ICICI Prudential - Info you must read

Students !! Here is posted very important material .A MUST read for ALL students who have applied for the company.

ICICI Prudential Life Insurance Company ICICI Prudential is a joint venture between ICICI bank and Prudential plc, both having strong operations in their respective countries. ICICI bank is one of the leading banks in India providing quality financial services and Prudential is an international financial service provider headquartered at United Kingdom. ICICI and Prudential have respective shares of 74% and 26%. The Company started operating in December 2000. Currently, total capital with the company is Rs. 18.15 billion.
ICICI Prudential was the first insurance company in India to receive a National Insurer Financial Strength rating of AAA ( Ind.) from Fitch ratings. It has been given the honour of being among the Most Trusted Brands in the industry by Economic Times for 3 consecutive years. It has a network of 450 branches, over 1,50,000 insurance advisors and 18 bancassurance partners. As the organization grows and develops, it keeps introducing new range of products and services and enhancing the quality of plans and solutions given to the customers. The distribution network is one of the best, and is spreading across the length and breadth of the country. As on December 31, 2006, it had made imprints in over 360 cities and towns in India. It has over 1,75,000 advisors across the country, serving clients with full commitment. It has tied up with ICICI Bank, Bank of India, Federal Bank, Lord Krishna Bank, some co-operative banks, NGOs, MFIs and corporates for making inroads into the rural areas. ProductsInsurance Solutions for Individuals : ICICI Prudential Life Insurance offers several novel, customer-centric products for customers at every stage of life. The products and services offered by the organization are in various fields, such as: Savings & Wealth Creation Solutions
 Premier Life Gold
 LifeLink Super
 Invest Shield Life New
 Cash Plus
 Cash Bak
 Life Time Super & Life Time Plus
 Save 'n' Protect.Retirement Solutions
 Life Link Super Pension
 Forever Life
 Immediate Annuity
 Life Time SuperChild Plans
 Education insurance - Smart Kid Protection Solutions
 Life Guard
 Home Assure Group Insurance SolutionsICICI Prudential also offers Group Insurance Solutions for companies seeking to enhance benefits to their employees.
 Group Immediate Annuities
 Group Term Plan
 Group Superannuation Plan
 Group Gratuity Plan

TERMINOLOGY:

Accelerated payment of basic coverThis occurs when the basic cover amount is paid earlier than death or maturity. For example the policy may provide for the full payment of the death benefit in the event of total and permanent disability. Accident The term accident is sometimes defined in the policy document as follows - the accident must be caused by violent, external and visible means and cause of the injury or injuries solely and independently of any other means. Accidental death benefitBenefit, which provides for the payment of an additional sum (usually equal to the sum insured of the basic policy) in the event of death by an accident. Amount PayableThis refers to the amount that is payable according to the terms and conditions of the insurance policy to the legal owner of the insurance policy. AnnuitantThe person whose lifetime is used to measure the contractual period over which annuity payments will be made. AnnuityAnnuity contract is an agreement under which the insurance company, in return for the payment of a certain sum, makes a series of agreed payments at regular intervals from a fixed date. This continues until the death of the individual on whose life the annuity is bought. Annuity PeriodThe time span between each of the annuity income benefit payments made under the annuity contract. Typically annuity income benefits are paid monthly or annually. Anticipated Endowment An endowment where you do not have to wait for the maturity date before receiving part of the maturity amount. Applicant / owner / life of anotherThe applicant is the person on whose life insurance cover is sought. Owner is the person who has the legal title to the policy. Life of another on whose life he or she has an insurable interest. Application for reinstatementThis refers to an event when a policy has lapsed or terminated by the policy owner owing to a non-payment or late payment of a premium. The company will consider a reinstatement of the contract in the event of an application being made as prescribed by the company in terms of the outstanding premium, interest or administration fees (if any) and evidence of good health. The reinstatement and terms are at the discretion of the company. AppreciationThe increased value of one asset held by the policy, or by the total assets held by the policy over a period of time. Ask or offer priceThe price at which units or shares can be purchased. The asked or offering price means the current net asset value (NAV) per share plus sales charge, if any. For a no - load fund, the asked price is the same as the NAV. Asset allocationA system method of investing that distributes assets to a broad array of investments AssetsThe current rupee value of the pool of money shareholders have invested in a fund. AssignmentsThis is the process by which, the owner of the rights under the policy known as the assignor transfers the right to another person known as the assignee by executing a deed of assignment.

Balanced fundA fund that maintains a balanced portfolio, generally 60% bonds or preferred stocks and 40% commons stocks. Bear market A period of time in which the market, or securities in general lose money.BenchmarkA reference point that is chosen for the purposes of comparing other related values. BeneficiaryThe person or party the owner of a life insurance policy names to receive the policy benefit.Bid or sell priceThe price at which a funds units or shares are redeemed (bought back) by the fund. The bid or redemption price means the current net asset value per share, less any redemption fee or back end load. Bid / offer spreadThe difference between the bid and the offer prices.Blue chip stock fundA fund that consists of a portfolio of large or well known companies for the purposes of achieving growth. Body mass index (BMI) Used for underwriting purposes in evaluating build and determining overweight and obesity. It tells us the person's health constitution. It is expressed as weight in Kg divided by height in meters to the power of two or Kg/height2 Bond A bond is security in the form of a convertible loan with a maturity date, where the investor lends money to a company or government.Bull marketA good market in which prices of securities increase greatly over a specific period of time.

Capital Gains TaxesTaxes that are imposed at the redemption of all capital gains. CapitalizationThe value of a fund derived by the multiplication of the fund's share price by the number of outstanding shares. Most often, this is applied in order to determine the value of the specific companies. Cash Surrender Value The amount that is available to the owner if a life insurance policy is surrendered any time before the maturity date. The amount represents the cash value minus surrender charges and any outstanding loans due upon cancellation of the policy. Claim Written request by an insured for the insurance company to cover an incurred loss, usually submitted on the company's standard form.ClaimantPerson who has as interest in the policy and making a claim on the policy. Closed end fundA type of fund that offers only a fixed amount of shares, usually sold through a brokerage firm by a broker. Most funds are not closed - end funds; they offer unlimited shares and may be purchased and redeemed directly by the individual through the mail by check. Closing priceThe price of stock or other security at the end of the day, after the final trade.Collateral A temporary assignment of the monetary value of a life insurance policy as security for a loan. In the event of default, the creditor would receive proceeds or values only to the extent of his interest. Commisson A fee paid by the investor to a broker or other sales agent for investment advice and assistance.Compounding Earnings on an investment's earnings. Over time, compounding can produce significant growth in value of an investment. Contractual obligation When parties effect a contract, there are obligation that the parties assume and are legally bound to fulfill these obligations. If there are not fulfilled, the other part can resort to legal means to seek redress. Coroner The coroner is the person who is legally authorized by the government to determine the cause of death, when this is in doubt, or if there has been death which is not deemed to be due from normal illnesses. He or she does it by examining the evidence submitted including autopsy or post mortem reports, medical reports and statements from witnesses. The coroner is usually a magistrate or someone who possess legal qualification. Cover Continuance Option (CCO)An option available on specified unit linked polices, where the policy holder can choose to discontinue his premium payments after having made premium payments regularly for at least three years. In such cases, the life cover of the policy remains as is, in spite of the premium payments being discontinued. The life cover will continue till the value of the policy funds becomes 110% of the annual premium.

Date of commencement The date on which cover begins, following acceptance of the risk by the insurer. Dating Back For non investment linked policies, the commencement date of the policy can be backdated within the same financial year. This enables the life assured to take advantage of the lower premium applicable to a younger age as the premiums is calculated with reference to the date of commencement. The insurance cover will however begin only from the date of acceptance. The extra premium on account of dating back has to be paid upfront. Death Benefit PayableThe amount payable, as stated in a life insurance policy, to the designated beneficiary(ies) upon the death of the insured. The amount paid is the face value, plus any riders that are applicable, less any outstanding loans. DeclarationThis is the statement or section of the form where the person is required to declare that the statements or answers are given fully and truthfully and that if it were not so, there would be legal consequences. Deffered AnnuityAn annuity contract under which periodic benefits are scheduled to begin at some designated future date after the date on which the annuity was purchased.Depreciation A decline in the investment's value.Doctrine of Utmost Good Faith Insurance contract is issued on the basis that the applicant truthfully and fully discloses everything he or she knows about his or her health. This arises from the recognition that the insurance company is in a disadvantageous position, as the insurer does not know anything about the applicant. Similarly, the insurance company should deal with the applicant with honesty and integrity.

EndowmentA type of insurance policy which provides for the face amount stated in the contract to be payable in a fixed date or on the life insured's earlier death. EquityA stock or the interest in capital gains received from the ownership of a stock.Ex-gratia claimThis occurs where strict liability has not been proved but the insurer may decide that it would be unduly harsh or cause hardship, not to make some payment. Such payments are made out of goodwill, without admission of liability. Ex-gratia paymentsThese are payments made by a company where the claim is a gray area, doubt exists but it may be to the benefit of the claimant and the company feels out of goodwill that some form of payment should be made. The claim is made without any admission of liability. Payment is only made on the understanding that the claimant accepts the amount in full satisfaction of all claims he or she may have on the policy. ExclusionA condition under which the benefit is not paid is referred to as exclusion. This is to avoid any misunderstanding. For example, for accidental policies, there is usually exclusion for suicide or self-inflicted injuries by the life insured. Extended Term InsuranceA provision in some policies which provides the option of continuing the insurance for a particular insured amount as per the policy condition as term insurance.

Family history The medical history affecting the applicant's immediate family. It is to look for illness that is hereditary. Focus should be on illness where the onset is before the age of 50.Fixed income securities The category of investment vehicles that offer a fixed periodic return. A fixed income security is a security or certificate showing that the investor has lent money to the issuer, who is usually a company or government, in return for fixed interest income and repayment of the principal at maturity. FIFinancial Institution.Fixed annuityAn annuity where the insurer guarantees to credit the annuity account value with a fixed rate of interest for a specified period of time, for one, three, five or even ten years. At the end of the initial time period, the insurer sets a new interest rate for the next period. Fixed InterestIncome, which remains constant and does not fluctuate, such as income derived bonds, annuities and preferences shares. The percentage return from this income varies dependent on the market price. Fixed period optionAn option on an annuity that provides that annuity payments, each of specified and equal amounts, will be paid for a certain period of time such as 10 or 15 years, even if the annuitant is still living at the end of the period. Fraudulent claimsThese are claims where a statement is made by the insured, which he knows or ought to know that it is false, and he makes it in order to benefit from a life insurance policy by dishonest means. Fund assets Amount of assets currently in the fund.
Government Bonds These are effectively financial instruments used by the government to borrow money from the public. The rates of interest and term period of government bonds are fixed.Grace Period This provision offers the policy holder additional period of time after the due date, during which the premium can be paid. The policy continues to remain in force during this grace period and the premium continues to be payable. Growth FundA fund whose primary investment objective is long-term growth of capital. It invests principally in common stocks with significant growth potential.Guaranteed insurability option An option which allows the policy owner to effect additional insurance at later dates without further evidence of health and irrespective of the date of the health of the life insured.
Hazardous avocationA hobby that has high risk for insurance purpose. Example: A deep - sea diver or a free-fall skydiver. Hazardous occupationAn occupation that has high risk for insurance purposes. Example: a window cleaner on high - rise buildings.

Immediate annuity An annuity where, income benefits begin one annuity period after the annuity is issued. If it is specified that benefits are paid annually, then the benefit payments begin one year after issue. Income fund A fund that primarily seeks current income rather than growth of capital. It will tend to invest in stocks and bonds that normally pay high dividend and interest.Interest rate riskThe possibility that a bond's or bond fund's value will decrease due to rising interest rates. Invalid contractLife insurance is a contract and the law provides that there must be an insurable interest between the life insured and the insured. If it is subsequently proven that this did not exist when the insurance contract was effected, it can be declared as not valid and set aside. InvestmentAn asset acquired for the purpose if producing income and capital gains to its owner.Investment objectiveThe financial goal (long term growth, current income, etc) that an investor or a fund pursues. Investment trustA corporation, partnership or trust that invests the pooled monies of many investors. It provides greater professional management and diversification of investments than most investors can obtain independently. Mutual funds, or "open-ended" investment companies, are the most popular for of investment company.
Joint and survivor option An option on an annuity that provides that the annuity payout will continue through the lives if two people. If one of the payees dies, payments continue to the second payee throughout that payee's lifetime.
Keyman InsuranceAn insurance policy that a company purchases on a key employee whose knowledge, network and experience is so essential that the untimely death of the employee will have a severe impact on the profitability of the company.

Lapse Termination of a life insurance contract because of non-payment of premiums. If there are non forfeiture values, the policy lapses but may remain effective reduced paid-up insurance. Large -cap A large sized company, or a mutual fund that invests in the stock of large, established well known companies.Law of large numbers A large insurance portfolio enables the actuary to predict better the number of claims. The principle reduces the number of random fluctuations of claims as the number of lives insured slowly grows. There is substantial decline in standard deviation of claims arising from pure chance with increase in number of insured. LienAt the time the policy is issued or reinstated, as a part of the underwriting decision, the company may impose a lien on the policy. This would mean that in the event of a claim arising from a specific risk or within a period, a certain agreed amount would be deducted form the claim. The insured is regarded to self insure the amount to be deducted as the company has declined to cover the specific risk or the insured has agreed to this arrangement instead of paying the extra premium. Life AnnuityAn annuity that makes regular (e.g., monthly, quarterly, etc.) income payments for the life of a person (the annuitant). The annuitant cannot outlive the payments. Upon his/her death, however, all income payments cease and there are no beneficiary benefits. Life AssuredPerson whose life is covered under a life insurance policy.Law ExpectancyThe number of years a person is expected to live as determined by actuaries using mortality (actuarial) tables This information is used to calculate annuity payments, life insurance premiums, and annual minimum distributions from IRAs. Life fundThis is a fund set up by an insurance company to which life insurance premiums of certain designated category of life policies issued are paid into. Claims and expenses occurring on these life polices are paid out of these funds.The company actuary does a valuation of the funds periodically before any profits or the company distributes dividends. The insurance company has a responsibility to exercise fairness in the way it manages the fund and the actuary will ensure that the fund is solvent at all times. Liquidity fundThe degree to which an investment may be quickly sold in exchange for cash. Funds are a liquid investment; at any time-shares may be redeemed. A 30-year savings bond is not liquid. It cannot easily be sold until the 30-tear, maturity date is reached.
M & A Mergers and acquisitions Management FeeFee levied for management of the fund and / or shareholder administrative services. Usually a fixed percentage of the total value of your fund that is assessed once in a year. Market RiskRefers to the potential of loss that is possible, as a result of the short-term validity of the stock market. Owning funds, due to their diversification, shield an investor to some market risk that a stockholder may be vulnerable to. Market timing A method of investing in which an investor may try to predict good or bad markets for the purposes of determining when to buy and sell a specific security or fund. Maturity dateThe date on which an endowment insurance policy's face amount will be paid to the policy-owner if the life insured is still living. MFMutual Fund Misrepresentation of material factsProviding the wrong facts or not giving the entire truth of a matter. This is more serious that non-disclosure. It refers to the applicant stating wrong facts or giving half-truths. They are material because if the underwriter knew of it this information, the decision might be different. Money Market InstrumentInclude short term - investments such as CD's. T-Bills, and short-term commercial bonds. Money market mutual funds invest in these types of short-term investments; as a result, there is little to no risk of losing any portion of the principle investment. Moral hazardUnderwriting the risk affecting an application based on factors such as the personal reputation and character of the applicant, business ethics or the existence of a criminal record. It concerns the intention or motivation behind the buying of a life insurance policy. MorbidityThe probability of disability of a life or group of lives.MortalityThe probability of death of a life or group of lives.Mortgage This is a form of assignment used in connection with a loan. The policy is mortgaged by the mortgager to the mortgaged who will hold it as a security for the duration of the loan until the loan and the interest is paid. In the event, the policy must be reassigned to the mortgagor if the amount is not paid by the required date, the mortgagee has the right to liquidate the policy and recover the amount and return the balance amount to the mortgagor.
Net Asset Value (NAV) The value of a fund share. Determined by dividing the total value of the fund's assets by the number of outstanding shares. This value is calculated daily by the fund. Non-disclosure of material facts An applicant fails to disclose facts that have an impact on the decision of the underwriter (had the underwriter known of this fact, the decision would have been different) Non - medical cases Cases where a medical examination is not necessary. Large number of cases are straightforward and do not have any medical problems. For cases within limits on age and the amount on cover, a medical examination is not necessary. Non-participating policyNon-participating policy is also known as a without-profit or non-par policy. The policy owner does not share in any divisible surplus made by the life insurance company. No bonus is paid on this policy. NPANon-performing Asset NSENational Stock Exchange

Offer-price The price to buy one share of a specific kind. Open-end fundA fund that does not have a fixed number of shares (as does a closed end fund or stock). The mutual fund will offer as many shares, as investors are willing to buy. These funds need to be bought through a broker. Most funds are open-ended unless otherwise noted. OptionA financial instrument that gives the investor the right to buy or sell a given number of shares of the underlying stock at a fixed price within a specified time period. Ordinary sharesA share that gives the holder part ownership of a company and entitle thee holder to share in the company profits in the form of dividends.

Participating Policy A participating policy is also known as a with-profits or par policy. A participating policy charges a higher premium than a non-participating policy. In return, the policy owner shares in the life insurance company's divisible surplus, in the form of bonus allotted to the policy. The bonus is allotted in addition to the guaranteed sum assured. This bonus is paid along with the basic sum assured. Partnership InsuranceCross-insuring partners in a partnership business to effect a buyout of the deceased partner's family from the business. Physical hazardsFeatures or facts that can be observed or evaluated. This includes reports from agents, medical consultants or through investigations Policy BonusIn participating policies the company gives the policyholders a share in the profits of the company in the form of bonuses. Generally, there are two types of bonuses for insurance policies. Reversionary bonus is a guaranteed addition to your insured amount and is paid when the policy matures (i.e. when the sum assured becomes payable) or when the life assured dies. Cash Bonuses are paid out at periodical intervals. Policy face amountThis refers to the amount stated in the policy payable in the event of death or maturity.Policy loansLoans are granted on the security of the surrender value if a policy. The amount is usually restricted to a certain percentage of the surrender value and interest is payable. Loans can be repaid at any time before the policy becomes a claim, when the total indebtness is deducted and the balance is paid. If the total indebt ness exceeds the surrender value, then the policy is declared as terminated and the indebt-ness is written off. Policy TermThe period of coverage provided by an insurance policy.PortfoiloThe collection of all holdings of a fund, such as bond's and stocks. In a fund's annual report, a list of the fund's current portfolio will usually be contained Portfolio ManagerA specialist employed by a fund's advisor to invest the fund's assets in accordance with pre determined investment objectivesPremiumThis is the contribution / payment that a policyholder makes to a life insurance company to obtain insurance cover. He or she has a responsibility to ensure that the correct amount states is paid as and when it falls due as stated in the policy document. Premium waiverThis refers to all premiums due after the incident of claim is waived without any loss of benefits whatsoever unless specifically stated.PrincipalThe total amount of the initial investment plus subsequent investments.ProspectusA document, usually in the form of a booklet, that provides information about a specific mutual fund; such as the funds investment and the redemption policies. The prospectus, according to law, must always is accompanied with the application. Prospective investors should always read the mutual fund's prospectus before sending money. Purchase moneyThis is the initial amount paid to the insurance company to purchase the annuity.Pure endowmentAn endowment, which provides for the payment of the sum insured only on survival to the maturity date. On earlier death, nothing is usually paid out although some contracts may provide for the premiums paid to be refunded either with or without interest, after deducting appropriate expenses incurred.

Quality The creditworthiness of a bond issuer, which indicates the likelihood that it will be able to repay its debt.

Redemption fee Fee levied for-selling shares of your index fund. Usually a fixed percentage of the total value of your fund. RBIReserve Bank of India Reduced paid up insuranceReduced paid up insurance can be offered on a policy that has been in force long enough to acquire a cash value and where the policy holder does not wish to continue paying further premiums. The policy is converted with the consent of the policyholder whereby a reduced sum assured is payable on similar terms and conditions of the original basic policy. Reduced sum assuredWhere the sum insured proposed or existing is reduced. If such underwriting terms are offered, you are not reducing the risk but just the liability. Reinstatement / RevivalThis refers to the process where the policy that has terminated for example due to a lapse of non-payment of premium and the owner has applied for the policy to be reinstated and the company has agreed to do so on certain conditions. Renewal PremiumsPremiums that are payable after the initial premium and that are a condition for the continuation of the policy. Repudiation of a claimThis process takes place when the claims examiner looks at the policy document and the evidence submitted to him or her and makes a decision to reject it. ReturnThe value received (income plus capital) annually from an investment, usually expressed as a percentage. Reversionary annuityAn annuity provides that in the event of death of a person "A" during the lifetime of a person "B", the latter will receive an annuity for the remainder of his or her life. If "B" dies before "A", nothing is payable. Reversionary bonusThis refers to the portion of surplus distributed to with profit policyholders. They are declared annually and increase the value of the policy. It is usually expressed as a percentage of the sum insured. It can be either simple based purely in the sum insured or compound based on the sum insures plus previous bonus. Once allocated, the bonuses cannot be removed or reduced by the company. RidersAdditional or supplementary benefits that are bought together with a main life policy on the same life and are combined for the purposes of collecting one premium. They ride on and are considered as part of the main policy. They could be added, amended or deleted from the main policy, any time, subject to risk assessment. Details and the terms and conditions of the benefits are clearly indicated in the main policy document. Risk assessmentThis part of the underwriting process whereby the risk of the happening of the insured event to the life insured in evaluated and a decision is made if the case can be accepted on terms applied for by the insured. It is done by examining all information in hand and obtained as its request and using the weight of experience and statistical evidence and studies. Risk classificationThe process whereby applicants with similar levels of risk are placed in a separate basket so that the appropriate pricing is charged for the individuals within each respective basket. Risk selectionThe process whereby you determine whether a risk proposed such as an application for life insurance to the company is insurable or not insurable. Risk toleranceThe willingness of an investor to tolerate the risk if losing money for the potential to make money. Rule of 72The formula for approximating the time it will take for a given amount of money to double at a given compound interest rate. The formula is simply 72 divided by the interest rate. In six years, Rs. 1000/- will double at a compound annual rate of 12% (72 divided by 12 equals 6) Rupee Cost AveragingA system of investing in which an individual reinvests money into the same fund on a regular basis usually monthly. Often investors can choose an option in which money is automatically withdrawn from their banking account and invested into the fund at a specified time of the month.

SEBI Securities and Exchange Board of India SecuritiesThe holdings of a fund, such as stocks or bonds.Short termThe period of time in which market volatility may subject an investment to market risk of loss. The short term may be considered to be a period of two years or less. Speculative riskDerived from an intention to obtain an undue benefit from an insurance policy. Similar to a gambling wager, it is illegal.Statutory presumption of deathThe laws in most countries provide that in the event of a person who has gone missing for a certain number of years a court order can be made to declare the person as legally dead. This is usually set as seven years. It has to be proved to the court that he or she has not been heard of by anyone including those who would naturally have heard if he or she had been alive. Surrender valueThe surrender or cash value is the amount payable to the policyholder should the policyholder decide to discontinue the policy. However, the insurance protection provided under the policy will also cease. Not all insurance policies have surrender or cash values.

TDS An endorsement or attachment to a life insurance policy that provides additional term coverage for the amount specified. If the insured dies during this time, the designated beneficiary(ies) can receive death benefit proceeds.. Terminal BonusThis part of the surplus distributed is added only when the policy becomes a claim in most cases by maturity or death. It is usually expressed as a percentage of the reversionary bonuses. Third PartyThis is when a person or a company takes a policy on the life on another.TrustThis occurs when a person(s), known as settlor sets up an obligation, known as a trust for the benefit of person(s) known as beneficiaries. Trustees are appointed to carry out the terms of trust.

UTI Unit Trust of India Utmost good faithThe principle of utmost good faith requires the applicant to disclose all material facts.
Vesting age This is the age when the rights under the policy vests with the name individual. Violent, external and visibleThis is used, as a guideline to determine when death or disability is caused by an event deemed as an accident. Violence is usually present and this includes physical violence, person exerting themselves physically, carrying heavy weights or injury caused by drowning, suffocation by inhalation of gas or smoke. External is where the cuse us nit an internal injury and any cause which is external is visible. VolatilityThe degree to which a mutual fund's share price will change in value.

Waiting Period This applies when the benefit is payable after a specified period. For certain benefits, cover may only commence after a specified period. For example, if a diagnosis of cancer or heart attack is made within 180 days of the commencement of the policy the critical illness benefit is not payable. WillThis is a document drawn up by a person indicting how he or she wishes the assets to be distributed among the various beneficiaries. The last will drawn up according to the laws of the country is valid. It is only valid on death and certified by the courts to be so in the form of a probate. Willful MisrepresentationThis occurs where the applicant completing the form willfully misrepresents the facts, so as to gain advantage.WithdrawalTo redeem shares of a fund or stock. In a mutual fund, partial or full redemptions may be made. Some funds may impose an extra redemption fee to discourage market timers from pulling their money immediately after investing. If this is a fund's policy, it will stated in the prospectus. Without Profit PoliciesThese are policies which do not participate in the profits of the company With Profit PoliciesThese are policies that are issued on the basis that they participate in the profits of the company and are entitled to receive bonuses as a result. The actuary determines profits after valuing the assets and liabilities if the company and setting aside the necessary reserves and expenses. The profits are then shared by the shareholders and with the profit policyholders.

Yield Income or dividends received from a security or fund YTMYield to maturity.
OVERVIEW:

India 's leading private life insurer, ICICI Prudential Life Insurance Company is a joint venture between ICICI Bank-one of India's foremost financial services companies-and Prudential plc- a leading international financial services group headquartered in the United Kingdom. Total capital infusion stands at Rs. 2602 crore, with ICICI Bank holding a stake of 74% and Prudential plc holding 26%.We began our operations in December 2000 after receiving approval from Insurance Regulatory Development Authority (IRDA). Today, our nation-wide team comprises of over 680 offices, over 235,000 advisors; and 23 bancassurance partners. ICICI Prudential was the first life insurer in India to receive a National Insurer Financial Strength rating of AAA (Ind) from Fitch ratings. For three years in a row, ICICI Prudential has been voted as India's Most Trusted Private Life Insurer, by The Economic Times - AC Nielsen ORG Marg survey of 'Most Trusted Brands'. As we grow our distribution, product range and customer base, we continue to tirelessly uphold our commitment to deliver world-class financial solutions to customers all over India.

The ICICI Prudential Edge - What makes us No. 1
The ICICI Prudential edge comes from our commitment to our customers, in all that we do - be it product development, distribution, the sales process or servicing. Here's a peek into what makes us leaders.
1. Our products have been developed after a clear and thorough understanding of customers' needs. It is this research that helps us develop Education plans that offer the ideal way to truly guarantee your child's education, Retirement solutions that are a hedge against inflation and yet promise a fixed income after you retire, or Health insurance that arms you with the funds you might need to recover from a dreaded disease.
2. Having the right products is the first step, but it's equally important to ensure that our customers can access them easily and quickly. To this end, ICICI Prudential has an advisor base across the length and breadth of the country, and also partners with leading banks, corporate agents and brokers to distribute our products .
3. Robust risk management and underwriting practices form the core of our business. With clear guidelines in place, we ensure equitable costing of risks, and thereby ensure a smooth and hassle-free claims process.
4. Entrusted with helping our customers meet their long-term goals, we adopt an investment philosophy that aims to achieve risk adjusted returns over the long-term.
5. Last but definitely not the least, our 20,000 plus strong team is given the opportunity to learn and grow, every day in a multitude of ways. We believe this keeps them engaged and enthusiastic, so that they can deliver on our promise to cover you, at every step in life.
VISION AND VALUES:
Our vision: To be the dominant Life, Health and Pensions player built on trust by world-class people and service. This we hope to achieve by:
Understanding the needs of customers and offering them superior products and service
Leveraging technology to service customers quickly, efficiently and conveniently
Developing and implementing superior risk management and investment strategies to offer sustainable and stable returns to our policyholders
Providing an enabling environment to foster growth and learning for our employees
And above all, building transparency in all our dealings.

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

PROMOTERS:
ICICI Bank ICICI Bank (NYSE:IBN) is India's second largest bank and largest private sector bank with over 50 years presence in financial services and with assets of over Rs 3569.32 bn (USD 88 billion) as on June 30, 2007. The Bank offers a wide range of banking products and financial services to corporate and retail customers through a variety of delivery channels and through its specialised subsidiaries in the areas of investment banking, life and non-life insurance, private equity and asset management. ICICI Bank is a leading player in the retail banking market and services its large customer base through a network of over 950 branches (including extension counters), 3469 ATMs, call centers and internet banking (www.icicibank.com) to ensure that customers have access to its services at all times. Prudential PlcEstablished in London in 1848, Prudential plc, through its businesses in the UK and Europe, the US and Asia, provides retail financial services products and services to more than 20 million customers, policyholder and unit holders and manages over £256 billion of funds worldwide (as of 30 June 2007). In Asia, Prudential is the leading European life insurance company with life operations in China, Hong Kong, India, Indonesia, Japan, Korea, Malaysia, the Philippines, Singapore, Taiwan, Thailand, Vietnam. Prudential is the second largest retail fund manager for Asian sourced assets ex-Japan as at June 2006. Its fund management business has expanded into a total of ten markets: China, Hong Kong, India, Japan, Korea, Malaysia, Singapore, Taiwan, Vietnam and United Arab Emirates.

FACT SHEET:
The CompanyICICI Prudential Life Insurance Company is a joint venture between ICICI Bank, a premier financial powerhouse, and Prudential plc, a leading international financial services group headquartered in the United Kingdom. ICICI Prudential was amongst the first private sector insurance companies to begin operations in December 2000 after receiving approval from Insurance Regulatory Development Authority (IRDA). ICICI Prudential's capital stands at Rs. 2602 crore with ICICI Bank and Prudential plc holding 74% and 26% stake respectively. For the period April 30, 2007 to July 31, 2007, the company garnered Rs. 1415 crore of weighted retail + group new business premiums and wrote over 5 million retail policies. The company has assets held to the tune of over Rs. 20,000 crore. ICICI Prudential is also the only private life insurer in India to receive a National Insurer Financial Strength rating of AAA (Ind) from Fitch ratings. The AAA (Ind) rating is the highest rating, and is a clear assurance of ICICI Prudential's ability to meet its obligations to customers at the time of maturity or claims. For the past six years, ICICI Prudential has retained its leadership position among private life insurer in the country, with a wide range of flexible products that meet the needs of the Indian customer at every step in life. Distribution ICICI Prudential has one of the largest distribution networks amongst private life insurers in India. It has a strong presence across India with over 680 branches and over 235,000 advisors. The company has over 23 bancassurnace partners, having tie-ups with ICICI Bank, Federal Bank, South Indian Bank, Bank of India, Lord Krishna Bank, Idukki District Co-operative Bank, Jalgaon Peoples Co-operative Bank, Shamrao Vithal Co-op Bank, Ernakulam Bank, 9 Bank of India sponsored Regional Rural Banks (RRBs), Sangli Urban Co-operative Bank, Baramati Co-operative Bank, Ballia Kshetriya Gramin Bank, The Haryana State Co-operative Bank and Imphal Urban Cooperative Bank Limited. ProductsInsurance Solutions for Individuals ICICI Prudential Life Insurance offers a range of innovative, customer-centric products that meet the needs of customers at every life stage. Its products can be enhanced with up to 7 riders, to create a customized solution for each policyholder. Savings & Wealth Creation Solutions

Save'n'Protectis a traditional endowment savings plan that offers life protection along with adequate returns.
CashBakis an anticipated endowment policy ideal for meeting milestone expenses like a child's marriage, expenses for a child's higher education or purchase of an asset. It is available for terms of 15 and 20 years.
LifeTime Super & LifeTime Plusare unit-linked plans that offer customers the flexibility and control to customize the policy to meet the changing needs at different life stages. Each offer 6 fund options - Preserver, Protector, Balancer, Maximiser, Flexi Growth and Flexi Balanced.
LifeLink Super is a single premium unit linked insurance plan which combines life insurance cover with the opportunity to stay invested in the stock market.
Premier Life Gold is a limited premium paying plan specially structured for long-term wealth creation.
InvestShield Life New is a unit linked plan that provides premium guarantee on the invested premiums and ensures that the customer receives only the benefits of fund appreciation without any of the risks of depreciation.
InvestShield Cashbak is a unit linked plan that provides premium guarantee on the invested premiums along with flexible liquidity options.
Protection Solutions

LifeGuardis a protection plan, which offers life cover at low cost. It is available in 3 options - level term assurance, level term assurance with return of premium & single premium.
HomeAssureis a mortgage reducing term assurance plan designed specifically to help customers cover their home loans in a simple and cost-effective manner.
Education insurance plans

Education insurance under the SmartKid brand provides guaranteed educational benefits to a child along with life insurance cover for the parent who purchases the policy. The policy is designed to provide money at important milestones in the child's life. SmartKid plans are also available in unit-linked form - both single premium and regular premium.
Retirement Solutions

ForeverLife is a traditional retirement product that offers guaranteed returns for the first 4 years and then declares bonuses annually.
LifeTime Super Pensionis a regular premium unit linked pension plan that helps one accumulate over the long term and offers 5 annuity options (life annuity, life annuity with return of purchase price, joint life last survivor annuity with return of purchase price, life annuity guaranteed for 5, 10 and 15 years & for life thereafter, joint life, last survivor annuity without return of purchase price) at the time of retirement.
LifeLink Super Pension is a single premium unit linked pension plan.
Immediate Annuity is a single premium annuity product that guarantees income for life at the time of retirement. It offers the benefit of 5 payout options.
Health Solutions

Health Assure and Health Assure Plus: Health Assure is a regular premium plan which provides long term cover against 6 critical illnesses by providing policyholder with financial assistance, irrespective of the actual medical expenses. Health Assure Plus offers the added advantage of an equivalent life insurance cover.
Cancer Care: is a regular premium plan that pays cash benefit on the diagnosis as well as at different stages in the treatment of various cancer conditions.
Diabetes Care: Diabetes Care is a unique critical illness product specially developed for individuals with Type 2 diabetes and pre-diabetes. It makes payments on diagnosis on any of 6 diabetes related critical illnesses, and also offers a coordinated care approach to managing the condition. Diabetes Care Plus also offers life cover.
Hospital Care: is a fixed benefit plan covering various stages of treatment - hospitalisation, ICU, procedures & recuperating allowance. It covers a range of medical conditions (900 surgeries) and has a long term guaranteed coverage upto 20 years.
Crisis Cover : is a 360-degree product that will provide long-term coverage against 35 critical illnesses, total and permanent disability, and death.
Group Insurance Solutions ICICI Prudential also offers Group Insurance Solutions for companies seeking to enhance benefits to their employees.Group Gratuity Plan: ICICI Pru's group gratuity plan helps employers fund their statutory gratuity obligation in a scientific manner. The plan can also be customized to structure schemes that can provide benefits beyond the statutory obligations. Group Superannuation Plan: ICICI Pru offers both defined contribution (DC) and defined benefit (DB) superannuation schemes to optimise returns for the members of the trust and rationalise the cost. Members have the option of choosing from various annuity options or opting for a partial commutation of the annuity at the time of retirement. Group Immediate Annuities:In addition to the annuities offered to existing superannuation customers, we offer immediate annuities to superannuation funds not managed by us.Group Term Plan: ICICI Pru's flexible group term solution helps provide affordable cover to members of a group. The cover could be uniform or based on designation/rank or a multiple of salary. The benefit under the policy is paid to the beneficiary nominated by the member on his/her death. Flexible Rider Options ICICI Pru Life offers flexible riders, which can be added to the basic policy at a marginal cost, depending on the specific needs of the customer.

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Accident & disability benefit: If death occurs as the result of an accident during the term of the policy, the beneficiary receives an additional amount equal to the rider sum assured under the policy. If an accident results in total and permanent disability, 10% of rider sum assured will be paid each year, from the end of the 1st year after the disability date for the remainder of the base policy term or 10 years, whichever is lesser. If the death occurs while travelling in an authorized mass transport vehicle, the beneficiary will be entitled to twice the sum assured as additional benefit