Comparative study of Insurance Plans of various Companies � The origin of ING Group ING Group originated in 1991 from the merger between NationaleNederlanden and NMB Postbank Groep. Combining roots and ambitions, the newly formed company called itself 'Internationale Nederland Group' . Market circles soon abbreviated the name to I-N-G. The company followed suit by changing the statutory name to 'ING Groep N.V.' Since the merger, ING Group experienced a decade of rapid expansion. The company expanded mainly through autonomous growth, but it also made several large international acquisitions. Notable examples are the investment bank and asset management firm Barings in 1995, the American insurer Equitable of Iowa Companies in 1997, the Belgian Bank Brussels Lambert in January 1998, the German BHF-Bank in 1999 and the American insurers ReliaStar, Aetna Financial Services and Aetna International in 2000, the Polish Bank Slaski and the Mexican insurer Seguros Comercial America in 2001.
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
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Comparative study of Insurance Plans of various Companies � through acquisitions. Nationale-Nederlanden developed into the largest insurer in the Netherlands by far. Substantial acquisitions in the United States, Australia and Canada increased the international revenue contribution to more than 50%. Nationale-Nederlanden is one of largest institutional investors in the Netherlands. Its insurance products are mainly sold through independent intermediaries.
NMB Postbank Group Postbank was created in 1986 out of a merger between the Rijkspostspaarbank (state postal savings bank, 1881) and the Postcheque- en Girodienst (postal cheque and giro service, 1918). NMB Bank (1927) was originally established as a credit institution for small and medium enterprises. As Postbank lacked securities brokerage, mutual funds and commercial lending capabilities and NMB Bank was underrepresented in the retail market, NMB and Postbank agreed to merge on 4 October 1989 to form NMB Postbank Groep. The Dutch government stake in NMB Postbank Groep of 49% has been gradually reduced to less than 1% in ING Group now. Postbank and NMB Bank continued to serve their clients under their own names. NMB Bank changed its name to ING Bank in 1992.
1991 to the present Since 1991, ING Group has expanded very rapidly. The company expanded mainly through autonomous growth, but it also made several large international acquisitions. Notable examples are the investment bank and asset management firm Barings in 1995, the American insurer Equitable of Iowa Companies in 1997, the Belgian Bank Brussels Lambert in January 1998, the German BHF-Bank in 1999 and the American insurers ReliaStar, Aetna Financial Services and Aetna International in 2000, the Polish Bank Slaski and the Mexican insurer Seguros Commercial America in 2001.
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Comparative study of Insurance Plans of various Companies � ING has gained recognition for its integrated approach of banking, insurance and asset management. Further more, the company differentiates itself from other financial service providers by successfully establishing life insurance companies in countries with emerging economies, such as Korea, Taiwan, Hungary, Poland, Mexico and Chile. Another specialization is ING Direct, an internet and direct marketing concept with which ING is rapidly winning retail market share in mature markets. Finally, ING distinguishes itself internationally as a provider of 'employee benefits', i.e. arrangements of non-wage benefits, such as pension plans for companies and their employees. ING Group is a global financial institution of Dutch origin with 115,000 employees. ING offers banking, insurance and asset management to more than 60 million clients in over 50 countries. The clients are individuals, families, small businesses, large corporations, institutions and governments. ING comprises a broad spectrum of prominent businesses that increasingly serve their clients under the ING brand. Key to ING's retail business is its distribution philosophy of 'click–call– face'. This is a flexible mix of internet, call centers, intermediaries and branches that enables ING to deliver what today's clients expect: unlimited access, maximum convenience, immediate and accurate execution, personal advice, tailormade solutions and competitive rates. ING's wholesale product offering focuses strongly on its strengths in employee benefits/pensions, financial markets, corporate banking and asset management. ING's strategy is to achieve sustainable growth while maintaining healthy profitability. The Group's financial strength, its broad range of products and services, the wide diversity of its profit sources and the good spread of risks form the basis for ING's continuity and growth potential. ING seeks a careful balance between the interests of its stakeholders, its Babasabpatilfreepptmba.com
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Comparative study of Insurance Plans of various Companies � customers, shareholders, employees and society at large. It expects all its employees to act in accordance with the Group's Business Principles. These principles are based on ING's core values are responsiveness to the needs of customers, entrepreneurship, professionalism, teamwork and integrity.
Mission and strategy ING’s mission is to be a leading, global, client-focused, innovative and low-cost provider of financial services through the distribution channels of the client's preference in markets where ING can create value. ING's strategy is to achieve sustainable growth while maintaining healthy profitability.
ING Group has five strategic objectives Strengthen capital base for a solid financial foundation. Optimize existing portfolio. Create value for clients with a multi-product and multi-channel approach. Develop special skills. Further lower cost base.
ING Business Principles As a global provider of financial products and services, ING plays an important role in society. In order to fulfill this role it needs to maintain the confidence of its customers, shareholders, employees, and other stakeholders by acting with professionalism and integrity. ING Group attaches paramount importance to upholding its reputation. The Business Principles play an important role. ING expects the highest levels of integrity from its employees, regardless of their position in the Babasabpatilfreepptmba.com
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Comparative study of Insurance Plans of various Companies � organization. The Business Principles describe ING's corporate values and eight operating principles for personal behavior. They apply worldwide to all of ING Group.
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: Babasabpatilfreepptmba.com
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Comparative study of Insurance Plans of various Companies � 1) Stakeholder dialogue 2) Business Principles 3) Embedding CSR into the core business 4) Monitoring CSR performance and activities
ING Vysya Bank Limited It is one of India's premier private sector banks with a heritage of over 70 years. With 1.5 million customers, 480 outlets and 6000 employees it is known for its innovative banking services and for pioneering several products and services and deals in asset management. Vysya Bank has a long-standing relationship with its customers and deep understanding of the Indian market. VYSYA Bank, which merged, with ING to form ING VYSYA life insurance, which has secured good market in India. OTHER BUSINESS Personal Finance Saving & Investing Individual Loans (based on the project) Current Account Individual Insurance Private Banking Corporate and Institutional Clients Advisory / Mergers & Acquisitions Corporate Insurance Corporate Loans Debt Capital Markets Babasabpatilfreepptmba.com
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Comparative study of Insurance Plans of various Companies � Debt Markets Employee Benefits Equities Equity Capital Markets/IPOs Equity Derivatives Financial Institutions Forex Institutional Asset Management Interest Rate Derivatives Leasing Money Market Products Payments & Cash Management Real Estate Research Securities Services Securitisation Structured Finance
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Comparative study of Insurance Plans of various Companies ”
IRDA (Insurance Regulatory and Development Authority act 1999) To permit the private company to enter the insurance market, the government enacted IRDA. Act, which was passed by parliament in Dec 1999. The authority is a 10 members team consists of 1). Chairman 2). 5 whole team members 3). 4 part time members (All appointed by government of India.)
Duties and powers of IRDA Sec 14 of IRDA act of 1999 lays down the duties, powers and functions of IRDA. Subject to the provision of this act and any other law for the time being in the force, the authority shall have the duty to regulate, promote, and insure or duly growth of insurance business and reinsurance business. Issue to the applicant a certificate of registration, renew, modify, withdraw, suspend or cancel such registration. Protection of the interest of the policy holder in the matters concerning assigning of policy, nomination by policy holders, insurable interest, Babasabpatilfreepptmba.com
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Comparative study of Insurance Plans of various Companies ” settlement of insurable claims, surrender value of the policy and other terms and conditions of contract of insurance. Specifying requisite qualification, code of conduct and practical training for intermediaries or insurance intermediaries and agents. Promoting efficiency in the conduct of insurance business. Promoting and regulating professional organizations connected with insurance and reinsurance business. Levying fees and other charges for carrying out the purpose of this act. Calling for information from, undertaking inspection of, conducting enquires and investigations including audit of the insurers, intermediaries and other organizations connected with the insurance business. Regulating investment of funds by insurance company. Adjudication of disputes between insurers and intermediaries or insurance intermediaries. Supervising the functioning of the tariff advisory committee. Regulating other such matters, which are concerns to the insurance business.
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. Babasabpatilfreepptmba.com
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Comparative study of Insurance Plans of various Companies ” 2) Non-life (General Insurance)
Definition of Life Insurance “ Life insurance provides a sum of money if the person who is insured dies while the policy is in effect”.
Benefits from Life Insurance •
It encourages saving and forces thrift.
•
It is superior to a traditional savings vehicle.
•
It helps to achieve the purpose of life assured.
•
It can be enchased and facilitates quick borrowing.
•
It provides valuable tax relief. Thus insurance is found to be very useful in the lives of the person both in short term and long term.
Fundamental principles of Life Insurance Contract 1) Principle of almost good faith. 2) Principle of insurable interest.
Principle of almost good faith “A positive duty to voluntary disclose, accurately and fully, all facts, materials to the risk being proposed whether requested or not”.
Principle of Insurable Interest “Relationship with the subject matter (a person) which is recognized in law and gives a legal right to insure that person”.
Insurance Documents Babasabpatilfreepptmba.com
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Comparative study of Insurance Plans of various Companies ” 1) Proposal Form. 2) Advisor’s Confidential Report. 3) Medical Report. 4) Proof of Age. 5) First Premium Receipt. 6) Renewal Premium Receipt. 7) Policy Document. 1) Proposal Form : It includes personal details of the client as well as necessary instructions that pertain to the policy. 2) Advisor’s Confidential Report : It is obtained for every proposal and gives information and corroborates statements made by the proposal in his personal statements. This also verifies
the
occupation,
sources
of
income,
and
the
advisor’s
recommendations whether to accept the proposal or not. 3) Medical Report : This is obtained from a medical examiner, who conducts medical examinations then gives his opinion about the proposes state of health. 4) Proof of Age: This is required to determine the risk and for the calculation of premium 5) First Premium Receipt : After accepting the proposal and verifying the receipt of full first premium the amount is adjusted towards premium and the first premium receipt is issued. The first premium receipt is the evidence of assumption of risk by the insurer. Babasabpatilfreepptmba.com
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Comparative study of Insurance Plans of various Companies � The FPR gives the following information: 1) Terms on which proposal is accepted. 2) Policy number. 3) Date of commencement. 4) Date of maturity. 5) Date of last premium. 6) Date of next premium due. 7) Amount of premium. 8) Mode of payment. 9) Table and term. 10) Name and address of the insured. 11) Details of the nomination. 12) Age/DOB 13) Rider premium if any,
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
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Comparative study of Insurance Plans of various Companies ” The policy also states the ‘conditions and privileges’ and endorsement on the back of the policy are a part of the policy.
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) Claimant’s statement.
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Comparative study of Insurance Plans of various Companies ” Giving details like life assureds name, policy number, date and the cause of death. 7) Certificate of identity and cremation/burial by an independent person who attended the same. 8) Form of discharge executed and properly witnessed.
Claim Statement Procedure Maturity Claim On receipt of the required documents: •
Documents are scrutinized.
•
If found all right, the claim amount is sanctioned by an authorized officer.
•
Payment is made by an account payee crossed cheque.
•
Normally claim is paid to life assured himself or assignee, in case of absolute assignment. Hence settlement is simple and easy.
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
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Comparative study of Insurance Plans of various Companies � report (a report detailing the circumstances of the death) and postmortem report (if conducted) to be submitted to the insurer. Insurers now have less leeway to dilly claims. After you have made a claim a insurer cannot repeatedly ask you for additional documents or clarifications. It can ask you only once that too within 15 days of claim is being made. Further all life insurance claims have to be paid within 30 days of the claim being made. Cases that require investigation have to be completed within 6 months.
THE HISTORY OF INSURANCE As with so many things in so many facts of our life, insurance too was born out of a primal need and shaped by socio economic realities of the time. The story goes back to around 2100 BC, the time ancient civilization of Babylon and a Babasabpatilfreepptmba.com
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Comparative study of Insurance Plans of various Companies ” business practice called ‘bottomry’. For all practical purposes a form of marine insurance, bottomry enabled ship owners to borrow money against their ships to pay for the trip. With piracy rampant of high seas, traders and seafarers were reluctant to sale to other lands for fear of their lives and goods. Bottomry give them some semblance of security. The arrangement was that only if their ship returned did trader have to repay the loan, along with interest, which was pegged at an above market rate for risk covered. So, if their ship failed to make it back, they did not have to repay the loan, there by covering some or all the loss.
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. Lioyd’s of London, the largest marine insurer today, was found in 1688, in a coffee shop in London. Lioyd’s 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 Babasabpatilfreepptmba.com
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Comparative study of Insurance Plans of various Companies � this second-class treatment, set-up Bombay Mutual Life Assurance Society, and started insuring Indian lives at the same cost of British lives. Social discrimination, infact, turned out to be catalyst for Indians initiative in insurance sector. In 1909, activist Ishwar Chandra Vidyasagar founded the Hindu family annuity fund- the first instant of a pension-based investment scheme targeted at Indians. As had happened in England earlier, a flood of new players and patchy regulation snowballed into a crisis. Several insurers defaulted on their contractual obligations to policyholders, citing investment losses, some even folded-up. The insurance act 1938 started control on insurance but even they failed to safeguard policyholder’s interests.
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, weren’t 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 Babasabpatilfreepptmba.com
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Comparative study of Insurance Plans of various Companies � the sum assured (or the total value of cover) increasing from Rs. 1476cr in 1957 to Rs. 459201cr to 1998 to 1999. Similar circumstances lead to the nationalization of non-life (general insurance). As in life insurance pre nationalization there were an inordinately largely number of insurers many of whom where notorious for floating investment norms and delaying investments settlements of clams. Non life insurance was nationalized in 1972. General Insurance Corporation was setup as a holding company, total of 107 private insurers where merged and group to form general insurance corporation four subsidiaries.
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. Babasabpatilfreepptmba.com
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Comparative study of Insurance Plans of various Companies � Under state control, the insurance sector, both life and non-life, grew steadily. Still, Indians are not adequately insured and lag behind most countries. Total insurance penetration (insurance premium as a percentage of gross domestic product) is dismal when compared to its economic standing. Just 2% of the population has some form of life insurance. But in this huge gap lies a huge opportunity, which is Why private insurers are queuing up. In many ways the re-entry of private insurers has marked second coming for the sector. In just 3 years, the sector has under gone a make over, offering the fruits of free market, more choice better service, and quicker settlements, tighter regulations greater awareness. State insurers have been compelled to get their act together.
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Comparative study of Insurance Plans of various Companies � Insurance in India 1818 The British introduce to India, with the establishment of the Oriental Life Insurance Company in Calcutta. 1850 Non life insurance debuts, with Triton Insurance Company. 1870 Bombay Mutual Life Assurance Society is the first Indian-owned life insurer. 1907 Indian Mercantile Insurance is the first Indian non-life insurer. 1912 The Indian life assurance Companies act enacted to regulate the life insurance business. 1938 The insurance act, which forms the basis for most current insurance laws, replaces earlier act. 1956 Life insurance nationalized, government takes over 245 Indian and foreign insurers and provident societies. 1956 Government sets up LIC. 1972 Non life insurance nationalized, GIC set up. 1993 Malhotra Committee, headed by former RBI governor R.N. Malhotra, set up to draw up a blue print for insurance sector reforms. 1994 Malhotra Committee recommends re-entry of private players, autonomy to PSU insurers. 1997 Insurance regulator IRDA (Insurance Regulatory and Development Authority) set up. 2000 IRDA starts giving licenses to private insurers, ICICI Prudential and HDFC Standard life first private insurers to sell a policy. 2001 ING VYSYA Life Insurance came into the market, Royal Sundaram Alliance first non-life insurers to sell a policy. 2002 Banks were allowed to sell insurance plans, as TPAs enter the scene, insurers start settling non-life claims in the cashless mode.
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Comparative study of Insurance Plans of various Companies �
Life Insurance Companies in India INSURER
WEBSITE
INDIAN
FOREIGN
PROMOTER Bajaj Auto
PROMOTER Allianz AG
Sanmar Group
AMP, Australia
Aditya Birla Group
Sun Life Financial,
Insurance Aviva Life insurance avivaindia.com HDFC Standard Life hdfcinsurance.com
Dabur India HDFC
Canada Aviva Plc Standard Life
Insurance ICICI Prudential Life iciciprulife.com
ICICI
Prudential Plc
Insurance ING Vysya
Vysya Bank
ING Group
Insurance Life Insurance licindia.com
Government of India
None
Corporation Max New York Life maxnewyorklife.com
Max India
New York Life
Insurance MetLife
J&K Bank, Pallonji Metropolitan
Allianz
Bajaj
insurance AMP
life allianzbajaj.co.in
Sanmar ampsamnar.com
Assurance Birla Sun
Life birlasunlife.com
Life ingvysyalife.com
India metlifeindia.com
Life
Insurance OM Kotak Mahindra omkotakmahindra.co
& co Kotak
Life SBI Life Insurance
Finance State Bank of India
Cardif (arm of BNP
Tata Group
paribas) American
Tata-AIG
m sbilife.co.in
Life tata-aig.com
Insurance
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Insurance Mahindra Old Mutual Plc
International Group
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Comparative study of Insurance Plans of various Companies � Life insurance score card Insurance company Met life AMP Sanmar ING Vysya Aviva OM Kotak MAX Newyork Allianz Bajaj Tata AIG SBI Life HDFC Standard Birla Sunlife ICICI Prudential Private Total LIC Grand Total
(first year and single premium in 2003-2004)
Income (in crores) 23.38 27.88 7.60 77.13 127.10 131.48 17.97 18.01 19.59 209.33 449.86 750.91 2425.46 16284.68 18710.15
% Growth 203.70 341.50 311.15 472.83 260.99 95.34 183.50 245.07 172.54 61.88 247.20 106.23 153.15 1.93 10.48
Market share 0.12 0.15 0.39 0.41 0.68 0.70 0.96 0.96 1.05 1.12 2.40 4.01 12.96 87.04 100.00
ING Vysya Life Insurance History ING Vysya Life Insurance Company Private Limited entered the private life insurance industry in India in September 2001, and in a short span of has Babasabpatilfreepptmba.com
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Comparative study of Insurance Plans of various Companies � 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 its sister company ING Vysya Bank through Bancassurance. Currently, it has over 3000 advisors working from 22 locations across the country and over 300 employees. ING Vysya Life Insurance Company is headquartered at Bangalore and has established a strong presence in the cities of Delhi, Mumbai, Kolkata, Hyderabad and Chennai. In addition ING Vysya Life operates in Vizag, Vijaywada, Mangalore, Mysore, Pune, Nagpur, Chandigarh, Ludhiana, Hubli, Coimbatore, Guntur, Secunderabad, Trivandram and Jaipur. ING Vysya Life has pioneered product innovations in the Indian life insurance market with customer-oriented cash bonus endowment and money back products. (Reassuring Life and Maximizing Life), the first anticipated whole life product (Fulfilling Life) and the first Term/Critical Illness combination product (Conquering Life). Conquering Life provides affordable term cover and critical illness coverage for 10 critical illnesses of upto 50% of the Sum Assured. Best year retirement plan, Safal jeevan endowment plan. The company has over 25,000 customers at the end of 2002 and has achieved a first premium income of Rs.17croresin2002. ING Vysya Life Insurance is a joint venture between ING Insurance International BV a part of ING Group, the world's largest life insurance company (Fortune Global 500, 2002), ING Vysya Bank, with 1.5 million customers and over 400 outlets and GMR Technologies and Industries Limited, part of GMR Group also based in Bangalore and involved in the field of power generation, infrastructure development and several other businesses. ING Vysya Life has a paid up capital of Rs.140 crores and an authorized capital of Rs. 200 crores.
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Comparative study of Insurance Plans of various Companies ” At ING Vysya Life, It build relationships based on trust, expertise and reliability, helping individuals like you to manage not just life insurance, but in a way, life itself. For we believe that a well-planned life insurance cover adds life to insurance.
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.
We intend to achieve this by: Fulfilling customer needs by offering affordable products Offering traditional and sophisticated product and service concepts Providing
efficient
customer
services
supported
with
high-end
technology Building a large, world class sales force and also developing other distribution channels Developing bank assurance through different models ING Vysya Life Insurance is a joint venture between three pioneers, ING Insurance, ING Vysya Bank and GMR Group.
Share Holders Babasabpatilfreepptmba.com
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Comparative study of Insurance Plans of various Companies � ING Vysya Life Insurance is a joint venture between ING Insurance, ING Vysya Bank and GMR Group. The shareholding details are: ING Insurance BV
26%
ING Vysya Bank Limited
49%
GMR Technologies and Industries
25%
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.
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Comparative study of Insurance Plans of various Companies � ING Vysya Bank Limited It is one of India's premier private sector banks with a heritage of over 70 years. With 1.5 million customers, 480 outlets and 6000 employees it is known for its innovative banking services and for pioneering several products and services. ING Vysya Bank has a long-standing relationship with its customers and deep understanding of the Indian market.
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.
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Comparative study of Insurance Plans of various Companies � Branch Location Locate the ING Vysya Life Insurance Branch Office closest to your city.
New
Branches :
Hubli,
Coimbatore,
Guntur,
Secunderabad,
Trivandram.
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Comparative study of Insurance Plans of various Companies �
Departments of the company ING Vysya Life Insurance
CEO
Customer Care
Admin
Actuary
Finance
Finance
Compliance
HR
Marketing
Sales
Legal
officer
Branch Under writers
Customer Care
ORM
Commercial
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Comparative study of Insurance Plans of various Companies ”
ACTUARY Department This department consists of a team, who works on policies. They decide on the premium, terms, and other conditions of the policy.
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 need’s medical then their ask doctor to raise medical. These underwriters have the authority to accept the policy or reject the policy. If the documents doesn’t satisfy their demands, or if they are not according to the norma’s. 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
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Comparative study of Insurance Plans of various Companies ”
ORM COORDINATOR Department ORM Coordinater Team
Executive
Executive
Executive
Function of ORM (outstanding requirement memo) co-coordinators ORM co-coordinators are the mediators between underwriters and commercial dept. They check the documents sent by the commercial department and if found incorrect or incomplete, proposal will be intern sent back to commercial department to get it corrected.
COMMERCIAL Department Manager Commercial
Jr
comm.
Executive
Comm.
Sr
Comm.
Executive
Executive
Function of commercial department Commercial personnel will handle all the processing work of the policy.
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Comparative study of Insurance Plans of various Companies ” They help in getting the required information demanded by the underwriters. They are the mediators between underwriters and sales agencies. Commercial department plays an important role where all the claims, collections document work will be handled. Hierarchy of the department depends on the business of the branch. For each branch they have a separate commercial department. Commercial department will have regular interaction between all the departments.
AGENCY/ BRANCH Department Branch Manager
Sr Sales Manager
Asst Sales Manager
Advisory team
Advisory team
Bus Dev Exe
Advisory team
Functions of sales agencies Sales agencies are only concerned with sale of product. If any information demanded by the commercial department sales managers are bound to provide it. Agency manager/ branch manager has the authority and is fully responsible for the function of the whole branch and ensures that the targets given are meet.
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Comparative study of Insurance Plans of various Companies ”
ISSUING Department Dept Head
Staff
Functions of issuing department : Its function is to receive the order from the underwrites and issue the policy. It in turn hands over the policy to dispatch department to send it to the policyholder.
DISPATCH department Dept Head
Staff
Function of dispatch department
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Comparative study of Insurance Plans of various Companies ”
It receives the policy issued by the issuing department, and sends it to the particular policyholder.
Policies of the company Creating life child protection plan Conquering life critical illness plan Rewarding life whole of life plan Fulfilling life anticipated whole of life plan Maximizing life money back plan Powering life limited payment endowment plan Reassuring life endowment plan (with cash bonus) Reassuring life endowment plan (with reversionary bonus) Babasabpatilfreepptmba.com
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Comparative study of Insurance Plans of various Companies ” Best years retirement plan Safal jeevan endowment plan
CREATING LIFE child protection plan The life maker: The life maker is the tool that assists you in building a complete financial plan for the life by helping you understand the basic needs for buying life insurance. These are:
Protection : First life insurance helps you to protect your income and your family’s 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 child’s 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. What’s more, on maturity, an
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Comparative study of Insurance Plans of various Companies � additional sum assured is paid with an accumulated compound reversionary bonus and a final additional bonus.
How do I benefit from this plan? Guaranteed maturity benefits: The sum assured and the accumulated compound reversionary bonus are paid on maturity. A final additional bonus based upon the performance of the company is paid on maturity. Death benefits: Your child will receive the sum assured in case of your death. The policy continues even after the sum assured on death is paid. No premiums have to be paid after the death of the parent whose life is assured (built-in waiver of premium benefit). Your child will be eligible for guaranteed maturity benefits.
Additional Benefits Loan benefit
After paying a premium for three
Maturity benefits
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.
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Comparative study of Insurance Plans of various Companies �
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
pay premium between 10-25 years. Annual, half yearly, quarterly or
Minimum premium payable
monthly. Annual Rs.6000 Half yearly Rs. 3000 Quarterly Rs.1500 Monthly Rs.750
CONQUERING LIFE critical illness plan Before you consider a saving or an investment plan, you should ideally choose a protection plan to secure your and your family’s financial future. The conquering life critical illness plan is one such offering as it provides a double benefit of life cover and critical illness cover.
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Comparative study of Insurance Plans of various Companies � The conquering life critical illness plan. What is all about? The conquering life plan is ideal because it provides protection to you and safeguards your family’s lifestyle through an easily affordable, pure risk life cover. And more importantly, it covers you against ten life threatening critical illnesses. The critical illnesses covered are cancer, heart attack, coronary artery bypass graft, stroke, kidney failure, a major organ transplant, brain tumor, paralysis, coma and blindness (Please refer to the annexure for exact definitions).
How do I benefit from this plan? Illness benefits: A critical illness cover of up to 50% of the sum assured is paid to you in the event of a confirmed diagnosis of any one of the critical illnesses covered. This sum can be up to a maximum of Rs. 20 lakhs. The critical illness cover is only valid for the first critical illness suffered and not any that follow. In the event of critical illness, the remaining premium payments for the period of the policy will be waived. Death benefits: Your family will get the total sum assured, or Your family will receive the difference between the total sum assured and the critical illness claim paid, if any.
Additional Benefits Tax benefits
Tax benefits under section 88 and section 10 (10 D) are available on all
Look in period
our life insurance plans and riders. This is a 15-day period for you to go through the terms and conditions and
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Comparative study of Insurance Plans of various Companies � decide upon taking or canceling the policy.
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
Life coverage term
premiums between 10 – 25 years. This period is the same as the premium
Premium payment options Minimum premium payable
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).
REWARDING LIFE whole of life plan
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Comparative study of Insurance Plans of various Companies � Rewarding Life Whole of life plan is an offering that enables you to protect, save and invest. With this plan, you can create a sizeable financial asset to pass on to your family.
The Rewarding Life Whole of life plan. What is all about? The rewarding life plan covers you for the whole of your life even after the premium paying term has ended. It also helps your investment grow, thanks to a reversionary bonus.
How Do I benefit from this plan? Your life cover goes on increasing every year, thanks to a compound reversionary bonus. This basically means that apart from the bonus earned on the sum assured, your accumulated bonus earns you an additional bonus. Survival benefits: A large lump sum payment to you and your family when you turn 85. This includes the full sum assured, the vested compound reversionary bonus and the final additional bonus. The total amount could be as much as 10 times the sum assured. Death benefit: Your family gets the sum assured the compounded reversionary bonus and the final additional bonus. Final additional bonus: The additional bonus will be paid once the policy reaches its maturity benefit stage (at 85 years of age or earlier death).
Additional Benefits Loan benefit Babasabpatilfreepptmba.com
After paying a premium for three years, Page 39
Comparative study of Insurance Plans of various Companies � Tax benefits
you will be eligible for a loan. Tax benefits under section 88 and section 10 (10 D) are available on all
Look-in-period
our life 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: 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
25 years. Upto the age of 85 years Annual, half yearly,
Minimum premium payable
monthly. Annual Rs.6000
quarterly
or
Half-yearly Rs. 3000 Quarterly Rs.1500 Monthly Rs. 750
FULFILLING LIFE anticipated whole of life plan
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Comparative study of Insurance Plans of various Companies � Fulfilling Life Anticipated whole of life plan is a unique plan that fulfills your need for protection, saving and investment. It gives a double benefit of a whole life cover along with regular cash returns in your lifetime.
Fulfilling Life Anticipated whole of life plan. What is it all about? The fulfilling life plan provides your family security even after your death, apart from giving you regular cash returns during your life. The special feature of this plan is you may receive 2005 of the sum assured. The first 100% as money backs during the term, and the remaining 1005 on death or maturity. You can also choose from a range of limited premium payment terms.
How do I benefit from this plan? Survival benefits: A certain percentage of money is paid back every quarter of the premium term. The money can be reinvested elsewhere or used to meet large expenses during one’s lifetime. See the amount you will receive periodically, in the table on Survival benefits below. End of year
16year
End of year
20year
End of year
24year
4
(P.P.T) 20%
5
(P.P.T) 20%
6
(P.P.T) 20%
8
20%
10
20%
12
20%
12
20%
15
20%
18
20%
16
40%
20
40%
24
40%
Maturity benefits: You pay premiums for a limited period of your choice while you get a risk coverage upto the age of 85 years. At the age of 85 you will receive 100% of the sum assured plus a bonus. Babasabpatilfreepptmba.com
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Comparative study of Insurance Plans of various Companies � Death benefit: Your family receives 100% of the sum assured, over and above the survival benefits you have received till then, plus a bonus.
Additional benefits : Loan benefit
After paying a premium for three years,
Tax benefits
you will be eligible for a loan. Tax benefits under section 88 and section 10 (10 D) are available on all
Look-in-period
our life 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 opt for a 16, 20 or 24 year
Life coverage term Premium payment options
payment plan. Upto the age of 85 years Annual, half-yearly, quarterly
Minimum premium payable
monthly. Annual Rs.8000
or
Half yearly Rs. 4000 Quarterly Rs. 2000 Monthly Rs. 1000
MAXIMISING LIFE money back plan Babasabpatilfreepptmba.com
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Comparative study of Insurance Plans of various Companies ” The maximizing life money back plan gives the benefits of protection and saving. It’s the perfect life span plan, since it helps you meet any large financial requirements during your life.
Maximizing life money back plan. What is it all about? The maximizing life plan is ideal because you receive a life cover plus periodic cash flows, which take care of your financial needs at different stages of your life.
How do I benefit from this plan? Survival Benefits: At specific intervals of the premium payment term (P.P.T) you’d receive a certain percentage of the sum assured as illustrated in the table below: End of year
16year
End of year
20year
End of year
24year
4
(P.P.T) 20%
5
(P.P.T) 20%
6
(P.P.T) 20%
8
20%
10
20%
12
20%
12
20%
15
20%
18
20%
16
40%
20
40%
24
40%
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: 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. Babasabpatilfreepptmba.com
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Comparative study of Insurance Plans of various Companies � Additional benefits Loan benefit
After paying a premium for three years,
Tax benefits
you will be eligible for a loan. Tax benefits under section 88 and section 10 (10 D) are available on all
Look-in-period
our life 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 opt for a 16, 20 or 24 year
Life coverage term Premium payment options
payment plan. Upto the age of 85 years Annual, half-yearly, quarterly
Minimum premium payable
monthly. Annual Rs.6000
or
Half yearly Rs. 3000 Quarterly Rs. 1500 Monthly Rs. 750
POWERING LIFE limited payment endowment plan Babasabpatilfreepptmba.com
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Comparative study of Insurance Plans of various Companies � Ideally, once your protection and saving needs are met, consider an investment plan. The powering life limited payment endowment plan is one such offering. It lets you pay premiums during your key earning period while you enjoy a life cover for along period and high maturity benefits.
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.
How do I benefit from this plan? Survival benefits: A large lump sum payment to you when the policy matures. A life cover that enhances rapidly with the addition of a reversionary bonus each year. A final additional bonus at the end of the term. Flexible life covers term. Flexible premium payment options. Death benefit: Your beneficiaries will receive the accumulated reversionary bonus and final additional bonus in addition to the sum assured. Flexible Premium Payment: you can choose a life cover of 10, 15 or 20 years with a flexibility of choosing your premium payment term. Policy term (years) 10
Premium Payment term 5-9
15
5-14
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Comparative study of Insurance Plans of various Companies � 20
5-19
Additional benefits Loan benefit
After paying a premium for three years,
Tax benefits
you will be eligible for a loan. Tax benefits under section 88 and section 10 (10 D) are available on all
Look-in-period
our life 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
Maximum age: 70 years Annual, half-yearly,
Minimum premium payable
monthly. Annual Rs.24000
quarterly
or
Half yearly Rs. 12000 Quarterly Rs. 6000 Monthly Rs. 3000
REASSURING LIFE endowment plan The reassuring life endowment plan with cash bonus fulfills you need for protection and saving. It provides an annual cash bonus just like a fixed deposit, helps you reach your financial goals and also stay protected with a life cover.
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Comparative study of Insurance Plans of various Companies � The Reassuring life endowment plan. What it is all about? The reassuring life plan is ideal because it helps bear any large expense, helps you save for your post retirement years and protects your family in the case of your untimely death.
How do I benefit from this plan? Survival benefit: A large financial asset for you and your beneficiaries once the policy matures, so you can meet large expenses like funding higher education for your kids, building a house or even organizing your child’s wedding. Death Benefit: Financial support for your family incase anything were to happen to you.
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
After paying a premium for three years,
Tax benefits
you will be eligible for a loan. Tax benefits under section 88 and section 10 (10 D) are available on all
Look-in-period
our life 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.
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Comparative study of Insurance Plans of various Companies �
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 premium-paying terms from 10 – 30
Life coverage term
years. This period will be the same as the
Premium payment options
premium payment term. Annual, half-yearly,
Minimum premium payable
monthly. Annual Rs.4000
quarterly
or
Half yearly Rs. 2000 Quarterly Rs. 1000 Monthly Rs. 500
REASSURING LIFE endowment plan (with reversionary bonus) Ideally, once your protection needs are met, consider a saving plan. The reassuring life endowment plan with reversionary bonus is one such offering. Besides being a saving option, it also acts as a highly reliable safety net for your family in case something happens to you.
The Reassuring Life Endowment Plan. What is it all about?
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Comparative study of Insurance Plans of various Companies � The reassuring life endowment plan is ideal because it gives you the incredible benefit of a reversionary bonus, which enhances your life cover, and hence your sum assured, dramatically, every year. So when the policy matures you can receive almost double the initial sum assured.
How do I benefit from this plan? Survival benefits: A sizeable financial assets for you and your family once the policy matures, so you can meet large expenses like higher education for kids, investment in a house, or organizing your child’s wedding. A life cover that enhances rapidly, annually, thanks to the reversionary bonus feature. This basically means the bonus is earned not just on the original sum assured but also on the previously accumulated bonus an amount which goes on increasing every year. A final additional bonus Death benefit: Your family would receive a large sum, which would include the sum assured and the accumulated reversionary bonus and final additional bonus.
Additional benefits Loan benefit
After paying a premium for three years,
Tax benefits
you will be eligible for a loan. Tax benefits under section 88 and section 10 (10 D) are available on all
Look-in-period
our life 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
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Comparative study of Insurance Plans of various Companies ” 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 premiumpaying terms from 10 – 30 years.
Life coverage term
(i.e10,11,12,………20..30) This period will be the same as the
Premium payment options
premium payment term. Annual, half-yearly,
Minimum premium payable
monthly. Annual Rs.6000
quarterly
or
Half yearly Rs. 3000 Quarterly Rs. 1500 Monthly Rs. 750
SAFAL JEEVAN endowment plan The unique feature of this Safal jeevan endowment plan is that it provides an opportunity to decide on the cover of your policy. It gives you the option to choose from a convenient range of fixed terms and premiums. The plan ensures an easy and hassle free process, yet offering you a comprehensive protection and savings proposition. Thus making it the simplest life insurance plan. Apart from that it ensures, Death benefit: Sum assured with non-guaranteed bonus, if any, payable on death of the life assured. Inbuilt accident cover: In case of death due to accident, an additional benefit equal to the basic sum assured is payable. Maturity benefit: Sum assured with non-guaranteed bonus, if any , payable on maturity.
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Comparative study of Insurance Plans of various Companies � Who is this plan for? This plan is ideal if you are planning on taking your first life insurance policy. It offers you protection in an easy, hassle free way and helps you secure your goals and dreams despite the odds. All you have to do is to choose a suitable policy term and decide on the frequency and amount of premium payment.
How does this plan work? Under this plan you make payment of a chosen premium for the term opted. The sum assured and non-guaranteed compound reversionary bonuses if any are payable on maturity or on death, which ever is early. Surrender value
Surrender value is available after at
Reduced paid up value
least three full years premiums are paid. After three full years premiums are paid, and if policy lapses due to nonpayment
of
premium,
the
policy
Loan facility
becomes paid up. You can avail the loan of up to 90% of
Eligibility
surrender value. Min entry age 18 years Max entry age 45 years
Premium payment options
Max maturity age 60 Annually, half yearly,
Premium payment terms
during the policy term The policy coverage terms are fixed at
of quarterly
10, 15, and 20 years
Available premium options Yearly
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Half yearly
Quarterly
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Comparative study of Insurance Plans of various Companies � Rs. 2,000
Rs.1, 000
Rs.500
Rs 2,500
Rs.1, 250
Rs. 625
Rs. 3,000
Rs. 1,500
Rs. 750
Rs. 3,500
Rs. 1,750
Rs. 875
Rs, 4,000
Rs. 2,000
Rs.1, 000
BEST YEARS retirement plan The best years Retirement plan is more than just a long-term investment plan. It enables you to create a sizeable financial asset for you and your family, in case you are not around. Besides, this plan also gives you the freedom to live a secure and peaceful retired life.
What is this plan all about? ING Vysya life best years retirement plan gives you capital guarantee while protecting you from market swing. Ti also gives you an opportunity to invest in a arrange of investments at a lower cost.
How does the best years retirement plan works? An ING Vysya lifelion will first help you in deciding on a regular contribution to be made every year, which will ensure an adequate pension on retirement at a vesting date of your choice. You have the complete flexibility to decide the time, amount and frequency of contributions you make each year. All contributions will be transferred to your individual pension account (IPA) and charges, as applicable, will than be deducted. The balance in the IPA will be invested in the ING Vysya capital guaranteed plan, which is invested as follows Types of asset Government securities Babasabpatilfreepptmba.com
Percentage Not less than 20% Page 52
Comparative study of Insurance Plans of various Companies � Government
securities
or
other
approved
Not less than 40%
Securities (inclusive of (I) above)
Not less than 60%
Balanced in approved investments 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 31 st 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
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Comparative study of Insurance Plans of various Companies � With regard to timing and frequency of contribution. - To invest additional amount in the form of top-up contribution. - To take the contribution holiday when you are unable to meet the regular contribution. - To start the pension whenever you wish. - To postpone your retirement date to make best use of market conditions, - To take-up 1/3 rd of balance amount at the chosen retirement date as the tax free lump sum. - To attach a term rider if you wish. - To purchase annuity from IVL or any other insurer. Contributions made are eligible for tax exemption under 80 CCC of income tax act.
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
amount under the basic policy. Premium will be paid by way of deduction from the IPA on each due
Tax benefit
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 Babasabpatilfreepptmba.com
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Comparative study of Insurance Plans of various Companies � Eligibility
Minimum entry age
18yrs
Maximum entry age
65yrs
Minimum deferment period
5yrs
Maximum deferment period
52yrs
Minimum vesting age
45yrs
Maximum vesting age
70yrs
Applicable charges Initial one time charges
Rs 700
Contribution related charge All first year contributions
10%
On subsequent contributions
3%
Annual management will be laved on each
31 st march on the IPA after crediting
bonus interest. The annual management fee will be depend on the size of balance in the IPA and will be as follows: Balance in IPA
Annual management fee per annum
Up to Rs 50,000
2.5%
50,001- 75,000
2.0%
75,001-1,00,000
1.75%
Above 1,00,000
1.5%
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.
Postponement of retirement date You can postpone your retirement date to a maximum of a5 years subject to a vesting age of 70. No contributions will be accepted during this period and the policy cannot be surrender during this extended period. Babasabpatilfreepptmba.com
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Comparative study of Insurance Plans of various Companies � Regular contribution and contributions holidays Minimum contribution will be 5,000 A contribution holiday is, were you may pay less than the regular contribution or no contribution in any policy year. However any contribution made should be multiple of Rs 1,000 and a minimum of at least Rs 2,000/
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.
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Comparative study of Insurance Plans of various Companies � Term rider This amount is payable only on death during the application term. This amount will be in addition to the sum assured under the basic policy to which this rider is attached. However this benefit is not payable in case of occurrence of death due to suicide, with in one year of commencement of risk. FEATURES Term
SPECIFICATION Subject to premium paying term under the basic policy Minimum: 10 years Maximum: 30 years 65 years Equal to sum assured under the basic
Maximum applicable age Maximum cover
policy Maximum limits is Rs. 20,00,000/-
Accidental Death Rider In case of death of the life assured, due to accident during the term of the policy, sum assured under this Rider is paid along with the sum assured under the basic policy.
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
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Comparative study of Insurance Plans of various Companies ” policy Maximum limits is Rs. 20,00,000/-
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.
Accident Death, Disability and Dismemberment Rider Death benefit : in case of death due to accident the sum assured under this rider is payable along with the sum assured of the basic policy.
Definition of accident : An event or series of events of violent, external and visible nature causing bodily injury is defined as accident.
Babasabpatilfreepptmba.com
Page 58
Comparative study of Insurance Plans of various Companies ” Total permanent disability : resulting from an accident and occurring within 180 days of the date of accident and lasting for at least 180 consecutive days. Completely and continuously preventing the life assured from accident and occurs within 180 days from the date of the accident.
Dismemberment of limbs occurring within 180 days of accident •
Physical severance of arm at or above wrist.
•
Physical severance of leg at or above ankle.
•
Physical severance of a thumb and index finger at or above metacarpophenageal joint.
Schedule of payment Total and permanent Disability Benefit Payment in % of sum Assured 10% of Sum Assured
Schedule of payment On the date of Admission of claim
30% of Sum Assured
After 180 days of disability
30% of Sum Assured
Paid after 1 year of disability
30% of Sum Assured
Paid after 2 years of disability
Dismemberment Benefit paid immediately on admission Payment in % of Sum Assured 25% of Sum Assured
Schedule of payment Thumb and index finger on same hand
50% of Sum Assured
Any one limb
100% of Sum Assured
Two limb or more
Total and permanent loss Payment in % of Sum Assured 25% of Sum Assured
Schedule of payment Loss of speech
50% of Sum Assured
Loss of hearing in both ears
50% of Sum Assured
Loss of use of any one limb
Babasabpatilfreepptmba.com
Page 59
Comparative study of Insurance Plans of various Companies � 100% of Sum Assured Loss of use of two limbs or more Schedule of payment is as per above table
Waiver of Premiums Rider Waiver of premium rider under the basic policy and all other riders inn case of total disability occurring due to sickness or accident. The total disability should last for at least 6 consecutive months. No disability cover during the first 6 months of the policy.
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
Description Premium term of the basic policy not
Maximum benefit available
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 payments with a reduced paid up sum assured payable on death or on survival to Babasabpatilfreepptmba.com
Page 60
Comparative study of Insurance Plans of various Companies � maturity at age 85. in case you wish to withdraw your plan and have paid full premium for at least 3 years, you will receive the cash surrender value.
Introduction
Babasabpatilfreepptmba.com
Page 61
Comparative study of Insurance Plans of various Companies ” This is comparative study of the plans of different insurance companies. The study is done only on similar products of ING VYSYA life insurance. The study has been done, taking into consideration the companies, which are in Hubli and Dharwad market.
Objectives of the study: •
The study is done to know the similar plans of the different companies.
•
The benefits offered by each company in their different plans.
•
To know the additional benefits covered by different companies with the nominal cost.
•
To know the premium of similar plan, of different companies.
•
To study the operations of the insurance business.
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
Comparative study of Insurance Plans of various Companies � COMPARATIV E STUDY OF ING VYSYA LIFE INSURANCE AND ICICI PRUDENTIAC LIFE INSURANCE The comparison study has been done on the similar products only. And their major difference is highlighted in conclusions.
CREATING LIFE / SMART KIDS
(Child plan )
Benefits ING VYSYS
ICICI PRUDENTIAL
I Survival Benefits/Maturity Benefits i. Sum Assured
&
I Survival Benefits/Maturity benefits
accumulated
i.
compound reversionary bonus &
II
Flexibility of withdrawal whenever you require them.
terminal additional bonus in case
ii.
company’s performance is good.
withdrawals Viz. 1 st
up to 20%
2 nd
up to 25%
Child will get the sum
3 rd
up to 30%
assured.
4 th
up to 35%
The policy continues even
5 th
up to 40%
Death Benefits i. ii.
after the sum assured is paid.
iii.
iii. No premiums have to be paid after the death of the parent. iv.
It allows
Child guaranteed
is
eligible
you
a
max
of 5
Premium Holiday If he has paid min of 5 years &
then misses out any of the subsequent for
premium payment, his policy does not
maturity benefit /
lapse. To keep the policy in force, the
bonus.
mortality charges are deducted from his fund. II. i.
Death Benefit The sum assured is paid to
child. ii. Babasabpatilfreepptmba.com
All
the
future Page 63
Comparative study of Insurance Plans of various Companies ” contributions are waived off. iii.
The
policy
benefit
continues.
Additional Benefits
ING VYSYA
ICICI
PRUDENTIAL I.
Rider Benefits
I. Raider benefit.
i. Accidental Death Rider
i. Income benefit raider.
ii. Disability & Dismemberment.
ii. Accident & disability benefit
iii. Waiver of Premium Rider. II.
Tax Benefits U/S 88 & sec
raider iii. Waiver of premium raider
10(10D)
II. Tax benefit, U/S 88 & sec 10(10D).
III.
Loan benefits up to (90%)
III. Choice of investment plan.
IV.
Look-in-period of 15 days.
IV. Change in investment plan (Switch Option).
Product Features ING VYSYA Eligibility (Parents age)
ICICI PRUDENTIALS Min 18 Max 55
Premium payment term
10-25 yrs.
Maturity age of parents
65yrs
Min premium payable
Mthly- 750
20-60 years (Child) (1-15) Yrs 10 – 25 yrs 70 yrs
¼ ly– 1,500
4,500
½ ly –3,000
9,000
Babasabpatilfreepptmba.com
Page 64
Comparative study of Insurance Plans of various Companies ” 1 yearly – 6,000
18,000
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
Comparative study of Insurance Plans of various Companies � •
Premium amount is higher in case of ICICI prudential, with compare to ING VYSYA.
Babasabpatilfreepptmba.com
Page 66
Comparative study of Insurance Plans of various Companies ” REWARDING LIFE / LIFE TIME
(Whole of life plan )
Benefits
ING VYSYA
ICICI Prudential
Survival benefits •
Life is assured even after the
•
Survival Benefits •
Liquidity options.
premium paying term has ended.
Any time after 3 yrs of
It ensures the revisory bonus (if
policy commencement (provided
the Company’s performs is good).
you have paid premium for 3 full
years)
you
can
make
partial or complete withdrawal at no panelty.
Death Benefits • •
Total sum assured + bonus is
•
Switch benefit.
given.
•
Premium holiday benefit.
Additional bonus is given at 85 Death benefit . yrs or earlier death.
•
Total sum assured + bonus is given.
Additional benefit with nominal costs
ING VYSYA
ICICI
PRUDENTIAL 1) Rider Benefit
1) Rider benefit.
•
Term rider
•
Accident & disability rider
•
Accidental death
•
Critical illness rider
•
Disability and disbursement rider
•
Major surgical assistance benefit
Babasabpatilfreepptmba.com
Page 67
Comparative study of Insurance Plans of various Companies ” •
rider
Waiver of premium
2) Loan Benefit. 3) Look-in-period of 15 days.
Product Features
ING VYSYA
ICICI
PRUDENTIALS 1. Eligibility age
Min 12yrs
Min – 1 [Age is considered for the first day of the baby]
Max 50yrs 2. Min premium payable
3. Life coverage
Max – 60
Monthly 750
--
¼ ly
1,500
4,500
½ ly
3,000
9,000
Yearly 6,000
18,000
85 years
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.
Babasabpatilfreepptmba.com
Page 68
Comparative study of Insurance Plans of various Companies ” •
Unit linked plans are totally market driven, there is no guarantee of the principle as the case in ICICI PRUDENTIAL.
MAXIMISING LIFE / CASH BACK
(Money back)
Benefits ING VYSYA
ICICI PRUDENTIALS
Survival benefits/ maturity benefits •
Survival Benefits/ maturity benefits
At specific intervals of the premium
•
At specific intervals of the premium
payment term youl’d receive certain
payment terms you youl’d receive
% of the sum assured.
certain % of sum assured viz.
END of
P.P.T. (16 years)
END of
P.P.T. (16 years)
4th years
20%
3rd years
10%
8th years
20%
6th years
15%
12th years
20%
9th years
20%
16th years
40%
12th years
25%
15th years
50% + guaranteed
•
You will receive 40% of sum
additional + vested
assured + Bonus (if any) •
Cash bonus is paid annually (if
bonus
declared) •
You
have
the
option
to
accumulate it, withdraw it, or adjust it
against
payment
Babasabpatilfreepptmba.com
of
future Page 69
Comparative study of Insurance Plans of various Companies ” premium.
Death Benefits •
Death Benefits •
Full sum assured + Additional
Nominee will receive sum assured +
guaranteed at the rate of 3.5%
Bonus (if any)
compounded annually for the 1st 4
(if the death occurs during the coverage
years + the vested bonus (if any)
term).
irrespective
of
the
survival
benefits paid.
Additional benefits ING VYSYA
ICICI PRODENTIALS
1. Rider Benefits
1. Rider Benefits
•
Term Rider
•
Critical illness rider
•
Accident death rider
•
Major surgical rider
•
Disability & dismemberment.
•
Accident & Disability benefits
2. Loan upto 90% 3. Tax Benefits
2. Exit option
4. Look – in – period of 15 days.
Product Features
ING VYSYA ICICIPRUDENTIAL Eligibility
Min 12yrs Max 49yrs Min sum assured (min premium) 6,000yrly
Min1yr Max 55yrs 75,000
Premium payment option
Yearly, 1/2ly, 1/4ly, monthly
yearly, 1/2ly, 1/4ly, monthly
Babasabpatilfreepptmba.com
Page 70
Comparative study of Insurance Plans of various Companies ” 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.
•
ICICI is not providing loan benefits.
•
Exit option is not available in ING VYSYA, but surrender value will be paid in the case of lapse of the policy.
REASSURING LIFE/ CASH PLUS
(Endowment plan)
Benefits ING VYSYA 1. Survival benefits • •
•
Large financial assets for you and your
ICICI PRODENTIALS 1. Survival Benefits •
ICICI prudential offers 3 levels of
beneficiaries once the policy matures.
cover (in the form of sum
Death benefits
assured)
Beneficiary will receive sum assured +
1. Basic (Term –5) x Premium
accumulated reversionary bonus.
2. Std Term x premium
Cash bonus
3. Enhanced (Term +5) x Premium
An annual cash bonus will be paid which may be received based upon the performance of the company. You have the option to accumulate it,
•
Bonus is paid every annually. Flexibility of receiving your maturity proceeds as a lump
withdraw it or adjust it against payment
sum or in equal annual
of future premiums.
installments over 3 or 5 yrs.
Babasabpatilfreepptmba.com
Page 71
Comparative study of Insurance Plans of various Companies ” *
A large lumsum payment to you when the policy matures.
*
Cash bonus
2. Death Benefits
3. Death Benefits
Beneficiary will receive sum assured
Sum assured + Bonus will be given to
+ accumulated reversionary bonus.
beneficiary.
Additional benefits with extra nominal costs. ING VYSYA
ICICI PRODENTIALS
1. Rider Benefits
1. Rider Benefits
•
Term Rider
•
Critical illness rider
•
Accident death rider
•
Major surgical assistance rider
•
Disability & Dismemberment Rider.
•
Accident & Disability benefit rider
•
Waivers of premium rider
•
Waivers of premium rider
2. Loan Benefit 3. Tax Benefits 4. Look– in – period of 15 days.
Product Features ING VYSYA Eligibility
Min
12yrs
Babasabpatilfreepptmba.com
ICICI PRODENTIALS Min
0yr Page 72
Comparative study of Insurance Plans of various Companies ” Max 55yrs
Max
60yrs
Max age covered
70yrs
75yrs
Premium payment term
10-30yrs
10-30yrs
Min premium payable
yearly 4,000
8,400
1/2ly
4,200
2,000
1/4ly 1,000 Monthly 500
700
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
Comparative study of Insurance Plans of various Companies � BEST YEARS / RETIREMENT SOLUTIONS
(Pension plan)
Benefits
ING VYSYA
ICICI
PRUDENTIALS Survival benefits
Survival benefits
On the attaining of chosen vesting date, upto 1/3 1. He can contribute more to the fund. of the benefit amount can be withdrawn and it is 2. He can choose any retirement date. tax-free. The balance amount will be utilized to 3. He can switch between the plans. (One free purchase an annuity.
switch ever year).
Death Benefit
Death Benefit
i. In the case of death during the term,
i.
your nominee will have the
Your nominee will receive death benefit amount.
following option.
ii.
Your nominee can choose the mode
a) To defer the purchase of annuity
of payment either lump sum or in an
of the age of the nominee is 45
annuity that would provide regular
yrs.
income to the family.
b) To encash up to 5% or such % decided by the company of the
Other Benefits
benefit amount outstanding each
i.
year up to the age of 45 and then
miser,
apply the balance of any, at age
investment planes.
45 to purchase annuity.
ii.
ii. You have the flexibility. a)
To
chose
Time
at
protector
and
balanced
They have 4 different retirement solutions such as.
the
regular
contribution. b)
You can choose between maxi
a) Life time pension. b) Service + Pension.
frequency
contribution. Babasabpatilfreepptmba.com
of
c) Life link pension. d) Forever life. Page 74
Comparative study of Insurance Plans of various Companies ” c)
To take contribution holiday.
d)
To
invest
additional
contribution. e)
To start the pension when ever you wish.
f)
To attach term raider if you wish.
g)
To postpone your retirement date.
PRODUCTS FEATURES ING VYSYA Eligibility
Min
ICICI PRUDENTIALS
18yrs
Min
18yrs
Max 65yrs
Max
60yrs
Vesting age
45-70yrs
45-70yrs
First contribution
10%
20%
Subsequent contribution
3%
18%
Annual management age
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
Comparative study of Insurance Plans of various Companies � •
ICICI prudential has covered critical illness & major surgical assistance rider in additional benefits with the nominal cost.
Babasabpatilfreepptmba.com
Page 76
Comparative study of Insurance Plans of various Companies � COMPARATIVE STUDY OF ING VYSYA & LIC CREATING LIFE / JEEVAN KISHOR
(Child Protection Plan)
Benefits ING VYSYA
LIC
I. Survival Benefits Maturity Benefits i. Sum
Assured
&
I. Survival Benefits Maturity Benefits
accumulated i. The sum assured + bonus is given
compound reversionary bonus &
In case of death of a child, premium
Additional
paid till the date is given back.
Terminal
depending
on
the
Bonus
company’s
performance.
II. Death Benefits
II. Death Benefits
i. Child will not get any of the
i. Child will get the sum assured.
amounts.
ii. The policy continues even after
ii. The policy has to be continued by
the sum assured is paid.
paying
iii. No premium has to be paid after
the regular premiums.
the death of the parent.
iii. Child is eligible for guaranteed
iv. Child is eligible for guaranteed
maturity
maturity benefit / bonus.
benefits / bonus.
Product Features ING VYSYA Eligibility
(parent age)
Premium Payment Term Max Age of Maturity
Babasabpatilfreepptmba.com
LIC
Min
20
Min 1 (child age)
Max
60
Max 12
10-25 65
15-35 45
Page 77
Comparative study of Insurance Plans of various Companies ” CONCLUSION : •
ING VYSYA has only one child policy, were as in LIC has different versions in a single plan, viz.
•
iv.
JEEVAN KISHOR PLAN.
v.
JEEVAN CHAYA PLAN.
vi.
JEEVAN SURAKSHA PLAN.
vii.
CHILDREN MONEY BACK POLICY.
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 don’t 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.
•
There is no look-in facility in LIC.
Babasabpatilfreepptmba.com
Page 78
Comparative study of Insurance Plans of various Companies ”
MAXIMISING LIFE /MONEY BACK
(Money back policy)
Benefits
ING VYSYA Survival benefits •
At
LIC Survival benefits
specific
intervals
of
the
•
Certain amount is received back
premium payment term youl’d
even during continuation of the
receive certain % of the sum
policy term.
assured. End of
P.P.T. (20 years)
End of
P.P.T. (20 years)
5 th years
20%
5 th year
10 th years
20%
10 th years
20%
15 th years
20%
15 th years
20%
20 th years
40% + bonus
20 th years
40% + bonus
20%
There is also 16 and 24 years term •
You will receive 40% of sum assured + Bonus (if any)
•
Cash bonus is paid annually
•
You
have
the
option
•
Tax benefit.
•
Permanent disablement benefit. (Covered in basic policy)
to
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 receive full sum assured + bonus. (if the death occurs during the coverage In case of death by accident nominee term + Bonus (if any). Babasabpatilfreepptmba.com
will get double the sum assured + Page 79
Comparative study of Insurance Plans of various Companies ” bonus on the policy.
Additional benefits ING VYSYA
LIC
1. Rider Benefits
1.Accidental
death
and
accidental
•
Term Rider
disablement benefit is covered in basic
•
Accident death rider
policy itself with the basic premium.
•
Disability
&
Rider. •
Dismemberment 2. Tax benefits 3. Loan benefits
Waivers of premium rider
2. Loan Benefit 3. Tax Benefits 4. Look– in – period of 15 days.
Product Features
ING VYSYA Eligibility
Min Max
Max age of Maturity
12yrs 49yrs 65yrs
LIC
Min 13yrs Max 50yrs 70 yrs
CONCLUSION: •
ING has maturity age as 65 were as LIC has 70 years, so there is long term assurance to costumer in LIC.
Babasabpatilfreepptmba.com
Page 80
Comparative study of Insurance Plans of various Companies ” •
ING is providing rider benefits at an extra nominal cost, were as LIC covers it within the basic policy.
•
In case of death, double the sum assured is given to the nominee. where as in ING VYSYA only the sum assured + the bonus is given.
REASSURING LIFE / ENDOWMENT PLAN (Endowment plan) Benefits
ING VYSYA
LIC
1. Survival /maturity benefits •
1. Survival /maturity benefits •
A large lump sum payment to you when the policy matures.
•
sum assured and bonus accrued.
Cash bonus
2. Death benefits
2. Death Benefits •
•
Beneficiary will receive sum assured
Policyholder will receive the
+
reversionary
nominee.
accumulated bonus
Sum assured will be given to the
•
(Bonus
In case of death by accident double the sum assured will be
could vary as per the company
given to the nominee.
performs)
3. Other Benefits •
Accidental death is assured in basic policy only.
•
Highest bonus paid in LIC.
Additional benefits
ING VYSYA 1. Rider Benefits •
Term Rider
Babasabpatilfreepptmba.com
LIC
1. Accidental death is covered in basic plan only Page 81
Comparative study of Insurance Plans of various Companies ” •
Accident death rider
•
Disability
&
2. Tax benefits
Dismemberment 3. Loan benefits
Rider. •
Waivers of premium rider
2. Loan Benefit 3. Tax Benefits 4. Look– in – period of 15 days.
Product Features
ING VYSYA Eligibility
Min
12 yrs
Min 12 yrs
Max
55 yrs
Max 65 yrs
Premium payment term
10-30 yrs
Max Age of Maturity
65 yrs
Minimum sum assured Premium payment option
LIC
1 lakh
5-55 yrs 75 yrs 10,000
yearly, 1/2ly, 1/4ly,
yearly, 1/2ly, 1/4ly,
Monthly
Monthly
CONCLUSION : •
ING has not covered accidental death in the basic policy.
•
LIC is giving guaranteed bonus.
•
Nominee will get double the sum assured in the case of accidental death in ING VYSYA & LIC.
Babasabpatilfreepptmba.com
Page 82
Comparative study of Insurance Plans of various Companies ” CONQUERING LIFE PLAN / AASHA DEEP PLAN (Critical illness plan) Benefits
ING VYSYA
LIC
. Survival /maturity benefits
. Survival /maturity benefits
1. It covers major 10 deceases.
1. It covers only 5 deceases.
2. One’s the claim is made for any 2. One’s the claim is made for any deceases, You need not pay further deceases, You need not pay further premium
premium.
Death Benefits
Death Benefits
1. The family will get the total sum 1. The nominee will get the sum assured.
assured.
2. The family will receive the difference 2. In case of accident double the sum between the total sum assured & critical assured is given. illness claim paid (of any).
Product Features
ING VYSYA LIC Eligibility
Min
18yrs
Min
18yrs
Max
50yrs
Max
50yrs
Maximum Maturity age
65yrs
Premium payment term
10-25 yrs
Babasabpatilfreepptmba.com
65yrs 15-25yrs
Page 83
Comparative study of Insurance Plans of various Companies ” 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 84
Comparative study of Insurance Plans of various Companies ” BEST YEARS / JEEVAN SURAKSHA
(Pension plan)
Benefits
ING VYSYA •
LIC
On the attaining of chosen 1. Insured will be getting monthly 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 1. Sum assured is given in case it is
purchase an annuity.
In the case of death during covered.
•
the term, your spouse will have Other Benefits
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.
Annually
ii.
Lump sum
company) of the benefit 3. 5 different option for getting monthly amount O/S each year upto
Option.
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
Babasabpatilfreepptmba.com
regular Page 85
Comparative study of Insurance Plans of various Companies ” contribution
Time
and
additional
contribution
To
invest
additional
contribution
To take contribution holiday
To
start
whenever
the you
pension with
min
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
Min 18yrs Max 65yrs
Vesting age
Min 45yrs Max 70yrs
LIC
Min 25yrs Max 60yrs Min 55yrs Max 70yrs
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 86
Comparative study of Insurance Plans of various Companies â&#x20AC;?
Babasabpatilfreepptmba.com
Page 87
Comparative study of Insurance Plans of various Companies â&#x20AC;? COMPARISION OF ING VYSYA AND AMP SANMAR CREATING LIFE / YUVA SHREE
(Child plan)
Benefits ING VYSYA
AMP SANMAR
Survival/Maturity Benefits i. Sum
assured
compound
+
Survival/Maturity Benefits accumulated i. The sum assured is payable in 4
reversionary
+
installment + bonus payable at the
Final additional bonus which varies
end of the 4 installment / Policy
according
Term.
to
bonus
the
company
performance. Death Benefit Death Benefits i. Child will get the sum assured + child i.
Child will get the sum assured.
is eligible for bonus, which is paid at
ii.
The policy continues even after the
the end of policy term.
sum assured is paid. iii. No premium has to be paid after the death of the parent. iv. Child is eligible for guaranteed maturity benefit / bonus.
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Page 88
Comparative study of Insurance Plans of various Companies ” Additional Benefits ING VYSYA
AMP SANMAR
1. Rider benefits
1. Rider benefit.
•
Accidental death rider
•
•
Disability & Dismemberment &
condition
(10
major
illness cover) •
waiver of premium rider.
Critical
Accident cover
2. Loan benefit
2. Loan benefit
3. Tax
3. Tax
4. Lock-in-period of 15 days.
Product Features
ING VYSYA
AMP
SANMAR Eligibility
Min
18
Min
20
Max
55 yrs
Max
60 yrs
Premium Payment Term
10 – 25yrs
5 – 20yrs
Premium Payment
Monthly, ¼ ly,
yearly, ½ ly, ¼ly
Option
½ly, yearly
Sum assured
depends on the age of
Min 25,000
Parent and term.
Max
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No limit
Page 89
Comparative study of Insurance Plans of various Companies ”
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
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Page 90
Comparative study of Insurance Plans of various Companies ”
MAXIMISING LIFE / DHANA SHREE
(Money back plan)
Benefits ING VYSYA Survival benefits •
AMP SANMAR Survival Benefits
At specific intervals of the
•
At specific intervals of the
premium payment term youl’d
premium payment terms, you
receive certain % of the sum
would receive certain % of
assured.
sum assured at the end of 4 th year & then after every 3 yrs
END of
P.P.T. (16 years)
4 th years
20%
8 th years
20%
12 th years
20%
16 th years
40%
Maturity Benefits •
You will receive 40% of
Maturity Benefits •
sum assured + Bonus (if any) •
Bonus.
Cash bonus is paid annually (if declared)
•
Remaining % of sum assured +
You have the option to accumulate it, withdraw it, or
Cash Bonus •
It is paid at the last on maturity.
adjust it against payment of Babasabpatilfreepptmba.com
Page 91
Comparative study of Insurance Plans of various Companies ” future premium. Death Benefits •
Death Benefits •
Your family will receive sum
Full sum assured + accursed
assured (if the death occurs
bonus up to the date of death.
during the coverage term + Bonus (if any).
Additional benefits ING VYSYA
AMP SANMAR
1. Rider Benefits
1. Rider Benefits
•
Term Rider
•
•
Accident death rider
•
Disability & dismemberment.
Critical condition cover’s 10 major illnesses.
•
Accident cover
•
Tax Benefit
2. Loan benefit 3. Tax Benefit 4. Look – in – period of 15 days.
Product Features
ING VYSYA
AMP
SANMAR Eligibility
Min
12 yrs
Min
15 yrs
Max
49 yrs
Max
63 yrs
65 yrs
Max
70
Min
22
Maturity Max P.P.T P.P.O
16, 20 or 24 yrs Yearly, ½, 1/4, monthly
Babasabpatilfreepptmba.com
7 – 34 yrs yearly, ½, ¼ Page 92
Comparative study of Insurance Plans of various Companies â&#x20AC;? Sum assured (min premium) 6,000 per annum
Babasabpatilfreepptmba.com
Min
25,000 (S/A)
Max
No limit
Page 93
Comparative study of Insurance Plans of various Companies ” CONCLUSION : •
ING VYSYA pay’s back the amount in 4 installments as 20%, 20%, 20% & 40% each Bonus is paid annually, which can be with drawn, accumulated or adjusted in premium payment. AMP SANMAR payback after 4 th year as 1 st installment & there after in every 3 years. On maturity remaining of sum assured + bonus is paid.
•
Additional benefits in AMP SANMAR cover’s company major illness (specified in additional benefit) with accident cover provided with some nominal charges.
•
All the benefits with age limits and sum assured of critical conduction & accident benefit are given in detail in leaflet.
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Page 94
Comparative study of Insurance Plans of various Companies ”
POWERING LIFE [Limited Period Endowment Plan] / SUBHA SHREE
(Endowment plan)
Benefits ING VYSYA
AMP SANMAR
1. Survival benefits
1. Survival Benefits
•
Flexible life cover term
•
Flexible
premium
•
the policy by 5 yrs.
payment •
option Policy Term
•
P.P.T is shorter than the term of Full sum assured at the end of the P.P.T.
P.P.T (yrs)
10
5–9
15
5 – 14
20
5 – 19
•
Full vested bonuses compounded on maturity.
A large lumsum payment to you when the policy matures.
•
Cash bonus 2. Death Benefits
2. Death Benefits •
Beneficiary
will
receive
•
Full sum assured + bonus till the
sum assured + accumulated
date of death. If death occurs
reversionary
before the end of P.P.T
bonus
(if
company performs good.)
the
One more sum assured + bonus.
Additional benefits 1. Rider Benefits
1. Rider Benefits
•
Term Rider
•
Critical condition cover
•
Accident death rider
•
Accident cover
•
Disability & dismemberment 2. No loan benefit rider etc.
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3. Tax Benefit Page 95
Comparative study of Insurance Plans of various Companies ” 2. Loan benefit 3. Tax Benefit 4. Look – in – period
Product Features
ING VYSYA AMP SANMAR 1. Eligibility
Min
18 yrs
Min
12 yrs
Max
60 yrs
Max
65 yrs
2. Premium Payment Option
Monthly, ¼ ly, ½ly, yearly
Monthly, ¼ ly, ½ ly, yearly
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 cover’s 10 major illness (specified in leaflet) in additional benefits.
•
Bonus is compounded in both the companies.
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Page 96
Comparative study of Insurance Plans of various Companies ”
REWARDING LIFE / NITYA SHREE
(Whole of life plan)
Benefits ING VYSYA
AMP SANMAR
1. Survival benefits •
Life
is
insured
1. Survival Benefits even
premium-paying
after
•
term
is
insured
even
after
premium-paying term concludes
concludes [PPT] •
Life [PPT]
It helps to get reversionary
•
bonus. (Which could be 10
Vested bonus is added to sum assured.
times sum assured). 2. Death Benefits •
2. Death Benefits
The total sum assured +
•
bonus is given. •
The
additional
The total sum assured + bonus is given
bonus
is
•
given at maturity an early
Additional bonus is given on the death or at maturity.
death.
Additional benefits ING VYSYA 1. Rider Benefits
AMP SANMAR 1. Rider Benefits
•
Term Rider
•
Critical condition.
•
Accident death rider
•
Accident cover.
•
Disability & dismemberment
•
Disability benefit
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Page 97
Comparative study of Insurance Plans of various Companies ” rider & waiver of premium.
2. Loan benefit
2. Loan benefit
3. Tax Benefit
3. Tax Benefit 4. Look – in – period
Product Features
ING VYSYA
AMP SANMAR
1. Eligibility
2. Premium Payment Term
Min
12 yrs
Min
20 yrs
Max
50 yrs
Max
60 yrs
15, 20 or 25 yrs
5 – 40 yrs
(Based open the age) 3. Life coverage term
85 yrs
85 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.
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Page 98
Comparative study of Insurance Plans of various Companies ” BEST YEARS / BHAGYASHREE
(Pension plan)
Benefits ING VYSYA •
AMP SANMAR •
On the attaining of chosen vesting date, upto 1/3 of the
Offers you the choice of life cover.
•
benefit amount can be withdrawn
You
have
the
flexibility
to
and it is tax-free. The balance
choose this option at any time
amount
during the pendency of the policy
will
be
utilized
to
purchase an annuity. •
but before the vesting date.
In the case of death during
•
the term, your spouse will have
You have a flexibility in options when you choose the life cover
the following option
(i)
(iii) To defer the purchase of
(ii) Decreasing risk cover
annuity if the age of the
•
spouse is < 45 years.
You have choice in investment also
(iv) To encash upto 5% or
(i)
(such % as decided by the
(20% equities)
O/S each year
•
You will also have “switch option”
upto the age of 45 years
•
One switch every year is force of
and then apply the balance if
any
at
age
45
to
cost. •
purchase annuity. •
the benefit amount will be paid
•
choose
the
Babasabpatilfreepptmba.com
option
to
add
on
regular
You also have the exit option from Capital secure fund option and
You have the flexibility like To
have
benefit with the extra nominal cost.
in lumpsum to the nominee.
You
accidental death and disablement
In case there is no spouse,
•
Capital secure fund
(ii) Balanced fund
company) of the benefit amount
Fixed risk cover
balanced fund option. •
In case of total and permanent Page 99
Comparative study of Insurance Plans of various Companies ” disability, 1/10 th of the accidental
contribution
Time
and
additional
sum assured will be paid at the end
contribution
To
of each year for 10 years.
invest
additional
•
Flexibility in choosing the annuity
contribution
To
provider
take
contribution
(i) Whole life
holiday
To
(ii) 5/10/15 years
start
the
pension
whenever you wish min
(iii) Death of the annuitant •
vesting age as 5 yrs.
To
postpone
retirement
date
AMP SANMAR will provide you with a statement of A/c. at the end
your
of every policy year, showing your
option
contribution, expense charges and
available one once.
interest
on
your
accumulated
balances.
Product Features ING VYSYA Eligibility
AMP SANMAR
Min
18 years
18 years
Max
65 years
65 years
Min
45 years
45 years
Max
70 years
70 years
Additional charges
10%
10%
Subsequent contribution
3%
5%
Resting age Applicable Charges
Management Charges Annual Mgmt. Fees (p.a) Up to
50,000
2.5%
50,001 – 75,000
2%
75,001 – 1, 00,000
1.75%
Above
1.5%
1,00,000
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Investment charges Capital Secure fund Min 1.5%
Max
2%
Balanced fund Min 1.5%
Max 2% Page 100
Comparative study of Insurance Plans of various Companies ” 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.
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Page 101
Comparative study of Insurance Plans of various Companies ”
COMPARISON OF SBI LIFE & ING VYSYA CREATING LIFE / SCHOLAR
(Child plan)
Benefits SBI LIFE
ING VYSYA •
•
• Survival / maturity benefits
Survival / maturity benefits The sum assured + accumulated
The sum assured will be paid in 4
compound reversionary bonus +
equal installments when the child
final additional bonus
attains 18 years of age or a
(If the company performance is
lumpsum.
good)
includes additional vested bonus.
Child
will
installment
• Death benefits
Death benefits
Last
receive
sum
Child
will +
receive
assured immediately.
assured
vested
Policy continues even after
immediately after death.
sum bonus
the sum assured on death is
Waiver of premium is in built
paid.
Additional
another
Waiver of premium is in built
assured
Child will be eligible for one
maturity of the policy.
will
be
paid
sum on
more S/A + Bonus until the end of the term.
Additional benefits ING VYSYA •
Rider Benefit Term rider, accident death rider,
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SBI Life • Rider Benefit Term rider, accident death rider, Page 102
Comparative study of Insurance Plans of various Companies ” accidental death, disability and
accidental death, disability and
dismemberment rider and waiver
dismemberment rider and waiver
of premium rider
of premium rider
•
Loan benefit
•
Maturity benefit
• Maturity benefit a
Child can either receive a lumpsum
lumpsum or receive the amount
or receive 4 equal installment after
in 3 or 5 equal installment after
his attainment of 18 years
Child
can
either
receive
the maturity date
• Tax benefits
•
Tax benefits
• Lock-in-period of 30 days
•
Lock-in-period of 15 days
Product Features
ING VYSYA Eligibility
SBI Life
Min
18 yrs
18 yrs
Max
55 yrs
55 yrs
Max maturity age Premium Payment Term
65 yrs 10-25 yrs
Premium Payment Option Yrly, 1/2, 1/4 mthly
65 yrs 5-25 yrs Yrly, 1/2, 1/4 mthly
CONCLUSION : •
Loan benefit is not provided in SBI life, were as in ING VYSYA upto 90% of sum assured is given, provided if the customer pay the premium for min of 3 years.
•
All the other benefits in the policy of both the Company’s are similar.
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Page 103
Comparative study of Insurance Plans of various Companies ”
REASSURING LIFE / SUDARSHAN
(Endowment plan)
Benefits ING VYSYA •
•
SBI Life •
Survival benefits A large financial asset for you
A large sum of money at the time
and your beneficiaries once the
of
policy matures.
customer.
maturity
is
paid
to
the
Death benefits Beneficiary
will
assured
+
receive
sum
•
accumulated
Death benefits The beneficiary will get in 10
reversionary bonus in whole. •
Survival benefits
equal installments for 10 years.
Cash bonus An annual cash bonus will be
•
Cash bonus
paid which may be received
Cash bonus is added back to sum
based upon the performance of
assured. Thus increase in total
the company.
accumulation
You have the option to
sum
assured
+
Bonus every year.
accumulate it, withdraw it or adjust it against payment of future premiums.
Additional benefits ING VYSYA Babasabpatilfreepptmba.com
SBI Life Page 104
Comparative study of Insurance Plans of various Companies ” •
• Rider Benefit
Rider Benefit Term rider, accident death rider,
Term rider, accidental death and
accidental death, disability and
total permanent disability cover.
dismemberment rider and waiver
• Critical illness covers six major
of premium rider
illnesses
•
Loan benefit
• Tax benefits V/S 88
•
Tax benefit
• Lock in period of 30 days
•
Lock in period of 15 days
Product Features ING VYSYA Eligibility
Min
12 yrs
12 yrs
Max
55 yrs
60 yrs
Max maturity age
65 yrs
Premium Payment Term Life Coverage Term
SBI Life
10-30 yrs
Same as the premium Payment term
Premium Payment Option Yrly, 1/2, 1/4 mthly
70 yrs 5-30 yrs same as the premium payment term Yrly, 1/2, 1/4 mthly
CONCLUSION : •
SBI life is covering critical illness in additional benefits with extra nominal cost. Were, as ING VYSYA is not covering any critical illness in additional benefits.
•
SBI life is not providing any loan on the policy Were as ING VYSYA is providing 90% of loan to almost all the policies.
Babasabpatilfreepptmba.com
Page 105
Comparative study of Insurance Plans of various Companies ” •
Lock-in-period is 30 days in SBI life were as there is 15 days in ING VYSYA.
•
Cash bonus is only accumulated in SBI life. Were as ING VYSYA has the option to choose as withdraws annually, adjust it to future premium or accumulate it.
•
SBI life is providing 5 years more coverage and 5 years more premium payment term in SBI life.
BEST YEARS PLAN / LIFE LONG PENSION (Retirement plan) Benefits ING VYSYA •
SBI Life
On the attaining of chosen Guaranteed Return vesting date, upto 1/3 of the
Policy guarantees you a min
benefits
Of 4.5% per annum (compounded
amount
can
be
withdrawn and it is tax-free.
annually upto 31 st March 2010)
The balance amount will be
• In addition you will be entitled
utilized to purchase an annuity.
for bonus declared by SBI life
In the case of death during
every year based on the net
the term, your spouse will have
surplus from the pension fund
the following option
investments.
•
(v)
To defer the purchase of Computer flexibility annuity if the age of the
• This policy leaves you option to
spouse is < 45 years.
target saving amount that you
(vi) To encash upto 5% or
would expect to accumulate at
(such % as decided by the
the age of at which you would
company) of the benefit
draw the pension.
amount
O/S each year
Then the periodical contribution
upto the age of 45 years
amount that is to be made to
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Page 106
Comparative study of Insurance Plans of various Companies ” and then apply the balance
reach
if
indicated to the customer.
any
at
age
45
to
In case there is no nominee, the benefit amount will be paid in lumpsum to the nominee.
•
You have the flexibility like
To
choose
the
regular
contribution
Time
and
To
additional
To
invest take
additional
To
contribution
Choice of Pension Payment • You have the option to use amount
from
your
personal
(i) Withdraw upto 33% of the sum
for
your
immediate cash needs. the
remaining
amount with a view to seeking annuity payment benefit from
start
the
pension
whenever you wish [A min
• Free to increase the contribution.
(ii) Withdraw
holiday
is
convenient frequency.
accumulated
contribution
sum
pension A/c.
contribution
targeted
• To pay the contribution at any
purchase annuity. •
the
any other insurance company. (iii) Ask
to
vesting age is for 5 years].
amount
To
price)
postpone
retirement
date
available only once.
your option
utilize
the
balance
(Annuity to
purchase
draw
pension
payments from SBI life under one of several choices. (a) Fixed, annuity amount as long as you live. (b) Increase the life amount as that provides progressively higher pension by 3% every year to keep up with the increasing cost of living. (c) Fixed annuity amount for a minimum guaranteed period
Babasabpatilfreepptmba.com
Page 107
Comparative study of Insurance Plans of various Companies â&#x20AC;? of 5, 10 or 15 years and there
after
would
the
nominee
receive
remaining
for
the
guaranteed
period. The annuity could be payable yearly, 1/2, 1/4, monthly as you wish.
Product Features
ING VYSYA
SBI
Life Eligibility Vesting age
Min
18 yrs
18 yrs
Max
65 yrs
65 yrs
Min
45 yrs
52yrs
Max
70 yrs
72yrs
Applicable Charges Additional charges
10%
Subsequent contribution
3%
Min Contribution first time
5,000
3,000
Subsequent Contributions
2,000
3,000
Lock-in-period
15 days
30 days
CONCLUSION :
Babasabpatilfreepptmba.com
Page 108
Comparative study of Insurance Plans of various Companies ” •
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].
SIMILAR PLANS OF DIFFERENT COMPANIES ING VYSYA
ICICI
LIFE
PRUDENTIAL
INSURANCE Creating life
Smart kids
SBI LIFE
AMP SANMAR
Scholarship
Yuva Shree
Child Cash Back
Money
Young
Dhana Shree
sanjeevini
Asha Deep
Critical
illness Reassuring
Money Back Plan
Back Plan Conquering life
Jeevan Kishore
Protection Plan Maximizing life
LIC
Plan Cash Plus
Sudarshan
Subha Shree
life
Endowment Plan
Endowment plan Best
years
Pension plan
Retirement
Life Long
Solutions
Pension
Babasabpatilfreepptmba.com
Bhagya Shree
Jeevan Suraksha Page 109
Comparative study of Insurance Plans of various Companies â&#x20AC;? Rewarding
Life Time
Nitya Shree
Life Whole of Life Plan
SIMILAR POLICIES AND THERE TERM OF DIFFERENT COMPANIES Term plans Insurer
Policy
Entry age
Policy term
Annual
AMP
Raksha shree
30-55yrs
5-20yrs
premium (Rs) 2,600
SANMAR ICICI
Life guard
18-50yrs
5-25yrs
8,340
PRUDENTIAL ING VYSYA
Conquering
18-50yrs
10-25yrs
3,475
LIC
life Convertible
20-50yrs
5-7yrs
4,771
term assurance plan SBI LIFE Swadhan 18-55yrs 5-10yrs 13,815 For 30 years old healthy male, for sum of Rs 10 lakhs, term of 20 years.
Whole of life Insurer AMP
Policy Nitya Shree
Babasabpatilfreepptmba.com
Entry age
Payment
20-60yrs
period 5- 40 yrs
Premium (Rs)
Page 110
Comparative study of Insurance Plans of various Companies â&#x20AC;? SANMAR ICICI
Life time
0-60yrs
PRUDENTIAL ING VYSYA
Rewarding
12-50yrs
15,000 (min 15, 20, 24
life Whole of life
contribution) 18,103
yrs 30yrs
LIC 18-60yrs 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
Annual
term
premium
AMP
Subha shree
12-65yrs
10-40yrs
(Rs) 37,625
SANMAR ICICI
Save and protect
0-60yrs
10-30yrs
22,833
PRUDENTIAL ING VYSYA
Reassuring life
12-55yrs
10-30yrs
22,171
10-30yrs
22,778
5-55yrs
23,977
(Cash bonus) Reassuring life LIC
(Reversionary bonus) Endowment plan (with
12-55yrs 12-65yrs
profit) SBI LIFE Sudarshan 12-65yrs 5-30yrs For 30 years old male, for the sum assured of Rs 5 lakhs term 20 years.
20,208
Child plan Insurer
Policy
Entry age
Policy term
Annual
AMP
Yuva shree
(p) 20-60yrs
5-60yrs
premium (Rs) 28,100
SANMAR ICICI
Smarts kids
(p) 20-60yrs
10-25yrs
27,271
PRUDENTIAL ING VYSYA
Creating life
(c) 0-15 (p) 18-55yrs
10-25yrs
23,655
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Page 111
Comparative study of Insurance Plans of various Companies â&#x20AC;? LIC SBI LIFE
Jeevan kishore
(p) 20-60yrs
15-35yrs
18,270
Scholar
(c) 1-12yrs (p) 20-60yrs
6-21yrs
39,200
(c) 0-15yrs For 30 years old parent, for sum assured of Rs 5 lakhs ands 20 years term
Money back Insurer
Policy
Entry age
Policy term
Annual
AMP
Dhana shree
30-55yrs
19
premium (Rs) 36,200
SANMAR ICICI
Cash back
16-55yrs
15yrs, 20 yrs
33,099
PRUDENTIAL ING VYSYA
Maximizing
12-49yrs
16yrs, 20yrs,
29,293
LIC SBI LIFE
life Money back Young
13-50yrs 25-60yrs
24yrs 20yrs 10yrs
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
Policy
Entry
Vesting
Minimum
Tax treatment
age 18-65yrs
age 45-70yrs
contribution 10,000
40% tax free at
50-70yrs
vesting 12,000 (with 20% tax free at
AMP
Bhagya
SANMAR ICICI
shree Forever life 18-60yrs
PRUDENTIAL
out unit link) Life link
18-62yrs
50-70yrs
vesting
18,000 (with 20% tax free at out unit link)
vesting
Life time
18-60yrs
50-70yrs
18,000 (with 20% tax free at out unit link)
vesting
ING VYSYA
Best years
18-65yrs
45-70yrs
5,000
30% tax free at
LIC
Jeevan
18-65yrs
50-79yrs
33,000
vesting
Babasabpatilfreepptmba.com
Treated as net Page 112
Comparative study of Insurance Plans of various Companies â&#x20AC;?
SBI LIFE
suraksha
income
Life
is taxable 20% tax free at
long 18-65yrs
50-7-yrs
3,000
pension
which
vesting
BONUS DECLARED BY ING VYSYA LIFE INSURANCE FOR 2003-04 Products Powering life Limited
Type of bonus Simple Reversionary bonus
Percentage (%) 7.50
Endowment plan Fulfilling life Anticipated
paid on sum assured Simple Reversionary bonus
6.50
Whole of Life paid on sum assured Reassuring life Endowment Cash bonus paid on
5.75
Plan with cash bonus Maximizing life Money
premiums Cash bonus paid on
5.65
Back Plan Rewarding life Whole of
premiums Compound Reversionary
4.00
Life Plan Bonus paid on sum assured Reassuring life Endowment Compound Reversionary Plan with reversionary
Bonus paid on sum assured
bonus Creating life Child Plan
Compound Reversionary
2.00
2.00
Bonus paid on sum assured
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Comparative study of Insurance Plans of various Companies ”
Findings There are no much changes in the plans, but there is very
variation in
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. ING VYSYA has covered 10-15 years more coverage than compared to other companies in some of the policies. Premium of ING VYSYA is less compare to other companies except LIC. ING VYSYA has not covered critical illnesses in all the plans , but have the specific plan as conquering life critical illnesses plan.
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Comparative study of Insurance Plans of various Companies â&#x20AC;?
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. Segment the market like, private company employees, government employees, business people, farmers, etc and allot the each group one segment to market the products, so that there will be specific target customers. Come up with the policy, which covers both the life of husband as well as wife. And if possible whole of family plan.
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Comparative study of Insurance Plans of various Companies â&#x20AC;?
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