20 zijbemr march12 vol2 issue3

ZENITH International Journal of Business Economics & Management Research Vol.2 Issue 3, March 2012, ISSN 2249 8826

Online available at http://zenithresearch.org.in/

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FINANCIAL PERFORMANCE OF LIFE INSURANCE COMPANIES

AND PRUDUCTS

V.NEELAVENI*

*Lecturer,

School of commerce and management,

Dravidian university, kuppam.

ABSTRACT

Future is associated with uncertainty. Uncertainty is a universal risk for the mankind. Such

type of risk is to be controlled or avoided or financed by everybody. Many types of risk

management techniques are there. Insurance is one of the best risk financing techniques.

With reforms of regulations and opening up of the insurance sector to the private

management in the year 1999, it can be seen the tough competition in the insurance industry.

The number of General insurance and Life insurance companies have been increasing in the

21st century. The ultimate person is an investor or customer, who has to get the update

information, observe keenly the performance of the companies and their attractive products.

The evaluation of financial performance of the life insurance companies is essentially needed

to select a best life insurance policy. Five life insurance companies are randomly selected at

the time of 2002-03 and evaluated its performance in this endeavor.

___________________________________________________________________________

INTRODUCTION

The article presents a brief profile of the companies that have been selected as sample units.

The companies that are covered: LIC, ICICI Prudential Life Insurance Company Limited,

Bajaj Allianz Life Insurance Company Limited, Birla Sunlife Insurance Company Limited

and ING Vysya Life Insurance Company Private Limited.

1. LIFE INSURANCE CORPORATION OF INDIA

The symbol of Life Insurance Corporation of India (LIC) gives the message of protection to

light the lamps of security in as many homes as possible and to help the people in providing

protection to their families.1 The LIC was established in the year 1956 with following main

objectives.

1. Meeting the various life insurance needs of the community that would arise in the changing social and economic environment.

2. Spreading life Insurance widely, particularly to the rural areas and to the socially and economically backward classes with a view to reaching all insurable persons in the country

and providing them adequate financial cover against death at a reasonable cost.

3. Maximizing mobilization of peoples savings through insurance.

4. Providing good returns to the policyholders (insureds) by investing in attractive securities.

1 Tryst with Trust, the LIC Story, PR& publicity, Yogakshema, (Bombay; 1991), Pp.45-46.



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5. Acting as trustee of the insured public in their individual and collective capacities.

6. The vision of the Corporation is "a trans-nationally competitive financial conglomerate of significance to societies and pride of India". The mission of the Corporation is that to explore

and enhance the quality of life of people through financial security by providing products and

services of aspired attributes with competitive return, and by rendering resources for

economic development.

The enforcement of New Economic Reforms in 1991 coupled with the formation of

Insurance Regulatory and Development Authority Act (IRDA) of 2000 (which started issuing

licenses to private life insurers) has diluted the monopoly position of the LIC. Inspite of 22

new players from the private sector, LIC continues to dominate the business with its

widespread activities. Large number of agents numbering over a million and the variety of

products introduced. At the end of August 2008, LIC accounted for about 60 per cent of total

premium underwritten by the life insurance sector. LIC has played a significant role in

spreading life insurance and mobilization of peoples money for peoples welfare. The

market share as at 30.06.2009 is 62.45% in premium and 69.88% in policies. During the

fiscal year of 2008-09 the LIC has 3.58 crores policies and sum assured of Rs.3, 90,053

crores. In the year 2008-09, LIC settled over 149 lakh claims for an amount of Rs.37, 893

crores in individual life insurance business. Out of total maturity claims settled over 97%

were settled on or before the date of maturity and over 93% of the total non early death

claims were settled within 20 days of intimation.

The LIC has subsidiary companies such as LIC Nepal, LIC Sri Lanka and Life Insurance

Corporation of India International. LIC International is a joint venture offshore company

promoted by LIC which commenced its operations in July, 1989 with the objective of

offering policies denominated in US $ to NRIs residing in the Gulf. LIC Nepal was formed in

2001 in joint venture with Vishal Group of Industries, Nepal. LIC Lanka was formed in

2003 in joint venture with Bartleet Group of Companies. Sri Lanka LIC Housing Finance

was established on 19 June, 1989 in Dubai with the objective of providing long term finance

for construction of houses or apartments. LIC Housing Finance Limited Care Homes, a

wholly owned subsidiary of LIC Housing Finance Corporation builds assisted community

living centers for senior citizens.

The LIC has been functioning with head office located at Mumbai, 8 zonal offices and 105

divisional offices in India. It has at least 2048 branches located in different cities and towns

of India along with satellite offices attached to about 807 branches, 114916 employees and

have a network of around 1.3 million agents by June 2009. LICs ECS and ATM premium

payment facility is an addition to customer convenience. With a vision of providing easy

access to its policyholders, LIC has launched its SATELLITE SAMPARK offices. The

satellite offices are smaller, leaner and closer to the customer. The digitalized records of the

offices will facilitate anywhere servicing and many other conveniences in the future. Existing

as a towering insurance company over 53 years, LIC has acquired almost monopoly power in

sale of life insurance policies in India. LIC has extended its activities in 12 countries other

than India with the objective of catering to the insurance needs of Non Resident Indians.

The organizational chart of LIC can be framed as below.



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TABLE: 1

COMPOUND ANNUAL GROWTH RATE (%)

Variables from Financial Statements CAGR (%) of LIC

Share Capital 0.00

Fixed Assets 16.64

Current Assets 09.63

Cash and Bank Balances 5.37

Current Liabilities 24.44

Net Working Capital 3.79

Policy Liabilities 17.41

Total Income 20.51

Premium Income 19.13

Income from Investments 23.24

105 DIVISIONAL OFFICES

8 ZONAL OFFICES

Bhopal, Chennai,

Hyderabad, Kanpur,

Kolkata, New Delhi,

Patna

CENTRAL OFFICE

MUMBAI

2048 BRANCH OFFICES

807 SATELLITE OFFICES

FOREIGN OFFICES

United Kingdom, Mauritius, Fiji



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Other Income (03.90)

Profit Before Tax 11.44

Insurance Benefits delivered 21.26

Commission Paid 16.34

Operating Expenses 15.09

FIGURE: 1

Table: 1 shows that the Compound Annual Growth Rates of several variables of the LIC. The

CAGR of fixed assets of LIC is 16.64%. The growth rate of current liabilities is recorded as

highest (24.44). The growth rate of Income from investments and Insurance benefits are

considered as good. And the corporations other income is showing negative growth rate.

The corporation has issued number of insurance products in order to satisfy the customer

needs and requirements. Some of these products are discussed in the following lines.

JEEVAN NISCHAY

LICs Jeevan Nischay is a single premium, guaranteed return and closed ended plan

designed for giving financial protection to the policyholders. The plan is sold only for

existing customers. The eligibility age to enter into the policy is from 18 years to 50 years.

The range of sum assured is Rs. 10,000 Rs. 10, 00,000. The policy terms are available in

terms of 5, 7 and 10 years. There will be higher maturity incentive for the policyholder who

will pay premium amount is Rs. 25,000 or more. There will be loan facility after completion

of one year. It can be surrendered after one year of commencement of the policy. Death

benefit is five times the single premium during the first policy year, after that it is equal to

sum assured. Maturity benefit is sum assured plus loyalty additions.

-5

0

5

10

15

20

25

CAGR (%) of LIC

Share Capital

Fixed Assets

Current Assets

Cash and Bank Balances

Current Liabilities

Net Working Capital

Policy Liabilities

Total Income

Premium Income

Income from Investments

Other Income

Profit Before Tax

Insurance Benefits delivered

Commission Paid

Operating Expenses



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NEW BIMA GOLD

New Bima Gold is a special plan, where premiums paid over the term of plan is paid

back during the policy term in installments and life insurance cover is available not only

during the term but also during the extended term of the plan. Eligibility age to enter into

plan starts from 14 years to 57 years. The maximum maturity age is 75 years. The policy is

available in terms of 12, 16 and 20 years. The range of sum assured is Rs. 50,000 to

unlimited. The sum assured is in multiples of Rs. 5000. 15% of sum assured paid as survival

benefit for every four years. Death benefit is an amount equal to sum assured under the basic

plan on death of the life assured during the policy term provided the life cover is in force.

Payment of an amount equal to 50% of sum assured under the basic plan on death of the life

assured during the extended term provided all the premiums under the policy have been paid.

The extended term shall be half of the policy term after the expiry of the policy term. There

will be loan facility, surrender value and guaranteed surrender value. In addition accidental

death and disability benefits, optional rider benefits and paid up value are available in this

policy.

CONVERTIBLE TERM ASSURANCE POLICY

The Convertible Term Assurance Policy is designed to meet the needs of investors

who are initially unable to pay the larger premium required for a whole life or endowment

assurance policy, but they have hope to pay for such a policy in the near future. The

policyholders have an option of converting a policy into endowment assurance or limited

payment whole life assurance. The range of sum assured amount is Rs.50, 000 1, 00,

00,000. The term of the policy is 5 to 7 years. Premium can be paid yearly, half-yearly,

quarterly and monthly up to maximum of 55 years old of insured. The survival benefit is not

applicable and the sum assured is payable only in the event of death of the life assured before

the expiry of the specified term.

TWO - YEAR TEMPORARY ASSURANCE POLICY

The Two year Temporary Assurance Policy is designed for people who specially

require insurance cover against risk for a short period like two years. It is without profit plan.

The premium can be paid at once. There is no survival benefit, surrender value and loan

availability. The eligibility age to enter into the policy starts from 18 years to 60 years. Sum

assured amount is from Rs. 50,000 to 1, 00,000. Death benefit is total sum assured amount.

THE ENDOWMENT ASSURANCE POLICY

The Endowment Assurance Policy is suitable for people of all ages and social groups

who wish to protect their families from a financial distress. It is saving oriented plan. The

main features of this policy are moderate premiums, more bonuses and high liquidity. The

eligibility age to subscribe the policy is in between of 12 - 65 years. The sum assured amount

starts from Rs. 50,000 to unlimited. The term of the policy starts from 5 years to 55 years.

The premiums are paid annually, half-yearly, quarterly and monthly. The sum assured is paid

only at the end of the policy term or death of the policyholder whichever is earlier. Loan

facility is available for the policy. The disability benefit is available in respect of the Rs.20,

000 sum assured on any ones life. Accident benefit can be availed by the insured on

payment of extra premium of Rs. 1 per Rs. 1000 sum assured per year.



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JEEVAN ANAND

Jeevan Anand is a combination of endowment and whole life plans. It provides

financial protection against death throughout the lifetime of the life assured with the

provision of payment of lump sum at the end of the selected term of his/her survival.

Premiums can be paid monthly, quarterly, half-yearly and yearly. As it is with-profits plan,

the policyholder can participate in the profits of the corporation in the form of bonus. Simple

reversionary bonuses declare per thousand sum assured annually at the end of each financial

year. Additional bonuses are also paid for certain minimum period. Survival benefit of the

plan is sum assured and vested bonuses at the end of the term. Death benefit is sum assured

amount plus all declared bonuses. Accident benefit is sum assured amount up to Rs. 5 lacs.

Extra benefits can be opted by the insured on extra premiums. The facility of surrender value

is available. The guaranteed surrender value is paid after paying 3 years or more premiums

and the value is 30% of the basic premium excluding first years premium.

WHOLE LIFE POLICY

Whole life policy is suitable for people of all ages who wish to protect their families

from financial crisis. The premium is payable lump sum called as single premium. The

premiums are paid yearly, half yearly, quarterly and monthly. The policy will be chosen in

between of 35 years and 80 years. The policy is with profit plan and the profit will be

distributed to policyholders in the form of bonus. Simple reversionary bonuses are declared

per thousand sum assured annually at the end of each financial year. Additional bonus is also

paid for certain minimum period. The sum assured plus bonuses paid in a lump sum upon the

death of the life assured. As it does not have a maturity date, an option is to take the sum

assured plus all bonuses at any time after 40 years from the date of commencement of the

policy. Optional benefits can be added to basic plan for extra protection at cost of additional

premium. Surrender value is available. On earlier termination of the plan, the guaranteed

surrender value is 30% of the basic premiums paid excluding the first years premium. The

value is 90% in case of a single premium policy.

JEEVAN NIDHI

Jeevan Nidhi is with - profit and deferred annuity plan. The amount of sum assured,

guaranteed additions and bonuses is used to generate a pension for the policyholder. The age

of eligibility to enter into the policy starts from 18 years to 65 years. The terms of policy are

6 - 35 years for single premium policies and 5 - 35 years for regular premium policies.

Premiums are paid yearly, half-yearly, quarterly and monthly. The minimum sum assured

amount is Rs. 50,000. Minimum annual premium is Rs. 3000 and single premium is Rs.

10,000. The annuity is paid to the life assured as long as insured alive. The annuity increases

every year at a simple interest rate of 3% per annum. The annuity is paid to the life assured

for periods of 5 or 10 or 15 or 20 years as chosen by insured. The purchase price of the

annuity is paid as death benefit. Loan facility is not available in this policy. The maximum

sum assured under the basic plan subject to a limit of Rs. 5, 00,000 taking all critical illness

riders. Rebate of 2% on yearly premium and 1% on half yearly premium can be availed by

the insured. In case of death due to any accidents the sum assured will be paid as accident

benefit. Sum assured will be paid over a period of 10 years in monthly installments. Term

assurance and critical illness rider are as optional riders. Critical illness rider will be payable

in case of diagnosis of defined categories of critical illness subject to certain terms and

conditions. The policyholder can revive his/her lapsed policy by paying arrears of premium



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together with interest rate within a period of five years from the date of unpaid premium. The

interest rate is 9% charged. Grace period of 30 days will be available for payment of

premium which can be paid yearly, half- yearly or quarterly. The policyholder can return the

policy to the corporation within 15 days, if he / she is not satisfied.

JEEVAN KISHORE

The plan is an endowment assurance plan available for children who have less than 12 years

of age. The policy can be purchased by any parent or grandparent. There will be risk

coverage either after two years from the date of commencement of the policy or from the

immediate policy anniversary, following the completion of 7 years age of child whichever is

later. Premiums are paid monthly, quarterly, half-yearly and yearly. It is with-profits plan and

policyholder can get the participation in the profits of the corporation in the form of bonus.

Simple reversionary bonus paid per Rs. 1000 sum assured annually at the end of each

financial year. Final bonus may also be paid for certain minimum period. Maturity benefits

are sum assured and bonuses are paid at the end of policy term. Death benefits of sum

assured and bonuses on death of the life assured. Premium waiver benefit is available on

death of proposer. Surrender value is available and guaranteed surrendered value is after

completion of 3 or more policy years.

THE MONEY BACK POLICY

The money back assurance plan that provides financial protection against death throughout

the term of plan along with the periodic payments on survival at specified durations during

the term. Survival benefits are payable only at the end of the endowment period. In the event

of death at any time within the policy term, the death claim comprises full sum assured

benefit is payable. Premiums are payable yearly, half- yearly, quarterly and monthly or

through salary deductions as opted by insured. As it is with - profit plan, policyholders get

profits in the form of bonuses. Simple reversionary bonuses will be declared per thousand

sum assured annually at the end of each financial year. Additional bonuses are also paid for

certain minimum period. Survival benefits are paid certain percentage of sum assured at the

end of the specific duration. The sum assured and bonuses are payable in a lump sum upon

the death of the life assured during the policy term irrespective of the survival benefits paid

earlier. There are optional benefits that can be added to the basic plan for extra protection for

consideration of paying additional premium. As it is long-term policy, surrender values are

available on earlier termination of the policy.

BIMA BACHAT

Bima Bachat is one of the money back policies. It offers financial security and assurance to

the policyholder and his/her family. Policyholder is required to pay only one premium, which

depends on the duration of the policy taken and life insurance available till the date of

maturity. Eligibility age to enter in to the policy starts from 15 years to 66 years and

maximum maturity age is 75 years. There are terms to choose among 9, 13 and 15 years.

Sum assured starts from Rs. 20,000. The policyholder will receive 15% of the sum assured at

the end of every 3rd

and 6th

policy year and so on. The policy is having surrender value and

loan facility. The guaranteed surrender value is available only after completion of premium

paid at least one policy year, the value is equal to 90% of the single premium paid.



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2. ICICI PRUDENTIAL LIFE INSURANCE COMPANY LIMITED

Industrial Credit and Investment Corporation of India (ICICI) was established in 1955 with

the objective of extending financial assistance for industrial development.2 Later, it became a

group company. The ICICI Group offers a wide range of banking products and affiliates in

the areas of personal banking, investment banking, life and general insurance, venture capital

and asset management. The ICICI Group entered in the field of banking as ICICI Bank, in

the field of life insurance business as ICICI Prudential Life Insurance Company, in the field

of general insurance business as ICICI Lombard General Insurance business, in the field of

non-banking business as ICICI Securities Limited, in the field of dealer of government

securities as ICICI Securities Primary Dealership Limited, in the field of mutual funds as

ICICI Prudential Asset Management and in the field of equity organizations as ICICI

Venture.

ICICI Bank was set up in 1994 and developed as the largest private sector bank in India, and

it is the largest issuer of credit cards in India.3 It was the first bank to offer a wide network of

ATMs. The ICICI Bank is also a pioneer in providing banking products and financial

services to corporate and retail customers. The products of the bank are loans, credit cards,

savings, investment for vehicles, insurance etc. The value of total assets of the bank is $

120.61 billion as on 31march 2009. The ICICI Bank currently has subsidiaries in the United

Kingdom, Russia and Canada, branches in United States, Singapore, Bahrain, Hong Kong,

Sri Lanka, Qatar, Dubai, International Finance Centers, and representative offices in United

Arab Emirates, China, South Africa, Bangladesh, Thailand, Malaysia and Indonesia. And its

UK subsidiary has established branches in Belgium and Germany. ICICI Bank's equity

shares are listed on Bombay Stock Exchange and the National Stock Exchange of India

Limited and its American Depositary Receipts (ADRs) are listed on the New York Stock

Exchange (NYSE).

The ICICI and Prudential Plc came together and established ICICI Prudential Life Insurance

Company Limited. Prudential Plc is a United Kingdom-based financial services company

founded on 30 May 1848 in Hatton Garden in London as the Prudential Mutual Assurance

Investment and Loan Association to provide loans for professionals and working people.4 In

1854, the company began selling the relatively new concept of industrial branch insurance

policies to the working class population for low premiums through agents who operate as

door to door salesmen. It was converted into a limited company in 1881. The company was

first listed on the London Stock Exchange in 1924.The company has over 21 million

customers worldwide. It has operations in 12 countries in Asia associate with UK. It founded

the Egg internet bank, which was sold to Citigroup in 2007.

The ICICI and Prudential have shares of 74% and 26% resepectively in ICICI Prudential Life

Insurance Company. The company started its business in December 2000. It has tied up with

ICICI bank, Bank of India, Federal Bank, Lord Krishna Bank, and some of co-operative

banks, NGOs, MFIs and other corporations. Currently, the company has 2000 branches more

than 274,500 advisors and 20 bancassurance partners all over India. The ICICI Prudential

was the first company to receive the rating of AAA from Fitch ratings.

2 3 4



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The vision of the company is to be the dominant life, health and pensions player built on

trust. Values of the company are integrity, customer oriented, boundary less, ownership, and

passion. Understanding the needs of customers and offering them superior products and

services, leveraging technology to service customers quickly, developing and implementing

superior risk management and investment strategies to offer sustainable and stable returns to

policyholders, providing an enabling environment to foster growth and learning for

employees and building transparency in all dealings are the main goals of the company.

As on 31 December 2006 it captured over 360 cities or towns in India. The company

recorded a total new business premium of Rs. 51.6 billion during fiscal year of 2007 as

compared to Rs.26.0 billion during fiscal year of 2006, thereby growth of 98.4% observed.

As per the information of 14 June 2007, among all private players, ICICI Prudential topped

by rising with its premium income of 84.5 per cent is equal to Rs 271 crore and had 9.08 per

cent of the market share. The company completed eight full years of operations, during this

period it sold over seven million policies and acquired assets of worth Rs. 28,000 crore. It

sustained its leadership position with an overall market share of 11.8 per cent. For the year

ended 31 March 2008, it wrote nearly 3 million policies and it has a network of 1,956 offices,

2,91,000 advisors, as well as 21 bank partners. The ICICI Prudential has undertaken and

offered unique programme, Pragati Ki Anokhi Paathsaala (PKAP) for the rural children of

India. PKAP aims to bring out the inherent creative skills amongst children and expose them

to the unique and thought provoking learning methods. The ICICI Prudential Life is the only

life insurance company in India providing local language sales literature and customer

support. As on 31 March 2009, the company offered customer support in ten languages

including Hindi, Punjabi, Gujarati, Telugu, Malayalam, Kannada, Tamil, Bengali and

Marathi in addition to English. ICICI Prudential Life has also partnered with e-governance

kiosks in Andhra Pradesh - aponline.com and Rajasthan - emitra.com, to enable consumers

renew their policies in their kiosks.

TABLE: 2


Variables from Financial Statements CAGR (%) of ICICI

Share Capital 18.9

Fixed Assets 30.25


Cash and Bank Balances 38




Total Income 86.4



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Other Income 17.06

Profit Before Tax -209.65




FIGURE: 2


CAGR of fixed assets of LIC is 30.25%. The growth rate of commission paid is recorded as

highest (49.3%). The growth rate of Income from investments is considered as good. And the

corporations profit before tax is showing negative growth rate.

The company has offered different types of plans under the different categories based on the

needs of the policyholders. Some of these plans are discussed in the following lines.

ICICI PRU ELITE PENSION

ICICI Pru Elite Pension is a unique unit-linked pension policy designed for specific

customers. It enables to pay flexible premiums for a limited period and making top-ups also.

The eligibility age to enter into the policy is starts from 18 years to 74 years. The range of

-250

-200

-150

-100

-50

0

50

100

150

200

250

CAGR (%) of ICICI

Share Capital

Fixed Assets

Current Assets


Current Liabilities

Net Working Capital

Policy Liabilities

Total Income

Premium Income


Other Income

Profit Before Tax


Commission Paid

Operating Expenses



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policy term is 6-62 years. The minimum premium is to be paid is Rs. 3,00,000 per annum.

Maximum sum assured is equal or above of Rs. 25,00,000. The term of the premium

payment is 3 years. The range of vesting age is 50 -80 years. Policyholder can chose the date

from which the pensions will be received. Among eight investment funds, policyholder can

select any funds based on their financial goals and risk profile with switching facility of four

times a year, at no cost. There is a facility of additional allocation of units at the end of every

5th

policy year at the rate of 1.5% of the average of the daily fund values, if due premiums are

paid in first three policy years.

ICICI PRU PURE PROTECT

ICICI Pru Pure Protect entitles the policyholder to insure life and provide total security to

his/her family at a very affordable cost. The eligibility age to enter into policy is starts from

18 years to 65 years. The maximum maturity age is 75 years. The minimum annual premium

is Rs.2400 per annum. Premiums are paid yearly, half-yearly and monthly. The maximum

sum assured is Rs.25,00,000. The term of the policy is in between of 10 30 years. Death

benefit is sum assured amount and no maturity benefit. Additional benefits like accidental

death and disability benefit rider and waiver of premium riders are available along with tax

benefits.

ICICI PRU PINNACLE

ICICI Pru Pinnacle is a unit linked insurance policy which gives downside protection.

Policyholder can enjoy insurance protection for a longer period with limited premium

payment. The eligibility age to enter in to the policy is starts from 8 years to 65 years.

Maximum maturity age is 75 years. Maximum sum assured is 5 multiples of annual

premiums. The minimum premium is Rs. 50,000 per annum for the term of 3 years. Premium

is paid half-yearly and yearly. The term of the policy is 10 years. Death benefit is higher of

sum assured or fund value with partial withdrawal facility from 6th

policy year onwards.

Maturity benefits are paid either higher of fund value or guarantee value with additional

allocations. The fund value is equal to units multiplied with net asset value.

ICICI PRU LIFE TIME MAXIMA

ICICI Premium Life time Maxima is unique strategy that entitles the policyholder to gain

through his/her funds invested in the equity markets and also provides an insurance cover.

The eligibility age to enter into the policy starts from 0 to 65 years. Maximum maturity age is

75 years. The sum assured amount is five multiples of annual premiums. The policy terms

are 10,15,20,25 and 30 years. Minimum premium is Rs. 24,000 per annum. Premiums are

paid monthly, half-yearly and yearly. It provides to investors multiple investment options

which are triggers of portfolio strategy and fixed portfolio strategy. Additional allocation of

units allowed from 6th

year onwards which results more than 100% allocation to fund on

premium payment. Death benefit is higher of either sum assured or fund value by allowing

partial withdrawals every 3 years starting from 6th

policy year. Maturity benefits are paid as

fund value and based on chosen options.

SAVE N PROTECT

Save n Protect policy is suitable for long term investors to meet long term objectives. The

minimum sum assured amount is Rs. 50,000. The term of the policy starts from 10 to 20



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years. Investor can enter into the policy from 0 to 60 years. The maximum maturity age is 70

years. The minimum premium is Rs. 6,000 per annum. The premiums are paid annually, half

yearly, and monthly. Death benefits as well as maturity benefits are sum assured and

guaranteed bonus. Insured can enjoy 5 years extended life coverage period at 50% of the sum

assured after the maturity of the policy.

CASH BAK

Cash Bak insurance plan is a fixed term insurance plan, which provides money at regular

intervals to keep the policyholders financially sound. The eligibility age to enter into the

policy starts from 16 years to 55 years. The minimum sum assured starts from Rs.75,000.

Guaranteed additions are received as additional sums at the rate of 3.5% compounded

annually on the sum assured for the first four years. Maturity benefit is 50% of sum assured

and guaranteed additions. On the death of the policyholder, the nominee will be entitled to

receive sum assured along with guaranteed addition for the first four years along with bonus.

SMART KID REGULAR PREMIUM PLAN

Smart Kid Insurance plan is a fixed term insurance plan that provides funds at regular

intervals. It is an exclusively education insurance plan which is offered by the company in 3

choices of Smart Kid New Unit Linked Regular Premium, Smart Kid New Unit Linked

Single Premium and Smart Kid Regular Premium. Basically it is unit linked plan and enable

the insured and insureds child to accumulate wealth by virtue of the performance of the

underlying market linked instrument. The minimum premium is Rs. 10,000 per annum which

will be invested in the selected funds. The minimum sum assured is 5 times of annual

premium. The term of the policy will be calculated as the difference between childs current

age and the age of the child when the policy matures. In this policy Smart Kid Unit Linked

Single Premium is another choice. For which the premium is paid Rs. 50,000 onwards.

Another option is Smart Kid Regular Premium which has guaranteed bonus option. The

bonus is 3.5% per annum for the first 4 premium paying years and an annual vested bonus in

subsequent years. The regular payouts are paid for the education of a child. Income benefit

rider is another option to make attractive the policy. Accidental death disability rider and

waiver of premium riders ensure the child stays double protected at all times. The premium

will be calculated based on 3 factors such as sum assured, policy tenure and age of the

policyholder.

LIFE TIME GOLD

Life Time Gold is a regular premium unit - linked policy that offers potentially higher returns

through the multiplier that invests in the top 50 large cap companies. It offers protective

benefits of an assurance cover and financial security for insureds family. Insured can invest

for a minimum of 10 years and a maximum of 75 years. There are 7 investment funds are

available, among the funds, policyholder can select any funds of Flexi Growth, R.I.C.H.,

Multiplier, Flexi balanced, Balancer, Protector and Preserver based on his/her financial goals

and risk profile. The eligibility age to enter in to the policy is in between of 0-65 years. The

maximum age of maturity of the policy is 75 years. Minimum premium is Rs. 20,000/- per

annum. The minimum sum assured amount is 5 times of annual premium, subject to

minimum of Rs. 1,00,000. Systematic withdrawal facility is available in installments from 4th

year onwards. Maturity benefit is fund value. Death benefit is higher of either fund value or



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sum assured. Switching is possible between funds any time to adjust a portfolio based on

insureds financial goals and risk profiles. Switching of 4 times a year is allowed at no cost.

3. BAJAJA ALLIANZ LIFE INSURANCE COMPANY LIMITED

The Bajaj Group is one of the biggest two and three wheeler manufacturers in the world.5

Bajaj Allianz Life Insurance Company Limited was incorporated by both the Bajaj Group

and the Allianz SE., which is a Germany based company and one of the largest asset

managers in the world. Allianz SE has over 115 years of financial experience over 70

countries. It is a leading insurance conglomerate and one of the largest asset managers in the

world. The objective of Allianz life Insurance company is to become loyalty leader in all

chosen markets and further strengthen its sales channels with a special focus on recruiting,

training and developing agents. It has been managing assets worth over Rs. 55,00,000 crore.

Allianz SE has its head office in Munich. Allianz Group provides more than 60 million

customers worldwide with a comprehensive range of services in the areas of property and

casualty insurance, life and health insurance, asset management and banking.

Bajaj Allianz Life Insurance is in the fields of both life insurance and general insurance.

Currently, it has presence in more than 550 locations with over 60,000 insurance consultants.

Bajaj Allianz Life Insurance Company is a large private sector life insurance company in

terms of number of policies. It has taken the lead amongst private sector life insurance

companies in proving its superior management & marketing skills. It has a strong retail focus

to become the most profitable private life insurance company. The company announced

healthy profits of Rs. 63 crore for the financial year 2006-07. In June 2008, Bajaj Allianz

entered into partnership with Thomas Cook India to provide travel finance. Bajaj Allianz Life

Insurance ensures excellent insurance and investment solutions by offering customized

products, supported by the best technology.

TABLE: 3


Variables from Financial Statements CAGR (%) of Bajaj Allianz

Share Capital 0.16

Fixed Assets 32.91




Net Working Capital -313.07

5



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Total Income 126.08



Other Income 8.05

Profit Before Tax -254.46




FIGURE: 3


CAGR of income form investments of LIC is 251.82% which is good. The growth rate of

insurance benefits delivered is also good (256.41%). The growth rates of total income and

premium income are considered as not bad. And the corporations profit before tax and net

working capital are showing negative growth rate.

The company has been offering various types of policies under various categories. Some of

these plans are discussed as under.

-400

-300

-200

-100

0

100

200

300

CAGR (%) of Bajaj Allianz

Share Capital

Fixed Assets

Current Assets


Current Liabilities

Net Working Capital

Policy Liabilities

Total Income

Premium Income


Other Income

Profit Before Tax


Commission Paid

Operating Expenses



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NEW RISK CARE

New Risk Care is a term assurance plan with regular or single premium payment options to

secure life at lowest possible cost. Life insurance cover is available at lowest possible price.

The policy is non-participating and traditional term assurance plan with additional rider

benefits. Premiums are paid annually, halfyearly, quarterly and monthly with regular

intervals. Maximum age of maturity is 65 years. A lapsed policy can be revived within 2

years from first unpaid premium by paying all due regular premiums along with interest.

Surrender value is not available and there is no conversion facility. Accidental death benefit,

accidental permanent total or partial disability Benefit, critical illness benefit and hospital

cash benefit are attractive features of the plan.

INVEST GAIN

Invest Gain is specially designed with unique combination of benefits that help insured to

develop a sound financial portfolio for his/her family. The plan gives 4 times of life cover at

a little extra cost. There is limited payment option is available. Accidental death benefit,

disability benefit, critical illness benefit, hospital benefit and family income benefit are

additional benefits offered by the company on additional premiums. In case of death or

accidental or total permanent disability of insured, all future premiums are waived and 1% of

the sum assured is paid monthly, Maturity benefit is in the form sum assured along with

accrued bonuses.

LIFE TIME CARE ECONOMY

Life Time Care Economy is a whole life endowment plan with profits. The sum assured and

the bonus is payable only to the beneficiary upon the death of the policyholder. A terminal

bonus may be paid on death or survival after age of 80 years. Premiums should be paid for at

least 15 years. Accidental permanent, total or partial disability benefit and waiver of

premium benefit will be paid at each policy anniversary. The benefits include accidental

death cover, disability cover, critical illness cover hospital cash cover and waiver of premium

benefits. Premiums are paid yearly, half yearly, quarterly and monthly. Housing loans and

general loans are available. A full sum assured and bonus are generally payable as maturity

benefits. The survival benefits are not applicable. Full sum assured and bonuses are paid as

death benefits. And also accidental and death benefits are additional benefits.

FUTURE INCOME GENERATOR

Future Income Generator facilitates the investor to save money which will become wealth in

future. The plan is an alternative to superannuation and provident funds. The flexible

retirement plan helps to policyholder to maintain their lifestyle and create a monthly income

that will last him/her all the means to enjoy it. It is a smart saving plan. Financial

independence from work is necessary to everybody, so the policyholder need not to worry of

income after their retirement. It is a specialized retirement solution for housewives, so that,

they become financially independent. Open market option is allowed to purchase an

immediate annuity from the company or any other life insurers recognized by IRDA.



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SWARNA VISHRANTI

Swarna Vishranti is a plan, which enables the policyholder to spend life in retirement stage

with happiness. There is an option to take a tax-free on lump sum up to 33% of sum assured

cum accrued bonuses. Accidental death benefit and disability benefit, critical illness benefit

and hospital cash benefit are additional benefits available in this policy. All future premiums

are waived and 1% of sum assured is paid monthly in case of death or accidental total

permanent, disability of the insured. The additional life insurance protection is available at a

nominal cost. Open market option is allowed to purchase an immediate annuity from the

company or any other life insurers recognized by IRDA.

UNIT GAIN PLUS GOLD

Unit Gain Plus Gold is a combination of protection and earning attractive returns by

investing in various combinations of securities. High allocations of profits and guaranteed

life cover can be possible. The plan has choice of seven investment funds. Additional

benefits like accidental death benefit, critical illness benefit, hospital cash benefit, family

income benefit and waiver of premium benefit made attractive this policy.

4. BIRLA SUNLIFE INSURANCE COMPANY LIMITED

Birla Sunlife Insurance Company Limited (BSLI) is a joint venture between Sunlife

Assurance Company of Canada and Aditya Birla Management Corporation limited with

shareholdings of 26 percent and 74 percent respectively.6

The Aditya Birla Group, a US ($28 billion) conglomerate, is one among the largest business

houses in India. It enjoys a leadership position in all the sectors in which it operates. It is

anchored by a force of 100,000 employees, belonging to 25 nationalities. Its operations are

spanned 25 countries across six continents and it is reckoned as India's first multinational

corporation. It is headquartered at Mumbai, over 60 per cent of the group's revenue flows

from the overseas operations. The Group nurtures a work culture where success is built on

learning and innovation. The Group has been adjudged "The Best Employer in India and

among the top 20 in Asia" by the Hewitt, Economic Times and Wall Street Journal Study

2007.

Sun Life Financial Inc. is a leading international financial services organization providing a

diverse range of wealth accumulation and protection products and services to individuals and

corporate customers. Tracing its roots back to 1865, Sun Life Financial and its partners today

have operations in key markets worldwide, including Canada, the United States, the United

Kingdom, Hong Kong, the Philippines, Japan, Indonesia, India, China and Bermuda. As of

31 March 2008, the Sun Life Financial group of companies had total assets of $ 404.7 billion.

Sun Life Financial Inc. trades on the Toronto (TSX), New York (NYSE) and Philippine

(PSE) stock exchanges under ticker symbol "SLF".

The head office of Birla Sunlife is located at Mumbai. It started operations in March 2001

after receiving its registration license from IRDA in January 2001. Within four years of

launch, the BSLI has cemented its position as a leading player in the private life insurance

industry. The core strategy of the company is to create value for all its stakeholders. It

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launched innovative unit-linked insurance products. It aims at being a leader in product

innovations to cater specific customer needs. It has direct sales force of more than 60000

high quality licensed insurance advisors in major cities and towns in India. The BSLI was

ranked 18th

among the "TOP 25" in the "Great Places to Work - 2006 Survey".

The vision of the Birla Sun Life Insurance Company Limited is to create long term value

along with market leadership and mission of the company is to help people mitigate risks of

life, accident, health and money at all stages and under all circumstances. Birla Sun Life

Insurance has some values of passion, integrity, speed, commitment and seamlessness. With

an experience of over 9 years, BSLI has contributed significantly to the growth and

development of the life insurance industry in India. It was the first Indian Insurance

Company to introduce Free Look Period, which was made as mandatory by IRDA for all

other life insurance companies. The BSLI is a pioneer player in introducing Unit Linked Life

Insurance plans amongst the private players in India. The BSLI provides insurance, mutual

fund, investment and wealth management services. It was the first company which sold its

policies through the bancassurance and the internet as well as the first private sector player to

introduce pure Term Plans in the Indian market.

TABLE: 4


Variables from Financial Statements CAGR (%) of Birla Sunlife

Share Capital 40.75

Fixed Assets 14.31






Total Income 73.37



Other Income 30.61





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0



FIGURE: 4


CAGR of income from investments of LIC is 179.16%. The growth rate of insurance benefits

delivered is recorded as good (72.52%). The growth rates of current assets cash and bank

balances and networking capital are also considered as good.

The BSLI offers several types of life insurance products, some of them discussed in the

following lines

BSLI TERM PLAN

BSLI Term Plan is designed for people who want to avail of the benefit of life insurance at

low cost. It is a low premium, pure risk coverage plan which takes care of investors financial

commitment towards their family or dependants if any risk occurred. The entry age starts

from 18 years to 55 years. The minimum sum assured is Rs.2,50,000 in case of single

premium and Rs.2,00,000 in case of regular premium. The terms of the benefits paid are

5,10,15,20 or 25 years. Frequency of premium payment is annually, semi-annually, quarterly,

monthly and also single time payment. There will be grace period of 30 days after the

premium due date. There is no maturity benefit. Accidental death and dismemberment rider,

critical illness rider and waiver of premium riders, accompanied with this plan whenever the

policyholder choose at the time of purchase.

0

20

40

60

80

100

120

140

160

180

CAGR (%) of Birla Sunlife

Share Capital

Fixed Assets

Current Assets


Current Liabilities

Net Working Capital

Policy Liabilities

Total Income

Premium Income


Other Income

Profit Before Tax


Commission Paid

Operating Expenses



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BSLI PREMIUM BACK TERM PLAN

BSLI Premium Back Term Plan is unique term plan that offers an assurance throughout the

specified term and low cost plan. In this plan the entire amount of premium paid over period

of time. The total premiums paid back over the term on maturity. Minimum sum assured is

Rs.2,00,000. The terms of the policy are 10, 15 and 20years. The eligibility age to enter in to

the policy starts from 18 to 50 years for the 20 years term plan and from 18 to 55 years for 10

and 15 years term plan. Maximum maturity age is 70 years. The surrender value is available

but it varies with the premium term as well as the policy year in which the plan is

surrendered. Frequency of premiums paid is annually semi-annually. Premium shall be paid

throughout the benefit period. Investors can choose from eight investment fund options to

match their risk and return profile. Switching facility is also available premium allocation

percentage into the various investment fund options during the tenure of the policy. The

funds are Assure, protector, Builder, enhancer, creator, Magnifier, Maximizer and Multiplier.

Death benefit paid is equal to coverage or face amount plus payback amount. Maturity

benefit is paid by paying total premiums incase of 100% pay back or more than premiums

incase 125% pay back. Accidental death and dismemberment, critical illness and waiver of

premium are riders are available to choose.

FLEXI SAVE PLUS

Flexi Save Plus is one of the endowment plans. It is designed for the insured and his/her

family. The plan not only offers the advantages of unit-linked plan and provides the insured

an opportunity to make large tax free saving over a period of time. The eligibility age to

enter in to the policy starts from 30 days to 60 years. Maximum maturity age is 70 years.

Sum assured starts from Rs.2,00,000/- for 70 years old insured, and Rs.1,00,000/- for the rest.

Premiums are paid either single time or yearly, half yearly, quarterly and monthly. Range of

duration of the policy is 10, 15, 20, 25 or 30 years. Minimum duration of the policy is 6 years

for minors and 10 years for all others. And maximum duration is 35 years for minors, 52

years for majors and 30 years for the rest. Policyholders can increase their premiums by

paying top-up if he/she has additional savings. The minimum amount of top up is Rs. 5000

and maximum amount of top up is Rs.50,000 or an annual premium, whichever is higher.

Insured can choose any investment fund among three investment funds namely Protector,

Builder and Enhancer. There is a freedom of switching among the funds. A partial

withdrawal from fund value is offered at any time after three years premiums are received by

insured. Two partial withdrawals are free of cost in a year. The policy can be surrendered

without penalty at any time after four policy years. Guaranteed returns of 3% per annum

applies on premiums and top up premiums. The maturity benefit is higher of either fund

value or guaranteed fund value. Death benefit is higher of either fund value or guaranteed

fund or sum assured less applicable withdrawals. 100% coverage is there in case of death

due to accident. The surrender facility is there any time during the tenure of the policy. The

surrender charge will be zero after the four policy years. Accidental death and

dismemberment riders are available. 15 days of time will be given as free look period, with in

which insured return the policy, if he/she is not satisfied with the policy.

FLEXI SECURE LIFE RETIREMENT PLAN - II

Flexi Secure Life II plan is unit linked non - participating retirement plan which helps to the

people who save a little amount every day. It has two options of single premium plan and

regular premium plan. It offers benefits to meet insureds specific retirement planning needs.



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The eligibility age to enter the policy starts from 18 to 65 years. Insured can choose the

retirement plan till the vesting age. The minimum sum assured is Rs.55,000 under the single

premium plan and Rs.50,000 under the regular premium plan. Insured pays Rs.5,000 as

regular premium. In both options he/she can top up their fund with additional savings. The

minimum amount of such top up is Rs.10,000. The policyholder can choose any one of the

funds among Nourish, Growth and Enrich. He/she may allocate premium in varying

proportions amongst available investment fund options to diversify risk. Switching facility is

available between the investment fund options. In a year two such types of switches are free

of cost. There is an option to purchase an annuity that will provide income throughout life.

CHILDRENS DREAM PLAN

Childrens Dream Plan helps is a long-term unit - linked insurance plan that is specifically

designed to provide financial security to the policyholders child when he/she becomes an

adult. It helps to insured to give the financial freedom to his/her children to achieve their

dreams. It combines a guaranteed return on savings with upside potential based on the

performance of the investment funds. However, the minimum amount will be given with

guaranteed benefit at the maturity. The immediate sum assured will be paid to the child even

in absence of the insured, unfortunately. The eligibility age to enter into the policy starts

from 18 to 60 years. The child must have 13 years old to enter into the policy. The term of

maturity ends at 75 years old. The minimum sum assured should be Rs.50,000. Premiums are

paid yearly, half-yearly, quarterly and monthly. The policyholder may select any one among

the three investment funds of Protector, Builder and Enhancer.

FLEXI LIFE LINE PLAN

Flexi Life Line Plan is unit - linked, non - participating plan which gives efficient earnings in

the long term. The age of eligibility to enter in to the policy starts from 30 to 65 years. The

minimum sum assured amount is Rs.5,00,000 for 10 year period to all ages. It is Rs.3,00,000

for minors and Rs.2,00,000 for majors. The maximum maturity age is 70 years for minors

and100 years for majors. The premium paying terms are 10, 15, 20 and 25 years. The

frequency of premium payment is annually, semi annually, quarterly and monthly. There is a

top up facility whenever insured has additional savings during the tenure of the policy. The

range of top ups is Rs.5,000 - Rs.50,000. A minimum guaranteed return of 3% per annum

applies on premiums. Maturity benefit is higher of either the fund value or the guaranteed

fund value. The death benefit is higher of either the fund value or guaranteed fund or sum

assured less all applicable partial withdrawals in the 24 months preceding the death of the life

insured. Partial withdrawals are allowed after three policy years or on attaining the age of 18

years whichever is later. Two partial withdrawals are free of charge. The policy can be

surrendered at any time during the tenure of the policy. The surrender charges will be zero

after the 4th

policy year. Insured has the right to return the policy to the company within 15

days from the date of receipt of the policy. The Policyholder may select any one among the

three funds available of Protector, Builder and Enhancer.

The insured can add up riders to the base plan at a marginal extra cost. Accidental death and

dismemberment benefit rider provides 100% of coverage in case of death due to accident,

loss of more than one limb or sight in both the eyes, 50% coverage in case of loss of one limb

or sight in one eye. Term rider provides additional amount of cover in the event of death of

the life insured. Critical illness rider provides coverage in the event of life insured being

diagnosed as suffering from any of four illnesses specified. Critical illness plus rider provides



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a coverage in the event of life insured being diagnosed as suffering from any of specified

illnesses. Critical illness woman rider provides coverage against several critical illnesses

including woman specific illnesses like pregnancy complications and congenital anomalies.

A premium waiver rider waives payment of future premiums on the happening of any of the

unforeseen events.

5. ING VYSYA LIFE INSURANCE COMPANY PRIVATE LIMITED

ING group originated in 1990 by the merger of Nationale Nederlanden, NV the largest Dutch

Insurance Company and NMB Post Bank Groep NV. The newly formed company has been

called the Internationale Nederlanden Group, market circles have abbreviated the name to

I-N-G. ING Group is a world-class financial conglomerate of Dutch origin offering banking,

insurance and asset management. It comprises a broad spectrum of prominent companies that

serve their clients in over 40 countries under the ING brand. One such company is the ING

Vysya Insurance Company Private Limited, established in September 2001. The equity

partners of the company are ING Insurance International B.V (26%), Exide Industries (50%)

and other shareholders (24%).

The ING Vysya Insurance with its head quarters at Bangalore is present in 229 cities

across 251 branch offices. It distributes its products in several parts of the country through its

partners presence. It has issued over 1 million policies by the end of December 2010.It

distributes its products through two channels, the Tied Agency Force and the Alternate

Channel. The Tied Agent force comprises over 50,000 ING Life Advisors, spread across the

country. The Alternate Channels business within ING Life India is a fast growing distribution

channel, and includes the Bancassurance partner (ING Vysya Bank), referral Partners,

Corporate Agents and Brokers.

TABLE: 5


Variables from Financial Statements CAGR(%) of ING Vysya Life

Share Capital 29.22

Fixed Assets -0.46




Net Working Capital -227.11


Total Income 100.68



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Other Income 18.63





FIGURE: 5


CAGR of income from investments of LIC is 212.59% which is highest. The growth rate of

insurance benefits delivered is recorded as good (161.95%). The growth rates of total income

and premium income are considered as average. And the corporations net working capital is

showing negative growth rate.

Given here is a comprehensive list of various insurance policies & saving plans offered by

ING Vysya Life Insurance Company Private Limited.

-250

-200

-150

-100

-50

0

50

100

150

200

250

CAGR(%) of ING Vysya Life

Share Capital

Fixed Assets

Current Assets


Current Liabilities

Net Working Capital

Policy Liabilities

Total Income

Premium Income


Other Income

Profit Before Tax


Commission Paid

Operating Expenses



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ING TERM LIFE PLUS

ING Term Life Plus is a term insurance product with return of premiums. There is a

flexibility of surrender the policy. The eligibility age to enter into the policy starts from 18 to

65 years. Maximum maturity age is 75 years. Sum assured starts from Rs. 5 Lakhs. The term

of the policy is in between of 10 to 30 years. Three terms are available such as regular,

limited and single premium plans. Premiums are paid annually, half- yearly quarterly or

monthly. Death benefit is sum assured amount. After completion of half of the policy term,

company may return a proportion of the premium that insured has paid. There is flexible

surrender value after completion of three regular premium payments.

ING NEW BEST YEARS

ING New Best Years is a retirement plan gives capital guarantee and provides safety to

retirement corpus. In the policy, the policyholder can choose pension payout commencement

option, top-up feature and frequency of premium payments. The eligibility age to enter into

the policy starts from 20 years to 65 years. The range of vesting age is 45-70 years.

Minimum premium amount is Rs. 12,000 and top-up contribution is Rs. 20,000.

ING FLEXI LIFE PLUS

ING Flexi Life Plus is a unit linked life insurance policy that gives dual benefit of insurance

coverage and investment opportunity.7 It provides flexibility in premium payments either to

increase or decrease of regular premiums. The eligibility age to enter into the policy starts

from 0 to 60 years. The range of maturity age is 18-70 years. The policy term is available in

terms of 10 years and 20 years. Premiums are paid annually, half-yearly, quarterly and

monthly. The minimum sum assured is 6.25 times the annualized regular premium.

Maximum sum assured amount is 25 times of annualized regular premium. And the

minimum top-up amount is Rs. 2000. The accumulate amount of fund will be given as

maturity benefit and allowed partial withdrawals. The plan provides an Enhance Accidental

Protection Benefit, which is an additional benefit on death due to accident.

SAFAL JEEVAN ENDOWMENT PLAN

Safal Jeevan Endowment Plan offers comprehensive protection and savings in an easy

manner. As title is Safal Jeevan, the policy is a simple life insurance plan gives complete

freedom to choose from pre-packaged solutions and decide the time period of premium

payment. The eligibility age to enter in to the policy starts from 18 to 45 years. Maximum

maturity age is 60 years. Premium payment terms are chosen among 10, 15 and 20 years.

Premiums are paid yearly, half yearly, quarterly and monthly. Minimum premium starts

from Rs. 2000 per annum. The plan offers death benefit, maturity benefit and in built

accident cover. Low premiums, availability of in built accident coverage are major benefits

of the scheme.

CREATING STAR

Creating Star plan gives an opportunity to fulfill the childrens needs. It offers to

policyholder a systematic and hassle-free way to pre-fund his/her childs education program

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by paying premiums regularly and securing the childs education. The eligibility age to enter

into the policy starts from 0 to 15 years for life assured and 18 to 50 years for the

policyholder. The range of maturity age of life assured is 21 -25 years. Premiums are starts

from Rs. 48,000/- if it is single premium, Rs.20,000/- if it is limited premiums and

Rs.12,000/- if it is regular premium. The premiums are paid yearly, half-yearly, quarterly and

monthly. Waiving of premiums in the unfortunate event of parents death, Education payouts

in the last three years of the policy, systematic investment options and partial withdrawal

benefits are key benefits of the plan.

PRIME LIFE

Prime Life is a unique plan with an option of systematic withdrawals, which allows insured

to with draw money, when he/she requires it rather than borrow from some others. The plan

is unit linked plan that gives insured the unique advantage of savings as well as reaping

returns on investment when more than 100% of the initial allocation charges are returned. In

the policy, Sum assured increases by 5% every year. The eligibility age to enter in to the

policy starts from 10 to 45 years. The range of maturity age is 25 - 65 years. Yearly Premium

starts from Rs.12,000 to Rs.60,000. Insured can increase the premiums with the help of top-

ups when he/she has additional savings. Minimum top up value is Rs.2000/-. The policy

terms are available in 15 year and 20 years. Policy term is equal to premium paying term.

Premiums are paid yearly, half yearly, quarterly and monthly. Sum assured is fixed which is

5 times of the annualized premium. Sum assured increases every year, option to extend the

policy term by 10 years and in built additional accident coverage are key benefit of the

policy.

HIGH LIFE PLUS

High Life Plus is a unit linked insurance plan. It is superlative investment plan that gives

insured the opportunity to build his/her wealth through regular systematic investments and

additional top ups as per convenience. The plan not only provides protection cover of

investors choice, but also enhances his/her investment opportunities to earn returns with the

market. The eligibility age to enter in to the policy starts from 0 to 70 years. Maximum

maturity age is 75 years. The terms of premium payment are 3 years to 25 years. Premiums

are paid annually, half- yearly, quarterly and monthly. Life coverage is based on choice of

investor. Death benefit includes sum assured or fund value and flexible payouts of maturity

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TABLE: 6


Variables from

financial

Statements

CAGR

(%) of

LIC

CAGR (%)

of ICICI

CAGR (%)

of Bajaj

Allianz

CAGR (%)

of Birla

Sunlife

CAGR(%)

of ING

Vysya Life

Share Capital 0 18.9 0.16 40.75 29.22

Fixed Assets 16.64 30.25 32.91 14.31 -0.46

Current Assets 9.63 41.49 50.54 54.21 33.82

Cash and Bank

Balances

5.37 38 47.02 59.47 26.82

Current

Liabilities

24.44 56.1 69.96 51.83 44.34

Net Working

Capital

3.79 77.69 -313.07 43.72 -227.11

Policy Liabilities 17.41 41.22 92.52 80.96 106.24

Total Income 20.51 86.4 126.08 73.37 100.68

Premium Income 19.13 69.13 107.41 68.31 86.21

Income from

Investments

23.24 155.27 251.82 179.16 212.59

Other Income -3.9 17.06 8.05 30.61 18.63

Profit Before Tax 11.44 -209.65 -254.46 32.43 20.14

Insurance

Benefits

delivered

21.26 201.82 256.41 72.52 161.95

Commission

Paid

16.34 49.3 86.17 50.5 51.97

Operating

Expenses

15.09 46.77 68.09 47.09 34.81



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FIGURE: 6

Table 6 shows that the combined financial performance of five life insurance companies in

terms of compound annual growth rates of the variables.

CONCLUSION

LIC is a public sector life insurance Company, which is taken as one of the sample

companies. Although it is big public sector company, in the past a decade period it is lagging

behind in some of the financial aspects. The reason is the company has been facing the tough

competetion from private sector life insurance companies. The market share of LIC has

decreased gradually. The financial performance of other private life insurance companies is

also good in some aspects.

-400

-300

-200

-100

0

100

200

300

Shar

e Cap

ital

Curre

nt As

sets

Curre

nt Lia

biliti

es

Polic

y Liab

ilities

Prem

ium In

com

e

Othe

r Inc

ome

Insu

ranc

e Be

nefits

deli

vere

d

Oper

ating

Exp

ense

s

CAGR (%) of LIC

CAGR (%) of ICICI

CAGR (%) of Bajaj

Allianz

CAGR (%) of Birla

Sunlife

CAGR(%) of ING

Vysya Life

20 zijbemr march12 vol2 issue3

Documents

insurance industry

insurance sector

best life insurance

various life insurance

quality of life

number of general insurance

private management

lic story