A

PROJECT STUDY REPORT

ON

“EMPLOYMENT POTENTIAL FOR PROFESSIONAL

GRADUATE IN ARROUND JHALAWAR WITH
REFERENCE TO GOVERNMRNT ENGINEERING
COLLEGE, JHALAWAR”

Session
2008-2010
Submitted in partial fulfillment for the Award of Degree of
MASTER OF BUSINESS ADMINISTRATION

Submitted To: Submitted By:

Mr. Sharad Maheshwari Abhishek Vijay
H.O.D. M.B.A. Part II

Govt. Engineering College, Jhalawar

(AFFILIATED TO RAJASTHANTECHNICAL UNIVERSITY)
 PREFECE
It is a matter of great satisfaction and privilege for me to place before the
esteemed reader this report aimed at comparative analysis of other Depository
Participant with FUTURE GENERALI INDIA LIFE INSURANCE CO. LIMITED.

This project report is a concrete form of the knowledge, which is an acquired

during the Summer Training, during this training, which is a part of full time two year
Management course, the student gets the opportunity to apply his\her theoretical
knowledge in the corporate world, in short it emphasizes on “Learning by Doing.”

The Training paves the way for the student for his\her successful entrance in the
corporate world. The experience is very valuable for the student and plays a leading
and important role in the carrier life of the student.

Future Generali India Life Insurance Co. Limited is the insurance joint venture of
the Generali Group of the Italy & Future Group of India, in both life & General Insurance
Businesses. Future Generali is also registered with Insurance Regularity &
Development Authority (IRDA) situated in Delhi.

The Generali Group is one of the most significant participants in global insurance
and financial product markets and is ranked as the 30 th largest company in the world by
fortune (2007). The Group’s parent and principal operating Company is Assicurazioni
Generali, market leader in Italy, founded in 1831 in Trieste. Characterized from the
outset by a strong international outlook with presence in over 40 countries. Generali has
consolidated its leadership position Western Europe and has emerged strongly central-
eastern European and Far East markets, among which HK, Japan, Philippines,
Thailand, China and now India.

The Future Group is a diversified conglomerate with presence in multiple

consumer-centric businesses like retail, consumer finance, insurance, media, brands,
and logistics. The group’s Flagship Enterprise, Pantaloon Retail (India) Limited, India’s

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leading organized retailer, owns and manages multiple retail formats including
Pantaloons, Big Bazaar, Central, Food Bazaar, Home Town, among others.

With the feedback which I gathered from the clients of depository’s services, I
have tried to provide some of the fruitful suggestions that would necessarily of utmost
importance for the organization.

I hope that the suggestion provided by me would prove to be useful source of

information for the FUTURE GENERALI INDIA LIFE INSURANCE CO. LIMITED, and
would facilitate its growth.

ABHISHEK VIJAY

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 ACKNOWLEDGEMENT

This report bears the imprint of many people that have been the source of
inspiration during the entire training and are helpful in the preparation of this report.

I owe to Mr. Rajeev Ranjan Sinha (Regional Manager), Future Generali India
Life Insurance Co. Limited, Jaipur for his generous support throughout the Summer
Training. I also wish to acknowledge my debt to Mr. SURESH JAT.

I express my heartful gratitude to Mr. Shashikant Jain (Training & Operations)

for their help and advice during the training session.

My over riding debt continues to be the H.O.D., Mr. SHARAD MAHESHWARI.

And all the faculty members who provided me with the time, support and inspiration
needed to prepare this report.

Last but not the least, I am fortunate enough to express my heartiest thanks to
the entire staff of Future Generali India Life Insurance Co. Limited. For their cordiality.
For so mission of Credit, where due, regrets are expressed.

ABHISHEK VIJAY

EXECUTIVE SUMMARY

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Over the last few years, the Indian economy has been slipping. Companies have been
shaken up and are now faced to wake up from the days of deep slumber. Now, as the
top echelons of India Inc some to grip with the continuing recession in the Indian
economy and as the prolonged fall in demand across industries becomes more evident,
the mood is subdued. A total change of mindset has taken place, as the chieftains of
corporate India wake up and come to terms with reality.

The Insurance sector has also not been alienated from the effects of widespread
recession and is vying hard to cope with the ever-changing environment as well as
competitive aura. As a result, the trio- convergence, competition and consolidation, has
been continuously dominating the insurance segment, and the same phenomenon is
envisaged in the forthcoming years as well.

This would however mean wider and better services for the customers. The term
“insurance” has now acquired a much larger meaning than just dealing with protection.
For the past few years, companies have been actively focusing on increasing their
distribution channels by introducing facilities, like Banc assurance partners and
Corporate Agency.

INTRODUTIONS OF RTU UNIVERSITY

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ABOUT US
Rajasthan Technical University setup in 2005 by Govt. of Rajasthan to enhance
technical education in Rajasthan. The University is situated on Kota-Rawatbhata Road,
about 10 Km from Kota Bus Stand and 14 Kms from Kota Railway Station.

The university aims to cater almost all discipline related to technical education in
Rajasthan. At present 60 Engineering Colleges, 08 M.Tech Colleges, 21 MCA Colleges,
69 MBA Colleges and 03 Hotel Management and Catering Institute are affiliated to the
University.

MISSION

1. Providing vibrant, dynamic and cutting edge academic leadership for the growth
of Technical Education in the State.
2. Developing Centers of Excellence in Emerging and Thrust areas, in particular,
Biotechnology, Nanotechnology and Disaster Management.
3. Providing highly transparent, lean, professional and e-Governance system of the
administration in the University. Bringing all the existing / new technical
institutions / colleges in the State under one umbrella
4. Providing all the Institutions with a state - of - the art Curricula and Syllabi with a
provision for periodic/faster updating. 
5. Preparing Providing excellent atmosphere and breeding ground for ideas and
talent
6. Course Material Packages for all the Programmes. Providing quality input to
students through combination lecture, print and electronic media. Promoting
entrepreneurship amongst the students of the University and its constituent /
affiliated colleges. Provide facility for distance education in consonance with
changing socioeconomic needs and emerging demands of the knowledge era. 
7. Training of all Teachers and orient them towards resource persons.
8. Career Development of Faculty through Post Graduate and Ph.D.Programmes.
9. Effective, efficient and transparent system of examination, evaluation and
publication of results.

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 10. Promoting Industry - Institute partnership and setting out time bound agenda for
updating curricula as per the need of the industry. Provide efficient service to all
the stake holders in particular the students’ community.
11. Providing non-negotiable academic calendar.
12. Making the University self sufficient.

Administration
Chancellor: H.E.Sh. Shailendra Kumar Singh, Honb'le Governor

Honb'le Vice Chancellor - Dr. P.L. Agrawal

Pro. Vice Chancellor - Dr. G.S.Raghuwanshi
Registrar  - Shri Dwarka Lal Meena , R.A.S.
Finance Officer  - Shri Devraj
Director University College of Engineering   -  Prof O.P. Chhangani
Controller of Examination  - Dr. N.P. Kaushik
Pof. Training & Placement - Prof. R.C.Gaur
Coordinator RPET-08 -Prof. K. V.S.Rao
Coordinator RMAT-08  -  Prof. S. K. Rathore
Coordinator RMCAAT-08  -  Prof. R. C. Gaur
Director Academics - Dr. G.S.Raghuwanshi
Chief Warden - Dr. H.D.Charan
Chief Proctor   - Dr. D.M. Metha
ESF Advisor  - Rajeev Rajora
Chairman Sports  -  Prof. K. V.S.Rao
Web Master  - Deepak Bhatia

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 Topics Page no.

Certificate of Future Generali

Preface
Acknowledgement
Executive Summary
Introduction of RTU UNIVERSITY
Abstract 8
 Profile of Organization 9-12
a) Overview of Insurance 13
b) Overview of Future Generali 14
c) Overview of IRDA 15-34
d) Organization Structure
e) Organization Chart
f) Products of Future Generali
 Project Work
a) Past Performance of Company
b) Sales Forecasting
c) Market Analysis
d) Industry Sales & Profitability 35-76
e) Ratios of Future Generali
f) PEST Analysis
g) Michael Porter's Five Forces Analysis
 Results
a) Conclusions
b) SWOT Analysis 77-80
c) Sample Questionnaire
d) Insurance Glossary
e) Market Concentration for Life Insurance Industry
 References of Report 81
a) Bibliography

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 PROFILE OF ORAGANIZATION

A) OVERVIEW OF INSURANCE

Insurance, in law and economics, is a form of risk management primarily

used to hedge against the risk of a contingent loss. Insurance is defined as the
equitable transfer of the risk of a loss, from one entity to another, in exchange for
a premium, and can be thought of as a guaranteed small loss to prevent a large,
possibly devastating loss. An insurer is a company selling the insurance; an
insured or policyholder is the person or entity buying the insurance. The
insurance rate is a factor used to determine the amount to be charged for a
certain amount of insurance coverage, called the premium. Risk management,
the practice of appraising and controlling risk, has evolved as a discrete field of
study and practice.

It is one of those things that one would not like to think and talk about but
if you don’t you may leave your family unprotected. In simple terms life insurance
provides money for my family in the event that I die.

It is a financial resource for my family and loved ones in case of my death.

A “Contract” between me and the insurance company. “Insurance is sharing
the risk between company and individual”

In insurance two type of benefits risk cover and saving. Risks cover Consists of
death, accidental recovery and health.

Insurance

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 Risk cover Saving

1. Death 2. Accidental recovery 3. Health

When age is increase, risk is also increase, so premium is increase.

Why we need insurance?

Insurance is a basic need of an individual. Like every man eat food

forgiving so insurance is necessary for every human life. If a person not has life
insurance and he is died then his families face many financial troubles. So
insurance is necessary need.

History of Insurance: -

In some sense we can say that insurance appears simultaneously with the
appearance of human society. We know of two types of economies in human
societies: money economies (with markets, money, financial instruments and so
on) and non-money or natural economies (without money, markets, financial
instruments and so on). The second type is a more ancient form than the first. In
such an economy and community, we can see insurance in the form of people
helping each other. For example, if a house burns down, the members of the
community help build a new one. Should the same thing happen to one's
neighbors, the other neighbors must help. Otherwise, neighbors will not receive
help in the future. This type of

Insurance has survived to the present day in some countries where

modern money economy with its financial instruments is not widespread (for
example countries in the territory of the former Soviet Union).

In India many life insurance companies are working. Some of companies are this -

 SBI LIFE INSURANCE CO.LTD.

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  LIC OF INDIA
 HDFC STANDARD LIFE INSURANCE CO.LTD.
 ICICI PRUDENTIAL LIFE INSURANCE CO. LTD
 BAJAJ ALLIANZ LIFE INSURANCE CO. LTD
 SHRI RAM LIFE INSURANCE CO. LTD
 RELIANCE LIFE INSURANCE CO. LTD
 ING-VYASA LIFE INSURANCE CO. LTD
 TATA AIG LIFE INSURANCE CO. LTD
 MAX NEW YORK LIFE INSURANCE CO. LTD
 FUTURE GENERALI LIFE INSURANCE CO. LTD
 BHARTI AXA LIFE INSURANCE CO. LTD
 AVIVA LIFE INSURANCE CO. LTD
 OM KOTAK MAHINDRA OLD MUTUAL LIFE INSURANCE CO.
LTD
 METAIFE INSURANCE CO. LTD
 SAHARA LIFE INSURANCE CO. LTD
 BIRLA SUN LIFE INSURANCE CO. LTD
 RELIGARE LIFE INSURANCE CO.LTD
 IDBI FORTISE LIFE INSURANCE CO. LTD
And so on.

What is Life Insurance and a Life Insurance Company? Can a Life Insurance
Company Help Me?

Life Insurance is insurance for me and my family's peace of mind. Life

insurance is a policy that people buy from a life insurance company, which can
be the basis of protection and financial stability after one's death. Its function is to
help beneficiaries financially after the owner of he policy dies.
It can also be a form of savings in the long run if I purchase a plan, which
offers the option of contributing regularly. Additionally, a little known function of

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 life insurance is that it can be tied in with a person's pension plan. A person can
make contributions to a pension that is funded by a life insurance company.

In addition, you should also make a list of what you feel needs to be
protected in your family's way of life. With a life insurance policy in place, you
can:

 Provide security for your family.

 Protect your home mortgage.
 Take care of your estate planning needs.
 Look at other retirement savings/income vehicles.

‘INSURANCE’ VS ‘ASSURANCE’:-

The specific uses of the term ‘insurance’ and ‘assurance’ are sometimes confused. In
general, the term insurance refers to providing cover for an event that might happen
while assurance is provision of cover for an event that is certain to happen.

When a person insures the contents of their home they do so because of the event that
might happen (fire, theft, flood, etc.) They hope their home be never be burgled, or burn
down, but they want to ensure that they are financially protected if the worst happens.
This example of insurance shows how it is way of spending a little money to protect
against the risk of having to spend a lot of money.

When person insure their life they do so knowing one day they will die. Therefore a
policy that covers death is assured to make a payment. The policy offers assurance on
death; even if the policy has a prescribed termination date the policy is still assured to
pay on death and therefore is an assurance policy. Examples include Term Assurance
Policy and Whole Life Assurance. An accidental death policy is not assured to pay

on death.

THE FUNCTIONS OF INSURANCE:-

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It can be bifurcated into three parts:

1. Primary Functions

2. Secondary Functions

1. The Primary Function

Provide Protection - The primary function of insurance is to provide protection against

future risk, accidents and uncertainty. Insurance cannot check the happening of the risk,
but can certainly provide for the losses of risk. Insurance is actually a protection against
economic loss, by sharing the risk with others.

Collective bearing of risk - Insurance is a device to share the financial loss of few
among many others. Insurance is a mean by which few losses are shared among larger
number of people. All the insured contribute the premiums towards a fund and out of
which the persons exposed to a particular risk is paid.

Assessment of risk - Insurance determines the probable volume of risk by evaluating

various factors that give rise to risk. Risk is the basis for determining the premium rate
also

Provide Certainty - Insurance is a device, which helps to change from uncertainty to

certainty. Insurance is device whereby the uncertain risks may be made more certain.

2. The Secondary Function

Prevention of Losses - Insurance cautions individuals and businessmen to adopt

suitable device to prevent unfortunate consequences of risk by observing safety
instructions; installation of automatic sparkler or alarm systems, etc. Prevention of
losses causes lesser payment to the assured by the insurer and this will encourage for
more savings by way of premium. Reduced rate of premiums stimulate for more
business and better protection to the insured.

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Small capital to cover larger risks - Insurance relieves the businessmen from security
investments, by paying small amount of premium against larger risks and uncertainty.

Contributes towards the development of larger industries - Insurance provides

development opportunity to those larger industries having more risks in their setting up.
Even the financial institutions may be prepared to give credit to sick industrial units
which have insured their assets including plant and machinery.

TYPES OF INSURANCE POLICIES:-

Endowment Policy:

An endowment policy covers risk for a specified period, at the end of which sum
assured is paid back to the policy holder, along with the bonus accumulated during the
term of the policy or the maturity value (ULIP).

Whole Life Policy:

A typical whole life policy runs as long as the policyholder is alive. In other words, risk is
covered for the entire life of the policyholder, which is why such policies are known as
whole life policies.

In whole life policy, sum assured and bonus are payable only to the nominee of the
beneficiary upon the death of the policyholder. The policyholder is not entitled to any
money during his or her own lifetime, i.e. there is no survival benefit.

Suppose, for instance, you buy a whole life policy at the age of 30, when your children
are young and the family needs protection. Conceivably, by the time you are 55 or 60,
your children maybe well settled, no longer truly needing the protection your whole life
policy provides. On the other hand, you would probably require the money for yourself
and your wife in your retired life, but this would not be possible since the sum assured is
payable only when the policyholder dies.

Term Life Policy:

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Term life policies cover risk only during the selected time period. If the policyholder
survives the term, the risk cover comes to an end.

A term plan is designed to meet the needs of people who are initially unable to pay a
larger premium required for a whole life or an endowment assurance policy, but hope to
be able to pay for such a policy in the near future. Hence, they may leave the final
decision regarding the plan to a later date, when a batter choice can be made. No
surrender, loan or paid-up values are granted under these policies because reserves
are not accumulated. If the premium is not paid within the grace period, the policy will
lapse without acquiring paid-up value. However, a lapse policy may be revived during
the lifetime of the life assured but before the expiry of the period of certain time limit.

Money-back Policies:

Unlike ordinary endowment insurance plans, where the survival benefits are payable at
the end of the endowment period, money-back policies provide for periodic payments of
partial survival benefits during the term of the policy, as long as the policyholder is alive.

An important feature of this type of policies is that in the event of death at anytime within
the policy term, the death claim comprises the full sum assured, without deduction of
any of the survival benefit amounts, which may have already been paid as money-back
component. Similarly, the bonus is also calculated on the full sum assured.

Joint Life Policies:

Joint life policies are similar to endowment policies in that they too offer maturity
benefits to the policyholders, apart from covering risk like all life insurance policies. But
joint life policies are categorized separately as they cover two lives simultaneously, thus
offering a unique advantage in some cases, notably, for a married couple or for partners
in a business firm.

Children’s Insurance Policies:

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Children’s insurance policies include those through which parents or legal guardian can
provide for life insurance for their child from birth. The risk cover commences from the
child attaining the age of 12/17/18/21(known as the date of Risk), and will vest itself on
the child upon his or her attaining majority on completion of age 21, if the case demands
so.

Until the child attains majority, the parents are the owners of the policy and have to pay
the premium periodically. It is important that these policies are considered only after the
insurance portfolio of the parents has been completed.

Pension Plan or Annuities:

Annuity is an investment that you make, either in a single lump sum or through
installments paid over a certain number of years, in return for which you receive a
specific sum every year, every half-year or every month, either for life or for a fixed
number of years.

After the death of annuitant or after the fixed annuity period expires for annuity
payments, the invested annuity fund is refunded, perhaps along with small addition,
calculated at that time. Annuities differ from all the forms of life insurance in one
fundamental way- an annuity does not provide any life insurance cover but, offers a
guaranteed income either for life or certain period.

Typically, annuities are brought to generate income during one’s retired life, which is
why they are also called pension plans. Annuity premiums and payments are fixed with
reference to duration of human life. Annuities are investment, which can offer an income
you cannot outlive and provide a solution to on of the biggest financial insecurities of old
age; namely, of outliving one’s income.

BENEFITS OF INSURANCE:-

Replacement of Income:

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Life Insurance provides a lump sum or periodic payments to help replace the income

stream, in case of an unfortunate event or an untimely demise of the breadwinner.

Lifestyle Maintenance:

Life insurance products can help you build a corpus to protect and maintain your

lifestyle against fluctuations in your future income.

Costs of Education:

You need to support your child with a sound educational background, to help your child

achieve his/her dreams. Life insurance products can help you fulfill these needs,

whether you are there or not.

Retirement Expenses:

Retirement is an age when an individual has fulfilled almost all his responsibilities and

looks forward to relaxing. Life insurance products can help you lead a secure and

tension free retired life by ensuring that you get guaranteed pension.

Mortgage and Debt protection:

With increasing consumerism and ever-rising demands, loans and debts are now part of

life. Life insurance products help you ensure that your family is not unduly burdened

with their repayments, in case of an unfortunate event or an untimely demise of the

breadwinner.

Introduction of LIC:

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 In 1956, Life insurance Company (LIC) of India was started. Up to 2000
LIC’S no competitors establish in the market and after 2000 its many competitors
enter in the market. Its competitors in the India:-

 SBI LIFE INSURANCE CO.LTD.

 LIC OF INDIA
 HDFC STANDARD LIFE INSURANCE CO.LTD.
 ICICI PRUDENTIAL LIFE INSURANCE CO. LTD
 BAJAJ ALLIANZ LIFE INSURANCE CO. LTD
 SHRI RAM LIFE INSURANCE CO. LTD
 RELIANCE LIFE INSURANCE CO. LTD
 ING-VYASA LIFE INSURANCE CO. LTD
 TATA AIG LIFE INSURANCE CO. LTD
 MAX NEW YORK LIFE INSURANCE CO. LTD
 FUTURE GENERALI LIFE INSURANCE CO. LTD
 BHARTI AXA LIFE INSURANCE CO. LTD
 AVIVA LIFE INSURANCE CO. LTD
 OM KOTAK MAHINDRA OLD MUTUAL LIFE INSURANCE CO.
LTD
 MET LIFE INSURANCE CO. LTD
 SAHARA LIFE INSURANCE CO. LTD
 BIRLA SUN LIFE INSURANCE CO. LTD
 RELIGARE LIFE INSURANCE CO.LTD
 IDBI FORTISE LIFE INSURANCE CO. LTD
And so on. In the market 31 LIC companies is establish.

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B) OVERVIEW OF Future Generali

Future Generali is a joint venture between the India-based Future Group and the
Italy-based Generali Group. Future Generali is present in India in both the Life and Non-
Life businesses as Future Generali India Life Insurance Co. Ltd. and Future Generali
India Insurance Co. Ltd.

Future Group:-

Future Group, led by Mr. Kishore Biyani, is positioned to cater to the entire Indian
consumption space. The Future Group operates through six verticals: Future Retail
(encompassing all lines of retail business), Future Capital (financial products and
services), Future Brands (all brands owned or managed by group companies), Future
Space (management of retail real estate), Future Logistics (management of supply
chain and distribution) and Future Media (development and management of retail media
spaces).

The group’s flagship enterprise, Pantaloon Retail, is India’s leading retail

company with presence in food, fashion and footwear, home solutions and consumer
electronics, books and music, health, wellness and beauty, general merchandise,
communication products, E-tailing and leisure and entertainment. The company owns
and manages multiple retail formats catering to a wide cross-section of the Indian
society and its width and depth of merchandise helps it capture almost the entire
consumption basket of the Indian consumer. Headquartered in Mumbai (Bombay), the
company operates through 4 million square feet of retail space, has over 150 stores
across 35 cities in India and employs over 15,000 people. The company’s revenues for
FY 05-06 were Rs. 2017 crore

Founded in 1987, as a garment manufacturing company, Pantaloon Retail

forayed into modern retail in 1997 with the opening up of a chain of department stores,
Pantaloons. In 2001, it launched Big Bazaar, a hypermarket chain, followed by Food
Bazaar, a supermarket chain and went on to launch Central, a first of its kind, seamless
mall located in the heart of major Indian cities. Some of it’s other formats include,
Collection I (home improvement products), E-Zone (consumer electronics), Depot
(books, music, gifts and stationeries), aLL (fashion apparel for plus-size individuals),
Shoe Factory (footwear) and Blue Sky (fashion accessories). It has recently launched
its etailing venture, futurebazaar.com.

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 Some of the group’s subsidiaries include Home Solutions Retail India Ltd, Future
Bazaar India Ltd and ConvergeM Retail India Ltd, which leads the group’s foray into
home improvement, etailing and communication products, respectively. Other group
companies include, Pantaloon Industries Ltd, Galaxy Entertainment and Indus League
Clothing. It has also entered joint venture agreements with a number of companies
including ETAM group, Gini & Jony, Liberty Shoes, Staples and Planet Sports, a
company that owns the franchisee of international brands like Marks & Spencer,
Debenhams, Guess and The Body Shop in India.

Future Capital Holdings, the group’s financial arm, focuses on asset

management through real estate investment funds (Horizon and Kshitij) and consumer-
related private equity fund, Indivision. It also plans to get into insurance, consumer
credit and offer other financial products and services.

Future Group’s vision is to, "deliver Everything, Everywhere, Every time to Every
Indian Consumer in the most profitable manner." One of the core values at Future
Group is, ‘Indianess’ and its corporate credo is – Rewrite rules, Retain values. 

Generali Group :-

Established in Trieste on December 26, 1831, Generali is an international group

present in more than 40 countries with insurance companies and companies mostly
operating in the financial and real estate sectors. Over the years, the Generali Group
has reconstructed a significant presence in Central Eastern Europe and has started to
develop business in the principal markets of the Far East, including China and India.

Identity Card

 Generali Group ranks among the top three insurance groups in Europe and the
30th largest company in the Fortune 500 international ranking, with a 2007 premium
income of over € 66 billions
 High rating assigned by the international rating agencies:
o A.M. BEST A+
o Standard & Poor’s AA
o Fitch AA
o Moody’s Aa3
 It is present in more than 40 countries
 It has over 50 millions clients worldwide
 It has 80,555 employees
 It has over €398 billions of total assets under management

Company's Visions and Values:-

a.) Vision Statement:

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 "Pledged to provide financial security to all people & enterprises through total
insurance solutions"

b.) Values:

Values that we observe while we work:

 Respect : for all our stakeholders- employees, customers, for all rules and
regulations both internal and external.
 Indianess : We understand India in all its diversity and different facets and will
use for our local understanding to respond to our specific markets, design our products
and craft our processes.
 Nimbleness : A combination of speed and quality, and ability to overcome all
obstacles which come in the way of the achievement of our vision.
 "Can Do" : An attitude which demonstrates our passion, entrepreneurship, and
positive thinking.

Company's Positioning & Objective & Mission:-

a.) Positioning:

 Knowledge Organization with Leadership Approach

 One Stop Total Insurance Solutions & Services Provider
 Customer Centric Model embracing Passion, Convenience and Service
Excellence

b.) Objective:

To provide superior customer service through our knowledge-based business partners

and employees supported by innovative products and services.

c.) Mission:

To be the top new life insurance company in the market. This dose not just mean being
the largest or the most productive company in the market, rather it is a combination of
several things like-

  Customer service of the highest order 

  Value for money for customers 
  Professionalism in carrying out business 
  Innovative products to cater to different needs of different customers 

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   Use of technology to improve service standards 
  Increasing market share

Company's Core Team Members:-

Mr. G. N. Bajpai (Chairman)

Dr. Kim Chai Ooi (Country Manager, Future Generali)
Mr. Jayant Khosla (MD & CEO)
Mr. G N Agarwal (Chief Actuary & Appointed Actuary)
Mr. Nirakar Pradhan (Chief Investment Officer)
Mr. Nagesh Rajanna (Chief - Sales & Business Development)
Mr. Arnab Malik (Chief Marketing Officer)
Ms. Shalaka Gadekar (Chief - Human Capital)
Mr. Anup Chandak (CFO)
Mr. Rajeev Shirodkar (CIO)

Careers:

1. Human Capital :-

Future Generali thrives on the support of employees who inherits and exhibits the
Family DNA of:

Pioneering spirit, Passion for clients, Responsibility, Respect, Integration,

Professionalism, Transparency, Indian-ness, Visionary & Lifetime Learning.

…DNA coupled with HC Values as below:

 Pioneer- Seek and dare to Innovate and change continuously and also help build
an atmosphere to encourage the same.
 Service Delight- Emphasis on stakeholder service delight through transparency,
information and knowledge.
 Commitment- Encourage accountability, nurture talent towards exponential
performance and build loyalty to organization.
 Knowledge- Continuous commitment to build a knowledge repository and a life
time experiential learning.

…will help us achieve HC Vision of:

 Partnering to provide consistent and excellent results for our stakeholders by

building competitive advantage of human capital through employee commitment and
leveraging a pioneering spirit, innovation and excellence

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 Becoming the most attractive employer for the best performing people by
embracing and pioneering best practices

2. Knowledge Organization Our People and Culture :-

At Future Generali we foster a collaborative culture where talented individuals

can produce their best work. We value innovative thinking, diverse insights and we
strive to offer an exceptional level of customer service through our expertise and
professionalism.

The quality of our people will continue to be our key differentiator and we
continue to offer outstanding career opportunities. We take pride in operating a
knowledge organization and in developing. In recent years we have been building our
resources across the practice.

Learning and Development

Learning and development is a priority for all our people. Formal development
opportunities include training and secondment and a wide range of learning program
designed to develop technical and non-technical skills and to build knowledge in specific
industries or functional areas. We are always looking for innovative ways to provide the
best possible learning experiences for our people.

Shaping Great Careers

Career management and counseling skills are critical for our people and we
make a significant investment in helping our people to develop these skills. Our career
development program for our trainees has already had a significant impact in
contributing to our success.

22
3. Recruitment :-

All CVs submitted are carefully examined even if there are no vacancies. The candidate
may then be contacted by Human Capital for a preliminary interview.

In case there is an active position and if the profile of the applicant matches with the
organization requirement, the candidate may be called for further rounds of selection.
Candidates not suitable for a specific position will be retained in the database and may
be contacted for a relevant position at a future date.

Resume of candidates registered with Future Generali will be used strictly in

accordance with the personal data policy of the company and will be kept confidential.

It is Future Generali’s policy to retain the personal data of candidates for future
recruitment purposes. However, should candidates not wish their personal data to be
used for future recruitment exercise, they may request their destruction by contacting
our Human Capital Dept.

C) OVERVIEW OF ACT, 1999 (IRDA):-

Role of IRDA:

IRDA is a revolutionary piece of legislation. The IRDA was established to regulate, promote,

and ensure orderly growth of the life and general insurance industry.

The authority consists of the following members:

 A chairperson

 Not more than 5 whole time members

 Not more than 4 part time members

Inaction of IRDA:

 To exercise all power and function of controller of insurance.

 Protection of the interests of the policy holders

 To issue, renew, modify, withdraw, or suspend certificate of registration

 To specify requisite qualifications and training for insurance intermediaries

23
 To promote and regulate professional organization connected with insurance

 To conduct inspection/investigation, etc.

 To prescribe method of Insurance Accounting

 To regulate investment of funds and margins of solvency.

D) ORGANIZATIONAL STRUCTURE:-

F) PRODUCTS OF FUTUREGENERALI

Insurance products:

Today there are many insurance products available in the market. Each company has its
set of products that it offers to the customers. This makes it difficult to keep track of all the
products at the same time. A better way to understand them is by way of classification. All
insurance products can be classified according to four basic categories:
The PIPS Standard:-

PROTECTION INVESTMENT

PENSION SAVINGS

24
 This classification is based on the needs of the customers. Accordingly, each of these
categories are classified by needs and all the products coming under that category aim to fulfill
that need, e.g. products coming under investment category aim to promote long-term real
growth over the period. Thus, understanding these categories will not only help us to
understand various products but also help us to position our products strongly in a competitive
market.
Investment type of products:
In investment type of products, the focus is on maximizing returns for the customer over
a period of time. In a way, it is opposite to protection type where the focus on maximizing the
risk cover is very low. The objective is to put maximum amount in investment. The underlying
principle is to commit money for a certain period of time and get the benefits of real long-term
growth. The products are usually single-premium policies where the entire premium is collected
in advanced.

Pension products:
It is another very popular type of product. Along with the risk of an untimely death or
disability, we also have the risk of living too long to outlive our source of income. In other words,
one needs to ensure that she gets a decent income as long as she lives. This is where we have
pension products addressing the need for a comfortable retirement. One can opt for an
immediate pension or for a pension at a future date (also called as deferred pension) – one can
have a range of options when selecting a pension plan. There is a great amount of flexibility
when it comes to selecting a pension product. The important point to note is that pension is a
part of one’s present income that forms the basis for future consumption. Every year income is
accumulated and invested in a pension fund. The lump sum accumulated then is used for
purchasing on the vesting date.
Saving type of products:
People like to save. Our saving rate is well above 20% of our GDP for last few years.
They save for events like child’s marriage, education, etc. Savings products aim to strike a good
balance between risk cover as well as returns. It acts as a protection on savings. Sum assured
is usually targeted savings that one looks for. She gets that amount at the end of the term along

25
with the bonuses if it is a participating policy. On the protection side, if any unfortunate event
happens during the term, the sum assured (targeted savings) is still paid so it encourages a
person to save for an event and at the same time it ensures that her savings are protected. This
is the unique advantage of savings through life insurance that no other financial product offers.
Protection type of products:
A typical protection type of product aims at protecting income earning capacity of the
customers on happening of uncertain events during the term of the product. These are the pure
risk product having no saving element. Naturally, these products do not have any maturity
benefits. High risk cover at low cost is the unique of this type of product that makes this
category most attractive for those who want high insurance cover without spending much for it.
Usually offered for a definite term, all these products come under 4 broad categories. To
understand a product, it is essential to find out the category based on its features. Needless to
say, it will not be possible to compare one product category to another. Each category is unique
and caters to particular needs of the customers.
The best approach is to find out what customers need and then suggest a solution
accordingly.
Our role
Insurance, as we have seen, is a basic need that every person has. Our role as insurance
service provider, is to make her aware of these underlying needs and help her to arrive at
appropriate solutions that would to her insurance needs. In this process, we will help her to
build up a financial plan for a sound future. It calls for high degree of professionalism, integrity,
and strong faith in the company along with high customer orientation.

a. Future Care:-

A Pure Term Assurance Plan, offering high protection at low premium with an
attractive option of convertibility to an endowment plan. This type of insurance is well
suited to situations where you have:

 A large insurance need and limited budget

26
  A need for insurance over a defined period of time, say, to cover your
outstanding loans

 A need for insurance for a specific purpose, such as covering the life of a key
employee

The plan is offered along with optional Accidental Death Rider and Accelerated
Critical Illness Rider with a Total of 11 conditions including Total and Permanent
Disability due to Accident and Sickness.

Key Features:
Simplicity: Future Care is the simplest form of insurance for a stated period of
time.
Affordability: Future Care provides maximum insurance protection for your
premium amount.
Convertibility: Within a period specified in the policy, the term plan can be
converted into an endowment life insurance plan offered by Future Generali. The
premium charged for the permanent plan will be based on age of the insured,
without furnishing any further evidence of insurability.
Product Parameters:
 Minimum age/Maximum age at entry: 18/60 Years
 Maximum age at maturity: 65 Years
 Minimum Sum Assured: Rs. 3, 00,000
 Maximum Sum Assured: No limits
 Term: 5-25 Years
 Premium payment mode: Yearly, Half-Yearly, Monthly (ECS mode only)
 Minimum Premium Installment: Rs.1500/- p.a.
How The Plan Works:

This plan provides for the payment of a death benefit to your beneficiary during the
term. There is no maturity benefit.

27
Rider Benefit: You have the option to customize your policy by opting for one or all of
the following riders, viz. Accidental Death Rider (AD), Accelerated Critical Illness
Extended Rider (ACI).

These riders can dramatically increase the value of your coverage just for a modest
additional premium.

Tax Benefits:

Section 80C, 10(10D) of Income Tax Act would apply. Premiums paid for Critical Illness
Benefit qualify for benefits under Section 80D. These benefits are as per the currently
prevailing tax regulations and you are advised to consult your tax advisor for details.

b. Future Assure: -

A with-profit endowment plan is just the right plan, ensuring financial freedom
which your family deserves, even in your absence. The plan will be offered along
with 6 optional riders, namely, Term Assurance Rider, Waiver of Premium on
Disability Rider, Life Guardian Rider, Accidental Death Rider, Accidental Total &
Permanent Disability Rider and a Critical Illness Rider.
Key Benefits Of Future Assure:
 On death of life insured: Sum Assured plus accrued bonus
 On maturity: Sum Assured plus accrued bonus
 On Surrender of Policy: Surrender Value
 Policy Loan available after the policy acquires Surrender Value
 Bonus: The policy shall participate in the profits arising out of Company's 'with
profits' life insurance business. It gets a share of the profits emerging from this
business in the form of bonuses. Compounded Reversionary bonuses would be
declared as a percentage rate, which apply to the sum assured in respect of the
basic policy benefit (not on riders) and all attached bonuses. Reversionary bonus is
declared based on our long term view of investment returns, expenses, mortality and
other experience. Once declared, the Reversionary bonuses form a part of the

28
 guaranteed benefits of the plan. Future bonuses are however not guaranteed and
will depend on future profits. A Terminal bonus may also be paid at maturity, earlier
death or surrender.
 Bonus: The policy receives compounded reversionary bonuses which are added on
every valuation.
Tax Benefits:

You are entitled to the following tax benefits under Income Tax Act 1961: Your
premiums are eligible for deduction u/s 80C up to Rs.100, 000/- every year.
Your CI rider premiums are eligible for an additional deduction u/s 80D up to
Rs.10,000/-everyyear.
Your claim amounts (from death, on maturity or through surrenders) are eligible for tax
exemption u/s 10(10D).

Rider Benefits:

We offer you the flexibility to enhance the value of your policy by using the following
riders/options:

1. Term Assurance Rider

2. Accidental Death Rider

3. Accidental Total & Permanent Disability Rider

4. Waiver of Premium on Disability Rider

5. Critical Illness (Core) Rider

6. Life Guardian Rider (in case of Juveniles)

Product Parameters
 Minimum age/Maximum age at entry: 31 Days/65 Years
 Maximum age at maturity: 70 Years

29
 Minimum Sum Assured: Rs. 75,000
 Maximum Sum Assured: No limits
 Minimum Term: 5 Years
 Premium payment mode: Yearly, Half-Yearly, Quarterly, Monthly (ECS mode only)

c. INSTA Life: -

Life Insurance is now made simple and easily accessible and spontaneously
deliverable. Future Generali brings you a product that is the very first if its kind. “An
Over the Counter”, Endowment plan providing protection cum savings with an ease of
issuance in just three simple and easy steps:

 Fill in the Proposal form

 Pay the Premium
 Instant Issuance of policy bond over the counter
How to buy INSTAlife?

Fill the health related questions in the application form. Submit the application form
along with cash / cheque / credit card, the required documents:

 Photo-ID
 Address proof
 Age proof

and agreement to the declaration form. You get immediate life coverage over the
counter after this simple process.

Key Features of INSTAlife:

 Hassle free Insurance cover without any Medical or Financial Underwriting

 Minimal Paperwork

 Guaranteed Coverage up to 5 lakhs till age 45 years

30
  Policy available on Standalone Basis irrespective of previous insurance in other
Future Generali plans

 Instant Processing & Issuance “Over the Counter”

 Suitable for all customers providing long term Savings with an Insurance Cover
along with Convenience in Availability

 Tax Benefits under section 80C and 10(10D) of the Income Tax Act.

Who can take INSTAlife?

Anybody falling between the age of 18 to 45 years, is eligible for this plan with maximum
maturing age being 65 years. You have an option to choose the coverage tenure
ranging from 5 to 25 years.

What are the various premium payment frequencies under INSTAlife?

You may pay premium as per your convenience i.e. Single Premium, Yearly, Half-
Yearly, Quarterly, Monthly (ECS mode only).

d. Future Sanjeevani: -

Key Features of Future Sanjeevani:

 An ideal All-in-One Investment and Insurance package
 Life coverage throughout life giving flexibility in premium paying term of 5,10,15
years or Whole of life
 Gives you a choice of 4 investment funds, structured in a way to take care of
your financial liabilities and giving the flexibility to change fund allocation at any
time as per your requirement
 Guaranteed Loyalty Bonus through Extra Fund Injection
 Suite of 4 optional riders to provide you additional benefit (s)

31
  Additional allocation of fund (s) to your kitty through regular Top-Ups, providing
you a comprehensive financial solution
 Partial Withdrawal after the completion of 3 full policy year
 Tax benefits on premiums paid and the benefits received, as per the prevailing
Income Tax Rules.

 Choice of Investment Fund: Your premium is invested in unit funds of your

choice. Currently you have a choice of 4 investment funds, providing you
flexibility to direct your investments in any of the following unit linked funds of the
Company. The funds invest in a mix of cash/other liquid investments, fixed
interest securities and equity investments in line with their risk profile.
Maturity Benefit: On maturity i.e. policy anniversary coinciding with or following the
completion of 99 years, the Fund Value as on the date of maturity becomes payable
and the policy is terminated thereafter.

Death Benefit *: On the unfortunate death of the life assured, the nominee receives the
higher of the following
 The Fund Value as on the date of death of the life assured
 Sum Assured plus all applicable top up Sum Assured net of all Deductible Partial
Withdrawals, (if any)
* For purpose of determining the Death Benefit, the Deductible Partial Withdrawal
(s) mean, any partial withdrawal made in 12 months before the date of death will
be deducted from sum assured. Where the life assured has completed 60 years,
all the partial withdrawals made in 2 years prior to the completion of 60 years and
all partial withdrawal made after completion of age 60 years will be deducted
from the sum assured.
For minor life assured, death during the deferment period the Fund Value will be
paid.
Tax Benefits:
 Premiums paid under this plan are eligible for tax benefits under Section
80C of the Income Tax Act, 1961

32
  Premiums paid for critical illness rider is eligible for tax deduction under
Section 80D of the Income Tax Act, 1961
 Any sum received under this plan is exempt from tax under section
10(10D) of the Income Tax Act, 1961
 The above is based on the current tax laws and is subject to change.

e. Future Guarantee Plan:-

Key Features of Future Guarantee Plan:

 Guaranteed Additions on maturity ranging from 150% to 400% of First Year

Annualized Premium depending on term.
 An ideal All-in-One Investment and Insurance package.
 Gives you a choice of four investment funds, structured in a way to take care of
your financial liabilities and giving the flexibility to change fund allocation at any
time as per your requirement.
 Additional allocation of fund (s) to your kitty through optional Top-Up Single
Premium, providing you a comprehensive financial solution.
 Tax benefits on regular premiums paid and the benefits received, as per the
prevailing Income Tax Rules
 Choice of Investment Fund : Your premium is invested in unit funds of your
choice. Currently you have a choice of four investment funds, providing you the
flexibility to direct your investments in any of the following unit linked funds of the
Company. The funds invest in a mix of cash/other liquid investments, fixed
interest securities and equity investments in line with their risk profile.
Maturity Benefit : On maturity i.e. on completion of the policy term, the Fund Value +
Guaranteed Additions at maturity specified as a percentage of First Year’s Premium
mentioned above, becomes payable and the policy is terminated thereafter.

33
Under Settlement Option, the maturity benefit may be taken in lump sum or installments
spread over a period of up to five years from the date of maturity.

Death Benefit: On the unfortunate death of the life assured, the nominee receives the
higher of the following –
 Sum Assured
 Fund Value less deductible partial withdrawals made during the last 2 years prior
to the date of death
A discounted value of the guaranteed addition at maturity will also be paid on
death after 8 years, provided atleast 5 full years of premiums are paid.
Tax Benefits:
 Regular Premiums paid under this plan are eligible for tax benefits under Section
80C of the Income Tax Act, 1961
 Any sum received under this plan is exempt from tax under section 10(10D) of
the Income Tax Act, 1961
 The above is based on the current tax laws and is subject to change.

f. Future Child Benefit Plan:-

A caring parent, you always want to be there for your children. That you want to
be around to ensure that their education, careers and lives shape up well. This plan
helps you make sure that your children will be adequately supported and that their
financial needs will be taken care of even after your lifetime.
Key Features of Future Child Benefit Plan:

 Flexibility in terms of planning for your child’s future with wide range of solutions
offered under the plan as,

34
 Option1: Future Child Benefit Plan Option @ 21 or
Option 2: Future Child Benefit Plan Option @ 23
 Depending upon the option selected, regular payouts to provide money to meet
educational expenses at different stages
 Sum Assured as a lump sum on the earlier of your unfortunate demise or total
and permanent disability arising out of accident prior to maturity, whichever is
earlier. The policy remains in-force for the remaining term and will continue to
accrue guaranteed additions and future bonuses. Premiums are waived for the
remaining term
 Guaranteed Additions @3.5% of Sum Assured per annum at a compounding rate
at the end of each of the first five policy years.
 Compounded Reversionary bonuses thereafter
 Large Sum Assured Discount
 Tax benefits on premiums paid
 Benefits received are non-taxable

Benefits:
Regular Payouts – As per the type of option selected under the plan
Fixed Benefits in form of regular payouts as per the options selected under the plan.
Option 1:
Future Child Benefit Plan @ 21:
Payable on the policy anniversary % of Sum Assured
3 years prior to maturity 15%
2 years prior to maturity 25%
1 year prior to maturity 25%
35% + Guaranteed additions +
At maturity
vested bonuses
Option 2:
Future Child Benefit Plan @ 23:
Payable on the policy anniversary % of Sum Assured
5 years prior to maturity 10%
4 years prior to maturity 15%
3 years prior to maturity 15%
2 years prior to maturity 15%

35
1 year prior to maturity 20%
25% + Guaranteed additions +
At maturity
vested bonuses

The benefits stated above will be payable at the specified intervals even if the life
assured is not alive or is accidently totally and permanently disabled and the payment of
premiums have been waived.
Guaranteed Additions
The compounding annual guaranteed additions under the policy are 3.5% per annum of
the sum assured for the first five years of an in-force policy. This amount will become
payable only at maturity of the policy.
Bonuses Accrued
From sixth year onwards, the policy shall participate in the profits arising out of the
Company’s ‘with profits’ life insurance business. It gets a share of the profits emerging
from this business in the form of bonuses. Compounded reversionary bonuses would be
declared as a percentage rate, which apply to the sum assured and guaranteed
additions in respect of the basic policy benefit and all attached bonuses. Reversionary
bonus will be declared based on our long term view of investment returns, expenses,
mortality and other experience. Once declared, the reversionary bonuses form part of
the guaranteed benefits of the plan. Future bonuses are, however, not guaranteed and
will depend on future profits.

Sum Assured on Death or Accidental Total and Permanent Disability – Inbuilt

Benefit:
On the policyholder’s unfortunate demise or total and permanent disability arising out of
accident (whichever of two is earlier) before maturity, the sum assured is payable as a
lump sum immediately. However, the policy will continue to remain in-force and will
continue to accrue guaranteed additions and future bonuses, as the case may be. No
further premiums will be payable.
Fixed assured benefits shall be paid on policy anniversaries prior to maturity and on
maturity of the policy, the last installment along with the guaranteed additions plus
bonuses accrued will be paid to the beneficiary.

36
The Life Assured will be regarded as Totally and Permanently disabled if, as a result of
accidental bodily injury, resulting solely and directly from an accident caused by
outward, violent and visible means,
 he /she has been rendered totally incapable of being employed or engaged in
any work or any occupation whatsoever for remuneration or profit, or
 he/she has been rendered unable to perform (whether aided or unaided) at least
3 of the following 6 “Activities of Daily Living” :
Activities of Daily Living
 Washing: the ability to wash in the bath or shower (including getting into
and out of the bath or shower) or wash satisfactorily by other means;
 Dressing: the ability to put on, take off, secure and unfasten all garments
and, as appropriate, any braces, artificial limbs or other surgical
appliances;
 Transferring: the ability to move from a bed to an upright chair or
wheelchair and vice versa; -Mobility: the ability to move indoors from room
to room on level surfaces;
 Toileting: the ability to use the lavatory or otherwise manage bowel and
bladder functions so as to maintain a satisfactory level of personal
hygiene;
 Feeding: the ability to feed oneself once food has been prepared and
made available, or
 He / She has suffered the loss of (or the total and permanent loss of use of) both
hands, and both feet, or both eyes, and a combination of any two.
The above disability must have lasted, without interruption, for at least six consecutive
months and must be deemed permanent by an appropriate medical practitioner
appointed by the Company.
Large Sum Assured Discount

Sum Assured Future Future Child Future Child Future Child

Child Benefit Plan @ Benefit Plan @ Benefit Plan @
Benefit 21 Regular 23 Single 23 Regular
Plan @ 21 Premium Premium Premium
Single

37
 Premium
>= Rs 2 lakh;
50.00 10.00 70.00 10.00
< Rs 5 lakh
>= Rs 5 lakh;
55.00 11.00 75.00 12.00
< Rs 8 lakh
>= Rs 8 lakh;
57.00 11.50 77.00 12.50
< Rs 10 lakh
>= Rs 10 lakh 58.00 11.70 78.00 12.70

Tax Benefits: As per prevailing Income Tax laws.

g. Future Anand Plan:-

Life is always full of surprises and delights as you move ahead in your life.
‘Future Anand Plan’ moves along with you as your life shapes up. However one cannot
avoid unpleasant surprises and misfortunes in life. This plan is a combination of
Endowment Assurance and Whole Life plans which safeguards you, during and after
your lifetime. Protect yourself against financial difficulties throughout your lifetime and
beyond because life after all is to Rejoice!!!

Key Features of Future Anand Plan:

 Financial security with the coverage for life time.

 You can select your premium payment mode, sum assured and premium
payment term as per your age and choice
 Guaranteed Additions @3.5% of Sum Assured per annum compounding at the
end of each of the first 5 policy years
 Compounded Reversionary bonuses thereafter
 Endowment Benefit of 100% of Sum assured plus guaranteed additions plus
vested bonus (if any) on survival at the end of premium paying term
 125% of the Sum Assured and terminal bonus (if any) as a lump sum on your
unfortunate death after premium paying term
 Sum Assured with accrued guaranteed additions plus vested bonus (if any) plus
terminal bonus (if any) on your unfortunate demise payable during the premium
paying term
 Discount on large Sum Assured.

38
  Choice of five riders to top up your basic plan
 Auto Cover available after the Policy is in-force for 3 years
 Tax benefits on premiums paid and benefits received.
Benefits :
Endowment Benefit – We will pay 100% of Sum Assured along with Guaranteed
Additions and Vested Bonus (if any) at the end of the premium paying term.
Death Benefits during Premium Paying Term – In case of your unfortunate demise,
we will pay an amount equal to Sum Assured along with Guaranteed Additions and
Vested Bonus (if any) and Terminal Bonus (if any).
Death Benefits after Premium Paying Term – In case of your unfortunate demise, we
will pay an amount equal to 125% of the Sum Assured and Terminal Bonus (if any) to
the nominee. In case of death of a minor life assured (age below 18ys as on last
birthday), the death benefit becomes payable to the policyholder (proposer).
Guaranteed Additions - The compounding annual Guaranteed Additions under the
policy are 3.5% per annum of the sum assured for the first five years of an in-force
policy. This amount will become payable only at end of premium paying term.
Bonuses Accrued - From sixth year onwards, the policy shall participate in the profits
arising out of the Company’s ‘with profits’ life insurance business. It gets a share of the
profits emerging from this business in the form of bonuses. Compounded reversionary
bonuses would be declared as a percentage rate, which apply to the sum assured and
guaranteed additions in respect of the basic policy benefit and all attached bonuses.
Compound Reversionary bonus will be declared based on our long term view of
investment returns, expenses, mortality and other experiences. Once declared, the
reversionary bonuses form part of the guaranteed benefits to the plan. Future bonuses
are, however, not guaranteed and will depend on future profits of the company. The
company may also declare a Terminal Bonus, depending on experience, that will be
paid along with Death Benefit.
Rider Benefits :
Rider Options Benefits
Term Assurance Additional amount, equal to the sum assured selected under this
Rider benefit is paid, in case of unfortunate death due to any cause
Accident Death Additional amount, equal to the sum assured selected under this

39
Rider benefit is paid, in case of unfortunate death due to an accident.
In case of the life assured becoming totally and permanently
Accidental Total disabled due to accident, the rider sum assured is paid in 10 equal
and Permanent annual installments. In case of death of the life assured, surrender
Disability Rider or maturity of the Policy occurring before the payment of all
installments, the balance of the installments is payable in lump-sum.
Wavier of Premium All the future premium (including rider premiums) will be waived on
on disability Rider accidental total and permanent disability.
Amount equal to Sum Assured selected under this benefit is paid on
diagnosis of any one of the 6 critical illnesses (Cancer, Stroke,
Critical Illness
Kidney Failure, CABG, Heart Attack & Major organ transplant). The
(Core) Rider
sum assured is payable on survival for 28 days from the onset of
any of these critical illness conditions.

40
 PROJECT WORK

a.) Past Performance of Company:-

b.) Sales Forecasting:-

41
 c.) Market Analysis:-

d.) Industry Sales & Profitability:-

2007-8 2006-07 2005-06 2004-05 2003-04

Profit/loss -14420 -16545 -15348 -5574 -693
sales 2125 1082 719 748 763

Trend Of Insurance Industry

5000

-5000
Rs. in lakhs Profit/loss
-10000 sales

-15000

-20000
Sales & Profitabilty

42
e.) Ratios of Future Generali:-
\

Current Ratio 0.42368

Fixed Asset Ratio 0.927914
f.) PEST Analysis:-

This includes the following factors:

i.) Political Factors:-

 Increased service tax on premium.

 5% discount on corporate premium.

 Hike in FDI limit.

 Pricing control in general insurance.

 Favorable regulation for rural insurance.

ii.) Economic Factors:-

43
  Increase in Gross Domestic Savings.

 New schemes with equity touch (ULIP).

iii.) Social Factors:-

 Low insurance coverage

 Rise in elderly population

 Changing Indian perception

 Growth of Islamic insurance

 Increase in lifestyle diseases

iv.) Technological Factors:-

 Automation of processes

 Increase in CRM solutions

 Internet driven information era

 Business Process Monitoring (BPM)

g. Michael Porter's Five Forces Analysis:-

i.) Buyer/Customer Power:-

 Widening Product Range

 Large Corporate Clients

44
  Sale of Bank assurance

 Price Sensitive Buyers

 Multiple Distribution Channels

ii.) Suppliers’ Power:-

 Limited Actuaries in the Market

 Reinsurance Concentration

 Cession to the National Insurer

 Dependence on IT Providers

iii.) Rivalry among Competitors:-

 Industry Concentration in Life and Non-life

 Low Penetration of Insurance

 Regulation Restricts Competition

iv.) Barriers to Entry:-

 FDI Ceiling

 Capital Requirements

 Elaborate Distribution Requirements

45
  ‘Lock-in’ of Buyers

v.) Threat of Substitutes Products:-

 Government Pension Scheme

 Tax Saving Instruments

 Emerging Substitutes

 Dependence on Children in Rural India

CONCLUSION

46
  Future Generali has established itself as a distinctive life insurance brand with
an innovative, attractive and customer-friendly portfolio ranging from protection,
savings, retirement and investment plans; which it sells through a unique tool-
The Life Maker.

 Agent must have full knowledge of the products of company and good Public
Relation & communication skills.

 Agent must be engrossed with marketing & selling techniques and must have
friendly approach towards his customers and must keep the insurer’s records for
long- term usage.

 Customer shall be satisfied with the services of an Agent & Agents efforts should
be distinguished appreciated by the company.

 Agent shall work in the direction of providing its customer maximum comfort &
best of services.

 Future Generali is rich in services & produces a wide range of products for
various needs. Further it requires making more efforts to advertise its products
through Agents & other Media.

MARKET EXPANSION:

There has been an overall expansion in the market. This has been possible due
to increased awareness levels, thanks to the large number of advertising campaigns
launched by the players. The scope for expansion is still unlimited as virtually all the
players are concentrating on large cities and towns, except for LIC, which made a
significant effort to tap the rural market.
NEW PRODUCT OFFERING:

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 There has been a plethora of new and innovative products offered by the new
players, mainly due to the stability of the customers of the international partners which
range from a large variety of products from pure terms (risk) insurance to unit-linked
investment products. Customers are offered unbundled products with a variety of
benefits as riders, from which they are to choose. More and more customers are buying
products and services based on their true needs and not just traditional money back
policies, which are considered very appropriate for long-term protection and saving.
However, there are still some key products to be introduced, such as, health products.
CHANNELS OF DISTRIBUTION:

Till the last two years, the only mode of distribution of life insurance products was
the insurance agents. While agents still continue to be the predominant distribution
channel, today a number of innovative alternative channels of distribution are being
offered to the customer. Some of them are banc assurance partners, brokers, and direct
marketing. The widespread reach of bank branch network in India could lead to banc
assurance emerging as a significant distribution mechanism.

SWOT ANALYSIS

STRENGTHS:

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 The strengths are:

 Future Generali is the third largest player in the insurance industry in India

 Generali is a 176 years old company (founded in Italy)

 The Future Group operates through five verticals:

1. Future Retail 2. Future Capital 3. Future Brands

4. Future Space 5. Future Logistics 6. Future Media

 Generali is an international group present in more than 40 countries with insurance

companies

WEAKNESSES:

The weaknesses are:

 Some customers are not satisfied with the service of Future Generali

 Only 24 branches all over India

 High insurance-period duration

 High premium

 Low awareness of Future Generali in rural areas

OPPORTUNITY:

The opportunities are:

 Huge opportunity in insurance market.

 Better products as compared to other industries.

 Due to increase in literacy rates, literate people prefer Future Generali.

 Future Generali gives opportunity to other businesses to grow in the market.

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THREATS:

The threats are:

 Tough competition from LIC, ICICI, BAJAJ ALLIANCE, HDFC SLIC and BIRLA SUN

LIFE

 Due to low premium, rural markets prefer LIC

 Threat for Future Generali because over 12 new companies are entering the market

Currently, HDFC SLIC is the 7th player in the market, and the major threat is to sustain
that position in the face of competition

SAMPLE QUESTIONNAIRE

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Please (Tick Any One)

1. Do you have knowledge about insurance?

No knowledge Below Average Average Good

2. Do you think insurance is necessary?

Yes No Can’t Say

3. How do you think insurance as a saving/investment option?

Not Good Good Very Good

4. Where do you prefer to invest your money?

Bank MF/Share Market Insurance

5. What type of insurance do you think is good?

Short Term (less than 5 years) Long-Term (greater than 5 years)

6. Do you have any insurance policy?

Yes No

7. What do you expect in terms of benefit from your insurance policy?

Safety of money invested Return Risk covered

Insurance Glossary

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Insurable Interest: An insurance term referring to the relationship between a
policyholder and the potential beneficiary

Insurance: Guarding against property loss or damage making payments in the form
of premiums to an insurance company, which pays an agreed-upon sum to the insured
in the event of loss.

Insurance Claim: A claim for reimbursement from the insurance company when the
insured event is occurred.

Insured: The Policyholder

Insurer: The insurance company

Switching: Liquidating a position and simultaneously reinstating a position in another

future contract or fund.

Allocation Rate: The percentage of premium which is to be invested in market after

deducting initial charges.

Accident Benefit: An add-on with a life policy. It compensates a policyholder in the

event of death or injury by accident.

Annuity: An investment option that makes a series of regular payments to an

individual in exchange for a premium or series of premium.

Bonus: The amount paid as return in a “with-profit” policy. The bonus expressed as
percentages of the sum assured, is declared every year.

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Compound Interest: Interest compounded on principal plus interest accrued during
the previous periods of the investment

Corpus: The amount of money available with a scheme for investing. If already
invested, the corpus is the current value of the scheme’s portfolio.

Cover: It refers to the amount of insurance.

Critical Illness Rider: A rider that provides a policyholder financial protection in the
event of a critical illness.

Death Benefit: The amount payable to the nominee on death of policyholder. The
amount paid is the sum assured plus benefits applicable (if any) less outstanding loans.

Deferred Annuity: An annuity plan where the first annuity payment becomes
payable after a chosen period that exceeds one year.

Endowment Plans: An insurance that provides a policyholder risk cover and some
return on investment.Usually suitable for the risk-averse .

Equity: The actual ownership interest in a specific asset or group of asset.

Liquidity: The quality of assets that can be easily and quickly converted into cash
without any loss, or significant loss in value.

Lock-in-period: The period of time for which investment made in as investment

option cannot be withdrawn.

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Market Value: The monetary value an asset will fetch if sold in the market today.

Maturity Date: The date on which a policy term comes to an end.

Net Asset Value (NAV): The simplest measure of how a scheme is performing, it
tells how much each unit of it is worth at any point in time. A scheme’s NAV is its net
assets (the market value of the financial securities it owns minus whatever it owes)
divided by the number of units it has issued.

Nominee: The person(s) nominated by the policyholder to receive the policy benefits
in the event of his death.

Riders: Additional covers that can be added to a life policy, for a cost.

Nominee: Any person to who surrender benefit is to be given in case of death.

Beneficiary: The person to whom benefits is paid.

Market: Share Market.

Net Asset Value (NAV): The price or value of one unit of a fund. It is calculated by
summing the current market values of all securities held by the fund, adding in cash an
any accrued income, then subtracting liabilities and dividing the result by the number of
units outstanding.

Policy: The legal document issued by an insurance company to a policyholder terms

and conditions of an insurance contract.

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Policy term: The period for which an insurance policy provides cover .

Premium: The amount paid by the insured to the insurer to buy cover.

Sum assured: The amount of cover taken under a life insurance policy, it is the
minimum that will be paid on death of the policyholder during the policy term.

Surrender value: The amount payable by the insurer to the owner of an investment-
based plan in case he opts to terminate the policy after three years (the mandatory lock-
in-period).

Survival Benefit: The amount payable to a policyholder under an investment-based

plan if he survives the policy term.

Vesting Date: It is a date signifying a milestone in a policy. In pension plan it is a

date from which the policyholder starts receiving pension.

With-profit-policy: An insurance plan in which the policyholder gets a share of the

insurer’s profit (in the form of guaranteed additions/bonus) along with the Sum Assured.

Assurance: To ensure an event is which is certain to happen.

Risk: Often defined as the standard deviation of the return on total investment.Degree
of uncertainty of return on an asset.
Returns: The change in the value of portfolio over an evaluation period, including any
distributions made from the portfolio during that period.

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GDP: The market value of goods and services produced over time, generally one year,
in the country.

Top-Ups: One time investment made above and over regular premium.

Portfolio: A group of securities in a common account. The term is used as a synonym

for fund.

Mortality Charges: Charges deducted against providing life cover.

Fund value: Net Assets Value on particular date and multiplied by number of units
available in the fund.

Redirection: A facility by which investor can redirect his future premium in different
selection of funds.

Lapse: The temporary termination of policy due to inability to pay premium within
grace period.

Revival: Amount charged to renew the lapsed policy.

Market Concentration for Life Insurance Industry

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 Market concentration is a function of the number of firms in a market and their
respective market shares. As an aid to the interpretation of market data, the Agency will
use the Herfindahl-Hirschman Index ("HHI") of market concentration. The HHI is
calculated by summing the squares of the individual market shares of all the
participants, unlike the four-firm concentration ratio, the HHI reflects both the distribution
of the market shares of the top four firms and the composition of the market outside the
top four firms. It also gives proportionately greater weight to the market shares of the
larger firms, in accord with their relative importance in competitive interactions.

    The Agency divides the spectrum of market concentration as measured by the
HHI into three regions that can be broadly characterized as unconcentrated (HHI below
1000), moderately concentrated (HHI between 1000 and 1800), and highly concentrated
(HHI above 1800). Although the resulting regions provide a useful framework for merger
analysis, the numerical divisions suggest greater precision than is possible with the
available economic tools and information. Other things being equal, cases falling just
above and just below a threshold present comparable competitive issue.

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 BIBLIOGRAPHY AND REFERENCES

BOOKS:

The investment pattern of Indian Consumer, P.R. Desai, BPB publications

Financial Management, I M Pandey

Marketing of Insurance Products, V K Badya, Rustagi publihers

Annual Report of IRDA 2007

IC Life Insurance Text Book 2007

WEBSITE:

www.futuregenerali.in

www.irda.org

www.sebi.org

www.thehindubisunessline.com

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