are motivated to get more business. Provide mobile service facility between the advisors and sales managers (group calls free), so that there is good communication link.
Babasabpatilfreepptmba.com
Page 116
Babasabpatilfreepptmba.com
Page 117