HISTORY AND TIE – UP

WITH
ICICI PRU
• ICICI is an Indian company and PRUDENTIAL is an England based
company.

• PRUDENTIAL has 157 years experience and ICICI is working from

last 50 years in India.

• In January 2000, when the IRDA act came in existence all the
insurance companies whether Private or Govt. companies came under
the Act.

• With the passing of this act all the private companies enter in the
Indian Market because Indian market was vacant with insurance point
of view.

• ICICI Group came in the market with the collaboration of

PRUDENTIAL LIFE INSURANCE COMPANY.

• In Insurance sector ICICI- PRUDENTIAL is No. 1 market player in

India. But when the act was not present then only one company has
hold in the market i.e. LIC (Life Insurance Company). Then LIC
captured all the 100% Market.
• In last 5 years , ICICI PRUDENTIAL has entered in the market and
the effect is that the share of the LIC has been reduced . It is from
100% to 74%.

• ICICI PRUDENTIAL has very large group of employees. They are

running their business through Advisors, Corporate agents and D.M.
etc.

• In year (2004-2005), ICICI PRUDENTIAL has collected 2400 Crores

premium in India.

• The fund management of that premium amounted to 8800 Crores.

• ICICI PRUDENTIAL have both plans i.e. ULIP market link and
endowment plans.

• In insurance industry ICICI PRUDENTIAL is the first company who

launches the ULIP plans i.e. Unit Linked Insurance Product which is
totally linked with the Share Market or Debt Market or Call Money
Market etc.
 But now a days the ICICI PRUDENTIAL has developed
their relations with the Banks also as the competition in the market got
fire. So in Sept. – 2004 , ICICI PRUDENTIAL shake hands with Capital
Local Area Bank Ltd. Which is also one from the No. 1 local Banks. This
collaboration is groomed in the presence of Mr. Sarbjit Singh Samra
(M.D.) and their C.S. (Mr. Dinesh Gupta and Mr. Gurpreet Chug). This
collaboration has to be done by the corporate agent named PIONEER
ASSURANCE PVT. LTD. This Corporate agency has adjoined both the
groups i.e. ICICI PRUDENTIAL and CAPITAL LOCAL AREA BANK
LTD. In last couple of quarters Capital Bank has Collected premium
from their customers amounted in crores.
IRDA – ACT
The object of this Act, is “ to provide for the establishment of an Authority
to protect the interests of holders of insurance policies, to regulate , promote
and ensure orderly growth of the insurance industry.” Under the Act , the
Insurance Regulatory and Development Authority has been established.

IRDA
(INSURANCE REGULATORY AND DEVELOPMENT
AUTHORITY ACT, 1999)

Under this act an authority called IRDA has been set up.

This is a corporate body established for the purpose and objects as per out in
the explanation to the title.

The authority replaces “controller” under insurance act 1938.

The first schedule amends insurance act 1938.

It states that if “Authority” is super ceded by central government, the

controller of insurance may be appointed till. Such time as Authority is
reconstituted.
 SCOPE
To permit private companies to enter the insurance market ,
government has enacted insurance regulatory and development authority
Act, 1999.

The act was passed by the parliament in December 1999.

It received presidential approval in January 2000.

This act provides for the establishment of the authority.

• To protect the interest of holders of insurance policies.

• To regulate, promote and ensure orderly growth of insurance industry
for matters connected there with or incidental thereto.

This act also sought to amend the following acts:

• The insurance Act, 1938.

• The Life Insurance Corporation Act , 1956.
• The General Insurance Business (Nationalization) Act 1972
(GIBNA’712).
This act applies to whole India including J& K State , which is effective
from 29th dec. 1999.

CONSTITUTION OF IRDA

The insurance regulatory and development authority consists of the

following members.

o Chairperson
o Not more than five whole – time members.
o Not more than four part – time members to be appointed by the
central government.

Members should be the person of –

 Ability
 Standing
 Integrity

They should have experience in the fields of

• Life Insurance
• General Insurance
• Actuarial Science
• Finance
• Economics
• Law
• Accountancy
• Administration, or
 Any other discipline , thought to be useful by the central government.
(Chairperson, Members, Officers and other Employees of authority
shall be public servants.)
DUTIES, POWERS AND FUNCTIONS OF THE
AUTHORITY

The powers and functions of the authority include

registration of insurer’s intermediaries and agents, regulation of the terms
and conditions of the contracts of insurance, promoting and regulating
professional organizations connected with the insurance and re-insurance
business, monitoring investment of funds and solvency margins of insurance
companies.

The authority is to be advised by a Committee to

be known as the Insurance Advisory Committee, which shall consists of not
more than twenty-five members excluding ex-officio members, to represent
the interests of commerce, industry, transport, agriculture, consumer fore,
surveyors, agents, intermediaries, organizations engaged in safety and loss
prevention, research bodies and employees association in the insurance
sector. The insurance advisory committee is expected to advise the
Authority on matters relating to the making of the regulations.

The IRDA has , in exercise of its authority issued a

number of regulations, which have to be compiled with the insurers. Only
Indian insurance companies will be given registration to transact insurance
business. An Indian Insurance Company has been defined as a company

incorporated under the Companies’ Act 1956 and, in the paid up capital of
which , the holding of a foreign company , directly or through its
subsidiaries and nominees, does not exceed 26%. The paid up capital of
companies wanting to transact life or general insurance business will have to
be not less than Rs. 100 Crores and in the case of companies wanting to
transact reinsurance business the paid up capital will have to be not less than
Rs. 200 Crores. Every insurance company will have to maintain at all times,
assets which are not less than specified limits depending on the extent of the
liability under its business . It has also been notified that every insurance
company will have to appoint accuracy , to be approved by the IRDA . It
will be the duty of the actuary to ensure that

• The assets are valued in the appropriate manner.

• The liabilities are evaluated as required and
• The prescribed margins for maintaining solvency are complies with.

The IRDA has also issued regulation with

regard to advertisements. These regulations are applicable to all
advertisements, whether issued by the insurance company or an insurance
intermediary, including an agent. The definition of advertisement has been
made very wide so as to include almost any public communication,
recommending or soliciting a sale of an insurance policy. It is obligatory
that every advertisement should have full disclosures of the product
mentioned and of the advertiser, including license and registration numbers.

Advertisement to be issued by agents must be approved by the insurer in

writing , before issue.

HOW IT WORKS
 An intelligent investor always seek a flexible investment plan
to invest your savings. At the same time , he wishes to protect his family
from unforeseen circumstances. For him , an ideal plan would be one that is
flexible enough to meet his investment and protection needs.

How The Policy Works?

 You need to choose the premium amount , term and sum assured for
which you wish to take the policy.
 After deducting premium allocation charges , the balance amount is
invested in the investment fund(s) of your choice.
 You can opt for add-on riders available under the policy.
 On survival, the maturity benefit is paid to the policy holder . In the
unfortunate event of death , the nominee receives the higher of sum
Assured or the fund value.

Benefit In Detail
Choice of Investment Funds
 We offer you 4 investment funds. You have the option to choose how
you want your investment to grow , based on the objectives of each of the
funds.

Given following are the investment objective and asset allocation of each of
the funds :

Fund Name & its Asset Min. Max. Potential Risk-

Objective Allocation Reward
Maxi miser: Long Equity and 75% 100%
Term Capital Equity related High
Appreciation securities 0% 25%
Debt ,Money
Market & Cash
Balancer: Balance of Equity and 0% 40%
growth and steady Equity related Moderate
returns securities 60% 100%
Debt ,Money
Market & Cash
Protector: Debt
Accumulate steady instruments, 100% 100% Low
income at a lower Money Market
risk. & Cash
Preserver: Protection Debt 0% 50%
of capital through instruments,
very low risk Cash & Money Capital
investments. Market Preservation
Investments up to 50% 100%
20% can be allocated
to this fund

* You can invest in any one or a combination of the above mentioned

funds.

Switching Option

Under this option you can switch your investment between the
funds at any time (provided the policy is in force), depending on your
financial priorities and investment objective . In any policy year , 4
switches can be done free of charge. The minimum switch amount is
Rs. 2,000.

Additional Allocation Of Units

There will be additional allocation of units every 4th Year,

starting from the end of the 4th Year at the rate of 4% of annual premium
into your investment fund. Additional allocation of units will be made
only if the premiums have been paid regularly up to the date of
allocation.

Partial Withdrawal Benefit

 Partial withdrawals will be allowed after completion of 3 policy
years and on payment of full 3 year’s premium. The minimum partial
withdrawal amount is Rs. 2000.

Morality Benefit

On maturity of this policy , you will be entitled to receive the

Fund Value at the time of Maturity . Alternatively, you can opt for the
settlement options available.

Settlement Option

On maturity of the policy , you can choose to take the fund

value as a structured benefit. With this facility , you can opt to get
payment on a yearly , half – yearly . quarterly or monthly (Through
ECS) basis, for a period of 1,2,3,4,or 5 years , post maturity (Settlement
period) . At any time during the settlement period , you have option to
withdraw the entire fund value. During the settlement period, the
investment risk in the investment portfolio is borne by the policy holder.

Death Benefit
 In the unfortunate event of death during the term of the policy ,
the nominee shall receive the higher of Sum Assured (net of permissible
partial withdrawal) and the Fund Value.

Cover Continuance Option

This option ensures that your life insurance cover continues in

case you are unable to pay premiums , any time after payment of first
three year’s premium. All applicable charges will be automatically
deducted from the units available in your fund. You need to opt for cover
continuance , if you wish to avail of this benefit.

Additional Protection with Riders

You can further customize your policy by adding riders, to
enjoy additional protection as given below:

Riders Benefit
Accident & In the event of death or disability due to an accident ,
Disability Benefit the rider benefit amount would be paid accordingly.
Riders(ADBR)
Critical Illness In the event of the Life Assured being diagnosed for any
Benefit Rider(CIBR) of the specified critical illness, the rider benefit amount
would be paid.
Waiver of Premium In the event of total and permanent disability due to an
Rider (WOPR) accident , all further premiums till maturity would be
 paid by the company.

Rider charges for opted riders will be recovered by cancellation

of units. For further details on the Rider benefit, exclusions and
conditions, please always got from the brochure.
 CAN I SURRENDER MY POLICY

One of the main question which have utter importance that

whether one can surrender his policy or not. Because urgency can come at
any time in anyone’s life.

The answer to this question is yes, you can surrender your

policy. Surrender values are available to you after deducting surrender
charges and would depend on the number of completed policy years.
Following are the surrender values applicable after payment of full 3 year’s
premium.

No. of completed Years of the Surrender value as a % of the fund

policy value
3 Years 98%
4 Years 99%
5 Years and Above 100%
IMPORTANT CLAUSE
NOMINATION
 HAVE YOU NOMITATED?

Nomination is a very important aspect of file insurance. To help

you understand the nomination process and it importance, we have devised a
guide that gives you a brief explanation of the process involved in
nomination.

Making a Nomination

The purpose of making nomination is to insure that your loved

ones are financially protected and have quick access of funds, should
something happen to you. Remember, if you don’t make a nomination in
your insurance policy , your insurance company is not a position to release
the policy money until your loved ones obtain a probate or later of
Administrator, which may take years !

Note: Nomination is required for the payment of death benefit only and not
living benefit.

How does nomination work?

 You can nominate a person of your choice at the time of
applying for the life insurance policy of even after you have taken the
policy. A nomination enables the nominee the policy moneys from the
insurer, on behalf of legal heir(s) of the deceased. However, it advisable that
the nominee is a family member as the nominee has no pass on the death
benefit to the legal heirs as per the nomination section of insurance act.
You can nominate more than one person . However, in the event of
life assured’s demise, should nominees should authorize one among
themselves to receive the policy moneys from the insurer.

How does one can make a nomination?

The process is simple :

a) Fill up the nomination from at any of our branches of download it

from our website www.Iciciprulife.com

b) Give complete details about the nominee (full name, address etc.)
and critical details to establish the identity of a minor nominee (if
any). This helps to avoid any confusion in case there is a claimant
with a similar name staking a claim.
c) Ensure that the nomination form is signed by the witness who is
18years of age or above, of sound mind , and who is not your
nominee.
d) Submit the form at the nearest icici prudential Lic Ltd. branch

How do I change the nomination ?

 You can make changes to a nomination by writing to us . The latest
nomination will supersede all previous nominations. A nomination will also
be considered revoked upon the demise of all nominees (if there is than one
nominee), during the lifetime of the policyholder.

What happens if a nomination is made the policy is assigned?

The nomination in such a case is cancelled automatically and the assignee is

entitled to receive the death benefit.

What happens when there is no nomination?

Where no nomination has been made, ICICI prudential shall pay the policy
money to the applicant who produces the probate or letters of administration
or any other legal evidence of title. Under the circumstances, the person
receiving the policy money is only receiving it as an executor and must
distribute it in accordance to the probated will of the deceased, or if there is
no will, according to the applicable laws of distribution.