With the largest number of life insurance policies in force in the world, insurance happens to be a mega opportunity in India. It's a business growing at the rate of 15-20 per cent annually and presently is of the order of Rs 450 billion. Together with banking services, it adds about 7percent to the country's GDP. Gross premium collection is nearly 2 percent of GDP and funds available with LIC for investments are 8 percent of GDP. Yet, nearly 80 percent of Indian population is without life insurance cover, heath insurance and non-life Insurance continues to be below international standards. And this part of the population is also subject to weak social security and pension systems with hardly any old age income security. This it is an indicator that growth potential for the insurance sector is immense. A Well- developed and evolved insurance sector is needed for economic development as it provided long term funds for infrastructure development and at the same time strengthens the risk taking ability. It is estimated that over the next 10 years India would require investment of the order of one trillion US dollar. The insurance sector, to some extent, can enable investments in infrastructure development to economic growth of the country. With a large capital outlay and long gestation periods, infrastructure projects are fraught with a multitude of risk throughout the development, construction and operation stager. These include risks associated with project implementation, including geological risks, maintenance, commercial and political risks, without covering these risks the financial institutions are not willing to commit funds to the sector, especially because the financing of most private projects is on a limited or non-recourse basis. he companies not only provide risk cover to infrastructure project, they also contribute long term funds. In fact, insurance companies are an ideal source of long term debt and equity for infrastructure projects. With long term liability, they get a good asset liability match by investing their funds in such projects. IRDA regulations require insurance companies to invest not less than 15 percent of their funds in infrastructure and social sector. International Insurance companies also invest their funds in such projects.
[...] ULIPS Plans Date Premium Sum Assured linked Single Premium Premium TRADITIONAL PLANS Plans Premium Sum Assured COMPANY PROFILE Introduction: ICICI Prudential Life Insurance Company is a joint venture between ICICI Bank - one of India's foremost financial services companies-and prudential plc - a leading international financial services group headquartered in the United Kingdom. Total capital infusion stands at Rs billion, with ICICI Bank holding a stake of 74% and Prudential plc holding 26%. We began our operations in December 2000 after receiving approval from Insurance Regulatory Development Authority (IRDA). [...]
[...] The most important benefit of ULIPs is the flexibility they give the customer in choosing the premium amount and also choosing the underlying fund in which this money is to be invested. Wealth creation plans also offer the customer more liquidity options as compared to traditional plans. As such, ULIPs are ideal for customers who want the protection of a life cover to be allied to the returns of market linked instrument giving them an unmatched combination of benefits. Under the wealth creation platform, ICICI Prudential brings the following products to you. [...]
[...] But the private insurers are ahead in this game and the average size of their policies is around Rs 1.1 lakh to Rs 1.2 lakh a way bigger than the industry average ICICI Products Broadly insurance plans can be distinctly divided into ULIPs and traditional plans. A brief detail of both segments UNIT LINKED INSURANCE PRODUCTS The unit linked insurance products (ULIPS) have gained high acceptance due to attractive features they offer. These include 1. Flexibility: Flexibility to choose Sum Assured. [...]
[...] Switching Option With this option you can switch between the investment funds at any time (provided the policy is in force) depending on your financial priorities and investment decision. In any policy year switches are free of charge. The minimum switch amount is Rs 2,000. 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 receive payment on a yearly, half-yearly, quarterly, or monthly (through ECS) basis, for a period of or 5 years (Settlement Period) post maturity. [...]
[...] OBJECTIVE OF THE STUDY To identify which is the most preferable product between traditional and unit linked insurance products(ULIPS) in ICCI Prudential Life Insurance To measure the overall operational efficiency To know the portfolio performance Compare traditional products and ULIP products METHODOLOGY The data obtained for the study has been divided into two group's primary and secondary source which is further elaborated down below: 1. Primary Source: Primary data comprises information obtained by the candidate during discussion with heads of the organization and from the meeting with the officials and members 2. [...]
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