CHAPTER 1

COMPANY PROFILE

1.1 ORIGIN OF THE COMPANY

Shriram Life Insurance Company is the result of a joint venture between Sanlam Company,
South Africa and Shriram Group of Companies, India. It is among the largest and respected
financial services corporations in India. The main aim of this company is to offer world class
services and products that would help in securing the future of your family financially. The
company offers different types of insurance policies to suit the needs depending on the age,
gender and income of the individual primarily. Shriram Group of Companies has experience
for more than "30 years in auto financing for commercial vehicles, chit funds and other types of
financial services in India.

Sanlam is a life insurance and asset management firm based in South Africa. The company
has more than 87 years of experience in this field. The company is listed on the JSE
or Hohannesbury Securities Agencies and on the Namibian Stock exchange as well. The net
asset value of this company is more than $55.6 billion USD. The joint venture of these two
companies named as Shriram Life Insurance Company offers you tailor-made products. The
name of the different policies that the company offers are Shri Nidhi, Shri Life, Shri Vidya,
Shri Raksha, Shri Plus, Shri Plus (SP), Shri Vibah, Shri Laabh and Shri Vishram. The names
of the policies suggest to certain extent the kind of insurance each provides. The company
provides truck insurance taken forward from its Indian parent company. Other services offered
by the company include stock broking, consumer durable financing and insurance broking.
Other than these insurances, you can get online premium payment and online policy buying
facilities.

Incorporated in 2005, Shriram Life Insurance commenced operations in 2006. Synonymous

for its efficient use of capital and low operational costs, SLIC has been true to the Group‘s
philosophy of financial inclusion. SLIC’s aim is to offer life insurance plans and solutions that
cater to a wider demography. It has a network of over 550 offices across India.

1.2 VISION, MISSION & OBJECTIVES

The Shriram Life Insurance Company was founded with the objective of reaching out to
the “common man” with products and services that would be helpful to him as he sets out
on the path to “prosperity”.

Operational efficiency, integrity and a strong focus on catering to the needs of the average
Indian, by offering him high quality and cost-effective products and services, are the core
values that drive the organisation. These values have been strongly adhered to over the
decades and are now an integral part of the organisation’s DNA.

The company prides itself on its deep understanding of the customer. Each product or
service is tailor-made to specifically suit the needs of the customer. It is this guiding
 philosophy of putting people first that has brought the group company closer to the
grassroots and has made it the preferred choice for all truck financing requirements
amongst the customers.

1.3BOARD OF DIRECTORS AND STAKEHOLDERS

Sl. No NAME DESIGNATION

1 Mr. Casparus Jacobus Hendrik Kromhout Managing Director & CEO
2 Smt. Akhila Srinivasan Managing Director
3 Mr. Manoj Kumar Jain Managing Director
4 Mr. G. Vaidyanathan Chief Financial Officer &
Chief Risk Officer
5 Mr. Prateek Mahesh Chief Investment Officer
6 Mr. Johannes Gilliam van Helsdingen Appointed Actuary
7 Ms. Samatha Kondapally Company Secretary &
Chief Compliance Officer

1.4 ORGANIZATIONAL STRUCTURE(Branch)

1.5 PRODUCTS/ SERVICES
SERVICES OFFERED
Shriram Capital Limited (SCL) is the overarching holding company for the Financial
Services and Insurance entities of the Shriram Group, created with the primary objective of
optimizing the synergies across the Group’s entities.
SCL and its operating entities, have an overall customer base in excess of 12 Million, more
than 60,000 employees across 3,000 offices, net profit of Rs. 22 billion with Assets Under
Management (AUM) in excess of Rs.90,000 Crores.
SCL is well-positioned to take the Group to the next strategic level through consolidating its
position in some of the key businesses like Transportation, Equipment Finance and providing
the necessary impetus to grow its Retail Finance businesses.
SCL will also help to grow the Insurance businesses (both Life & General Insurance) in the
Group with optimal profit. The strategic reorientation of SCL will help Shriram Group to be a
significant and profitable enterprise in various facets of the Financial Services businesses in
India and overseas.

1.COMMERCIAL VEHICLE FINANCE

The Commercial Vehicle business of the group had its genesis in four companies, one in
each zone and with the common mission of providing used vehicle financing to the largely
under-served owner-operators in the trucking industry.Engaged exclusively in financing of
Commercial Vehicles, both new as well as old, Shriram Transport Finance Company Limited
(STFC), as of now has over 0.85 million truck as customers in the scheme, thereby providing
development.

2.CONSUMER & ENTERPRISE FINANCE

The Consumer Finance business of the group had its origins from the needs of the Chit
Funds customers and was started in year 2002 as a separate business unit, Shriram City Union
Finance Ltd. Shriram Housing Finance Ltd. (SHFL) is a Housing Finance Company registered
with the National Housing Bank (NHB), and promoted by Shriram City Union Finance Ltd.
Shriram Housing Finance received the Certificate of Registration from NHB in August 2011,
and commenced their lending operations from December the same year.
3.RETAIL STOCK BROKING

Stock Broking business of the group was started in 1995, promoted by professional
entrepreneurs and incubated by the Shriram Group through its entity, Shriram Insight Share
Brokers Ltd. Stock Broking business commenced operations with a corporate membership in
NSE in the cash segment in 1996. Membership in the derivatives segment in the NSE was
acquired in 2003.The Business has expanded into the commodities market with a trading-cum-
clearing membership in the Multi Commodity Exchange (MCX) and the National
Commodities and Derivatives Exchange (NCDEX) through a 100% subsidiary.
Stock Broking business is firmly focused in the rapidly growing High Net worth Individual
(HNI) and Retail space. The business has an active client base of 0.2 million.

4.LIFE INSURANCE

Shriram was one of the late entrants into the Life Insurance business in India, which saw
a huge influx of private players entering the industry ever since new licenses were issued in
2006.The largest Insurance player in South Africa, Sanlam is Shriram’s partner in the Life
Insurance business. Shriram Group has a large customer base through its Chit Funds,
Transportation, Consumer Finance businesses, which serve as the initial readymade target
market for Life Insurance business. Effective penetration into the customer base and an
excellent leveraging of the group’s network enabled the Life Insurance business to do
exceptionally well in its first 3 years of operations in comparison to the other industry players
with the same vintage.

5.GENERAL INSURANCE

Shriram’s foray into General Insurance happened much later than its entry into Life
Insurance, though this alliance too was with our Life Insurance partner, Sanlam (South Africa).

Sanlam’s subsidiary, Santam is the leading non-life Insurance player in South Africa The
General Insurance business in India has gone through significant changes both in terms of new
private players entering the Industry as well as the changes in the regulatory landscapes.
Shriram with its huge captive transportation customers / business focused all its energy on
addressing this target market and ensuring visible benefits to the transportation community.
6. FINANCIAL PRODUCT DISTRIBUTION

Shriram Group’s multifarious Financial Services businesses and its successful track
record of setting up individual business entities in every possible area of this space has resulted
in owning a 9.5 million strong customer base across these business entities.
Data Mining these customer bases and offering various products of the group to each of these
individual entities’ customers is a huge opportunity for the group. In order to exploit this
opportunity and benefit from the needs of the large customer base of the group, a distribution
company was set up – Shriram Fortune Solutions Ltd. – primarily for selling investment and
insurance products to the group customers.

7.WEALTH ADVISORS

Shriram Wealth Advisors is an integrated wealth management advisory services company,

backed by Shriram Group of Chennai. The objective of Shriram Wealth is to provide affordable
high-quality wealth advisory and research services to the middle-class masses and bring a
transformational change to their economic well-being. Shriram Wealth plans to provide Wealth
Management Advisory Services and research platform to existing clients of Shriram Group and
also new clients.

8.CHIT FUNDS

Shriram Group has its origin in the financial services space through the Chit Funds
business. Shriram Chits is the largest Chit Funds entity in India – the trusted household Savings
& Investments service provider. The sustained growth registered by Shriram Chits in recent
years not only indicates the utility of this ancient instrument but it is also a reflection of the
customers’ trust in the Shriram Group. The Annual Auction Turnover of our Chit Companies
continues to grow and bears testimony to the exceptional service quality of the Shriram Group
in the business.

9. OVERSEA INVESTMENT

Shriram Group’s entry into the insurance business in India opened huge opportunities
and avenues to unearth and utilize a lot of expertise available in these two businesses within
the country and overseas. With a view to take advantage of the insurance expertise available in
India, the group has visions of being an international insurance player in the long term.
Shriram has started with a couple of pilot investments in a non-life insurance company in
Philippines and in insurance broking firm in the Middle East. Middle East and South East Asia
will be the focus areas for its international foray, the size of which will depend on the initial
success of the group in pilot investment.

10.SHRIRAM LIFE GENIUS ASSURED BENEFIT PLAN

Shriram Life Genius Assured Benefit Plan (UIN: 128N068V01) is an endowment cum
plan, designed to provide guaranteed financial assistance to your family and support your
child’s education in the unfortunate event of your death or on maturity. It can be broadly
classified as a child insurance plan. Child Plans are insurance cum investment plans that
provide pure insurance cover and financially secure your child’s future. Planning for their
future will help ensure nothing comes in way of their dreams.

11.SHRIRAM LIFE COMPREHENSIVE CANCER INSURANCE PLAN

Shriram Life Comprehensive Cancer Care Plan (UIN: 128N070V01) is a non-linked

insurance plan. As one of the best cancer insurance plans in India, it provides benefits on
diagnosis and during its treatment in both initial and critical stages. Cancer can take a toll on
the patient and his/her family members physically, emotionally and financially. This plan helps
minimise the financial burden and allows caregivers to focus on the patient.

12.SHRIRAM LIFE ONLINE TERM PLAN

All of us spend time and money to plan for our future and often these decisions are
motivated by the desire to secure our loved ones. Anticipating future needs and ensuring that
your family continues to lead a respectable life even after you demonstrates responsibility and
prudence. Shriram Life brings you the Online Term Insurance Plan (UIN: 128N072V01)
designed to understand and address your future needs.

13.SHRIRAM LIFE ASSURED INCOME PLUS

Shriram Life Assured Income Plus (UIN: 128N060V02) is a non-linked non-

participating endowment assurance plan. This plan caters to customers who wish to invest only
for a minimum fixed duration and reap predetermined annual benefits even after maturity.
14.SHRIRAM LIFE GROWTH PLUS

Shriram Life Growth Plus (UIN: 128L066V02) is a savings-oriented unit linked

insurance plan which offers both life cover and savings through market linked returns. The plan
offers multiple choices in respect of premium payment, fund classes and flexibility of
investment. This ULIP Insurance policy can also be taken on other lives, where other lives can
be spouse, child and grandchild.

CLIENT LIST
1. Newbridge Financial Group
2. Chryscapital
3. Reliance Capital
4. FMO
5. Leapfrog Investments
6. ICICI Venture
7. Citigroup
8. Bessemer venture partners
9. Hamon
10. UVF UTI Ventures
1.6 MILESTONES
Year Milestone Of Shriram Capital Limited

1974 Commencement of Business - Shriram Chits

1979 Commencement of Business - Shriram Transport Finance Co (STFC)

1982 Commencement of Business - Shriram Investments Ltd

1984 IPO of STFC

1986 Commencement of Business - Shriram City Union Finance Co (SCUF)

1989 Commencement of Business - Shriram Overseas Finance Ltd

1994 IPO of SCUF

1994 Commencement of Business - Shriram Asset Management Co. Ltd

1995 Commencement of Business - Shriram Insight Share Brokers Ltd

1997 Commencement of Business - Bharat Re-Insurance Brokers Pvt. Ltd

1999 Citicorp CV financing tie up with STFC

2002 Citicorp invested in STFC and SIL

2003 Commencement of Business - Insight Commodities and Futures Pvt. Ltd

2004 Commencement of Business - Shriram Capital Ltd

2004 Reliance Capital and UTI Bank invested in STFC and SIL

2005 Shriram Capital Ltd became the holding company of the Financial service and
entities of the group

2005 Entry of Chryscapital as Partner with STFC, SIL and Shriram Overseas Financial
Ltd (SOFL)& EPC

2006 Entry of Sanlam as Life Insurance business partner and commencement of

business- Shriram Life Insurance Co

2006 Merger of Shriram Investments Ltd & Shriram Overseas Finance Ltd with STFC

2006 Commencement of Business - Shriram Fortune Solutions Ltd

2007 Entry of TPG as STFC's partner

2008 Commencement of Business - Shriram General Insurance Ltd

2009 Non-Convertible Debenture Placement by STFC

2009 Commencement of Business - Shriram Wealth Advisors Ltd

2010 Commencement of Business - Shriram Equipment Finance company Ltd

2010 Commencement of Business - Shriram Automall India Ltd

2011 TPG invested in Shriram Capital (SCL)

2011 Commencement of Business - Shriram Financial Products Solutions

2011 Commencement of Business - Shriram Housing Finance Ltd

2011 LeapFrog Investment into Shriram Credit Company Limited (SCCL)

1.7 FUTURE PLAN

To be the Number 1 Life Insurance Company in the upcoming years
Reaching out to the “common man” with products and services that would be helpful
to him as he sets out on the path to “prosperity”.
 CHAPTER 2

INDUSTRY PROFILE

2.1 INTERNATIONAL SCENARIO

Globally, the share of life insurance business in total premium was 56.2%. However;
the share of life insurance business for India was very high at 79.6% while the share of non –
life insurance business was small at 20.4%.

In life insurance business, India is ranked 11th among the 88 countries, for which data is
published by Swiss Re. India’s share in global life insurance market was 2.00% during
2013.However, during 2013, the life insurance premium in India declined by 0.5 % ( inflation
adjusted ) when global insurance premium increased by 0.7%

The Indian non- life insurance sector witnessed a growth of 4.1 % (inflation adjusted)
during 2013.During the same period, the growth in global non-life premium was 2.3 %.
However, the share of Indian non-life premium in global non-life insurance premium was small
at 0.66% and India ranks 21st in global non-life insurance markets.
Global insurance premiums grew by 2.7% in inflation-adjusted terms in 2010 to $4.3
trillion, climbing above pre-crisis levels. The return to growth and record premiums generated
during the year followed two years of decline in real terms. Life insurance premiums increased
by 3.2% in 2010 and non-life premiums by 2.1%. While industrialised countries saw an
increase in premiums of around 1.4%, insurance markets in emerging economies saw rapid
expansion with 11% growth in premium income. The global insurance industry was sufficiently
capitalised to withstand the financial crisis of 2008 and 2009 and most insurance companies
restored their capital to pre-crisis levels by the end of 2010. With the continuation of the gradual
recovery of the global economy, it is likely the insurance industry will continue to see growth
in premium income both in industrialised countries and emerging markets in 2011.

Advanced economies account for the bulk of global insurance. With premium income
of $1.62 trillion, Europe was the most important region in 2010, followed by North America
$1.409 trillion and Asia $1.161 trillion. Europe has however seen a decline in premium income
during the year in contrast to the growth seen in North America and Asia. The top four countries
generated more than a half of premiums. The United States and Japan alone accounted for 40%
of world insurance, much higher than their 7% share of the global population. Emerging
economies accounted for over 85% of the world's population but only around 15% of
premiums. Their markets are however growing at a quicker pace. The country expected to have
the biggest impact on the insurance share distribution across the world is China. According
to Sam Radwan of ENHANCE International LLC, low premium penetration (insurance
premium as a % of GDP), an ageing population and the largest car market in terms of new
sales, premium growth has averaged 15–20% in the past five years, and China is expected to
be the largest insurance market in the next decade or two.

In the United States, insurance is regulated by the states under the McCarran-Ferguson Act,
with "periodic proposals for federal intervention", and a non-profit coalition of state insurance
agencies called the National Association of Insurance Commissioners works to harmonize the
country's different laws and regulations. The National Conference of Insurance Legislators
(NCOIL) also works to harmonize the different state laws.

In the European Union, the Third Non-Life Directive and the Third Life Directive, both
passed in 1992 and effective 1994, created a single insurance market in Europe and allowed
insurance companies to offer insurance anywhere in the EU (subject to permission from
authority in the head office) and allowed insurance consumers to purchase insurance from any
insurer in the EU. As far as insurance in the United Kingdom, the Financial Services
Authority took over insurance regulation from the General Insurance Standards Council in
2005 laws passed include the Insurance Companies Act 1973 and another in 1982, and reforms
to warranty and other aspects under discussion as of 2012.

The insurance industry in China was nationalized in 1949 and thereafter offered by only
a single state-owned company, the People's Insurance Company of China, which was
eventually suspended as demand declined in a communist environment. In 1978, market
reforms led to an increase in the market and by 1995 a comprehensive Insurance Law of the
People's Republic of China was passed, followed in 1998 by the formation of China Insurance
Regulatory Commission (CIRC), which has broad regulatory authority over the insurance
market of China.

In India IRDA is insurance regulatory authority. As per the section 4 of IRDA Act 1999,
Insurance Regulatory and Development Authority (IRDA), this was constituted by an act of
parliament. National Insurance Academy, Pune is apex insurance capacity builder institute
promoted with support from Ministry of Finance and by LIC, Life & General Insurance
companies.

2.2 INDIAN SCENARIO

In the history of the Indian insurance sector, a decade back LIC was the only life
insurance provider. Other public sector companies like the National Insurance, United India
Insurance, Oriental Insurance and New India Assurance provided non-life insurance or say
general insurance in India.

However, with the introduction of new private sector companies, the insurance sector in India
gained a momentum in the year 2000. Currently, 24 life insurance companies and 30 non-life
insurance companies have been aggressive enough to rule the insurance sector in India.

But, there are yet many more insurers who are awaiting for IRDAI approvals to start both life
insurance and non-life insurance sectors in India.

So far as the industry goes, LIC, New India, National Insurance, United insurance and
Oriental are the only government ruled entity that stands high both in the market share as well
as their contribution to the Insurance sector in India. There are two specialized insurers –
Agriculture Insurance Company Ltd catering to Crop Insurance and Export Credit Guarantee
of India catering to Credit Insurance. Whereas, others are the private insurers (both life and
general) who have done a joint venture with foreign insurance companies to start their
insurance businesses in India.

Insurance industry in India has seen a major growth in the last decade along with an
introduction of a huge number of advanced products. This has led to a tough competition with
a positive and healthy outcome.

Insurance sector in India plays a dynamic role in the wellbeing of its economy. It substantially
increases the opportunities for savings amongst the individuals, safeguards their future and
helps the insurance sector form a massive pool of funds.

With the help of these funds, the insurance sector highly contributes to the capital
markets, thereby increasing large infrastructure developments in India.

The Indian Insurance Sector is basically divided into two categories – Life Insurance
and Non-life Insurance. The Non-life Insurance sector is also termed as General Insurance.
Both the Life Insurance and the Non-life Insurance is governed by the IRDAI (Insurance
Regulatory and Development Authority of India).

This government organization thoroughly monitors the entire insurance sector in India
and also acts like a custodian of all the insurance consumer rights. This is the reason all the
insurers have to abide by the rules and regulations of the IRDAI.

The Insurance sector in India consists of total 57 insurance companies. Out of which
24 companies are the life insurance providers and the remaining 33 are non-life insurers. Out
which there are seven public sector companies.

Life insurance companies offer coverage to the life of the individuals, whereas the non-
life insurance companies offer coverage with our day-to-day living like travel, health, our car
and bikes, and home insurance. Not only this, but the non-life insurance companies provide
coverage for our industrial equipment’s as well. Crop insurance for our farmers, gadget
insurance for mobiles, pet insurance etc. are some more insurance products being made
available by the general insurance companies in India.

The life insurance companies have gained an investment prospectus in the recent times
with an idea of providing insurance along with a growth of your savings. But the general
insurance companies remain reluctant to offer pure risk cover to the individuals.
 CHAPTER – 3
POLICY PROFILES

3.1 ENDOWMENT POLICY

3.1.1 POLICY PROFILE

Shriram Life Assured Income Plus (UIN: 128N060V02) is a non-linked non-participating
endowment assurance plan. This plan caters to customers who wish to invest only for a
minimum fixed duration and reap predetermined annual benefits even after maturity.

An endowment policy is a life insurance contract designed to pay a lump sum after a specific
term (on its 'maturity') or on death. Typical maturities are ten, fifteen or twenty years up to a
certain age limit. Some policies also pay out in the case of critical illness.

Policies are typically traditional with-profits or unit-linked (including those with unitised
with-profits funds the holder then receives the surrender value which is determined by the
insurance company depending on how long the policy has been running and how much has
been paid into it.

3.1.2 POLICY FEATURES

• An Endowment plans serves dual purpose savings and protection

• On maturity, a pre-determined will be paid to the policyholder

• In case of demise, the beneficiary would be entitled to the sum assured or the maturity
amount, less outstanding premiums, whichever is higher

• The returns are earned on a compounding basis along with some loyalty additions
• High Liquidity

• One can also get loans for unforeseen expenses.

• It also provides tax benefits under section 80C

• The returns are also tax exempted under section 10 (10D)

3.1.3 TYPES OF ENDOWMENT POLICIES

Traditional (participating): In this type of the policy, the insured ‘participates’ in the
company’s profits which are given as bonus. And this bonus is decided by the insurance
company.
Traditional (non-participating): In this type of the policy, the policy holder does not
participate in the insurance company’s profits. All the proceeds payable under the policy are
guaranteed at inception.

Unit linked endowment policy (ULIP): This policy provides risk cover for the policy holder
along with different investment options i.e. invest in stocks, bonds or mutual funds as decided
by the insurer.

Full endowment: A full endowment is a with-profits endowment plan where the basic sum
assured is equal to the death benefit at the start of policy and, assuming growth, the final pay-
out would be much higher than the sum assured.

Low cost endowment policy: These policies are basically used to cover any existing loans or
mortgages. This type of policy pays a minimum value which will cover the loan amount
either on death or maturity.

3.1.4 POLICY USAGE AND WORKING

3.1.4.1 POLICY USAGE
1. It is a long-term investment plan; you stand to gain more in case of a longer term.
2. Understand your life insurance and investment needs well and invest accordingly.
3. Increase your investment component in the base policy for an additional nominal
amount over your regular premium.
4. Switch your investments from one fund to another in case of change in your risk
profile depending on your age, investment objective and time duration.

3.1.4.2 POLICY WORKING

1. A certain amount of premium paid is invested to meet your insurance needs and some
amount towards building wealth.
2. In the initial policy years, a large part of the premium is spent on meeting policy
expenses. Post deduction of these expenses, some amount of the premium is invested
in life insurance to provide your life cover in case of an unfortunate event and the
remaining is invested in different funds for wealth creation.
3. A part of the premium paid by you is invested either on a with-profits basis or a unit-linked
basis. Your premium amount depends on your age, sex, and how long the endowment is for.
The size of the lump sum you get at the end of your endowment often depends on the
performance of these investments.

This means your savings are pooled together and invested by the insurance company in
various investment options, typically;

1. Shares
2. Mutual funds
3. Bonds
4. Fixed-interest investments

3.1.4.3 CONSIDERATIONS BEFORE TAKING POLICY

• Begin planning early: When it comes to investing, it is always considered ‘the earlier
the better’ as it offers a long horizon for your invest to grow. This, in turn, will help
the insured to build a corpus and facilitate disciplined saving.

• Select a plan that offers riders: There are some insurance companies that offer
riders as an inbuilt feature and one must never miss to get benefited out of it.
Additional benefits would include benefits like education endowment, double
endowment policy or marriage endowment policy.

• Review flexibility option: Insurers offering endowment plans provide flexible option
i:e. in case an individual is salaried, she/he can choose a regular endowment policy
whereas an individual with irregular income may opt for single payment option or
limited premium payment option.

• Guaranteed and Non-Guaranteed returns: Apart from offering low-risk insurance

and dual benefit of death cover and saving feature, many of these policies also offer a
combination of guaranteed and non-guaranteed. The guaranteed returns such as
guaranteed additions remain fixed and are payable on death or maturity (as
applicable). The non-guaranteed returns include bonuses that are variable in nature
and it depends on the investment performance.

• Bonuses: Bonuses will be declared by the insurance company depending on how the
company has performed. When the insurer has made profits from its investments, he
distributes a part to it to policyholders at the end of each financial year. Besides, profit
of the insurance company depends on the valuation of its assets and liabilities.
3.1.5 DOCUMENTS REQUIRED
1. Proof: A valid photo identity card issued by the government or a company, such as
Passport, PAN Card, Driving Licence, Aadhaar, Voter’s Identity Card, MNREGA Job
Card, company ID card, etc.

2. Residence proof: Apart from the above ID cards that include your permanent address,
you might be asked for rental agreement (if you’re staying in a rented house), latest
utility bills, Property Tax or Municipal Tax receipt, bank account or Post Office savings
account statement or passbook, and other documents issued by the government of India.
3. Age proof: Any government ID card or document, or a school leaving certificate that
has your date of birth.
4. Income proof: Latest payslips or certificate of employment.
5. Latest photographs.

3.1.6 POLICY BENEFITS

• Critical Illness: If the policyholder is diagnosed with a critical illness like cancer,
heart attack, paralysis, kidney failure, etc. The policyholder will get a lump sum
amount.
• Accidental Death: When the policyholder opts for this additional rider, the insurer
will pay accidental death benefit in addition to the Death Benefit to be given to the
beneficiary.
• Disability: The disability rider proves to be highly beneficial to the policyholder if
he/she suffers from a partial or permanent disability.
• Waiver of premium: Through this rider the insured is not liable to pay the premiums
of the endowment policy in case the policyholder suffers from a critical illness or
permanently disabled.
• Hospital Cash Benefit: Hospital Cash Benefit provides you for daily allowance as
well as post- hospitalization benefits, in case of hospitalization of the policyholder.
3.1.7 ELIGIBITY

ENTRY AGE
Minimum
8 Yrs
Maximum
60 Yrs
(As on last birthday)
MATURITY AGE
Maximum
70 Yrs
(As on last birthday)
SUM ASSURED
Minimum
Rs. 1.5 Lakh
Maximum
Rs. 5 Crore
(Rs. 3 Lakhs depending on Age)
(subject to underwriting policy)
POLICY TERM
10 Yrs
PREMIUM PAYING TERM
5 Yrs
ANNUAL PREMIUM
Minimum
Rs. 20,000
Maximum
Rs. 65.10 Lakhs
(subject to underwriting policy)
 3.1.8 PROCESS FLOW OF MAKING A POLICY
Determine the type of policy

Login using phone number and get

quote id

Enter Basic Details

Determine the % of fund investment

Enter family details of customer

Enter professional details

Enter nominee details

Verify and make payment

Get the documents of insurance

3.1.9 CLAIMS PROCESS:

To make a claim on an endowment policy, you need to follow the below-listed steps:
1. Fill in the Claims Form. This will be available either on the insurer’s website, or with your
insurance agent. The form has to be duly filled and submitted to the insurer via email, fax,
snail mail or through direct submission at the company’s office.
2. Attach all the documents that would support your claim. For example, if it is a death benefit
claim, you need to provide the death certificate of the policyholder, and identity and address
proof of the nominee.
3. Once your request is received at the insurance company’s office, you will get a confirmation
from the company.
4. The Claims Cell of the insurance company will review your claim and verify the documents.
If any further documents or investigation is/are required, an executive will approach the
policyholder/nominee.
5. If your or your nominee’s mobile number is registered with the insurer then you will receive
regular updates on the status of your claim.
6. If your claim is approved, then the money will be disbursed electronically through bank
transfer, or via cheque. Each insurer will have its own timeline on claim settlement.
7. If your claim is rejected, the insurer will send you a rejection letter along with reason for the
denial.
If you are making a maturity benefit claim, things would be easier, as the company itself will
remind you about the upcoming maturity of your plan. You will need to confirm identity
documents and the company will send you a voucher or discharge form, which you have to
sign and return. You will need to give back the original policy document and send a cancelled
cheque or passbook copy to confirm your bank account number.

3.1.10 Conclusion

Hence buying an endowment policy will put your worries at ease. It will not only save your
hard-earned money, but also make you a disciplined saver. As it is guaranteed policy,
customers prefer this plan, which happens to be safer and actual return. They are mainly
taken by retired persons which give them good return.
3.2 TERM LIFE INSURANCE

3.2.1 POLICY PROFILE

Term life insurance or term assurance is life insurance that provides coverage at a fixed
rate of payments for a limited period of time, the relevant term. After that period expires,
coverage at the previous rate of premiums is no longer guaranteed and the client must either
forgo coverage or potentially obtain further coverage with different payments or conditions.
If the life insured dies during the term, the death benefit will be paid to the beneficiary.
Term insurance is typically the least expensive way to purchase a substantial death benefit
on a coverage amount per premium dollar basis over a specific period of time. All of us
spend time and money to plan for our future and often these decisions are motivated by the
desire to secure our loved ones. Anticipating future needs and ensuring that your family
continues to lead a respectable life even after you demonstrates responsibility and prudence.
Shriram Life brings you the Online Term Insurance Plan (UIN: 128N072V01) designed to
understand and address your future needs.

3.2.2 POLICY FEATURES

Features inherent to term life and those that differentiate it from other life insurance types
include:

• Temporary Coverage

• Pure Death Benefit

• No Capital Build-up

• Fixed Coverage Amount

• Increasing Premiums

• Medical Exam for Qualification

• Tax-Free Inheritance

Temporary Coverage
Term life insurance offers coverage for a limited period of time, typically 10-30 years. Unlike
other types of life insurance, a term policy eventually expires. This can be a positive or negative
feature depending on individual circumstances. On the one hand, temporary coverage means
lower start-up premiums. On other other hand, once the policy expires it might be difficult to
secure an extension due to worsening health conditions. If you can accurately predict the length
of time for which you need coverage, term life insurance is most economical.

Pure Death Benefit

Permanent forms of life insurance come with savings and investment components that may or
may not be suitable for your needs. Term life offers no such component; think of term life as
life insurance proper, whose aim is to provide a lump-sum payout upon the death of the
policyowner. This benefit can be used to pay for funeral and medical costs or to replace lost
income. If you want to grow wealth in your life insurance policy, consider a permanent type of
insurance life universal or variable.

No Capital Build-up

Term life insurance doesn't accumulate wealth over time as a whole, universal, or variable
policy would. As with car insurance, term life premiums go directly towards securing
compensation in case the unthinkable should occur. Once you stop making premium payments
or the policy matures (reaches the end of its term), you are left with zero capital. Premiums are
used to solely fund the death benefit, and if no death occurs, the insurance company never pays
out. This is a direct cost of insuring against risk of death.

Fixed Coverage Amount

Like all life insurance, term life can be purchased with widely varying death benefits, from as
low as $100,000 to as high at $10,000,000. The amount of coverage desired directly affects the
size of the annual premium, as the insurance company charges policyowners per $1,000 of
coverage. One downside of term life policies is that once a coverage amount is set, it cannot be
increased or decreased. This is not a problem in theory if you can accurately estimate the right
level of coverage for the full length of the policy's term, but in practice your financial situation
will change many times over the course of 10-30 years. If you want a flexible coverage amount
and annual premium, consider universal life or variable universal life.
Increasing Premiums

Most term life insurance (non-level term life) comes with premiums that increase every years.
This results from the rising risk of death as the policyholder ages. Fundamentally, all life
insurance faces the grim reality of escalating mortality charges. The difference is, permanent
life insurance averages out later premiums with former ones, enabling the owners to fund their
policies with uniform annual payments. If level premiums are important for you, consider
purchasing level term life or a permanent life insurance policy. If you only need temporary
coverage, a level-premium policy is to your disadvantage.

Medical Exam for Qualification

Except for guaranteed life, virtually all forms of life insurance force potential policyholders to
undergo a medical examination before issuing a policy. The exam is performed by a
paramedical hired by the insurance company. The paramedical can come to your home or office
to administer the health exam, which typically consists of taking physical measurements life
height and weight, taking a blood and urine sample for analysis, and asking medical history
questions to ascertain hereditary conditions that might put you at greater risk of death. Based
on the test results the insured is given a rating class (Preferred Plus, Preferred, Standard Plus,
Standard) which skews premiums higher or lower.

Tax-Free Inheritance

A great benefit of all insurance types is the ability to pass on wealth tax-free and avoid estate
taxes. Unlike other investments vehicles, life insurance is uniquely designed as a wealth
transfer instrument. Beneficiaries don't have to pay taxes on any funds coming to them via a
life insurance death benefit.
3.2.3 TYPES OF TERM INSURANCE POLICIES

• Level Term Insurance: Most common type where the premium amount and life cover
remain constant throughout the term of the policy.

• Increasing Term Insurance: The sum assured increases over time; as the life cover
increases, it adjusts for inflation, so that the insured person is never underinsured.

• Decreasing Term Insurance: The life cover decreases over time at a predetermined
rate, with reductions in policy payout typically occurring monthly or annually.

• Term Plans with Return of Premium: In this case the total premium amount, after
applicable tax deductions, is refunded to the policyholder, if he/she outlives the term of
the policy

3.2.4 POLICY USAGE AND WORKING

3.2.4.1 POLICY USAGE
• Enhanced protection using the 3 options for comprehensive cover

• Discount in premium rate if you opt for a Higher Sum Assured.

• Provides life cover up to 75 years

• Flexible premiums based on choice of the benefit options

• Affordable premiums – as low as Rs. 7,343 p.a. for a cover of Rs 1 Crore (T & C apply)

• Lower premium rates for women

3.2.4.2 POLICY WORKING

1. A certain amount of premium paid is invested to meet your insurance needs and some
amount towards building wealth.
2. In the initial policy years, a large part of the premium is spent on meeting policy
expenses. Post deduction of these expenses, some amount of the premium is invested
in life insurance to provide your life cover in case of an unfortunate event and the
remaining is invested in different funds for wealth creation.
3. A part of the premium paid by you is invested either on a with-profits basis or a unit-linked
basis. Your premium amount depends on your age, sex, and how long the endowment is for.

The size of the lump sum you get at the end of your endowment often depends on the
performance of these investments.

This means your savings are pooled together and invested by the insurance company in
various investment options, typically;

1. Shares
2. Mutual funds
3. Bonds
4. Fixed-interest investments

3.2.4.3 CONSIDERATIONS BEFORE TAKING POLICY

• Don’t go in for meagre policies –Your sum assured must be at least 20-30% higher
than the sum of all your potential expenses. Time value of money also needs to be
accounted for. As the premium difference is not much, there is not point in being penny
wise and pound foolish.

• Increase in your Premium is not a bad sign –An increase in premium indicates that
you have moved to a high-risk category. This is a not a bad thing because it means that
the company anticipates a future outflow and is still offering to cover you.

• Sooner the better –A good insurance policy and an affordable premium; both are
largely influenced by your age and general health.

• Not past your retirement age –Essentially, a term life insurance plan is for your family
and the probability that they depend on you financially past this age is low. Since this
is not exactly an investment, you need not spend on a term plan longer than absolutely
necessary.

• Be honest –The worst thing you can do while buying an insurance is lying about your
health, lifestyle or family history. Even if you are not caught in the beginning it will
 definitely surface when your family decides to claim, which means your family was
under a misconception that they were protected.

• Decide on the policy tenure: Insurance companies usually offer many term options of
5, 10, 15, 20, 25, 30 or more years from which you need to select judiciously as per
your financial goals. The tenure that you choose will also determine the benefits that
you will become eligible for. It is advisable that you opt for a term that covers you till
your retirement age, so that you can avail a wider range of benefits.

• Make a conscious decision: There are different types of term insurance policies
offered by different insurance companies in India. You need to have an in-depth
knowledge of each of their features, benefits and policy terms and conditions, to be able
to make an informed decision. Check on the term insurance premium calculator for the
premium payable for the coverage and policy tenure of your preference. Compare the
quotes minutely before choosing one.

• Inflation factor: The constantly rising prices, owing to inflation, have to be considered
while deciding on a term insurance plan. As a result of increasing prices, the coverage
that appears to be sufficient now may not be the same after the policy reaches its
maturity. There are some insurance companies that offer the flexible option of
increasing your cover annually by a fixed rate of 5% or 10% to keep up with inflation.
However, in such term insurance plans, the premium offered is also comparatively
higher than other fixed sum assured term insurance plans.

3.2.5 Parameters Considered While Calculating Term Insurance Premium

Term insurance premium calculator has streamlined the process of calculating premium
payment for life insurance policies. It has made calculations easy, error-free and hassle-free,
while saving time. It also makes comparing between premiums for various life insurance
policies available in a few clicks and at one glance. Not just that, it can also be customised to
suit your convenience.

The term insurance premium calculator has been automated to show results for premium
amount, as per the preferred sum assured, taking into consideration certain parameters:
Age of the insured: Age is the most essential parameter that determines your eligibility for
life insurance policies, the premium you can avail and other important parameters. If you are
of a young age, the chances of you being diagnosed with a disease or illness are comparatively
lower. Therefore, the chances of you making a claim are limited. The scope of you being
detected of a disease or chances of death increases with age. Hence, your eligibility for a life
insurance and being granted a low premium payment will be higher when you are young. The
premium amount increases with age.

Lifestyle habits: Individuals with an excessive consumption of alcohol or who are into drugs
or have a regular smoking habit will be offered a life insurance policy on a high premium. In
certain situations, applicants may also be denied a life insurance policy. People who aren’t
addicted to these habits pay as much as 30% to 70% lower premium than those who are not
addicted to these.

History of health: A record of personal history of critical illnesses and family history of
diseases like cancer, Alzheimer’s etc., also increase the premium payment amount. This is
because such critical illnesses increase the chances of making a claim, arising due to a medical
emergency or demise of the policyholder. On the other hand, individuals with no personal or
family history of critical illnesses will be able to avail a much lesser premium. Life insurers
enlist the diseases that they consider as critical illnesses. The term insurance premium
calculator takes this parameter into consideration while computing e-premium.

Tenure of the insurance policy: The term insurance premium calculator will be affected
adversely if you buy a term plan that covers you till or beyond your retirement age and till the
time you pay off all your liabilities. While the minimum period for term insurance plans is
usually 5 years, the fixed options offered are 15, 20, 25 or 30 or more years. Select the term
wisely, so that it does not extend past your retirement age.

Gender: According to research, women live longer. This not only improves their chances of
being eligible for insurance policies, but they are also offered low premiums as compared to
those offered to men.

Estimated sum assured: Last but not the least, the sum assured and premium amount are
directly proportional to each other. This implies that higher the sum assured, higher would be
the insurance premium.
3.2.6 DOCUMENTS REQUIRED
In case of a natural death
1. Term Insurance policy document
2. Duly signed and filled claim forms (As provided by the insurance company - To
download visit their official website)
3. Original or Copy of the Life Assured's Death Certificate
4. Claimant’s statement
5. Any other relevant document as requested by the insurance company.
In case of an accidental death
1. Police FIR report, Police Inquest Form and Final Police Investigation Report
2. Medical attendant's certificate or Attending Doctor’s Statement
3. Hospital Certificate and medical reports including admission and discharge summary
of the life assured, death summary, test reports, etc.
4. Post mortem report
5. Claimant’s statement
Any other relevant document as requested by the insurance company
The Claims Assistance team of the insurance company will verify all the supportive
documents and nominee declaration. The claimant/nominee may be asked to provide other
additional documents if necessary.

3.2.7 POLICY BENEFITS

• Accident Death Benefit Cover

Provides assistance to Life Assured, in the event of permanent/total disability due to an

accident.

• Critical Illness Cover

Provides a benefit to help cover medical and rehabilitation costs associated with Critical
ailments.A term insurance plan is a specific type of life insurance policy that provides
protection for a definite period of time or ‘term’. In the event of the unfortunate demise
of the insured person during the specified term, the insurance company pays the
beneficiaries of the insured a pre-determined sum of money. Term plans are the most
economical plans of all life insurance policies as they provide life cover at cheaper
premiums. These however do not provide any maturity benefits.
3.2.8 ELIGIBITY

ENTRY AGE
Minimum
18 Yrs
Maximum
55 Yrs
(As on last birthday)
MATURITY AGE
Minimum
28 Yrs
Maximum
75 Yrs
(As on last birthday)
POLICY TERM
Minimum
10 Yrs

Maximum
57 Yrs
(Premium paying term shall be the same)
SUM ASSURED
Minimum
Rs. 25 Lakhs
Maximum
Rs. 10 Crore
(in multiples of 1 lakh)
CRITICAL ILLNESS COVER
Minimum
Rs. 5 Lakhs
(Maximum 20% of Sum Assured subject to a limit of Rs 20 lakh)
 ACCIDENTAL DEATH BENEFIT COVER
Minimum Rs. 10 Lakhs

3.2.9 PROCESS FLOW OF MAKING A POLICY

Determine the type of policy

Login using phone number and get

quote id

Enter Basic Details

Determine the % of fund investment

Enter family details of customer

Enter professional details

Enter nominee details

Verify and make payment

Get the documents of insurance

3.2.10 Conclusion

Term life insurance is more of an expenditure than an investment. It does not result in any
additional benefits and has no surrender value. Thus, if the policyholder is alive, neither he/she
nor the nominees will receive any payment from the insurer. This does not mean that investing
in a term plan is a bad idea as it gives you peace of mind and your family a sense of security in
the case of any eventuality.
 CHAPTER 4

OBSERVATION & LEARNING

4.1 OBSERVATION

4.1.1 COMPARSION BETWEEN ENDOWMENT PLANS & TERM

PLANS

INSURANCE VS. INVESTMENT

The first and the major difference that lies between a term plan and an endowment plan is the
very nature of the plans. While a term plan is a pure life insurance policy that offers no-frills
life cover, an endowment plan, on the other hand, is a combination of investment and insurance.
In other words, an endowment plan allows you to save for future. Term plan offers no such
long-term saving options. If you buy a term plan, the beneficiaries will receive the guaranteed
death benefit only in case of your untimely demise. But in case of an endowment plan, you will
receive the entire corpus that you have built over time, once the policy tenure is over.
THE PREMIUM
If you are looking for a life insurance plan and hence have talked to a few insurance agents,
you may have already seen that the agents are not much inclined to sell a term plan. Why is it
so? Is it because endowment plans are better than term plans? Of course not! The sales of
endowment plans get them higher profits. A term plan offers comprehensive life coverage at
very low premium rates. For the same amount of coverage, an endowment plan will charge
higher and if you add riders with your basic plan, the premiums will increase. For instance, for
a cover of Rs. 1 crore, a 30-year-old non-smoker man needs to pay Rs. 8,500 annually for 30
years under a term plan, but for the same amount of return, he needs to invest around Rs.1 lakh
annually for 30 years under an endowment plan. In a nutshell, a term plan is more affordable
than an endowment plan.
THE SUM ASSURED
Not only the premium, the sum assured amount also varies depending on the type of plan you
choose. Generally, in a term plan, you are allowed to choose the sum assured you require,
ranging from Rs 10 lakh to Rs. 20 crores, depending upon your income. As a thumb rule, you
are allowed to buy a cover up to 20 times your annual income. However, in an endowment
plan, to get a higher sum assured, you would need to put in a big amount of money as annual
premium. Just to give you an example, if you pay an annual premium of Rs 20,000 annually
under an endowment plan, you can get a sum assured of around Rs.16 lakh for a 30 year
period. But if it is a term plan, you can get sum assured of more than Rs 2 crore for same
annual premium amount. Moreover, in a term plan, the insurer will pay out the promised
amount of money only in case of your death during the policy tenure. In an endowment plan
also, the death benefit is payable in case of your unfortunate demise during the policy term.
But, if you outlive the entire policy tenure in endowment plan, the insurer will pay out the sum
assured as the maturity benefit too.

ADDITIONAL FEATURES
Both term plans and endowment plans offer a number of rider options. Though you will have
to pay extra premiums to buy these riders, the benefits offered by them are undeniable. There
are some riders that are available only with term plans, while some are available only with
endowment plans. However, some of the riders that both term plans and endowment plans offer
include critical illness rider, accidental death benefit rider, hospital cash rider, premium waiver
rider and so on. Life insurance plans are good tax-saving instruments. All the premiums you
pay under a term plan are exempt from income tax deductions as per section 80C. The sum
assured you receive are non-taxable under section 10(10D) of the income tax Act, 1961.
Therefore, income tax exemptions are higher in endowment plans as compared to term plans.

4.1.2 BEST PLAN

If we run a comparative analysis of the two plans, we will find that each plan has certain
advantages.
The premium rates offered by term plans are much lower compared to the endowment plans.
That is to say, the premium amount you pay for Rs. 1 Cr. Cover under a term plan is lower than
that you pay under an endowment plan. And, who doesn't want more with a little less?
While a term plan offers only the death benefit, an endowment plan offers both the death and
the maturity benefits. In other words, both term plans and endowment plans promise to provide
the sum assured to your beneficiaries in case of your death during the policy
tenure. Endowment plan offers an added advantage as it provides the sum assured as the
maturity benefit if the policyholder outlives the policy term. So, an endowment plan is more
beneficial if taken mainly for the purpose of saving, but then you can always put money in a
higher return paying financial instrument, if the objective is savings. On the other hand, term
plans are beneficial for those who want higher coverage at low premium rates, providing
financial protection for their family in case they are not around.
Liquidity is available under an endowment plan. In other words, if there is an emergency, you
are allowed to withdraw money (up to a certain limit) from the corpus of your endowment
policy. But, one thing should be kept in mind that, if money is withdrawn, the corpus will
reduce resulting in lower returns on maturity. The maturity benefit received under an
endowment plan can be used by the policyholder to fulfil different financial needs in his/her
life. Hence, child plans and pension plans come under the umbrella of endowment plans. Term
insurance plans provide neither liquidity nor the opportunity of such long-term savings for
future.
The life coverage received under a term plan is quite large in amount as compared to that of an
endowment plan. Moreover, the sum assured offered by an endowment plan depends, to some
extent, on the performance of the market, especially if it is a participating plan. So, the sum
assured offered by a term plan will sustain your family financially, for a long period of time,
after your untimely demise. On the other hand, the death benefit received from an endowment
plan will help your family overcome the immediate financial hardship brought by your
premature death, but it may not be enough to sustain your family for a longer period of time.
The bottom-line is that if your family is financially dependent on you, it becomes mandatory
for you to have a term insurance plan. But, if the life coverage amount does not matter much
to you, and all you want is to save for future, you may opt for an endowment plan, but then
keep in mind you have other financial instruments also at disposal in that case.

4.1.3 AGE PREFERNCES

4.1.3.1 TERM INSURANCE PLAN

There is no fixed date by which you must buy one, but like all other insurance products,
the earlier, the better. So, a person buying a term plan in his/her 20s is likely to shell out less
than a septuagenarian doing the same. It’s ideal for young professionals as it’s cheap and will
cover his/her parents in case of untimely demise. When a person progresses further in career
and has a spouse and a child to look after, term insurance becomes a necessity. At a very low
cost, it will provide financial security to the dependents. But when the children grow up, buying
a term insurance plans makes little sense. Also, at that age, people have enough money to afford
a cash value policy which comes with other additional benefits as well.

4.1.3.2 ENDOWMENT PLAN

As endowment plan has guarantee return, the people who were in the late 35s prefer
this plan. It helps the customer in their retirement, children’s higher education plan, marriage,
housing loan etc. As the maturity period will be 10 years and above so this will be safer and
beneficiary policy.
4.2 LEARNING

4.2.1 INTERPERSONAL SKILLS

Interpersonal skills are the skills we use every day when we communicate and
interact with other people, both individually and in groups. People with strong interpersonal
skills are often more successful in both their professional and personal lives.
Interpersonal skills include a wide variety of skills, though many are centred
around communication, such as listening, questioning and understanding body language. They
also include the skills and attributes associated with emotional intelligence, or being able to
understand and manage your own and others’ emotions.
People with good interpersonal skills tend to be able to work well in a team or
group, and with other people more generally. They are able to communicate effectively with
others, whether family, friends, colleagues, customers or clients. Interpersonal skills are
therefore vital in all areas of life at work, in education and socially.
Through awareness of how you interact with others, and with practice, you can
improve your interpersonal skills. This section of Skills You Need is full of information and
practical advice that you can use to improve and develop your interpersonal skills.

4.2.2 EMOTIONAL QUOTIENT

Most people, emotional intelligence (EQ) is more important than one’s
intelligence (IQ) in attaining success in their lives and careers. As individuals our success and
the success of the profession today depend on our ability to read other people’s signals and
react appropriately to them.

Therefore, each one of us must develop the mature emotional intelligence skills
required to better understand, empathize and negotiate with other people — particularly as the
economy has become more global. Otherwise, success will elude us in our lives and careers.

1. Self-awareness. The ability to recognize an emotion as it “happens” is the key to your EQ.
Developing self-awareness requires tuning in to your true feelings. If you evaluate your
emotions, you can manage them. The major elements of self-awareness are:

• Emotional awareness. Your ability to recognize your own emotions and their effects.
• Self-confidence. Sureness about your self-worth and capabilities.

2. Self-regulation. You often have little control over when you experience emotions. You can,
however, have some say in how long an emotion will last by using a number of techniques to
alleviate negative emotions such as anger, anxiety or depression. A few of these techniques
include recasting a situation in a more positive light, taking a long walk and meditation or
prayer. Self-regulation involves

• Self-control. Managing disruptive impulses.

• Trustworthiness. Maintaining standards of honesty and integrity.
• Conscientiousness. Taking responsibility for your own performance.
 • Adaptability. Handling changes with flexibility.
• Innovation. Being open to new ideas.

3. Motivation. To motivate yourself for any achievement requires clear goals and a positive
attitude. Although you may have a predisposition to either a positive or a negative attitude, you
can with effort and practice learn to think more positively. If you catch negative thoughts as
they occur, you can reframe them in more positive terms — which will help you achieve your
goals. Motivation is made up of:

• Achievement drive. Your constant striving to improve or to meet a standard of

excellence.
• Commitment. Aligning with the goals of the group or organization.
• Initiative. Readying yourself to act on opportunities.
• Optimism. Pursuing goals persistently despite obstacles and setbacks.

4. Empathy. The ability to recognize how people feel is important to success in your life and
career. The more skilful you are at discerning the feelings behind others’ signals the better you
can control the signals you send them. An empathetic person excels at:

• Service orientation. Anticipating, recognizing and meeting clients’ needs.

• Developing others. Sensing what others need to progress and bolstering their
abilities.
• Leveraging diversity. Cultivating opportunities through diverse people.
• Political awareness. Reading a group’s emotional currents and power
relationships.
• Understanding others. Discerning the feelings behind the needs and wants of
others.

5. Social skills. The development of good interpersonal skills is tantamount to success in your
life and career. In today’s always-connected world, everyone has immediate access to technical
knowledge. Thus, “people skills” are even more important now because you must possess a
high EQ to better understand, empathize and negotiate with others in a global economy. Among
the most useful skills are:

• Influence. Wielding effective persuasion tactics.

• Communication. Sending clear messages.
• Leadership. Inspiring and guiding groups and people.
• Change catalyst. Initiating or managing change.
• Conflict management. Understanding, negotiating and resolving disagreements.
• Building bonds. Nurturing instrumental relationships.
• Collaboration and cooperation. Working with others toward shared goals.
• Team capabilities. Creating group synergy in pursuing collective goals.
4.2.3 TAX CALCULATION

Male/ Female
INCOME RATE
Upto Rs. 2,50,000 Nil.
Rs. 2,50,001 to Rs. 5,00,000 5%
Rs. 5,00,001 to Rs. 10,00,000 Rs. 12,500 + 20% of Income exceeding Rs. 500,000.
Rs. 1,12,500 + 30% of Income exceeding of Rs
Above Rs. 10,00,000
10,00,000.

Senior citizen
Income Tax Rate
Upto Rs.3,00,000 Nil.
Rs. 3,00,001 to Rs. 5,00,000 5%
Rs. 5,00,001 to Rs. 10,00,000 Rs.10,000 + 20% of Income exceeding Rs.
500,000.
Above Rs. 10,00,000 Rs. 1,10,000 + 30% of Income exceeding of Rs
10,00,000.

4.2.4 GROUP DISCUSSION

Group Discussions are conducted to evaluate the candidates on certain personality
traits. Here are some of the important personality traits and skills that a candidate should
possess to perform well in a GD:
Leadership skills and initiative-taking ability
Taking initiative is indicative of your ability to impart direction to the group and define the
key issue(s) along which the discussion has to progress. The three "Cs" which rank you high
on this parameter are clarity (the main points to be discussed), content (the vertical depth in
each point) and confidence. The "Key Word Approach", wherein you start with defining the
dominant words in the topic and then develop subsequent constructs, can help you to initiate
effectively. This will also demonstrate your leadership skills.
Knowledge
Knowledge reflects your ability to have an opinion on issues and concerns of contemporary
relevance and hence your ability to connect with different aspects of the environment
(economic, political, business, social, etc.). It assumes, even more, relevance for a fact-
intensive topic like "Indian Economy in the post WTO regime". Here, knowledge becomes a
sharp differentiator and helps you to leverage a strong competitive advantage. Unless you
have the requisite knowledge of the given topic, your discussion runs the danger of being
shallow and superficial. Being well versed in current affairs and issues of concurrent
importance can help you to do well along this parameter.
Group Dynamics:
This basically demonstrates the skill to strike a balance between individual excellence and
group performance. A person scoring high on this parameter will be more probable to work in
groups and hence contribute effectively to organizations. It also reflects your team skills,
listening skills and willingness to accept diverse viewpoints.
Logical Ability/Analytical Skills
This indicates your ability to effectively flowchart your thought process and analyze the topic
in a comprehensive manner. It reflects your ability to construct logical arguments and
structure the discussion in a streamlined manner, avoiding random forays.
Communication Skills:
This evaluates the candidate's ability to connect with the group and is measured from a dual
perspective - verbal and non-verbal. While verbal communication scores the student on
parameters like fluency, articulation and modulation, the non-verbal quotient defines his/her
adequacy vis-&-vis body language, gesticulation, eye contact and posture.

4.2.5 INSURANCE POLICY

The insurance policy is a contract (generally a standard form contract) between the
insurer and the insured, known as the policyholder, which determines the claims which the
insurer is legally required to pay. In exchange for an initial payment, known as the premium,
the insurer promises to pay for loss caused by perils covered under the policy language.
Insurance contracts are designed to meet specific needs and thus have many features not
found in many other types of contracts. Since insurance policies are standard forms, they
feature boilerplate language which is similar across a wide variety of different types of
insurance policies.
The insurance policy is generally an integrated contract, meaning that it includes all forms
associated with the agreement between the insured and insurer. In some cases, however,
supplementary writings such as letters sent after the final agreement can make the insurance
policy a non-integrated contract. Oral agreement are subject to the parole, and may not be
considered part of the policy if the contract appears to be whole. Advertising materials and
circulars are typically not part of a policy. Oral contracts pending the issuance of a written
policy can occur.