INDEX

EXECUTIVE SUMMARY CERTIFICATE ORGANIZATION OVERVIEW WHAT IS INSURANCE COMPANIES IN INSURANCE PRODUCTS & SERVICES OF INSURANCE INDIAINFOLINE TIE UP WITH COMPANIES ICICIPRUDENTIAL LIFE INSURANCE GLOSSARY MANAGE YOUR POLICY OBJECTIVE OF TRAINING LIMITATIONS TARGET STRATEGIES ACHIEVEMENTS OBJECTIVE OF THE STUDY FINDINGS & RECOMMENDATIONS SUGGESTIONS BIBLIOGRAPHY 2-6 7 8-20 21-23 24 25-27 28 28-56 57-82 83-91 92 93 94 95 96 97 98-99 100-101 102

1 - 1 -9/13/20119/13/2011

Executive Summary
Investment Planning involves identifying your financial goals throughout your life, and prioritizing them. Investment Planning is important because it helps you to derive the maximum benefit from your investments. Your success as an investor depends upon your ability to choose the right investment options. This, in turn, depends on your requirements, needs and goals. For most investors, however, the three prime criteria of evaluating any investment option are liquidity, safety and return. Investment Planning also helps you to decide upon the right investment strategy. Besides your individual requirement, your investment strategy would also depend upon your age, personal circumstances and your risk appetite. Investment planning is necessary for every one who wishes to achieve any financial goal. You have to plan your limited resources to avail the maximum benefit out of them. You should plan your investments to fulfill major needs like:

Creating wealth over the long term Acquiring assets like a dream house or a dream car Fulfilling your need for financial security

2 - 2 -9/13/20119/13/2011

Thus, Investment Planning is nothing but a holistic approach to meet your life's goals. The investments avenues available to one are: Apart from illiquid avenues like real estate, jewellery there is four major investment avenues available to you, namely:

Debt Instruments Equity Money Market Instruments Mutual Funds

In this project I would be focusing on investments through Mutual Funds. The projects aims at giving a brief glimpse into the Mutual Fund Industry, what mutual funds are , some of the basic concepts of mutual funds, how it is better than other investment instruments in the market . It gives an insight into the mutual funds , what it is made up of , how to invest in it , how it is managed and what are the things one should see to measure and evaluate performance of various mutual fund schemes in the market. This project comprises of 6 chapters. The first chapter deals with the introduction of mutual fund concept to give a clearer picture to the investors. This chapter
3 - 3 -9/13/20119/13/2011

provides the basic knowledge about what mutual funds are .It deals with the definitions of mutual funds, the advantage it has over other instruments and the types of mutual funds available and the history and future trends of Mutual Funds industry. The second chapter deals with Investment Management. It is a specialist function and forms the foundation of a mutual fund business. It talks about what is equity and debt portfolio, what constitutes them, what are the strategies available to a fund manager to select from a vast pool of equity and debt instruments. It is an important and demanding function for a fund manager to maintain an ever profiting portfolios. Investment decisions taken today directly affect our future wealth; it would make sense that we utilize a plan to help guide our decisions. The mutual fund scheme you choose should provide direction and meaning to your financial decisions which can vary from saving for your child's education or planning for retirement. So it is very important to choose the right mutual fund scheme. Our third chapter is about what investors should keep in mind before choosing a mutual fund scheme. It educate investors about the common mistakes one makes while choosing a mutual

4 - 4 -9/13/20119/13/2011

fund scheme and the five things one must see before investing in a mutual fund scheme. It would be foolish to say that Mutual funds are risk free. As its portfolio comprises of market instruments, there is risk involved in it .As higher the risk greater the returns/loss and lower the risk lesser the returns/loss. Thus it is necessary for an investor to understand the Risk- Return Tradeoff, what are the different types of risk available in the market and how mutual funds reduce these risks through there properties of diversification, asset allocation and rupee cost averaging. Mutual funds can be a tax efficient instrument for investing. The following sub part details on the tax provisions and benefits that apply to Mutual funds. It highlights the taxation aspect of mutual funds with respect to the fund investor. The next chapter deals with imperative measures used to measure and evaluate the performance of a mutual fund scheme. The final task for the investor is to choose a mutual fund scheme after deciding its objectives of investment, its risk profile and cash flow requirements. Before doing the same its is important to measure and evaluate the performance of various schemes available in the market. This chapter throws light on the absolute (NAV, Total

5 - 5 -9/13/20119/13/2011

Return etc) and relative measures like benchmarking the scheme against the markets or other mutual fund schemes available. In the last a case study has been given describing how a fund manager recommends a Mutual Fund scheme depending on the investment objectives of the investor The volumes of Indian mutual fund industry will keep flourishing in future as investors will have wider belief and faith in mutual funds units. It may be mentioned here that since 1987, its size was Rs.10bn . Since than this figure has kept ballooning, revealing the efficiency of growth in the mutual fund industry which at current level is estimated to be over Rs2000bn. The ASSOCHAM study highlights that mutual funds will be one of the major instruments of wealth creation and wealth saving in the years to come. The consistency in the performance of the Mutual Funds has been a major factor for attracting many investors. It has been observed that investors have now changed their view about the stock market. Unlike earlier, investors have now developed more confidence and trust in the stock market functioning. A majority of investors has reported interest in Mutual Funds as these Mutual funds provide a great variety of schemes

6 - 6 -9/13/20119/13/2011

where they can invest. It is observed that these are formed according to the requirements of the investor, be it open-ended, close-ended tax saving or index fund, all are formed according to the need of investors.

CERTIFICATE
This is to certify that project entitled Project Report on Indiainfoline which is submitted by Avneet Singh in the partial fulfillment of the requirements for award of the degree of BBA submitted in the Department of Management, Desh Bhagat Institute of Management & Sciences, Punjabi University, Patiala is an authentic record of the candidate own work carried out by them under my guidance. The matter embodied in this project is original and has not been submitted for the award of any other degree.

MR. SANDEEP BANSAL

7 - 7 -9/13/20119/13/2011

ORGANIZATION OVERVIEW
We are a one-stop financial services shop, most respected for quality of its advice, personalised service and cutting-edge technology.

INDIA INFOLINE GROUP

The India Infoline group, comprising the holding company, India Infoline Limited and its wholly-owned subsidiaries, straddle the entire financial services space with offerings ranging from Equity research, Equities and derivatives trading, Commodities trading, Portfolio Management Services, Mutual Funds, Life Insurance, Fixed deposits, GoI bonds and other small savings instruments to loan products and Investment banking. India Infoline also owns and manages the websites www.indiainfoline.com and www.5paisa.com The company has a network of 976 business locations (branches and sub-brokers) spread across 365 cities and towns. It has more than 800,000 customers. Indiainfoline group is following

India Infoline Ltd

8 - 8 -9/13/20119/13/2011

India Infoline Limited is listed on both the leading stock exchanges in India, viz. the Stock Exchange, Mumbai (BSE) and the National Stock Exchange (NSE) and is also a member of both the exchanges. It is engaged in the businesses of Equities broking, Wealth Advisory Services and Portfolio Management Services. It offers broking services in the Cash and Derivatives segments of the NSE as well as the Cash segment of the BSE. It is registered with NSDL as well as CDSL as a depository participant, providing a one-stop solution for clients trading in the equities market. It has recently launched its Investment banking and Institutional Broking business

9 - 9 -9/13/20119/13/2011

A SEBI authorized Portfolio Manager; it offers Portfolio Management Services to clients. These services are offered to clients as different schemes, which are based on differing investment strategies made to reflect the varied risk-return preferences of clients.

10 - 10 -9/13/20119/13/2011

INDIA INFOLINE MEDIA AND RESEARCH SERVICES LIMITED.

The content services represent a strong support that drives the broking, commodities, mutual fund and portfolio management services businesses. Revenue generation is through the sale of content to financial and media houses, Indian as well as global. It undertakes equities research which is acknowledged by none other than Forbes as 'Best of the Web' and 'a must read for investors in Asia'. India Infoline's research is available not just over the internet but also on international wire services like Bloomberg (Code: IILL), Thomson First Call and Internet Securities where India Infoline is amongst the most read Indian brokers.

INDIA INFOLINE COMMODITIES LIMITED.

India Infoline Commodities Pvt Limited is engaged in the business of commodities broking. Our experience in securities broking empowered us with the requisite skills and technologies to allow us offer commodities broking as a contra-cyclical alternative to equities broking. We enjoy memberships with the MCX and NCDEX, two leading Indian commodities exchanges, and recently acquired membership of DGCX. We have a multi-channel delivery model, making it among the select few to offer online as well as offline trading facilities.

INDIA INFOLINE MARKETING & SERVICES.

India Infoline Marketing and Services Limited is the holding company of India Infoline Insurance Services Limited and India Infoline Insurance Brokers Limited. a) India Infoline Insurance Services Limited is a registered Corporate Agent with the Insurance Regulatory and Development Authority (IRDA). It is the largest Corporate

11 - 11 -9/13/20119/13/2011

b)

Agent for ICICI Prudential Life Insurance Co Limited, which is India's largest private Life Insurance Company. India Infoline was the first corporate agent to get licensed by IRDA in early 2001. (b) India Infoline Insurance Brokers Limited India Infoline Insurance Brokers Limited is a newly formed subsidiary which will carry out the business of Insurance broking. We have applied to IRDA for the insurance broking licence and the clearance for the same is awaited. Post the grant of license, we propose to also commence the general insurance distribution business.

INDIA INFOLINE INVESTMENT SERVICES LIMITED.

Consolidated shareholdings of all the subsidiary companies engaged in loans and financing activities under one subsidiary. Recently, Orient Global, a Singapore-based investment institution invested USD 76.7 million for a 22.5% stake in India Infoline Investment Services. This will help focused expansion and capital raising in the said subsidiaries for various lending businesses like loans against securities, SME financing, distribution of retail loan products, consumer finance business and housing finance business. India Infoline Investment Services Private Limited consists of the following step-down subsidiaries. a) India Infoline Distribution Company Limited (distribution of retail loan products) b) Moneyline Credit Limited (consumer finance) c) india Infoline Housing Finance Limited (housing finance).

IIFL (ASIA) PTE LIMITED

IIFL (Asia) Pte Limited is wholly owned subsidiary which has been incorporated in Singapore to pursue financial sector activities in other Asian markets. Further to obtaining the necessary

12 - 12 -9/13/20119/13/2011

regulatory approvals, the company has been initially capitalized at 1 million Singapore dollars.

THE MANAGEMENT
Mr. Nirmal Jain Chairman & Managing Director India Infoline Ltd. Nirmal Jain, MBA (IIM, Ahmedabad) and a Chartered and Cost Accountant, founded Indias leading financial services company India Infoline Ltd. in 1995, providing globally acclaimed financial services in equities and commodities broking, life insurance and mutual funds distribution, among others. Mr. Jain began his career in 1989 with Hindustan Levers commodity export business, contributing tremendously to its growth. He was also associated with Inquire-Indian Equity Research, which he co-founded in 1994 to set new standards in equity research in India. Mr. R Venkataraman Executive Director India Infoline Ltd. R Venkataraman, co-promoter and Executive Director of India Infoline Ltd., is a B. Tech (Electronics and Electrical Communications Engineering, IIT Kharagpur) and an MBA (IIM Bangalore). He joined the India Infoline board in July 1999. He previously held senior managerial positions in ICICI Limited, including ICICI Securities Limited, their investment banking joint venture with J P Morgan of USA and with BZW and Taib Capital Corporation Limited. He was also Assistant Vice President with G E Capital Services India Limited in their private equity division, possessing a varied experience of more than 16 years in the financial services sector.
13 - 13 -9/13/20119/13/2011

The Board of Directors

Apart from Nirmal Jain and R Venkataraman, the Board of Directors of India Infoline Ltd. comprises: Mr Nilesh Vikamsey Independent Director India Infoline Ltd. Mr. Vikamsey, Board member since February 2005 - a practising Chartered Accountant and partner (Khimji Kunverji & Co., Chartered Accountants), a member firm of HLB International, headed the audit department till 1990 and thereafter also handles financial services, consultancy, investigations, mergers and acquisitions, valuations etc; an ICAI study group member for Proposed Accounting Standard 30 on Financial Instruments Recognition and Management, Finance Committee of The Chamber of Tax Consultants (CTC), Law Review, Reforms and Rationalization Committee and Infotainment and Media Committee of Indian Merchants Chamber (IMC) and Insurance Committee and Legal Affairs Committee of Bombay Chamber of Commerce and Industry (BCCI). Mr. Vikamsey is a director of Miloni Consultants Private Limited, HLB Technologies (Mumbai) Private Limited and Chairman of HLB India. Mr Sat Pal Khattar Non Executive Director India Infoline Ltd.

14 - 14 -9/13/20119/13/2011

Mr Sat Pal Khattar, - Board member since April 2001 Presidential Council of Minority Rights member, Chairman of the Board of Trustee of Singapore Business Federation, is also a life trustee of SINDA, a non profit body, helping the under-privileged Indians in Singapore. He joined the India Infoline board in April 2001. Mr Khattar is a Director of public and private companies in Singapore, India and Hong Kong; Chairman of Guocoland Limited listed in Singapore and its parent Guoco Group Ltd listed in Hong Kong, a leading property company of Singapore, China and Malaysia. A Board member of India Infoline Ltd, Gateway Distriparks Ltd both listed and a number of other companies he is also the Chairman of the Khattar Holding Group of Companies with investments in Singapore, India, UK and across the world. Mr Kranti Sinha Independent Director India Infoline Ltd. Mr. Kranti Sinha Board member since January 2005 completed his masters from the Agra University and started his career as a Class I officer with Life Insurance Corporation of India. He served as the Director and Chief Executive of LIC Housing Finance Limited from August 1998 to December 2002 and concurrently as the Managing Director of LICHFL Care Homes (a wholly owned subsidiary of LIC Housing Finance Limited). He retired from the permanent cadre of the Executive Director of LIC; served as the Deputy President of the Governing Council of Insurance Institute of India and as a member of the Governing Council of National Insurance Academy, Pune apart from various other such bodies. Mr. Sinha is also on the Board of Directors of Hindustan Motors Limited, Larsen & Toubro Limited, LICHFL Care Homes Limited, Gremach Infrastructure Equipments and Projects Limited and Cinemax (India) Limited.
15 - 15 -9/13/20119/13/2011

Mr Arun K. Purvar Independent Director India Infoline Ltd. Mr. A.K. Purvar Board member since March 2008 completed his Masters degree in commerce from Allahabad University in 1966 and a diploma in Business Administration in 1967. Mr. Purwar joined the State Bank of India as a probationary officer in 1968, where he held several important and critical positions in retail, corporate and international banking, covering almost the entire range of commercial banking operations in his illustrious career. He also played a key role in co-coordinating the work for the Bank's entry into the field of insurance. After retiring from the Bank at end May 2006, Mr. Purwar is now working as Member of Board of Governors of IIM-Lucknow, joined IIMIndore as a visiting professor, joined as a Hon.-Professor in NMIMS and he is also a member of Advisory Board for Institute of Indian Economic Studies (IIES), Waseda University, Tokyo, Japan. He has now taken over as Chairman of IndiaVenture Advisors Pvt. Ltd., as well as IL & FS Renewable Energy Limited. He is also working as Independent Director in leading companyies in Telecom, Steel, Textiles, Autoparts, Engineering and Consultancy.

16 - 16 -9/13/20119/13/2011

PRODUCTS AND SERVICES

We are a one-stop financial services shop, most respected for quality of its advice, personalised service and cutting-edge technology. EQUITIES Indiainfoline provided the prospect of researched investing to its clients, which was hitherto restricted only to the institutions. Research for the retail investor did not exist prior to Indiainfoline. Indiainfoline leveraged technology to bring the convenience of trading to the investors location of preference (residence or office) through computerised access. Indiainfoline made it possible for clients to view transaction costs and ledger updates in real time. PMS Our Portfolio Management Service is a product wherein an equity investment portfolio is created to suit the investment objectives of a client. We at Indiainfoline invest your resources into stocks from different sectors, depending on your risk-return profile. This service is particularly advisable for investors who cannot afford to give time or don't have that expertise for day-to-day management of their equity portfolio. RESEARCH

17 - 17 -9/13/20119/13/2011

Sound investment decisions depend upon reliable fundamental data and stock selection techniques. Indiainfoline Equity Research is proud of its reputation for, and we want you to find the facts that you need. Equity investment professionals routinely use our research and models as integral tools in their work. They choose Ford Equity Research when they can clear your doubts. COMMODITIES Indiainfolines extension into commodities trading reconciles its strategic intent to emerge as a one-stop solutions financial intermediary. Its experience in securities broking has empowered it with requisite skills and technologies. The Companys commodities business provides a contra-cyclical alternative to equities broking. The Company was among the first to offer the facility of commodities trading in Indias young commodities market (the MCX commenced operations only in 2003). Average monthly turnover on the commodity exchanges increased from Rs 0.34 bn to Rs 20.02 bn. The commodities market has several products with different and non-correlated cycles. On the whole, the business is fairly insulated against cyclical gyrations in the business. MORTGAGES During the year under review, Indiainfoline acquired a 75% stake in Moneytree Consultancy Services to mark its foray into the business of mortgages and other loan products distribution. The business is still in the investing phase and at the time of the acquisition was present only in the cities of Mumbai and Pune. The Company brings on board expertise in the loans business coupled with existing relationships across a number of principals in the mortgage and personal loans businesses. Indiainfoline now has plans to roll the business out across its pan-Indian network to provide it with a truly national scale in operations.

18 - 18 -9/13/20119/13/2011

Home Loans Get expert advice that suits your needs Loan against residential and commercial property Expert recommendations Easy documentation Quick processing and disbursal No guarantor requirement Personal Loans Freedom to choose from 4 flexible options to repay Expert recommendations Easy documentation Quick processing and disbursal No guarantor requirement INVEST ONLINE Indiainfoline has made investing in Mutual funds and primary market so effortless. All you have to do is register with us and thats all. No paperwork no queues and No registration charges.
INVEST IN MF

Indiainfoline offers you a host of mutual fund choices under one roof, backed by in-depth research and advice from research house and tools configured as investor friendly.
APPLY IN IPOs

You could also invest in Initial Public Offers (IPOs) online without going through the hassles of filling ANY application form/ paperwork. SMS Stay connected to the market The trader of today, you are constantly on the move. But how do

19 - 19 -9/13/20119/13/2011

you stay connected to the market while on the move? Simple, subscribe to India Infoline's Stock Messaging Service and get Market on your Mobile! There are three products under SMS Service: Market on the move. Best of the lot. VAS (Value Added Service )

INSURANCE An entry into this segment helped complete the clients product basket; concurrently, it graduated the Company into a one-stop retail financial solutions provider. To ensure maximum reach to customers across India, we have employed a multi pronged approach and reach out to customers via our Network, Direct and Affiliate channels. Following the opening of the sector in 19992000, a number of private sector insurance service providers commenced operations aggressively and helped grow the market. The Companys entry into the insurance sector derisked the Company from a predominant dependence on broking and equitylinked revenues. The annuity based income generated from insurance intermediation result in solid core revenues across the tenure of the policy.

20 - 20 -9/13/20119/13/2011

Over the last five years, India Infoline sharpened its competitive edge in this business segment through the following initiatives: Client base : Grew its 40,000 strong client base through knowledge-led analysis, translating into an attractive opportunity to cross-sell products and generate referral business. Distribution network : Invested in a distribution network of 177 branches across 19 states, which provided it with an unmatched reach within its segment. Hands-on training : Invested aggressively in training its field forcemore than 100 hours a year in product attributes across the insurance sector highlighting various product details and marketing skills apart from regular meets where best practices are shared.

Technology : The Company provides a prudent mix of proprietary and outsourced technologies, which facilitate business growth without a corresponding increase in costs. Research and advice : Provided clients with advice on diverse investment products based on the customers existing and prospective financial profile. Key features India Infoline was the first corporate in India to get the agency licence in early 2001 The Company is the biggest corporate agency in India for life insurances products

21 - 21 -9/13/20119/13/2011

The Company operates multiple channels, namely branch network, preferred client group, direct marketing, corporate tax advisory, walk-ins and seminars, to reach out to customers Wealth Mangement Service Imagine a financial firm with the heart and soul of a two-person organization. A world-leading wealth management company that sits down with you to understand your needs and goals. We offer you a dedicated group for giving you the most personal attention at every level.

WHAT IS INSURANCE

Insurance is basically risk management device. The losses to assets resulting from natural calamities like fire; flood, earthquake, accident etc. are met out of the common pool contributed by large number of persons who are exposed to similar risks. This

22 - 22 -9/13/20119/13/2011

contribution of many is used to pay the looses suffered by unfortunate few. However the basic principle is that loss should occur as a result of natural calamities or unexpected events, which are beyond the human control. Secondly insured person should not make any gains out of insurance.

It is natural to think of insurance of physical assets such as motor car insurance or fire insurance but often be forget that creator all these assets is the human being whose effort have gone along way in building up to assets. In that scene human life is a unique income generating assets. Unlike physical assets, which decrease with the passage of time, the individual become more experienced and mature as he advances in age. This raises his earning capacity and the purpose of life insurance is to protect the income to individual and provide financial security to his family, which is dependent on his income in the event of his pre-mature death. The individual also himself also needs financial security for the old age
23 - 23 -9/13/20119/13/2011

or on his becoming permanently disabled when his income will stop. Insurance also has an element of saving in certain cases.

Insurance is are rupees 400 billion business in India and yet its spread in the country is relatively thin. Insurance as a concept has not being able to make headway in India. Presently LIC enjoys a monopoly in Life Insurance business while GIC enjoys it in general insurance business. There has been very little option before the customer to decide the insurer. A successful passage of the IRA bill has clear the way of private sector operators in collaboration with their overseas partners. It is likely to bring in a more professional and focused approach. More over the foreign players would bring sophisticated actuarial techniques with them, which would facilitate the insurer to effectively price the product. It is very important that the trained marketing professionals who are able to communicate Specific features of the policy should sell the policy. In the next millennium all these activities would play a
24 - 24 -9/13/20119/13/2011

crucial role in the overall development and maturity of the insurance industry.

THE PLAYERS IN THE INDIAN LIFE INSURANCE MARKET

Allianz Bajaj Life Insurance Co. Ltd.

25 - 25 -9/13/20119/13/2011

AMP Sanmar Assurance Company Limited Birla Sun Life Insurance Co. Ltd. Dabur CGU Life Insurance Company Pvt. Ltd HDFC Standard Life Insurance Co. Ltd. ICICI Prudential Life Insurance Co Ltd. ING Vysya Life Insurance Co. Pvt. Ltd. Life Insurance Corporation of India Max NewYork Life Insurance Co. Ltd. MetLife India Insurance Company OM Kotak Mahindra Life Insurance Co. Ltd. SBI Life Insurance Company Ltd. Tata AIG Life Insurance Co. Ltd.

PRODUCTS AND SERVICES OF LIFE INSURANCE

Individual Products:Life realise that not everyone has the same kind of needs. Keeping this in mind, we have a varied range of Products that you can choose from to suit all your needs. These will help secure your future as well as the future of your family.

26 - 26 -9/13/20119/13/2011

1. Protection Plans : You can protect your family against the loss of your income or the burden of a loan in the event of your unfortunate demise, disability or sickness. These plans offer valuable peace of mind at a small price. Our Protection range includes our Term Assurance Plan & Loan Cover Term Assurance Plan. 2. Investment Plans : Our Single Premium Whole Of Life plan is well suited to meet your long term investment needs. We provide you with attractive long term returns through regular bonuses. 3. Pension Plans : Our Pension Plans help you secure your financial independence even after retirement. Our Pension range includes our Personal Pension Plan, Unit Linked Pension, Unit Linked Pension Plus.

4. Savings Plans : Our Savings Plans offer you flexible options to build savings for your future needs such as buying a dream home or fulfilling your childrens immediate and future needs. Our Savings range includes Endowment Assurance Plan, Unit Linked Endowment, Unit Linked Endowment Plus, Unit Linked Endowment Plus II, Money
27 - 27 -9/13/20119/13/2011

Back, Unit Linked Enhanced Life Protection II, Children's Plan, Unit Linked Young Star, Unit Linked Young Star Plus, Unit Linked Young Star Plus II

Tax saving plans

28 - 28 -9/13/20119/13/2011

INCOME TAX SECTION

GROSS ANNUAL SALARY

HOW MUCH TAX CAN YOU SAVE?

HDFC STANDARD LIFE PLANS

Sec. 80C

Across All income Slabs. Across all income slabs. Across all income slabs.

Sec. 80 CCC

Sec. 80 D*

Upto Rs. 33,990 saved on investment of Rs. 1,00,000. Upto Rs. 33,990 saved on Investment of Rs.1,00,000. Upto Rs. 3,399 saved on Investment of Rs. 10,000.

All the life insurance plans. All the pension plans. All the health insurance riders available with the conventional plans.

TOTAL Rs. 37,389 SAVINGS Rs. 33,990 under Sec. 80C and under Sec. 80 CCC , POSSIBLE ** Rs.3,399 under Sec. 80 D, calculated for a male with gross annual income exceeding Rs. 10,00,000. Sec. 10 (10)D Under Sec. 10(10D), the benefits you receive are completely tax-free, subject to the conditions laid down therein. * Applicable to premiums paid for Critical Illness Benefit, Accelerated Sum Assured and Waiver of Premium Benefit. ** These calculations are illustrative and based on our understanding of current tax legislations, which are subject to change. Please contact your tax consultant for exact calculation of your tax liabilities.

INDIAINFOLINE TIE UP WITH INSURANCE COMPANIES

29 - 29 -9/13/20119/13/2011

Indiainfoline is tie up with some insurance companies. These major companies are following : ICICI PRUDENTIAL LIFE INSURANCE PVT. LTD. MAX NEWYORK LIFE INSURANCE CO. LTD. METLIFE INDIA INSURANCE COMPANY ABOUT ICICI PRUDENTIAL ICICI Prudential Life Insurance Company is a joint venture between ICICI Bank - one of India's foremost financial services companies-and Prudential plc - a leading international financial services group headquartered in the United Kingdom. Total capital infusion stands at Rs. 47.80 billion, with ICICI Bank holding a stake of 74% and Prudential plc holding 26%. We began our operations in December 2000 after receiving approval from Insurance Regulatory Development Authority (IRDA). Today, our nation-wide team comprises of over 2100 branches (inclusive of 1,116 micro-offices), over 290,000 advisors; and 18 bancassurance partners. ICICI Prudential is the first life insurer in India to receive a National Insurer Financial Strength rating of AAA (Ind) from Fitch ratings. For three years in a row, ICICI Prudential has been voted as India's Most Trusted Private Life Insurer, by The Economic Times - AC Nielsen ORG Marg survey of 'Most Trusted Brands'. As we grow our distribution, product range and customer base, we continue to tirelessly uphold our commitment to deliver worldclass financial solutions to customers all over India.

30 - 30 -9/13/20119/13/2011

The ICICI Prudential edge The ICICI Prudential edge comes from our commitment to our customers, in all that we do - be it product development, distribution, the sales process or servicing. Here's a peek into what makes us leaders. 1. Our products have been developed after a clear and thorough understanding of customers' needs. It is this research that helps us develop Education plans that offer the ideal way to truly guarantee your child's education, Retirement solutions that are a hedge against inflation and yet promise a fixed income after you retire, or Health insurance that arms you with the funds you might need to recover from a dreaded disease. 2. Having the right products is the first step, but it's equally important to ensure that our customers can access them easily and quickly. To this end, ICICI Prudential has an advisor base across the length and breadth of the country, and also partners with leading banks, corporate agents and brokers to distribute our products . 3. Robust risk management and underwriting practices form the core of our business. With clear guidelines in place, we ensure equitable costing of risks, and thereby ensure a smooth and hasslefree claims process. 4. Entrusted with helping our customers meet their long-term goals, we adopt an investment philosophy that aims to achieve risk adjusted returns over the long-term. 5. Last but definitely not the least, our 32,000 plus strong team is given the opportunity to learn and grow, every day in a multitude of ways. We believe this keeps them engaged and enthusiastic, so
31 - 31 -9/13/20119/13/2011

that they can deliver on our promise to cover you, at every step in life.

VISION
To be the dominant Life, Health and Pensions player built on trust by world-class people and service. This we hope to achieve by:

Understanding the needs of customers and offering them superior products and service Leveraging technology to service customers quickly, efficiently and conveniently Developing and implementing superior risk management and investment strategies to offer sustainable and stable returns to our policyholders Providing an enabling environment to foster growth and learning for our employees And above all, building transparency in all our dealings

The success of the company will be founded in its unflinching commitment to 5 core values -- Integrity, Customer First, Boundaryless, Ownership and Passion. Each of the values describe what the company stands for, the qualities of our people and the way we work. We do believe that we are on the threshold of an exciting new opportunity, where we can play a significant role in redefining and reshaping the sector. Given the quality of our parentage and the commitment of our team, there are no limits to our growth. values :

32 - 32 -9/13/20119/13/2011

Every member of the ICICI Prudential team is committed to 5 core values: Integrity, Customer First, Boundaryless, Ownership, and Passion. These values shine forth in all we do, and have become the keystones of our success.

PROMOTERS
ICICI Bank ICICI Bank Limited (NYSE:IBN) is India's largest private sector bank and the second largest bank in the country, with consolidated total assets of $121 billion as of September 30 , 2008. ICICI Banks subsidiaries include Indias leading private sector insurance companies and among its largest securities brokerage firms, mutual funds and private equity firms. ICICI Banks presence currently spans 19 countries, including India. Prudential Plc Established in London in 1848, Prudential plc, through its businesses in the UK, Europe, US, Asia and the Middle East, provides retail financial services products and services to more than 21 million customers, policyholder and unit holders and manages over 256 billion of funds worldwide (as of June 30, 2008). In Asia, Prudential is the leading Europe-based life insurer with life operations in China, Hong Kong, India, Indonesia, Japan, Korea, Malaysia, the Philippines, Singapore, Taiwan, Thailand, and Vietnam. Prudential is one of the largest asset management companies in terms of overall assets sourced in Asia ex-japan, with 34.3 billion funds under management (as of June 30, 2008) and operations in ten markets including China, Hong Kong, India, Japan, Korea, Malaysia, Singapore, Taiwan, Vietnam and United Arab Emirates.

33 - 33 -9/13/20119/13/2011

FACT SHEET
The Company ICICI Prudential Life Insurance Company is a joint venture between ICICI Bank, a premier financial powerhouse, and Prudential plc, a leading international financial services group headquartered in the United Kingdom. ICICI Prudential was amongst the first private sector insurance companies to begin operations in December 2000 after receiving approval from Insurance Regulatory Development Authority (IRDA). ICICI Prudential Life's capital stands at Rs. 4,780 crores (as of January 31, 2008) with ICICI Bank and Prudential plc holding 74% and 26% stake respectively. For the period April 1, 2008 to December 31, 2008, the company has posted a growth of 28%, garnering total received premium (new business + renewal) of Rs. 9,918 crores as against Rs. 7,758 crores during the corresponding period in FY2008 and has underwritten over 9 million policies since inception. The company has assets held over Rs. 28,500 crores as on January 31, 2009. ICICI Prudential Life is also the only private life insurer in India to receive a National Insurer Financial Strength rating of AAA (Ind) from Fitch ratings. The AAA (Ind) rating is the highest rating, and is a clear assurance of ICICI Prudential's ability to meet its obligations to customers at the time of maturity or claims.

34 - 34 -9/13/20119/13/2011

For the past eight years, ICICI Prudential Life has retained its leadership position in the life insurance industry with a wide range of flexible products that meet the needs of the Indian customer at every step in life.

DISTRIBUTION
ICICI Prudential Life has one of the largest distribution networks amongst private life insurers in India. It has a strong presence across India with over 2100 branches (includung 1,116 microoffices) and an advisor base of over 290,000 (as on January 31, 2009). The company has 18 bancassurance partners having tie-ups with ICICI Bank, South Indian Bank, Jalgaon Peoples Co-op Bank, Idukki District Co-op Bank, Wainganga Krishna Gramin Bank, Aryawart Gramin Bank, Jharkhand Gramin Bank, Narmada Malwa Gramin Bank, Baitarani Gramya Bank, Ratnagiri District Central Co-op Bank, Seva Vikas Co-op Bank, Sangli Urban CoOperative Bank, Baramati Co-operative Bank, Ballia Kshetriya Co-Operative Bank, Renuka Nagrik Sahakari Bank, Amanath CoOperative Bank, Arvind Sahakari Bank, Bhandara Urban Co Operative Bank.

35 - 35 -9/13/20119/13/2011

PRODUCTS
Insurance Solutions for Individuals ICICI Prudential Life Insurance offers a range of innovative, customer-centric products that meet the needs of customers at every life stage. Its products can be enhanced with up to 4 riders, to create a customized solution for each policyholder. Savings & Wealth Creation Solutions

Save 'n' Protect is an ideal plan for those who want to accumulate funds on a regular basis while enjoying insurance protection. CashBak is a single policy that combines the triple benefit of protection, savings & periodic liquidity. LifeTime Gold is a unit-linked plan which offers potentially higher returns over the long term with flexible investment options to help you achieve your goals. It offers 8 fund options - Preserver, Protector, Return Guarantee Fund, Balancer, Flexi Balanced Multiplier, R.I.C.H and Flexi Growth. LifeStage RP is unit linked plan that provides you with an option of lifecycle-based portfolio strategy that continuously re-distributes your money across various asset classes based
36 - 36 -9/13/20119/13/2011

on the customers profile, helping him achieve his desired financial goals. LifeLink Super is a single premium unit linked insurance which offers attractive premium allocation along with the opportunity to enjoy potentially high returns over the long term, without compromising on the protection of your family. Premier Life Gold is a limited premium paying plan with the freedom to enjoy long-term wealth creation. It also provides flexibility of premium reduction from 2nd year onwards. InvestShield Life New is a unit linked plan that provides premium guarantee and allows the customer to enjoy the benfits of potentially higher returns while guaranteeing him that he will get back atleast all the premiums paid by him, while providing protection to your family with a life insurance cover. InvestShield Cashbak is a unit linked plan that provides premium guarantee while maintaing a balance between return, safety & liquidity. Wealth Advantage is a unique whole life single premium unit linked plan that provides long term coverage upto the age of 70 years and provides you the option to systematically withdraw your money. LifeStage Assure a unit linked insurance plan that provides Guaranteed Maturity Addition of 100%- 450% of first year premium based on the term and number of premiums paid, with the additional advantage of a lifecycle based portfolio strategy that allocates the investors money across various asset classes based on his age and risk appetite. Protection Solutions Pure Protect is a flexible and affordable term product, with

37 - 37 -9/13/20119/13/2011

which you can ensure your life and provide total security for your family in case of an unfortunate event. LifeGuard is a protection plan, which offers life cover at low cost. It is available in 2 options level term assurance with return of premium & single premium. HomeAssure is a mortgage reducing term assurance plan designed specifically to help customers cover their home loans in a simple and cost-effective manner.

Child Plans

SmartKid New ULRP The policy is designed to provide money at key educational milestones in the child's life. SmartKid plans are also available in traditional form.

Retirement Solutions

ForeverLife s a traditional retirement product that offers guaranteed returns for the first 4 years. LifeTime Super Pension is a regular premium unit linked pension plan that helps one accumulate over the long term and offers 5 annuity options (life annuity, life annuity with return of purchase price, joint life last survivor annuity with return of purchase price, life annuity guaranteed for 5,10 and 15 years & for life thereafter, joint life, last survivor annuity without return of purchase price) at the time of retirement. LifeStage Pension is a regular premium unit linked pension plan that provides you with a unique lifecycle-based strategy that continuously re-distributes your money across
38 - 38 -9/13/20119/13/2011

various asset classes based on your age and risk profile. LifeLink Super Pension is a single premium unit linked pension plan. Immediate Annuity is a single premium annuity product that guarantees income for life at the time of retirement. It offers the benefit of 5 payout options.

Health Solutions

Health Assure Plus is a regular premium plan which provides long term cover against 6 critical illnesses by providing policyholder with financial assistance, irrespective of the actual medical expenses. Health Assure Plus also offers the added advantage of an equivalent life insurance cover. Cancer Care is a regular premium plan that pays cash benefit on the diagnosis as well as at different stages in the treatment of various cancer conditions. Hospital Care is a fixed benefit plan covering various stages of treatment hospitalisation, ICU, procedures & recuperating allowance. It covers a range of medical conditions (900 surgeries) and has a long term guaranteed coverage upto 20 years. Crisis Cover is a 360-degree product that will provide longterm coverage against 35 critical illnesses, total and permanent disability, and death. Diabetes Care Active is a long term insurance policy created for individuals with Type II diabetes and pre39 - 39 -9/13/20119/13/2011

diabetes. It offers long term (upto 20 years) control over diabetes through a specially designed Wellness Programme including regular health checkups and a Diabetes Coach to facilitate diabetes management. It also provides you coverage against seven major critical illnesses. MediAssure is a health insurance policy that provides assured insurability till age 75 years, assured coverage for accepted pre-existing illnesses after 2 years and an assured price for 3 years. Health Saver provides comprehensive hospitalization cover and reimburses all other medical expenses by building a health fund.

Group Insurance Solutions ICICI Prudential also offers Group Insurance Solutions for companies seeking to enhance benefits to their employees.

Group Gratuity Plan: ICICI Prudential Life's group gratuity plan helps employers fund their statutory gratuity obligation in a scientific manner and also avail of tax benefits as applicable to approved gratuity funds. Group Superannuation Plan: ICICI Prudential Life offers a flexible market linked scheme that provides substantial benefits to both employers and employees. Both defined contribution (DC) and defined benefit (DB) schemes are offered to optimise returns for members of the trust and rationalise cost. Members have the option of choosing from various annuity options or opting for a partial commutation of the annuity at the time of retirement. Group Immediate Annuities: ICICI Prudential Life
40 - 40 -9/13/20119/13/2011

realises the importance of prudent retirement planning. With this in mind, we have developed a suite of annuity products that not only give you an income for life but also provide you options to match your needs. In addition to the annuities offered to existing superannuation customers, we offer immediate annuities to superannuation funds not managed by us. Group Term Plan: ICICI Prudential Life's flexible group term solution helps provide an affordable cover to members of a group. The cover could be uniform or based on designation/rank or a multiple of salary. The benefit under the policy is paid to the beneficiary nominated by the member on his/her death.

Flexible Rider Options ICICI Prudential Life offers flexible riders, which can be added to the basic policy at a marginal cost, depending on the specific needs of the customer.
1.

2.

Accident & disability benefit: If death occurs as the result of an accident during the term of the policy, the beneficiary receives an additional amount equal to the rider sum assured under the policy. If an accident results in total and permanent disability, 10% of rider sum assured will be paid each year, from the end of the 1st year after the disability date for the remainder of the base policy term or 10 years, whichever is lesser. If the death occurs while travelling in an authorized mass transport vehicle, the beneficiary will be entitled to twice the sum assured as additional benefit. Critical illness benefit:Critical Illness Benefit Rider provides protection against 9 critical illnesses to the
41 - 41 -9/13/20119/13/2011

3.

4.

policyholder when attached to the basic plan. Waiver of premium: On total and permanent disablement due to accident all future premiums under the base plan will be waived till the end of the term of the rider or death of assured life, if earlier. Income benefit rider: In case of death of the Life Assured during the term of the policy, 10% of the Sum Assured is paid annually to the nominee on each policy anniversary till the maturity of the rider.

ABOUT THE PROMOTER

ICICI Bank ICICI Bank Limited (NYSE:IBN) is India's largest private sector bank and the second largest bank in the country, with consolidated total assets of about $ 100 billion as of December 31, 2008. ICICI Banks subsidiaries include Indias leading private sector insurance companies and among its largest securities brokerage firms, mutual funds and private equity firms. ICICI Banks presence currently spans 19 countries, including India. Established in London in 1848, Prudential businesses in the UK, Europe, US, Asia and provides retail financial services products and than 21 million customers, policyholder and
42 - 42 -9/13/20119/13/2011

plc, through its the Middle East, services to more unit holders and

manages over 256 billion of funds worldwide (as of June 30, 2008). In Asia, Prudential is the leading Europe-based life insurer with life operations in China, Hong Kong, India, Indonesia, Japan, Korea, Malaysia, the Philippines, Singapore, Taiwan, Thailand, and Vietnam. Prudential is one of the largest asset management companies in terms of overall assets sourced in Asia ex-japan, with 34.3 billion funds under management (as of June 30, 2008) and operations in ten markets including China, Hong Kong, India, Japan, Korea, Malaysia, Singapore, Taiwan, Vietnam and United Arab Emirates.

BOARD OF DIRECTORS
The ICICI Prudential Life Insurance Company Limited Board comprises reputed people from the finance industry both from India and abroad. Mr. K.V. Kamath, Chairman Ms. Chanda Kochhar, Director Mr. Barry Stowe, Director Mr. Adrian OConnor, Director Prof. Marti G. Subrahmanyam, Director Mr. Mahesh Prasad Modi, Director Ms. Rama Bijapurkar, Director
43 - 43 -9/13/20119/13/2011

Mr. Keki Dadiseth, Director Ms. Shikha Sharma, Managing Director Mr. N.S. Kannan, Executive Director Mr. Bhargav Dasgupta, Executive Director

MANAGEMENT TEAM
The ICICI Prudential Life Insurance Company Limited Management team comprises reputed people from the finance industry both from India and abroad. Ms. Shikha Sharma, Managing Director & CEO Mr. N. S. Kannan, Executive Director Mr. Bhargav Dasgupta, Executive Director
44 - 44 -9/13/20119/13/2011

Ms. Anita Pai, Executive Vice President Customer Service & Technology Dr. Avijit Chatterjee, Appointed Actuary Mr. Puneet Nanda, Executive Vice President & Chief Investment Officer

AWARDS
Confederation of Indian Industry (CII) - Western Region recently awarded ICICI Prudential Life a 'Commendation for Strong Commitment to HR Excellence 2008' at the CII HR Summit 2008.

45 - 45 -9/13/20119/13/2011

ICICI Prudential Life Insurance was awarded with the coveted 'ICAI Award for Excellence in Financial Reporting' by the Institute of Chartered Accountants of India (ICAI) for the financial year ended March 31, 2008.

46 - 46 -9/13/20119/13/2011

ICICI Prudential Life was awarded the Life Insurance Company of the Year at the12th Asia Insurance Industry Awards 2008.

47 - 47 -9/13/20119/13/2011

ICICI Prudential Life was awarded with two Bronze Effie's in the sevices catgeory for its Corporate campaign and Retirement Number campaign

ICICI Prudential Life Insurance won the award for the Best Life Insurer-Runner up at the Outlook Money & NDTV Profit Awards 2008

ICICI Prudential Life was awarded the SAP ACE 2008 Best Business Objects Award for its IT practices

48 - 48 -9/13/20119/13/2011

ICICI Prudential Life won the Award for Brand Excellence in the Banking and Financial services category at the Asia Brand Congress 2008

Ms. Shikha Sharma, MD & CEO, ICICI Prudential Life Insurance Co. Ltd. was adjudged the Businesswoman of the year at The Economic Times Awards for Corporate Excellence, 200749 - 49 -9/13/20119/13/2011

08.

ICICI Prudential Life won the UK Trade & Investment India Business Awards 2008 in the Business Partnership Award-Large Company category

50 - 50 -9/13/20119/13/2011

ICICI Prudential Life won the ICICI Group Marketing Excellence Award 2008 in three key categories for its marketing initiatives

ICICI Prudential Life was awarded the INDYs Award for Excellence in Mass Communication in the category of Most Creative AdvertisementTelevision

51 - 51 -9/13/20119/13/2011

India's Most Customer Responsive Insurance Company . Avaya Global Connect - Economic Times. Customer Responsiveness Awards, 2007

Ms. Shikha Sharma, MD & CEO, ICICI Prudential Life Insurance was adjudged as one of the 50 Most Powerful Women in Business by The Financial Express.

52 - 52 -9/13/20119/13/2011

Ms. Shikha Sharma, MD & CEO, ICICI Prudential Life Insurance was adjudged the Entrepreneur of the Year-Manager at the Ernst and Young Entrepreneur Awards 2007

Ms. Shikha Sharma, MD & CEO, ICICI Prudential Life Insurance was awarded the Outstanding Businesswoman of the Year at CNBC TV18's India Business Leader Awards 2007

53 - 53 -9/13/20119/13/2011

ICICI Prudential Life Insurance won the award for the Best Life Insurer-Runner up at the Outlook Money & NDTV Profit Awards 2007

ICICI Prudential Lifes, retirement solutions campaign for the year 2006-07 was awarded the Bronze Effy trophy in the services category.It also won the Brand Equity Bravery Award 2007, instituted by Ad club.

54 - 54 -9/13/20119/13/2011

ICICI Prudential Lifes website, www.iciciprulife.com was awarded the best website among private life insurers at the Web 18 and Frost & Sullivan Genius of the Web Awards 2007 for commendable work in the online.

Innovation Award for launching Diabetes Care Prudence Award 2006. People Award for excellence in training and people development Prudence Award 2006

55 - 55 -9/13/20119/13/2011

India's Most Customer Responsive Insurance Company. Avaya GlobalConnect - Economic Times. Customer Responsiveness Awards

Most Trusted Private Life Insurer. The Economic Times - A C Nielsen Survey of Most Trusted Brands 2003, 2004 and 2005

56 - 56 -9/13/20119/13/2011

Prudence Customer Centricity Award 2004 & 2005. Prudential Corporation Asia

57 - 57 -9/13/20119/13/2011

Best Life Insurer 2003. Outlook Money Awards 2003 & 2004

IMM Award for Excellence. Institute of Marketing & Management

Organisation with Innovative HR Practices Indira Group of Institutes

Superbrand 2003-04

58 - 58 -9/13/20119/13/2011

Organisation with Innovative HR Practices AsiaPacific H R Congress Awards for HR Excellence

Silver Effie for Effectiveness of the Retire from Work not life advertising campaign Effies 2003

RECOGNITIONS
ICICI Prudential Life was recognized as the most trusted brand amongst private life insurers in the Economic Times-Most Trusted Brand survey 2008.

59 - 59 -9/13/20119/13/2011

IMM Award for Excellence. Institute of Marketing & Management

Organisation with Innovative HR Practices. Indira Group of Institutes

Organisation with Innovative HR Practices. AsiaPacific H R Congress Awards for HR Excellence

GLOSSARY TERMS USED IN INSURANCE

Accelerated payment of basic cover This occurs when the basic cover amount is paid earlier than death or maturity. For example the policy may provide for the full payment of the death benefit in the event of total and permanent disability. Accident The term accident is sometimes defined in the policy document as
60 - 60 -9/13/20119/13/2011

follows - the accident must be caused by violent, external and visible means and cause of the injury or injuries solely and independently of any other means. Accidental death benefit Benefit, which provides for the payment of an additional sum (usually equal to the sum insured of the basic policy) in the event of death by an accident. Amount Payable This refers to the amount that is payable according to the terms and conditions of the insurance policy to the legal owner of the insurance policy. Annuitant The person whose lifetime is used to measure the contractual period over which annuity payments will be made. Annuity Annuity contract is an agreement under which the insurance company, in return for the payment of a certain sum, makes a series of agreed payments at regular intervals from a fixed date. This continues until the death of the individual on whose life the annuity is bought.

Annuity Period The time span between each of the annuity income benefit payments made under the annuity contract. Typically annuity income benefits are paid monthly or annually. Anticipated Endowment An endowment where you do not have to wait for the maturity date before receiving part of the maturity amount.

61 - 61 -9/13/20119/13/2011

Applicant / owner / life of another The applicant is the person on whose life insurance cover is sought. Owner is the person who has the legal title to the policy. Life of another on whose life he or she has an insurable interest. Application for reinstatement This refers to an event when a policy has lapsed or terminated by the policy owner owing to a non-payment or late payment of a premium. The company will consider a reinstatement of the contract in the event of an application being made as prescribed by the company in terms of the outstanding premium, interest or administration fees (if any) and evidence of good health. The reinstatement and terms are at the discretion of the company. Appreciation The increased value of one asset held by the policy, or by the total assets held by the policy over a period of time. Ask or offer price The price at which units or shares can be purchased. The asked or offering price means the current net asset value (NAV) per share plus sales charge, if any. For a no - load fund, the asked price is the same as the NAV. Asset allocation A system method of investing that distributes assets to a broad array of investments Assets The current rupee value of the pool of money shareholders have invested in a fund. Assignments This is the process by which, the owner of the rights under the policy known as the assignor transfers the right to another person
62 - 62 -9/13/20119/13/2011

known as the assignee by executing a deed of assignment. Balanced fund A fund that maintains a balanced portfolio, generally 60% bonds or preferred stocks and 40% commons stocks. Bear market A period of time in which the market, or securities in general lose money. Benchmark A reference point that is chosen for the purposes of comparing other related values. Beneficiary The person or party the owner of a life insurance policy names to receive the policy benefit. Bid or sell price The price at which a funds units or shares are redeemed (bought back) by the fund. The bid or redemption price means the current net asset value per share, less any redemption fee or back end load. Bid / offer spread The difference between the bid and the offer prices.

Body mass index (BMI) Used for underwriting purposes in evaluating build and determining overweight and obesity. It tells us the person's health constitution. It is expressed as weight in Kg divided by height in

63 - 63 -9/13/20119/13/2011

meters to the power of two or Kg/height2 Bond A bond is security in the form of a convertible loan with a maturity date, where the investor lends money to a company or government. Bull market A good market in which prices of securities increase greatly over a specific period of time. Capital Gains Taxes Taxes that are imposed at the redemption of all capital gains. Capitalization The value of a fund derived by the multiplication of the fund's share price by the number of outstanding shares. Most often, this is applied in order to determine the value of the specific companies. Cash Surrender Value The amount that is available to the owner if a life insurance policy is surrendered any time before the maturity date. The amount represents the cash value minus surrender charges and any outstanding loans due upon cancellation of the policy. Claim Written request by an insured for the insurance company to cover an incurred loss, usually submitted on the company's standard form.

Claimant Person who has as interest in the policy and making a claim on the policy.

64 - 64 -9/13/20119/13/2011

Closed end fund A type of fund that offers only a fixed amount of shares, usually sold through a brokerage firm by a broker. Most funds are not closed - end funds; they offer unlimited shares and may be purchased and redeemed directly by the individual through the mail by check. Closing price The price of stock or other security at the end of the day, after the final trade. Collateral A temporary assignment of the monetary value of a life insurance policy as security for a loan. In the event of default, the creditor would receive proceeds or values only to the extent of his interest. Commisson A fee paid by the investor to a broker or other sales agent for investment advice and assistance. Compounding Earnings on an investment's earnings. Over time, compounding can produce significant growth in value of an investment. Contractual obligation When parties effect a contract, there are obligation that the parties assume and are legally bound to fulfill these obligations. If there are not fulfilled, the other part can resort to legal means to seek redress.

65 - 65 -9/13/20119/13/2011

Coroner The coroner is the person who is legally authorized by the government to determine the cause of death, when this is in doubt, or if there has been death which is not deemed to be due from normal illnesses. He or she does it by examining the evidence submitted including autopsy or post mortem reports, medical reports and statements from witnesses. The coroner is usually a magistrate or someone who possess legal qualification. Cover Continuance Option (CCO) An option available on specified unit linked polices, where the policy holder can choose to discontinue his premium payments after having made premium payments regularly for at least three years. In such cases, the life cover of the policy remains as is, in spite of the premium payments being discontinued. The life cover will continue till the value of the policy funds becomes 110% of the annual premium. Date of commencement The date on which cover begins, following acceptance of the risk by the insurer. Dating Back For non investment linked policies, the commencement date of the policy can be backdated within the same financial year. This enables the life assured to take advantage of the lower premium applicable to a younger age as the premiums is calculated with reference to the date of commencement. The insurance cover will however begin only from the date of acceptance. The extra premium on account of dating back has to be paid upfront.

66 - 66 -9/13/20119/13/2011

Death Benefit Payable The amount payable, as stated in a life insurance policy, to the designated beneficiary(ies) upon the death of the insured. The amount paid is the face value, plus any riders that are applicable, less any outstanding loans. Declaration This is the statement or section of the form where the person is required to declare that the statements or answers are given fully and truthfully and that if it were not so, there would be legal consequences.

Deffered Annuity An annuity contract under which periodic benefits are scheduled to begin at some designated future date after the date on which the annuity was purchased. Depreciation A decline in the investment's value. Doctrine of Utmost Good Faith Insurance contract is issued on the basis that the applicant truthfully and fully discloses everything he or she knows about his or her health. This arises from the recognition that the insurance company is in a disadvantageous position, as the insurer does not know anything about the applicant. Similarly, the insurance company should deal with the applicant with honesty and integrity Endowment
67 - 67 -9/13/20119/13/2011

A type of insurance policy which provides for the face amount stated in the contract to be payable in a fixed date or on the life insured's earlier death.

Equity A stock or the interest in capital gains received from the ownership of a stock. Ex-gratia claim This occurs where strict liability has not been proved but the insurer may decide that it would be unduly harsh or cause hardship, not to make some payment. Such payments are made out of goodwill, without admission of liability. Ex-gratia payments These are payments made by a company where the claim is a gray area, doubt exists but it may be to the benefit of the claimant and the company feels out of goodwill that some form of payment should be made. The claim is made without any admission of liability. Payment is only made on the understanding that the claimant accepts the amount in full satisfaction of all claims he or she may have on the policy. Exclusion A condition under which the benefit is not paid is referred to as exclusion. This is to avoid any misunderstanding. For example, for accidental policies, there is usually exclusion for suicide or selfinflicted injuries by the life insured.

68 - 68 -9/13/20119/13/2011

Extended Term Insurance A provision in some policies which provides the option of continuing the insurance for a particular insured amount as per the policy condition as term insurance. Family history The medical history affecting the applicant's immediate family. It is to look for illness that is hereditary. Focus should be on illness where the onset is before the age of 50.

Fixed income securities The category of investment vehicles that offer a fixed periodic return. A fixed income security is a security or certificate showing that the investor has lent money to the issuer, who is usually a company or government, in return for fixed interest income and repayment of the principal at maturity. FI Financial Institution. Fixed annuity An annuity where the insurer guarantees to credit the annuity account value with a fixed rate of interest for a specified period of time, for one, three, five or even ten years. At the end of the initial time period, the insurer sets a new interest rate for the next period. Fixed Interest Income, which remains constant and does not fluctuate, such as income derived bonds, annuities and preferences shares. The percentage return from this income varies dependent on the market price. Fixed period option An option on an annuity that provides that annuity payments, each
69 - 69 -9/13/20119/13/2011

of specified and equal amounts, will be paid for a certain period of time such as 10 or 15 years, even if the annuitant is still living at the end of the period. Fraudulent claims These are claims where a statement is made by the insured, which he knows or ought to know that it is false, and he makes it in order to benefit from a life insurance policy by dishonest means. Fund assets Amount of assets currently in the fund. Government Bonds These are effectively financial instruments used by the government to borrow money from the public. The rates of interest and term period of government bonds are fixed. Grace Period This provision offers the policy holder additional period of time after the due date, during which the premium can be paid. The policy continues to remain in force during this grace period and the premium continues to be payable. Growth Fund A fund whose primary investment objective is long-term growth of capital. It invests principally in common stocks with significant growth potential. Guaranteed insurability option An option which allows the policy owner to effect additional insurance at later dates without further evidence of health and irrespective of the date of the health of the life insured. Hazardous avocation A hobby that has high risk for insurance purpose. Example: A deep
70 - 70 -9/13/20119/13/2011

- sea diver or a free-fall skydiver. Hazardous occupation An occupation that has high risk for insurance purposes. Example: a window cleaner on high - rise buildings. Immediate annuity An annuity where, income benefits begin one annuity period after the annuity is issued. If it is specified that benefits are paid annually, then the benefit payments begin one year after issue.

Income fund A fund that primarily seeks current income rather than growth of capital. It will tend to invest in stocks and bonds that normally pay high dividend and interest. Interest rate risk The possibility that a bond's or bond fund's value will decrease due to rising interest rates. Invalid contract Life insurance is a contract and the law provides that there must be an insurable interest between the life insured and the insured. If it is subsequently proven that this did not exist when the insurance contract was effected, it can be declared as not valid and set aside. Investment An asset acquired for the purpose if producing income and capital gains to its owner. Investment objective The financial goal (long term growth, current income, etc) that an
71 - 71 -9/13/20119/13/2011

investor or a fund pursues. Investment trust A corporation, partnership or trust that invests the pooled monies of many investors. It provides greater professional management and diversification of investments than most investors can obtain independently. Mutual funds, or "open-ended" investment companies, are the most popular for of investment company. Joint and survivor option An option on an annuity that provides that the annuity payout will continue through the lives if two people. If one of the payees dies, payments continue to the second payee throughout that payee's lifetime. An insurance policy that a company purchases on a key employee whose knowledge, network and experience is so essential that the untimely death of the employee will have a severe impact on the profitability of the company. Keyman Insurance An insurance policy that a company purchases on a key employee whose knowledge, network and experience is so essential that the untimely death of the employee will have a severe impact on the profitability of the company. Lapse Termination of a life insurance contract because of non-payment of premiums. If there are non forfeiture values, the policy lapses but may remain effective reduced paid-up insurance. Large -cap A large sized company, or a mutual fund that invests in the stock of large, established well known companies.
72 - 72 -9/13/20119/13/2011

Law of large numbers A large insurance portfolio enables the actuary to predict better the number of claims. The principle reduces the number of random fluctuations of claims as the number of lives insured slowly grows. There is substantial decline in standard deviation of claims arising from pure chance with increase in number of insured. Lien At the time the policy is issued or reinstated, as a part of the underwriting decision, the company may impose a lien on the policy. This would mean that in the event of a claim arising from a specific risk or within a period, a certain agreed amount would be deducted form the claim. The insured is regarded to self insure the amount to be deducted as the company has declined to cover the specific risk or the insured has agreed to this arrangement instead of paying the extra premium. Life Annuity An annuity that makes regular (e.g., monthly, quarterly, etc.) income payments for the life of a person (the annuitant). The annuitant cannot outlive the payments. Upon his/her death, however, all income payments cease and there are no beneficiary benefits. Life Assured Person whose life is covered under a life insurance policy. Law Expectancy The number of years a person is expected to live as determined by actuaries using mortality (actuarial) tables This information is used to calculate annuity payments, life insurance premiums, and annual minimum distributions from IRAs. Life fund This is a fund set up by an insurance company to which life
73 - 73 -9/13/20119/13/2011

insurance premiums of certain designated category of life policies issued are paid into. Claims and expenses occurring on these life polices are paid out of these funds.The company actuary does a valuation of the funds periodically before any profits or the company distributes dividends. The insurance company has a responsibility to exercise fairness in the way it manages the fund and the actuary will ensure that the fund is solvent at all times. Liquidity fund The degree to which an investment may be quickly sold in exchange for cash. Funds are a liquid investment; at any timeshares may be redeemed. A 30-year savings bond is not liquid. It cannot easily be sold until the 30-tear, maturity date is reached. M&A Mergers and acquisitions

Management Fee Fee levied for management of the fund and / or shareholder administrative services. Usually a fixed percentage of the total value of your fund that is assessed once in a year. Market Risk Refers to the potential of loss that is possible, as a result of the short-term validity of the stock market. Owning funds, due to their diversification, shield an investor to some market risk that a stockholder may be vulnerable to. Market timing A method of investing in which an investor may try to predict good or bad markets for the purposes of determining when to buy and

74 - 74 -9/13/20119/13/2011

sell a specific security or fund. Maturity date The date on which an endowment insurance policy's face amount will be paid to the policy-owner if the life insured is still living. MF Mutual Fund Misrepresentation of material facts Providing the wrong facts or not giving the entire truth of a matter. This is more serious that non-disclosure. It refers to the applicant stating wrong facts or giving half-truths. They are material because if the underwriter knew of it this information, the decision might be different.

Money Market Instrument Include short term - investments such as CD's. T-Bills, and shortterm commercial bonds. Money market mutual funds invest in these types of short-term investments; as a result, there is little to no risk of losing any portion of the principle investment. Moral hazard Underwriting the risk affecting an application based on factors such as the personal reputation and character of the applicant, business ethics or the existence of a criminal record. It concerns the intention or motivation behind the buying of a life insurance policy.

75 - 75 -9/13/20119/13/2011

Morbidity The probability of disability of a life or group of lives. Mortality The probability of death of a life or group of lives. Mortgage This is a form of assignment used in connection with a loan. The policy is mortgaged by the mortgager to the mortgaged who will hold it as a security for the duration of the loan until the loan and the interest is paid. In the event, the policy must be reassigned to the mortgagor if the amount is not paid by the required date, the mortgagee has the right to liquidate the policy and recover the amount and return the balance amount to the mortgagor. Net Asset Value (NAV) The value of a fund share. Determined by dividing the total value of the fund's assets by the number of outstanding shares. This value is calculated daily by the fund.

Non-disclosure of material facts An applicant fails to disclose facts that have an impact on the decision of the underwriter (had the underwriter known of this fact, the decision would have been different) Non - medical cases Cases where a medical examination is not necessary. Large number of cases are straightforward and do not have any medical problems. For cases within limits on age and the amount on cover, a medical examination is not necessary. Non-participating policy Non-participating policy is also known as a without-profit or nonpar policy. The policy owner does not share in any divisible
76 - 76 -9/13/20119/13/2011

surplus made by the life insurance company. No bonus is paid on this policy. NPA Non-performing Asset NSE National Stock Exchange Offer-price The price to buy one share of a specific kind. Open-end fund A fund that does not have a fixed number of shares (as does a closed end fund or stock). The mutual fund will offer as many shares, as investors are willing to buy. These funds need to be bought through a broker. Most funds are open-ended unless otherwise noted.

Option A financial instrument that gives the investor the right to buy or sell a given number of shares of the underlying stock at a fixed price within a specified time period. Ordinary shares A share that gives the holder part ownership of a company and entitle thee holder to share in the company profits in the form of dividends. Participating Policy A participating policy is also known as a with-profits or par policy.
77 - 77 -9/13/20119/13/2011

A participating policy charges a higher premium than a nonparticipating policy. In return, the policy owner shares in the life insurance company's divisible surplus, in the form of bonus allotted to the policy. The bonus is allotted in addition to the guaranteed sum assured. This bonus is paid along with the basic sum assured. Partnership Insurance Cross-insuring partners in a partnership business to effect a buyout of the deceased partner's family from the business. Physical hazards Features or facts that can be observed or evaluated. This includes reports from agents, medical consultants or through investigations

Policy Bonus In participating policies the company gives the policyholders a share in the profits of the company in the form of bonuses. Generally, there are two types of bonuses for insurance policies. Reversionary bonus is a guaranteed addition to your insured amount and is paid when the policy matures (i.e. when the sum assured becomes payable) or when the life assured dies. Cash Bonuses are paid out at periodical intervals. Policy face amount This refers to the amount stated in the policy payable in the event

78 - 78 -9/13/20119/13/2011

of death or maturity. Policy loans Loans are granted on the security of the surrender value if a policy. The amount is usually restricted to a certain percentage of the surrender value and interest is payable. Loans can be repaid at any time before the policy becomes a claim, when the total indebtness is deducted and the balance is paid. If the total indebt ness exceeds the surrender value, then the policy is declared as terminated and the indebt-ness is written off. Policy Term The period of coverage provided by an insurance policy. Portfoilo The collection of all holdings of a fund, such as bond's and stocks. In a fund's annual report, a list of the fund's current portfolio will usually be contained Portfolio Manager A specialist employed by a fund's advisor to invest the fund's assets in accordance with pre determined investment objectives

Premium This is the contribution / payment that a policyholder makes to a life insurance company to obtain insurance cover. He or she has a responsibility to ensure that the correct amount states is paid as and when it falls due as stated in the policy document. Premium waiver This refers to all premiums due after the incident of claim is waived without any loss of benefits whatsoever unless specifically stated.

79 - 79 -9/13/20119/13/2011

Principal The total amount of the initial investment plus subsequent investments. Prospectus A document, usually in the form of a booklet, that provides information about a specific mutual fund; such as the funds investment and the redemption policies. The prospectus, according to law, must always is accompanied with the application. Prospective investors should always read the mutual fund's prospectus before sending money. Purchase money This is the initial amount paid to the insurance company to purchase the annuity. Pure endowment An endowment, which provides for the payment of the sum insured only on survival to the maturity date. On earlier death, nothing is usually paid out although some contracts may provide for the premiums paid to be refunded either with or without interest, after deducting appropriate expenses incurred. Quality The creditworthiness of a bond issuer, which indicates the likelihood that it will be able to repay its debt. Redemption fee Fee levied for-selling shares of your index fund. Usually a fixed percentage of the total value of your fund. RBI Reserve Bank of India Reduced paid up insurance
80 - 80 -9/13/20119/13/2011

Reduced paid up insurance can be offered on a policy that has been in force long enough to acquire a cash value and where the policy holder does not wish to continue paying further premiums. The policy is converted with the consent of the policyholder whereby a reduced sum assured is payable on similar terms and conditions of the original basic policy. Reduced sum assured Where the sum insured proposed or existing is reduced. If such underwriting terms are offered, you are not reducing the risk but just the liability. Reinstatement / Revival This refers to the process where the policy that has terminated for example due to a lapse of non-payment of premium and the owner has applied for the policy to be reinstated and the company has agreed to do so on certain conditions. Renewal Premiums Premiums that are payable after the initial premium and that are a condition for the continuation of the policy.

Repudiation of a claim This process takes place when the claims examiner looks at the policy document and the evidence submitted to him or her and makes a decision to reject it. Return The value received (income plus capital) annually from an investment, usually expressed as a percentage. Reversionary annuity
81 - 81 -9/13/20119/13/2011

An annuity provides that in the event of death of a person "A" during the lifetime of a person "B", the latter will receive an annuity for the remainder of his or her life. If "B" dies before "A", nothing is payable. Reversionary bonus This refers to the portion of surplus distributed to with profit policyholders. They are declared annually and increase the value of the policy. It is usually expressed as a percentage of the sum insured. It can be either simple based purely in the sum insured or compound based on the sum insures plus previous bonus. Once allocated, the bonuses cannot be removed or reduced by the company. Riders Additional or supplementary benefits that are bought together with a main life policy on the same life and are combined for the purposes of collecting one premium. They ride on and are considered as part of the main policy. They could be added, amended or deleted from the main policy, any time, subject to risk assessment. Details and the terms and conditions of the benefits are clearly indicated in the main policy document.

Risk assessment This part of the underwriting process whereby the risk of the happening of the insured event to the life insured in evaluated and a decision is made if the case can be accepted on terms applied for by the insured. It is done by examining all information in hand and obtained as its request and using the weight of experience and statistical evidence and studies. Risk classification The process whereby applicants with similar levels of risk are
82 - 82 -9/13/20119/13/2011

placed in a separate basket so that the appropriate pricing is charged for the individuals within each respective basket. Risk selection The process whereby you determine whether a risk proposed such as an application for life insurance to the company is insurable or not insurable. Risk tolerance The willingness of an investor to tolerate the risk if losing money for the potential to make money. Rule of 72 The formula for approximating the time it will take for a given amount of money to double at a given compound interest rate. The formula is simply 72 divided by the interest rate. In six years, Rs. 1000/- will double at a compound annual rate of 12% (72 divided by 12 equals 6) Rupee Cost Averaging A system of investing in which an individual reinvests money into the same fund on a regular basis usually monthly. Often investors can choose an option in which money is automatically withdrawn from their banking account and invested into the fund at a specified time of the month. SEBI Securities and Exchange Board of India Securities The holdings of a fund, such as stocks or bonds. Short term The period of time in which market volatility may subject an investment to market risk of loss. The short term may be
83 - 83 -9/13/20119/13/2011

considered to be a period of two years or less. Speculative risk Derived from an intention to obtain an undue benefit from an insurance policy. Similar to a gambling wager, it is illegal. Statutory presumption of death The laws in most countries provide that in the event of a person who has gone missing for a certain number of years a court order can be made to declare the person as legally dead. This is usually set as seven years. It has to be proved to the court that he or she has not been heard of by anyone including those who would naturally have heard if he or she had been alive. Surrender value The surrender or cash value is the amount payable to the policyholder should the policyholder decide to discontinue the policy. However, the insurance protection provided under the policy will also cease. Not all insurance policies have surrender or cash values. TDS An endorsement or attachment to a life insurance policy that provides additional term coverage for the amount specified. If the insured dies during this time, the designated beneficiary(ies) can receive death benefit proceeds..

Terminal Bonus This part of the surplus distributed is added only when the policy becomes a claim in most cases by maturity or death. It is usually expressed as a percentage of the reversionary bonuses. Third Party This is when a person or a company takes a policy on the life on
84 - 84 -9/13/20119/13/2011

another. Trust This occurs when a person(s), known as settlor sets up an obligation, known as a trust for the benefit of person(s) known as beneficiaries. Trustees are appointed to carry out the terms of trust. UTI Unit Trust of India Utmost good faith The principle of utmost good faith requires the applicant to disclose all material facts. Vesting age This is the age when the rights under the policy vests with the name individual. Violent, external and visible This is used, as a guideline to determine when death or disability is caused by an event deemed as an accident. Violence is usually present and this includes physical violence, person exerting themselves physically, carrying heavy weights or injury caused by drowning, suffocation by inhalation of gas or smoke. External is where the cuse us nit an internal injury and any cause which is external is visible.

Volatility The degree to which a mutual fund's share price will change in value. Waiting Period This applies when the benefit is payable after a specified period. For certain benefits, cover may only commence after a specified
85 - 85 -9/13/20119/13/2011

period. For example, if a diagnosis of cancer or heart attack is made within 180 days of the commencement of the policy the critical illness benefit is not payable. Will This is a document drawn up by a person indicting how he or she wishes the assets to be distributed among the various beneficiaries. The last will drawn up according to the laws of the country is valid. It is only valid on death and certified by the courts to be so in the form of a probate. Willful Misrepresentation This occurs where the applicant completing the form willfully misrepresents the facts, so as to gain advantage. Withdrawal To redeem shares of a fund or stock. In a mutual fund, partial or full redemptions may be made. Some funds may impose an extra redemption fee to discourage market timers from pulling their money immediately after investing. If this is a fund's policy, it will stated in the prospectus. Without Profit Policies These are policies which do not participate in the profits of the company

With Profit Policies These are policies that are issued on the basis that they participate in the profits of the company and are entitled to receive bonuses as a result. The actuary determines profits after valuing the assets and liabilities if the company and setting aside the necessary reserves and expenses. The profits are then shared by the shareholders and
86 - 86 -9/13/20119/13/2011

with the profit policyholders. Yield Income or dividends received from a security or fund YTM Yield to maturity.

MANAGE YOUR POLICY

For ease of policy management, Birla Sun Life Insurance bring you the below detailed facilities Online Policy Details Allows you to check your policy details and request

87 - 87 -9/13/20119/13/2011

modifications. Online Premium Payment Pay your renewal premium through our online payment facility. Free Policy Alerts Email / SMS alert - Subscribe to a host of E-mail / SMS alert. Policy Service Request Know what other services offerd to your policy.

PAYMENT OPTIONS At ICICIPRU, we strive to find out ways and means to make our Customer's relationship with us convenient and hassle free. With this in mind, we are glad to present you with some convenient and user friendly renewal payment methods to ensure that you always make premium payment with ease and enjoy uninterrupted Life Insurance Coverage.

88 - 88 -9/13/20119/13/2011

Online Payment Methods Pay with your credit card via ICICIPRU website Pay anytime from any place with your Master/Visa credit card by logging on to www.birlasunlife.com with the aid of your CIP/TPIN codes. Well, that's not allnow you can generate your CIP/TPIN yourself. To generate CIP/TPIN your e-mail id needs to be registered with us.

89 - 89 -9/13/20119/13/2011

Click Register to generate a CIP/TPIN. Click here to know more about online credit card payment facility. Net Banking From any place, anytime, give instructions to your bank (18 banks) to make a premium payment for you. Do this by logging on to www.birlasunlife.com with your CIP/TPIN codes. What's more..you can generate your CIP/TPIN yourself. To generate CIP/TPIN your e-mail id needs to be registered with us.

Click Register to generate a CIP/TPIN. Click here to know more about Net Banking's easy and secure method of premium payment. Automatic Payment Methods ECS With ECS you no longer have to undergo hassles of remembering your due dates, making trips to our Branch office to make payment, writing cheques or worrying
90 - 90 -9/13/20119/13/2011

about lapsation of your policy due to non-payment/late payment of premium. Free yourself from these problems by enrolling for ECS This facility also allows you to make Monthly premium payment!! Just submit us an ECS Mandate form and a cancelled cheque with a MICR code. ECS is currently available in 63 locations. Send the above to your nearest Branch or our Head Office at least 35 days prior to your due date. Direct Debit to your Credit Card To avail this facility, all you need is a Master/Visa credit card. So relieve yourself of remembering due dates, writing and depositing cheques and a possible lapsation of your policy due to non-payment/late payment of premium by availing this facility. What's more.you can pay Monthly with this facility. Just send across a completely filled Direct Debit to Credit

91 - 91 -9/13/20119/13/2011

Card Form with a photocopy of the front and reverse of your credit card to your nearest Branch or our Head Office at least 15 days prior to your due date. For security purposes, please deface the CVV no. such that it cannot be ready by anyone. Skypak Drop Box Drop in your premium cheque favouring 'Birla Sun Life Insurance - Policy No. XXX' at any of the authorized Skypak drop box closest to you. Please do not drop cash or post dated cheques. Branch Office You may make cheque/cash payments at any our Branch offices. For addresses/contact numbers of our Branch offices. Cheque You may deposit your premium cheque at any our Branch offices. Post dated cheques are not accepted. Please draw a cheque/DD favouring 'Birla Sun Life Insurance - Policy No. XXX'. Remember to mention your Policy Number and contact number on the reverse of your

92 - 92 -9/13/20119/13/2011

cheque. Cash
Cash payments can be made, however not exceeding Rs 50,000/-.

TAX BENEFIT
Matters related to money should receive careful consideration as a lot of effort and commitment goes into earning it. In order to maximise wealth, minimising the tax liability is an important objective. This section will guide you to the investment avenues which have tax provisions associated with them. News on the latest tax issues is updated on a regular basis. Our consultants shall be pleased to discuss with you any specific tax query that you may have. You can even download Income Tax form('Saral' ) from this section. Further, the tax tools section will assist you in working out scenarios for efficiently planning your tax
93 - 93 -9/13/20119/13/2011

Life insurance and tax benefits Life insurance is one of the most popular savings/ investment vehicles in India . Ironically it is probably the least understood too. An insurance policy offers much more than just tax planning and investment returns. It offers you the ability to plan for unforeseen events that could affect your family's financial problem adversely

Benefits The benefits under income tax are of two types

Deductions Exemptions

Deductions from gross income Deduction is available amounting to Rs. 1,00,000. The benefit for life insurance premium u/s 80C is restricted to 20 % of the actual capital sum assured. Surrender of Plan before premium has been paid for two years will result in reversal of tax benefit.

Deduction in respect of contributions to pension funds

94 - 94 -9/13/20119/13/2011

 Maximum Rs 10,000 Flexi Secure Life Retirement Plan from Birla Sun Life Insuranceof key manall the benefits you can also withdraw Proceeds provides insurance are taxable money premium policies will be taxed as income in the year it is Single as and when needed. Surrender/Withdrawal will be subjected to tax. of the sum assured. received assuming that premium exceeds 20% Pension received willissued after to tax. 2003 in respect of which An Insurance policy be subject 1st April the premium payable for any of the years during the term of the policy exceeds 20 % of the actual capital sum assured will not be eligible for Sec 10(10D) benefit. This will not be applicable for any sum received on the death of a person. Sec 80 CCE Under section 80CCE, the overall limit for deductions u/s. 80C, u/s. 80CCC and u/s. 80CCD is Rs. 1 lakh. Benefits of investing in life insurance plans of ICICIPRU

95 - 95 -9/13/20119/13/2011

OBJECTIVE OF THE TRAINING

Objective of on the training is to understand (1) (2) (3) (4) (5) (6) (7) (8) (9) How work goes in corporate world How to work in a company How to adjust your self in a company How practical is different from your theoretical knowledge How to relate your theoretical knowledge to practical How to handle different situations How to come out from the problems Decision-making To take experience

96 - 96 -9/13/20119/13/2011

This training will tell us that where actually we stand and it will make us aware of our weaknesses so that we can improve on that in future.

LIMITATIONS
(1) It is very difficult to convince any person about private insurance company because most of the people want to do work with government companies. (2) People are not satisfied with the commission rates provided by our company because it is less than other company's. (3) People those who want to do work are of University age group and right now there are exams in university so people don't have time to do this work

97 - 97 -9/13/20119/13/2011

(4)

As Khanna is a very small town so we don't found many peoples in a city like Khanna.

(5)

In starting we are doing both the things recruitment+ insurance but after I month we have been told to do recruitments only

TARGET
My targets for on the job training are as following: -

(1) (2) (3)

To recruit 15 people as life insurance advisors in 40 days. To get the references of persons as many as possible To convince every person about our company (brand

building)

98 - 98 -9/13/20119/13/2011

STRATEGIES
Following are the strategies followed by me to achieve my targets: Firstly I see that which age group wants to do the work in this sector. There after I see where I can find most of these age groups.

99 - 99 -9/13/20119/13/2011

 Then I take references of other people from then. Then to contact reference persons and to get more references.

ACHIEVEMENTS
Till date I have recruited 4 persons as life insurance Advisors. Till date I have got references of 100 persons. Till date I have got 10 hot leads.

100 - 100 -9/13/20119/13/2011

OBJECTIVES OF THE STUDY

1.

To know about the requirement habit of the people in the region of Khanna.

2. To know about the views of people regarding various Insurance Companies.

101 - 101 -9/13/20119/13/2011

3. Position of the Insurance companies in the mind of the consumer 4. To know about the competition regarding various Insurance Companies. 5. To find out the position of Insurance Companies in the market.

FINDINGS AND RECOMMENDATIONS

1. The Monopoly of LIC has been broken because private Insurance companies came into the market.

102 - 102 -9/13/20119/13/2011

2. 90% respondents are aware of privatization of Insurance Industry and 10% respondents do not know about private companies. 3. 80% people know about ICICI Insurance Company. 75% people know about HDFC Insurance Company and 15% people know about other companies. 4. Some people preferred to the private companies because of their better services. 5. Some people believe only or preferred only Public Insurance companies like LIC. As majority of the population of KHANNA service class so they consider tax saving rather than purchasing a Life insurance. 7. The Financial growth of Private companies is much more than Life Insurance companies

6.

103 - 103 -9/13/20119/13/2011

8. The private companies always keep in touch with their customers with the latest information. 9. Most of the respondent said that private companies should not be trustworthy 10. Most of the people go for Children benefit because of

Triple benefit. 11. Now, a day people preferred to invest the money in

Insurance policy rather than in Banks because of better benefits of Insurance polices growth money with life cover. 12. The respondents are above 45 they believe in Public

Insurance companies and those respondents who are less than 45 believe in Private Insurance companies 13. HDFC has made its presence felt in the market in a

short span of time.

SUGGESTIONS

104 - 104 -9/13/20119/13/2011

1. Advertisement should be done on Television and especially Posters and Banners. This will greatly help in raising awareness level. 2. Insurance company should show more commitment with the customer. 3. Private companies give better services to the customers comparatively to Public companies. 4. The private company should create good relation and communication. 5. Private companies should work together to spread awareness regarding the benefit given by the Private Companies. 6. Private Insurance Companies give some discount to attract the customer 7. A public relation officer should be appointed in the company who deals with customers and their needs.

105 - 105 -9/13/20119/13/2011

8. Cross training should introduce in Private Companies. 9. Private Companies needs to the market their product better and should create greater awareness about their product and services. They need extensive marketing advertising about the additional benefit provided by them in comparison to the policies offered by LIC. 10. Agents have got maximum influence on a customer.

They are the one who introduce the prospect to different policies. So agents should be given full-fledged training and the training should be strict. 11. Special emphasizes should be on known cover policies

because these type of policies have more potential in the market.

106 - 106 -9/13/20119/13/2011

BIBLIOGRAPHY

Magazines Insurance weekly Financial Today

Websites

www.google.com www.indiainfoline.com www.iciciprulife.com

107 - 107 -9/13/20119/13/2011