INTRODUCTION

INDUSTRY PROFILE- INSURANCE

Insurance may be described as a social device to reduce or eliminate risk of loss to life and property. Under the plan of insurance, a large number of people associate themselves by sharing risks attached to individuals. The risks, which can be insured against, include fire, the perils of sea, death and accidents and burglary. Any risk contingent upon these may be insured against at a premium commensurate with the risk involved. Thus collective bearing of risk is insurance. NEED OF INSURANCE Assets are insured, because they are likely to be destroyed, through accidental occurrences. Such possible occurrences are called perils, Fire, floods, breakdown, lightning, earthquakes, etc, are perils. If such perils can cause damage to the asset, we say that the asset is exposed to that risk. Perils are the events. Risks are the consequential losses or damages. The risk to a owner of a building, because of the peril of an earthquake, may be a few lakhs or few crores of rupees, depending on the cost of the building and the contents in it. The risk only means that there is a possibility of loss or damage. The damage may or may not happen. Insurance is relevant only if there are uncertainties. If there is no uncertainty about the occurrence of an event, it cannot be insured against. In the case of a human being, death is certain, but the time of death is uncertain, In the case of a person who is terminally ill, the time of death is not uncertain, though not exactly known. He cannot be insured. Insurance does not protect the asset. It does not prevent its loss due to the peril. The peril cannot be avoided through insurance. The peril can sometimes be avoided, through better safety and damage control management. Insurance only tries to reduce the impact of the risk and the owner of the assets and those who depend on that asset. It only compensates the losses and that too, not fully. Only economic consequences can be insured. If the loss is not financial, insurance may not be possible. Examples of non economic losses are love and affection of parents, leadership of managers, sentimental attachments to family heirlooms, innovative and creative abilities, etc.

TYPES OF INSURANCE
Insurance industry in India is broadly classified asLife Insurance:- policies protect individuals against the risk of life. Life 100 Insurance policies not only protects the insureds family against his death but also provides a good means to avail tax benefit, avail loans from banks and acts, as a good saving tool to meet future needs. General Insurance:- on the other hand protects the property and casualty by covering losses from disasters and accidents thereby protecting from property damage and liability, providing the means for victims to resume their lives and businesses and contribute to the economy.

The various types of insurance available are

1. Auto Insurance Two Wheeler Insurance Car Insurance Commercial Vehicle Insurance 2. Commercial Insurance Agriculture Insurance Fire Insurance Industrial Insurance Marine Insurance Shop Insurance 3. Home Insurance 4. Life Insurance Accident Insurance a. NRI Accident Insurance b. Personal Accident Insurance Health Care Insurance c. Medical Insurance d. Critical Illness Insurance Travel Insurance .

HISTORY OF INDIAN INSURANCE

The business of life insurance in India in its existing form started in India in the year 1818 with the establishment of the Oriental Life Insurance Company in Calcutta. Some of the important milestones in the life insurance business in India are: 1912: The Indian Life Assurance Companies Act enacted as the first statute to regulate the life insurance business. 1928: The Indian Insurance Companies Act enacted to enable the government to collect statistical information about both life and non-life insurance businesses. 1938: Earlier legislation consolidated and amended to by the Insurance Act with the objective of protecting the interests of the insuring public. 1956: 245 Indian and foreign insurers and provident societies taken over by the central government and nationalized. LIC formed by an Act of Parliament, viz. LIC Act, 1956, with a capital contribution of Rs.5crore from the Government of India. The General insurance business in India, on the other hand, can trace its roots to the Triton Insurance Company Ltd., the first general insurance company established in the year 1850 in Calcutta by the British. Some of the important milestones in the general insurance business in India are:1907: The Indian Mercantile Insurance Ltd. set up, the first company to transact all classes of general insurance business. 1957: General Insurance Council, a wing of the Insurance Association of India, frames a code of conduct for ensuring fair conduct and sound business practices. 1968: The Insurance Act amended to regulate investments and set minimum solvency margins and the Tariff Advisory Committee set up. 1972: The General Insurance Business (Nationalization) Act nationalized the general insurance business in India with effect from 1st January 1973.

National Insurance Company Ltd, founded in 1906, is the oldest existing insurance company in India. Earlier, the Insurance sector had only two state insurers - Life Insurers i.e. Life Insurance Corporation of India (LIC), and General Insurers i.e. General Insurance Corporation of India (GIC). In December 2000, these subsidiaries were de-linked from parent company and were declared independent insurance companies: Oriental Insurance Company

Limited, New India Assurance Company Limited, National Insurance Company Limited and United India Insurance Company Limited.

INSURANCE INDUSTRY OF INDIA

Indian economy is the 12th largest in the world, with a GDP of $1.25 trillion and 3rd largest in terms of purchasing power parity. With factors like a stable 8-9% annual growth, rising foreign exchange reserves, a booming capital market and rapidly expanding FDI inflows, it is on the fulcrum of an ever-increasing growth curve. Insurance is one major sector that has been on ascent since the revival of Indian economy. Taking into account the huge population and growing per capita income besides several other driving factors, a huge opportunity is in store for the insurance companies in India. Nearly 80% of Indian population is without life insurance covering while health insurance and non-life insurance continues to be below international standards. And this part of the population is also subjected to weak social security and pension systems with hardly any old age income security. Insurance in India is primarily used as a means to improve personal finances and for income tax planning. There is a tendency to invest in properties and gold followed by bank deposits with a slight investment in Stocks and Shares. This in itself is an indicator that growth potential for the insurance sector is immense. Its a business growing at the rate of 15-20% per annum and presently is of the order of $47.9 billion.

INSURANCE REGULATORY AND DEVELOPMENT AUTHORITY (IRDA)

The Insurance Regulatory and Development Authority (IRDA) is a national agency of the Government of India, based in Hyderabad. It was formed by an act of Indian Parliament known as IRDA Act 1999, which was amended in 2002 to incorporate some emerging requirements. Mission of IRDA as stated in the act is "to protect the interests of the policyholders, to regulate, promote and ensure orderly growth of the insurance industry and for matters connected therewith or incidental thereto." Expectations: The law of India has following expectations from IRDA 1. To protect the interest of and secure fair treatment to policyholders.

2. To bring about speedy and orderly growth of the insurance industry (including annuity and superannuation payments), for the benefit of the common man, and to provide long term funds for accelerating growth of the economy. 3. To set, promote, monitor and enforce high standards of integrity, financial soundness, fair dealing and competence of those it regulates. 4. To ensure that insurance customers receive precise, clear and correct information about products and services and make them aware of their responsibilities and duties in this regard. 5. To ensure speedy settlement of genuine claims, to prevent insurance frauds and other malpractices and put in place effective grievance redressal machinery. 6. To promote fairness, transparency and orderly conduct in financial markets dealing with insurance and build a reliable management information system to enforce high standards of financial soundness amongst market players. 7. To take action where such standards are inadequate or ineffectively enforced. 8. To bring about optimum amount of self-regulation in day-to-day working of the industry consistent with the requirements of prudential regulation.

DUTIES, POWERS AND FUNCTIONS OF IRDA

Section 14 of IRDA Act, 1999 lays down the duties, powers and functions of IRDA Subject to the provisions of this Act and any other law for the time being in force, the Authority shall have the duty to regulate, promote and ensure orderly growth of the insurance business and re-insurance business. Without prejudice to the generality of the provisions contained in sub-section (1), the powers and functions of the Authority shall include, Issue to the applicant a certificate of registration, renew, modify, withdraw, suspend or cancel such registration; Protection of the interests of the policy holders in matters concerning assigning of policy, nomination by policy holders, insurable interest, settlement of insurance claim, surrender value of policy and other terms and conditions of contracts of insurance; Specifying requisite qualifications, code of conduct and practical training for intermediary or insurance intermediaries and agents; Specifying the code of conduct for surveyors and loss assessors; Promoting efficiency in the conduct of insurance business; Promoting and regulating professional organizations connected with the insurance

and re-insurance business; Levying fees and other charges for carrying out the purposes of this Act; Calling for information from, undertaking inspection of, conducting enquiries and investigations including audit of the insurers, intermediaries, insurance intermediaries and other organizations connected with the insurance business; Control and regulation of the rates, advantages, terms and conditions that may be offered by insurers in respect of general insurance business not so controlled and regulated by the Tariff Advisory Committee under section 64U of the Insurance Act, 1938 (4 of 1938); Specifying the form and manner in which books of account shall be maintained and insurers and other insurance intermediaries shall render statement of accounts; Regulating investment of funds by insurance companies; Regulating maintenance of margin of solvency; Adjudication of disputes between insurers and intermediaries or insurance intermediaries; Supervising the functioning of the Tariff Advisory Committee; Specifying the percentage of premium income of the insurer to finance schemes for promoting and regulating professional organizations referred to in clause (f).

INSURANCE COMPANIES IN INDIA

Bajaj Allianz Life Insurance Company Limited Birla Sun Life Insurance Co. Ltd HDFC Standard life Insurance Co. Ltd ICICI Prudential Life Insurance Co. Ltd. ING Vysya Life Insurance Company Ltd. Life Insurance Corporation of India Max New York Life Insurance Co. Ltd Met Life India Insurance Company Ltd. Kotak Mahindra Old Mutual Life Insurance Limited SBI Life Insurance Co. Ltd Tata AIG Life Insurance Company Limited Reliance Life Insurance Company Limited. Aviva Life Insurance Co. India Pvt. Ltd. Shriram Life Insurance Co, Ltd. Sahara India Life Insurance Bharti AXA Life Insurance Future Generali Life Insurance IDBI Federal Life Insurance Canara HSBC Oriental Bank of Commerce Life Insurance Religare Life Insurance DLF Pramerica Life Insurance Star Union Dai-ichi Life Insurance Agriculture Insurance Company of India Apollo DKV Insurance Cholamandalam MS General Insurance HDFC Ergo General Insurance Company ICICI Lombard General Insurance IFFCO Tokio General Insurance National Insurance Company Ltd New India Assurance Oriental Insurance Company Reliance General Insurance

Royal Sundaram Alliance Insurance Shriram General Insurance Company Limited Tata AIG General Insurance United India Insurance Universal Sompo General Insurance Co. Ltd

Bajaj Allianz Life Insurance Co. Ltd. Bajaj Allianz Life Insurance Co. Ltd. is a joint venture between Allianz SE, one of the world's largest insurance companies, and Bajaj Finserv. Allianz SE is a leading insurance corporation globally and one of the largest asset managers in the world, that manage assets worth over a Trillion. With over 115 years of financial experience, Allianz SE is present in over 70 countries around the world. Bajaj Allianz is into both life insurance and general insurance. Today, Bajaj Allianz is one of India's leading and fastest growing insurance companies. Currently, it has presence in more than 550 locations with over 60,000 Insurance Consultants. Birla Sun Life Insurance Co. Ltd. Birla Sun Life Insurance Co. Ltd. is a joint venture between Aditya Birla Group, an Indian multinational corporation, and Sun Life Financial Inc, a leading global insurance company. Birla Sun Life Insurance is distinguished as the first company in the sector of financial solutions to begin Business Continuity Plan. This insurance company has pioneered the unique Unit Linked Life Insurance Solutions in India. Within 4 years of its launch, BSLI became one of the leading players in the industry of Private Life Insurance Scheme. Established on 14th August 2000, HDFC Standard Life Insurance Co. Ltd. is a joint venture between Housing Development Finance Corporation Limited (HDFC Limited) - India's leading housing finance institution, and a Group Company of the Standard Life Plc, UK. The Company is one of leading private insurance companies, offering a range of individual and group insurance solutions, in India. Being a joint venture of top financial services groups, HDFC Standard Life has adequate financial expertise to manage long-term investments safely and resourcefully. ICICI Prudential Life Insurance Company

ICICI Prudential Life Insurance Company is a joint venture between ICICI Bank, which is one of India's foremost financial services companies, and Prudential plc, which is a leading international financial services group headquartered in the United Kingdom. ICICI Prudential began the operations in December 2000. Today, this company has over 2100 branches, which include 1,116 micro-offices, over 290,000 advisors and 18 banc assurance partners. ING Vysya Life Insurance Company Limited Established in India in September 2001, ING Vysya Life Insurance Company Limited is a joint venture between Vysya Bank, which is one of the largest private sector banks in India, and ING Insurance Co., which is the world's second largest life insurance company. This private life insurance company has around 140 branches all over India, with head office in Bangalore. ING Vysya Life Insurance Co. has around 3000 employees with over 21,000 sales insurance agents and brokers. ING Vysya Life presently has around 4.5 lakh customers, and is making a total income of Rs. 400 crore. Life Insurance Corporation of India (LIC) Life Insurance Corporation of India (LIC) is a Government of India enterprise, and is said to be the largest life insurance company and also the largest investor of the country. LIC had been established on the 1st of September, 1956, after the Life Insurance Corporation Act had been passed by the Parliament of India in the same year. The corporation is aimed at providing life insurance services primarily to the rural masses and the socially & economically backward sections of the Indian society. It also aims at promoting the people for saving their money, and offers attractive savings features along with various insurance policies.

IDBI FEDERAL LIFE INSURANCE

IDBI Federal Life Insurance Co Ltd is a joint-venture of IDBI Bank, Indias premier development and commercial bank, Federal Bank, one of Indias leading private sector banks and Ageas, a multinational insurance giant based out of Europe. In this venture, IDBI Bank owns 48% equity while Federal Bank and Ageas own 26% equity each. At IDBI Federal, we endeavor to deliver products that provide value and convenience to the customer. Through a continuous process of innovation in product and service delivery we intend to deliver worldclass wealth management, protection and retirement solutions to Indian customers. Having started in March 2008, in just five months of inception we became one of the fastest growing new insurance companies to garner Rs 100 Cr in premiums. The company offers its services through a vast nationwide network across the branches of IDBI Bank and Federal Bank in addition to a sizeable network of advisors and partners. As on January 31st 2011, the company has issued over lakh 2.68 lakh policies with over Rs 14, 230 Cr in Sum Assured.

About the sponsors of IDBI Federal Life Insurance Co Ltd

IDBI Bank Ltd.continues to be, since its inception, Indias premier industrial development bank. Created in 1956 to support Indias industrial backbone, IDBI Bank has since evolved into a powerhouse of industrial and retail finance. Today, it is amongst Indias foremost commercial banks, with a wide range of innovative products and services, serving retail and corporate customers in all corners of the country from 783 branches and 1328 ATMs. The Bank offers its customers an extensive range of diversified services including project financing, term lending, working capital facilities, lease finance, venture capital, loan syndication, corporate advisory services and legal and technical advisory services to its corporate clients as well as mortgages and personal loans to its retail clients. As part of its development activities, IDBI Bank has been instrumental in sponsoring the development of key institutions involved in Indias financial sector National Stock Exchange of India

Limited (NSE) and National Securities Depository Ltd, SHCIL (Stock Holding Corporation of India Ltd), CARE (Credit Analysis and Research Ltd)

Federal Bank is one of Indias leading private sector banks, with a dominant presence in
the state of Kerala. It has a strong network of over 739 branches and 797 ATMs spread across India. The bank provides over four million retail customers with a wide variety of financial products. Federal Bank is one of the first large Indian banks to have an entirely automated and interconnected branch network. In addition to interconnected branches and ATMs, the Bank has a wide range of services like Internet Banking, Mobile Banking, Tele Banking, Any Where Banking, debit cards, online bill payment and call centre facilities to offer round the clock banking convenience to its customers. The Bank has been a pioneer in providing innovative technological solutions to its customers and the Bank has won several awards and recommendations.

Ageas is an international insurance company with a heritage spanning more than 180 years.
Ranked among the top 20 insurance companies in Europe, Ageas has chosen to concentrate its business activities in Europe and Asia, which together make up the largest share of the global insurance market. They are grouped around four segments: Belgium, United Kingdom, Continental Europe and Asia. It is an undisputed leader in the Belgian market for individual life and employee benefits, as well as a leading non-life player, through AG Insurance. Internationally Ageas has a strong presence in the UK, where it is the second largest player in private car insurance. The company also has subsidiaries in France, Germany and Hong Kong. Ageas has a track record in developing partnerships with strong financial institutions and key distributors in different markets around the world and successfully operates partnerships in Luxembourg, Italy, Portugal,China, Malaysia, India and Thailand. Ageas employs more than 13,000 people and has annual inflows of almost EUR 18 billion.

VISION AND VALUES OF IDBI FEDERAL LIFE INSURANCE CO LTD

Maintaining integrity through our values

VISION
To be the leading provider of wealth management, protection and retirement solutions that meets the needs of our customers and adds value to their lives.

MISSION
To continually strive to enhance customer experience through innovative product offerings, dedicated relationship management and superior service delivery while striving to interact with our customers in the most convenient and cost effective manner. To be transparent in the way we deal with our customers and to act with integrity. To invest in and build quality human capital in order to achieve our mission.

VALUES

Transparency: Crystal Clear communication to our partners and stakeholders Value to Customers: A product and service offering in which customers perceive value Rock Solid and Delivery on Promise: This translates into being financially strong, operationally robust and having clarity in claims

Customer-friendly: Advice and support in working with customers and partners Profit to Stakeholders: Balance the interests of customers, partners, employees, shareholders and the community at large

SWOT ANALYSIS OF IDBIFEDERAL LIFE INSURANCE

STRENGTH

Superior customer service vs. competitors. Products have required accreditations. High degree of customer satisfaction. Lower response time with efficient and effective service. Dedicated workforce aiming at making a long-term career in the field. Large pool of technically skilled manpower with in depth knowledge and understanding of the market

WEAKNESSES

Some gaps in range for certain sectors. Customer service staff need training. Processes and systems, etc Management cover insufficient. Sectoral growth is constrained by low unemployment levels and competition for staff.

Low customer confidence on the private players.

OPPORTUNITIES

Insurable population : According to IRDA only 10% of the population is insured which represent around 30% of the insurable population. This suggests more than 300m people, with the potential to buy insurance, remain uninsured.

International companies will help in building world class expertise in local market by introducing the best global practice.

Could extend to overseas broadly. New specialist applications. Could seek better customer deals. Fast-track career development opportunities on an industry-wide basis. An applied research centre to create opportunities for developing techniques to provide added-value services.

THREATS

Big public sector insurance companies like Lif e Insurance Corporation (L IC) of India, National Insurance Company Limited, Oriental Insurance Limited, New India Assurance Company Limited and United India Insurance Company Limited. People trust and go to them more.

Legislation could impact and Great risk involved. Very high competition prevailing in the industry. Vulnerable to reactive attack by major competitors Lack of infrastructure in rural areas could constrain investment

PRODUCTS OF IDBI FEDERAL

IDBI federal is providing various insurance policies for the commonwealth of the people and its customer in particular. The various insurance policies provided by the company are:

1. Wealthsurance 2. Incomesurance 3. Homesurance 4. Retiresurance 5. Bondsurance 6. Microsurance 7. Group microsurance 8. Termsurance 9. Healthsurance 10. Loansurance

1. WEALTHSURANCE PLAN

Wealthsurance is a wealth-management account with sub-accounts for investments and insurance. It is designed to meet twin goals of wealth-building and insurance protection.

a. Wealth building The Wealthsurance Investment Account holds all the investments you have chosen. The investments made out of your premium allow you to manage and build your wealth. b. Insurance Protection The Wealthsurance Insurance Account holds the insurance benefits you have chosen, which allows you to claim benefits in the event of a serious ailment, disablement, accident or death.

2. INCOMESURANCE A versatile product that suits every need. IDBI Federal Incomesurance Endowment and Money Back Plan is loaded with lots of benefits which ensure that you get Guaranteed Annual Payout along with insurance protection which will help you to reach you goals with full confidence. Incomesurance Plan is very flexible and allows you to customise your Plan as per your individual and familys future requirements. Moreover it also allows you to choose Premium Payment Period, Payout Period, Payout Options and more.

3. HOMESURANCE The Homesurance Protection Plan is a reducing term plan, which provides insurance cover equal to the outstanding balance of your home loan. In the unfortunate event of death of the home loan borrower, the insurance cover enables repayment of the home loan liability.

4. RETIRESURANCE Retiresurance is a pension plan without life cover that allows a longer policy term so that the customers investments can get the benefit of compounding. The customer has to choose any vesting age between 40-75 yrs. The vesting age chosen can also be postponed or preponed within the above range by informing the company 30 days in advance. It is especially for people who wish to lead a happy and prosperous life even after their retirement.

5. BONDSURANCE Bondsurance is a single premium plan which allows you to make a one-time investment and get a guaranteed amount on maturity. You can choose a maturity period of 5 or 10 years for your investment. At the end of the chosen period, you will receive a guaranteed maturity amount. Besides the guaranteed maturity amount, Bondsurance also provides a life insurance cover. In case of death before the maturity date, a Death Benefit which is also guaranteed will be paid. Thus you can get life insurance cover, while earning an assured return on your investment. 6. MICROSURANCE PLAN The IDBI Federal Group Microsurance Plan provides affordable life insurance cover to groups. The plan is extremely useful to Micro Finance Institutions, Self Help Groups and NGOs to insure the lives of their group members and thus provide security to the group members families. The plan can also be used for providing loan protection to the group members families. Affordable Protection: Life insurance cover for group members at affordable cost Wide Coverage: Members aged between 18 to 60 years can be covered Sum insured between Rs. 5,000 to Rs. 50,000 per member can be availed Hassle-Free Issuance: No medical reports required even up to the maximum sum insured of Rs. 50,000. Automatic acceptance of cover without any evidence of health for groups with more than 200 members Accidental Death Benefit Rider: Option to avail additional cover for accidental death equal to the base benefit.

7. GROUP MICROSURANCE IDBI Federal Group Microsurance Plan provides affordable life insurance cover to groups. This plan is extremely useful to Micro Finance Institutions, Self Help Groups and NGOs to insure the lives of their group members and thus provide security to the group members families. The plan can also be used for providing loan protection to the group members families.

8. TERMSURANCE PROTECTION PLAN A host of benefits and options aimed at satisfying your every need. Termsurance comes with three cover options which you can select on the basis your requirement. Termsurance is designed with a host of benefits & options aimed at satisfying your every need. It not only allows you to customise your plan as per your individual and your familys needs but it comes with a host of benefits like convenient insurance cover options, flexible premium payment terms, choice of policy term and lots more flexible options.

9. HEALTHSURANCE If youre aged 18 years to 55 years and currently in good health, this new insurance plan offers a host of features and benefits that are designed to help you manage the extra financial burden that comes with hospitalisation.

10. LOANSURANCE Loansurance is a cost-effective way to ensure that the outstanding debt is settled in the unfortunate event of death of the insured member. This term assurance plan provides cover to a person directly liable for loan repayment (and the partners, in case of a partnership), as per the benefit schedule.

WEALTHSURANCE
WealthsuranceTM: Insured Wealth Plans to grow wealth under a protective cover. Wealthsurance offers you Insured Wealth Plans. They allow you to create, build and manage wealth by giving several choices and great flexibility so that your plan meets your specific needs. You can decide how you wish to save so that it suits your savings habit. You can choose how your money is invested so that you can grow wealth as per your investment preferences. What is even better, Wealthsurance protects your wealth plans with insurance benefits so that your wealth-building efforts remain unaffected in unforeseen events and your financial goals can still be achieved. What is Wealthsurance ? Wealthsurance combines wealth creation and insurance protection into one powerful financial solution. Unlike other investment alternatives, it allows you to ensure that your goals of wealth creation are achieved even in the event of serious illness, accidents, disablement or death.

Wealthsurance is for those who will liveLife insurance is sometimes thought of as for those who might die, but Wealthsurance is for those who will live. Usually life insurance products provide benefits upon death, but Wealthsurance is designed to also give Living Benefits to ensure your well-being in your own lifetime. Wealthsurance Plans can ensure that your financial goals are achieved even if there were unforeseen crises such as death, accident, disablement or serious illness. The Wealthsurance Milestone Plan has a truly versatile range of benefits. The key concepts are given below: Wealthsurance is a comprehensive investment solution Wealthsurance is designed to be an investment solution. It offers a full range of investment choices similar in features to those you are already familiar with such as bank deposits,

bonds, post office schemes or mutual funds. The investment options are designed to meet the needs of all types of investors, whether cautious or risk-taking. So whenever you are looking to make an investment, think about investing in Wealthsurance.

Wealthsurance is a wealth-management account Wealthsurance is indeed a wealth-management solution. You can make a single investment or regular contributions. You can even manage most of your financial savings in it by choosing an appropriate mix of investment options. Think about the convenience of managing your entire portfolio in a single account and watch your wealth grow over time.

Wealthsurance is for those who will live Life insurance is sometimes thought of as for those who might die, but Wealthsurance is for those who will live. While it provides benefits upon death, Wealthsurance is also designed to offer a whole package of living benefits. You can get benefits on terminal illness, major diseases, hospitalisation and disablement so you are well cared for in the event of a health crisis or accident.

Wealthsurance is a tax-free wealth-builder account In Wealthsurance, you can build wealth free of income tax. Not only do you get tax benefits on your contributions, but all the returns you earn on your investments and the benefits you receive are tax-free. You can also switch amongst investment options without incidence of any tax. In essence, Wealthsurance is a tax-free wealth management account.

Wealthsurance is a long-term plan with short-term liquidity Wealthsurance allows you to build wealth over the long-term, but it also gives you the ability to withdraw your money when needed, after completion of three years from the commencement of the plan. With Wealthsurance you can achieve medium as well as longterm financial goals.

Wealthsurance meets your changing needs Wealthsurance is designed to meet your investment and insurance needs even as they change over time. You may not need another plan because you will be able to increase, decrease or manage the wealth-building and insurance benefits as you desire.

Wealthsurance is different from traditional insurance Wealthsurance is not like traditional life insurance you might know. It is an investment plan focused on wealth creation and living benefits. Sometimes people think that they only need a limited amount of life insurance. But as long as you have financial goals and you wish to build and manage wealth, or desire living benefits in your own lifetime, you will find Wealthsurance useful.

Wealthsurance has as many options as you need Wealthsurance gives you multiple options because we want to meet your specific needs. At the same time we have made it easy for you to choose by developing Ready Plans to meet the typical needs of customers. Quite likely there is a Ready Plan that meets your needs. But if you wish, you can build a Custom Plan to suit your own circumstances. The Wealthsurance Milestone Plan is a unique Insured Wealth Plan designed to help cross different milestones in ones life. It enables customers to save and build wealth under the protection of Insurance to meet their financial goals. The Wealthsurance Milestone Plan offers a wide range of Investment options, Insurance options and unmatched flexibility that allows customers to customize a plan suited to their needs. Customers can plan for their milestones like completion of school education for their child, a marriage, acquisition of a new house and so on. This Plan comes with a wide range of 13 investment options and 7 insurance benefits - all packaged with a low charge structure and unmatched flexibility.The Wealthsurance Milestone Plan enables you to save and build wealth to meet your financial goals. However, unlike other investment alternatives, it also enables you to achieve your wealth goals even in the event of unexpected death, accidents, disablement or serious illness. With Wealthsurance Milestone Plan, you can:

Save into the Plan as much money as you want whether at one time, at regular intervals or as per your convenience.

Build your wealth by choosing the investments your savings go into and change them from time to time as you wish.

Get adequate life insurance cover so that the financial security of your loved ones is assured and your plans are always realized

Get health, accident and disablement benefits so you can ensure that your wealthbuilding plans are not affected by unexpected medical expenses or loss of earning capacity in case of serious ailments, accidents or disablement.

Grow wealth faster with tax free income, thus making the whole package even more attractive.

All in all, the Wealthsurance Milestone Plan can be a complete financial plan that puts the power of choice in your hands.

Unlimited flexibility and choice A one time investment is based on an opportunity but a wealth building plan has to be managed differently. You also need flexibility and choice.Wealthsurance gives you unlimited flexibility and good choices to manage your plans as time goes by.

IDBI FEDERAL WEALTHSURANCE FOUNDATION PLAN

-Contribute money in a flexible way that suits your savings habit a) Single Premium or (b) Regular Premiums. Pay premiums for a limited period and enjoy benefits for a longer period. Pay additional top-up premiums whenever you want. Grow wealth faster and get tax benefits. -Choose how your money is invested from a wide choice of investment options, based on your return expectations and risk tolerance. Choice of (a) Assured Fixed Returns (b) Variable Returns linked to market performance, (c) Returns linked to market but with protection of capital. Investment options available for riskaverse as well as risk taking investors Choice of stocks, bonds and money market funds. -Decide how you wish to manage your investments Switch amongst investment options any time and manage your portfolio, free of charges and taxes Leave management of your portfolio entirely to us, if you do not have the time or inclination. -Flexibility to choose the insurance benefits you need. You can choose the amount of life insurance and terminal illness benefit you need Get Optional Insurance Benefits on suffering major diseases, hospitalization, accidental death or

disablement.Premiums can be waived in case of your death or disablement, so that your plans are well protected. -Withdraw funds in case of need, after three years -Make your WealthsuranceTM Plan quickly and easily Choose a Ready Plan for typical needs. Develop a Custom Plan for special needs. -Get tax benefits on contributions and benefits

TYPES OF INVESTMENT OPTIONS

1)Monthly Interest Account Risk: Low Monthly Interest Account gives you fixed interest on the account balance. You can choose to deposit any proportion or all of your premiums into it, whether regular or Top-up Premiums. Your Account will earn interest at the declared rate on the daily outstanding balance. The balance in your Account, consisting of premiums deposited and interest earned, is available to switch into any other investment option and for withdrawals as permitted. Interest Rate: At the beginning of each month, IDBI Federal will declare a credit rate by way of interest for this Account. The interest rate will be declared out of the estimated income from the underlying segregated portfolio of investments after (a) appropriation of fund management charge of 1%, and (b) transfers to/from a smoothing reserve. Investment Pattern: The Monthly Interest Account is a segregated fund which will invest 100% of the money in fixed income investments including government securities, treasury bills, bank deposits, certificates of deposit, corporate securities, commercial paper, securitised papers,structured products, money market instruments, etc. The fund may use derivatives to meet its objective to the extent permitted by the applicable guidelines. 2)Guaranteed Return Funds Risk: Low Monthly Interest Account gives you fixed interest on the account balance. You can choose to deposit any proportion or all of your premiums into it, whether regular or Top-up Premiums. Your Account will earn interest at the declared rate on the daily outstanding balance. The balance in your Account, consisting of premiums deposited and interest earned, is available to switch into any other investment option and for withdrawals as permitted. Interest Rate: At the beginning of each month, IDBI Federal will declare a credit rate by way of interest for this Account. The interest rate will be declared out of the estimated income from the underlying segregated portfolio of investments after (a) appropriation of fund management charge of 1%, and (b) transfers to/from a smoothing reserve. Your account

balance will grow each day at the declared interest rate. Rates declared for the Account are available at www.idbifederal.com The purpose of Monthly Interest Account is to provide a smoothed return to the investors from out of the investment income of the underlying portfolio. For this purpose, a reserve for smoothing of interest rate will be maintained. Investment Pattern: The Monthly Interest Account is a segregated fund which will invest 100% of the money in fixed income investments including government securities, treasury bills, bank deposits, certificates of deposit, corporate securities, commercial paper, securitised papers, structured products, money market instruments, etc. The fund may use derivatives to meet its objective to the extent permitted by the applicable guidelines

3)Capital Guaranteed Funds Risk: Medium Capital Guaranteed Funds guarantee the return of at least the face value of each unit on the specified maturity date. Returns are, however, not guaranteed and depend upon the performance of the equity portfolio of the fund and the stock market. Available Funds: Capital Guaranteed Funds are segregated closed-ended funds with specified maturity date. Each fund is available for investment for a limited period after the opening date during which units are allotted at the Net Asset Value. Upon maturity, you receive the Net Asset Value as on the maturity date or the face value of each unit you hold, whichever is higher . Investment Strategy: Capital Guaranteed Funds are managed using capital protection techniques including portfolio insurance strategies and manage the exposure to equity and debt with a view to obtaining equity exposure consistent with capital protection and the guaranteed maturity value. The funds will implement ratcheting strategy as decided by IDBI Federal. Ratcheting may reduce futureexposure to equity. Capital Guaranteed Funds may also use derivatives to meet their objectives to the extent permitted by applicable guidelines. Investment Pattern: Capital Guaranteed Funds will manage exposure to fixed income investments and equities as stated below: Range of Debt exposure: 40%-100% , Range of Equity exposure: 0-60% Liquidity: Capital Guaranteed Funds mature on the specified date. However, if you wish you can also redeem them before maturity at the Net Asset Value, but the guarantee will not apply. Fund Management Charge: The funds carry a fund management charge of 2.25% p.a. which is applied before computing the Net Asset Value.

4.Dynamic Guaranteed Funds Risk: Medium Dynamic Guaranteed Funds provide minimum guarantee of the highest Net Asset Value (NAV) per unit achieved during the subscription period, on the specified maturity date. This will be the minimum guaranteed NAV per unit. As the fund starts at Rs. 10, the minimum guaranteed NAV on the maturity date will also not be less than the face value of Rs. 10 per unit. Thus your entry NAV per unit is protected. Returns are, however, not guaranteed and depend upon the performance of the equity portfolio of the fund and the stock market. Available Funds:Dynamic Guaranteed Funds are segregated closed-ended funds with specified maturity date. Each fund is available for investment for a limited period after the opening date during which units are allotted at the Net Asset Value. This limited period is called the subscription period. Upon maturity, you will receive the actual NAV per unit or the minimum guaranteed NAV per unit, whichever is higher, for the units you hold. The available funds are declared by IDBI Federal from time to time. You can select a Dynamic Guaranteed Fund from those available at the time you pay the premium. You can also switch into them when they are available. Investment Objective: Dynamic Guaranteed Funds are managed using capital protection techniques including portfolio insurance strategies and manage the exposure to equity and debt with a view to obtaining equity exposure consistent with capital protection and the guaranteed maturity value. The funds will implement ratcheting strategy as decided by IDBI Federal. Under ratcheting, when the Dynamic Guaranteed Funds have made returns over and above the amount needed to provide for guaranteed value, the returns may be locked-in by investing in debt so that you are assured of those returns even if the market moves adversely in the future. Ratcheting may reduce future exposure to equity. Dynamic Guaranteed Funds may also use derivatives to meet their objectives to the extent permitted by applicable guidelines. Investment Pattern: Dynamic Guaranteed Funds may invest up to 100% in equity or in fixed income instruments including cash and money market. The fund may use derivatives to meet its objective to the extent permitted by the applicable guidelines. Liquidity: Dynamic Guaranteed Funds mature on the specified date. However, if you wish you can also redeem them before maturity at the Net Asset Value, but the guarantee will not apply.

Fund Management Charge: A fund management charge of 1.35% p.a. plus an investment guarantee charge of 0.60% p.a. will be appropriated while computing the Net Asset Value of the Dynamic Guaranteed Funds. 5) Market Fund Options: For investing in stocks, bonds or money market A)Equity Growth Fund Risk: High B)Nifty Index Fund Risk: High C)Bond Fund Risk: Medium D)Income Fund Risk: Low E)Liquid Fund Risk: Low

TAX BENEFITS OF WEALTHSURANCETM PLAN

Wealthsurance Plan gives you attractive tax benefits. Contributions by way of premiums are eligible for deduction under Sec 80C. Insurance charges for health benefits are eligible for deduction under Sec 80D. Benefits are tax-free under Sec 10(10D), allowing you to earn taxfree income and benefits.

Tax Deduction on Contributions The premiums you contribute in your Wealthsurance Plan are eligible for tax deduction under Sec 80C up to a limit of Rs 1 lakh per year. In effect, you do not pay tax on that portion of your income which you save in Wealthsurance Plan. If you choose Major Diseases Benefit or Hospital Cash Benefit, the charges payable for them are eligible for deduction under Sec 80D. Tax-Free Benefits Under Sec 10(10D), all the Benefits you receive under Wealthsurance Plan are tax-free without any limit. Thus the benefits are fully available to meet the needs of financial security of your loved ones or to take care of your expenses as in the case of medical crises Change your Plan if your needs change - Wealthsurance is designed to meet your changing savings, investment and insurance needs. You can make changes to ur Plan if your needs change. Wealthsurance is thus a flexible plan which can meet your needs, without the need to have new plans.

ABOUT WEALTHSURANCE PLAN

IDBI FEDERAL Life Insurance Co. Ltd. presents the wealthsurance foundation plan- a unique insured wealth plan. It lets you create a personalized wealth plan by allowing you to choose from a wide range of investment options. Whats more, it can also protect your wealth plan against various uncertainties that could hamper the wealth building process. Thus it helps you to meet cherished goals, because wealth grows better under a protective cover.

How to make your wealthsurance plan? You can make your wealthsurance plan, quickly and easily. Ready Plans: you can choose from amongst our ready plans for typical needs. A ready plan is a set of pre-chosen options aimed at a specific need. 1. Wealthsurance for systematic investments 2. Wealthsurance as protection account 3. Wealthsurance as tax free MF account. 4. Wealthsurance for retirement planning 5. Wealthsurance for one-time investment into equity 6. Wealthsurance for a guaranteed return

Custom Plan: if a ready plan does not meet your needs, a custom wealthsurance plan can be made for your specific needs with 5 simple steps:

Advantages of wealthsurance plan:

WEALTHSURANCE PREMIER INSURANCE PLAN

IDBI Federal Wealthsurance Premier Insurance Plan is a single premium ULIP plan, which is designed keeping in mind specific requirements of high net-worth individuals. The objective of the plan is to facilitate growth of your wealth under the protective cover of insurance. The plan has low and level charges and for premiums above Rs 25 lacs there is no policy administration charge and no premium allocation charge. HNI's can choose the policy term as per their need. The minimum policy term is 5 years and maximum policy term is 75 years (less age at entry).

KEY FEATURES OF IDBI FEDERAL WEALTHSURANCE PREMIER

Wealthsurance Premier is a Single Premium ULIP where the nominee would get the higher of the Sum Assured and the Fund Value if the Life Insured dies within the policy tenure and the Fund Value on maturity. Variety of Investment Options Assured Return Options with a choice of Monthly Guaranteed Interest or Guaranteed Returns Dynamic Guaranteed Returns with exposure in the equity market along with capital protection, Market Fund Option where the fund can be managed by the policyholder with 7 Fund Options like Equity Growth Fund, Nifty Index Fund, Midcap Fund, Pure Fund, Bond Fund, Income Fund and Liquid fund and Asset Allocator Option where the Fund managers would manage the fund to optimize returns.

BENEFITS YOU GET FROM IDBI FEDERAL WEALTHSURANCE PREMIER

Death Benefit In case of death of the Life Insured, the nominee would get higher of Sum Assured and Fund Value Maturity Benefit On maturity, the Fund Value is paid to the policyholder according to the investment option chosen.

Income Tax Benefit - Life Insurance premiums paid up to Rs. 1,00,000 are allowed as a deduction from the taxable income each year under section 80C

ADDITIONAL

FEATURES

AND

BENEFITS

OF

IDBI

FEDERAL

WEALTHSURANCE PREMIER Riders There are 4 riders available in this policy 1. 2. 3. 4. Health Rider- covers 17 major diseases Hospital Cash Benefit rider Accidental Death Benefit Rider Accidental Death and Disablement rider

DATA COLLECTION
For this mini project, primary data as well as secondary data was collected.Primary data has been collected through personal contact. For this purpose questionnaire were distributed to the consumers as well as others. Secondary data has been collected from books, magazines and websites. PRIMARY DATA Data collection of this project was done primarily through filling up of questionnaires. The sample for the project including different individuals of various age groups and having different profession and qualification.The objective of collecting data was to know about the use of wealthsurance product of Idbi Federal by the common people. This was done by distributing a questionnaire of 25 questions to 50 people of which there were users and also non-users of Wealthsurance. The questionnaire was containing questions regarding the personal details of individuals and then some light question regarding their primary knowledge related to private insurance companies. Then there were questions related to their interest in being the Insurance plan of the company as well as its product wealthsurance. . Their opinions were collected and the survey was tabulated and analyzed.

DATA ANALYSIS
1.What is your full time profession?

a) Business -8 c) Private Jobs -18 e)Housewife-2

b) Govt. Service -14 d) Retired -8

Full Time Profession

Business Govt. Service Private jobs Retired House Wife

2. What is your annual income? a) Below 1 Lac 7 c) Between 4 to 6 Lac-16 b) Between 2 to 4 Lac 22 d) Above 6 Lac 5

Your Annual Income

25 20 15 10 5 0 Below 1 lac Between 2 to 4 lac Between 4 to 6 lac Category 4 Your Annual Income

3.Awareness of IDBI federal Life Insurance Company?

S. No.

Particulars

Response

A B C D Total

Print media Electronic media Agents Others Respondents

12 15 18 5 50

Awareness of IDBI Federal Life Insurance Company

Print media Electronic media Agents Others

INTERPRETATION:In this chart, we can see that the agents play major role in exploring the new companies policys for explaining their companies importance and policies. Agents create great effect on the mind of the customers as they are more aware and understanding of plans.

4.Main consideration that a customer looks at while purchasing an Insurance Policy?

S.No

Particulars

Response

A B C D E Total

TAX SAVING PROTECTION PENSION INVESTMENT Respondents

5 15 25 2 3 50

Factor that a customer looks while purchasing an insurance policy

30 25 20 15 10 5 0 Tax Saving Protection Pension Investment Factor that a customer looks while purchasing an insurance policy

X axis - response , Y axis - respondents INTERPRETATION:- On the basis of above analysis, we can say that people purchase insurance policy mostly for the protection purpose. More than half of the people takes insurance for protection of their future.

5. What a respondent see while purchasing Insurance from the company?

S. No.

Particulars

Percentage

Standing and goodwill of the company

20

Product range and services of the company

10

Advertisement being released by the company

Returns of bonus declared by the company

13

Factor a respondent notice while purchsing insurance from the company

25 20 15 10 5 0 Standing & goodwill Product range Advertisement & services Returns of bonus Factor a respondent notice while purchsing insurance from the company

X axis - response , Y axis respondents

INTERPRETATION :- On the basis of above analysis, we can say that people prefer the companies those have very highly goodwill in the market. And apart from this while purchasing they also use to give more weight age to return also. 6.How do you rate IDBI federals wealthsurance policy by other company insurance Policy?

S. No.

Particulars

Percentage

GOOD

AVERAGE

12

BAD

D Total

CANT SAY Respondents

28 50

Rating of IdbiFederal's Wealthsurance policy compared to other company insurance policies

GOOD AVERAGE BAD CANT SAY

INTERPETATION:On the basis of above analysis, we can say that people are satisfied with the plans they have bought, its that they are not aware of these ulip plans of this company. But there are certain doubts in the mind of respondents about the company and whether they should invest in it or not.

7.Awareness about Wealthsurance

Awareness about Wealthsurance Yes No Total No of Respondents 22 28 50

Awareness about wealthsurance

Yes No

8.What type of plan you have? a) Wealthsurance 20 c) Retiresurance - 6 d) Others 9 b) Incomesurance-10 d)Bondsurance-5

Type of Plan

Wealthsurance Incomesurance Retiresurance Bondsurance Others

SUGGESTIONS AND RECOMMENDATIONS

Company should enhance its Brand awareness level as well as product awareness level with the help of integrated marketing communications. IDBI Federal should try to increase number of branches in order to increase its presence. Company should recruit more advisors to penetrate in the market. Company should come with Low premium policies to gain a significant insight into the market. Need to create and effectively deploy differentiated strategies in finding out more resources to recruit insurance advisors. Make use of internet banking for increasing sales and also for promotion. Generate some innovative and alternative channels of distribution, using the sources that can straight play with the emotion of the person and influence so high that it forces the human being to go for insurance and that to willingly. Recruit those individuals that really want to take this job as a challenge.

CONCLUSION
The Insurance Industry is becoming fiercely competitive with advent of large number of companies into this sector. Investors evaluate number of factors like awareness level of product, Brand image of company and products ability to meet their requirements before making investment into any plan. Since its inception, the IDBI FEDERAL life insurance company have increased investors money than the other competent, this progress leads to increase the company image and makes a way to lead the total insurance market. Thus the study also comprise company image is the highlyimportant criteria that consumers consider before taking up a life insurance. This is mainly because people expect safety and secure for their money which they invest, followed by the factor Premium which we pay to the insurer and then Bonus and Interest paid by the company, services etc. Also Wealthsurance plan should have the flexibility to adapt to the uncertainties of changing market conditions as well as lifes uncertainties like accidents, hospitalization, disease, disability or death. IDBI federal Life Insurance is the one that is providing wavier of premium to its customer in case of maturity and in case of death of the life assured.

BIBLIOGRAPHY
WEBSITES

www.idbifederal.com www.economictimes.com www.irdaindia.com

http://www.scribd.com/doc/38418703/Project-Report-On-Market-Penetration-of-IDBI-fortis http://www.scribd.com/doc/35656892/IDBI-FORTIS http://www.scribd.com/doc/43261529/wealthsurance

http://www.idbibank.com/ http://www.federalbank.co.in/ http://www.ageas.com/

http://www.wealthsurance.com/ www.perfinindia.com/.../wealthsurance-from-idbi-fortis-review/ articles.economictimes.indiatimes.com www.livemint.com/.../IDBI-Federal-launches-Wealthsu.html www.indiainfoline.com/Markets/...Wealthsurance lifeinsureinfo.blogspot.com/.../idbi-fortis-wealthsurance www.indiaprwire.com/pressrelease/insurance en.wikipedia.org/wiki/IDBI_Federal_Life_Insurance www.business-standard.com Home Banking & Finance www.bimadeals.com ... Life Insurance Companies www.myinsuranceclub.com Life Insurance Companies

BOOKS,JOURNALS & BROUCHERS

IDBI federal life insurance Journal Of Insurance & Risk Management IRDA Journal Marketing management,11th edition By Philip Kotler Risk management and insurance-By Harold D. Skipper Research Methodology: Methods & Techniques-Dr C R Kothari IRDA book issued by Indian Institute of India

ICFAI Journal of Risk and Insurance Wealthsurance Product Brochure Wealthsurance Milestone Plan Wealthsurance Premier Insurance Plan

Appendix- Sample Questionnaire:

Name: . Contact No.: Sex: .Address:

1. What is your full time profession? a) Business c) Private Jobs e) Housewife b) Govt. Service d) Retired

2. What is your annual income? a) Below 1 Lac c) Between 4 to 6 Lac b) Between 2 to 4 Lac d) Above 6 Lac

3. Do you know about IDBI Federal Life Insurance? a) Yes If yes, b) No

i) Do you have IDBI Federal Life Insurance Plan? a) Yes b) No

ii) What type of plan you have? a) Wealthsurance c) Retiresurance b) Bondsurance d) Others

iii) Do you want new insurance plan from IDBI? a) Yes b) No

iv) Is the IDBI Federal Life Insurance Plans more attractive from others? a) Yes If no, i). Are you interested to know about IDBI Federal Life Insurance? b) No

a) Yes

b) No

4. According to you, the purpose of insurance is:

S. No. a. b. c. d. e. f.

Parameters Pre-mature death Living too long Living death Childrens future Wealth creation Tax saving

Order of preference

5. What do you consider from insurance? a) Investment area c) Others 6. Insurance sectors investment is better substitute of a) Stock Exchange c) Loan b) Mutual Fund d) Others b) Protection from uncertainty

7. Is the private company better than LIC? a) Yes b) No

8. Most safe private company of insurance sector a) ICICI c) IDBI Federal b) HDFC d) Other

9. According to you, Insurance policies are for? a) Necessity for protection security [ ] b) Imposition of a burden of expenses [ ] c) A compulsory tool for tax saving [ ]

10. Awareness of IDBI federal Life Insurance Company:A) PRINT MEDIA [ ] b) ELECTRONIC MEDIA [ ]

c) AGENTS [ ]

d) OTHERS [ ]

11. Do you know about Unit Linked Insurance Plans (ULIP)? a) Yes [ ] b) No [ ]

12. Main consideration that a customer looks at while purchasing an Insurance Policy . A) TAX [ ] B) SAVING [ ] C) PROTECTION [ ] D) PENSION [ ] E) INVESTMENT [ ]

13. What a respondent see while purchasing Insurance from the company? A) Standing and goodwill of the company [ ] B) Product range of the company [ ] C) Advertisement being released by the company [ ] D) Services being given by the company [ ] E) Returns of bonus declared by the company [ ]

14.Plan that a respondent prefers to buy? a) Protection plan [ ] b) Investment plans [ ] c) Pension plan [ ] d) children plan [ ] 15. Customers expectations from Life Insurance Companies? a) Innovative Products [ ] b) Attractive Riders [ ] c) Reasonable Premium [ ] d) Better Customer Service [ ] e) High Risk Coverage [ ]

16. How do you rate IDBI federals wealthsurance policy by other company insurance Policy? A) Good [ ] B) Very good [ ] C) Average [ ] D) Bad [ ] E) cant say [ ] 17. Please give references of two people those who might be interested in Insurance. i) Name: Address: .. .. . .. ii) Name: Address: .. .. . ..