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Introduction:
Whenever there is uncertainty, there is risk .The risk cannot be averted. It involves
multi-faced losses. Risk is uncertainty of a financial loss. We do not have any
command on uncertainties. This makes it essential that we think in favor of a
device that becomes instrumental in spreading the loss .It is in this contet that we
think about insurance which is considered to be a social device to accumulate
funds to meet uncertain losses.
The main function of insurance is to provide protection against the possible
chances of generating losses. It eliminates worries and miseries of losses at
destruction of property and lives. !urther, it provides capital to national economy
since the accumulated funds are invested in productive heads. The industries,
businesses, individuals are considerably benefited by services that are provided by
insurance organi"ations. #any may not be aware that the life insurance industry of
India is as old as it is in any other part of the world. The first Indian life insurance
company was the $riental %ife Insurance &ompany, which was started in India in
'('( at )olkata'. * number of players +over in life and about ' in non-life/
mainly with regional focus flourished all across the country. 0owever, the
1overnment of India, concerned by the unethical standards adopted by some
players against the consumers, nationali"ed the industry in two phases in '23
+life/ and in '24 +non-life/. The insurance business of the country was then
brought under two public sector companies, %ife Insurance &orporation of India
+%I&/ and 1eneral Insurance &orporation of India +1I&/.
In line with the economic reforms that were ushered in India in early nineties, the
1overnment set up a &ommittee on Reforms +popularly called the #alhotra
&ommittee/ in *pril '225 to suggest reforms in the insurance sector. The
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&ommittee recommended throwing open the sector to private players to usher in
competition and bring more choice to the consumer. The ob6ective was to improve
the penetration of insurance as a percentage of 178, which remains low in India
even compared to some developing countries in *sia.
Reforms were initiated with the passage of Insurance Regulatory and 7evelopment
*uthority +IR7*/ 9ill in '222. IR7* was set up as an independent regulatory
authority, which has put in place regulations in line with global norms. o far in the
private sector, ' life insurance companies and 2 general insurance companies
have been registered.
With such a large population and the untapped market area of this population
Insurance happens to be a very big opportunity in India. Today it stands as a
business growing at the rate of '- per cent annually. Together with banking
services, it adds about 4 per cent to the country;s 178 .In spite of all this growth
the statistics of the penetration of the insurance in the country is very poor. #alhotra &ommittee? was
constituted by the government in '225 to eamine the various aspects of the
industry. The key element of the reform process was 8articipation of overseas
insurance companies with 3= capital. &reating a more efficient and competitive
financial system suitable for the re@uirements of the economy was the main idea behind his reform.
ince then the insurance industry has gone through many sea changes .The
competition %I& started facing from these companies were threatening to the
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eistence of %I&. ince the liberali"ation of the industry the insurance industry has
never looked back and today stand as the one of the most competitive and
eploring industry in India. The entry of the private players and the increased use
of the new distribution are in the limelight today. The use of new distribution
techni@ues and the IT tools has increased the scope of the industry in the longer
run.
Type of %ife Insurance 8olicies
TAR# %I!A I
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What if he survives the '-year periodC Well, then he is not entitled to any
paymentD the insurance company keeps the entire premium paid during the '-year
period.
o, there is no element of savings or investment in such a policy. It is a ' per
cent risk cover. It simply means that a person pays a certain premium to protect his
family against his sudden death. 0e forfeits the amount if he outlives the period of
the policy. This eplains why the Term Insurance 8olicy comes at the lowest cost.
W0$%A %I!A I
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'/ Traditional whole life insurance policy- gives you a guaranteed minimum
rate of return on your cash value portion.
/ Interest-sensitive whole life insurance policy -gives a variable rate on your
cash value portion, similar to an ad6ustable rate mortgage. With this you can have
more fleibility with your life insurance policy such as increasing your death
benefit without raising your premiums depending on the economy and the rate of
return on your cash value portion.
5/ ingle-premium -is for someone who has a large sum of money and would
like to purchase a policy up front. %ike other whole life insurance options, single-
premium whole life insurance accrues cash value and has the same ta shelter on
returns.
What are the benefits of choosing a whole life insurance policy over other types of
life insurance policiesC
Bnlike term life insurance, a portion of your premium money goes toward your
cash value which in turn could pay off your entire policy only after a few years.
*lso, your premium will remain constant during the time you are covered unless
you choose otherwise. *nd, unless you make a change to your whole life
insurance policy, you have lifelong coverage with no future medical eams. Whole
life is also a good choice because of the ta savings.
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B%I8 %I!A I
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B%I8 provides multiple benefits to the consumer
%ife protection
Investment and avings
!leibility
*d6ustable %ife &over
Investment $ptions
Transparency
$ptions to take additional cover against
7eath due to accident
7isability
&ritical Illness
urgeries
%i@uidity
Ta planning
!ew $ther Types of Insurance 8olicies
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%imited payment policy
8ay premiums for a stipulated period, usually or 5 years, or until you
reach a specified age +3/.
Eour policy then becomes >paid up? and you remain insured for life.
Gariable life policy
#inimum death benefit guaranteed, but the death benefit can be greater than
the minimum depending on earnings of the dollars invested in a separate stock or
bond fund.
*d6ustable life policy
* whole life insurance policy, but you can change your policy as your needs
change. !or eample, you can change your premium payments or the period of
coverage.
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Bniversal life - gives you more direct control
%ets you pay premiums at any time in almost any amount. The amount of
insurance can be changed more easily than a traditional policy.
The increase in the cash value of the policy reflects the interest earned on
short-term investments.
1roup life insurance
Term insurance.
$ften provided by an employer.
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&redit life insurance
7ebts such as car loan is paid off if you die. *lso protects lenders.Apensive protection.
!or the purpose of this regulation: *.
+'/ >*dvertisement? means material designed to create public interest in life
insurance or annuities or in an insurer, or in an insurance producerD or to induce the
public to purchase, increase, modify, reinstate, borrow on, surrender, replace or
retain a policy including: &omment: ee drafting note caveat immediately
following the definition of >insurance producer? in this section.
+a/ 8rinted and published material, audiovisual material and descriptive
literature of an insurer or insurance producer used in direct mail, newspapers,
maga"ines, radio and television scripts, telemarketing scripts, billboards and
similar displays, and the Internet or any other mass communication media.
+b/ 7escriptive literature and sales aids of all kinds, authored by the insurer,
its insurance producers, or third parties, issued, distributed or used by the insurer or
insurance producerD including but not limited to circulars, leaflets, booklets, web
pages, depictions, illustrations and form lettersD
+c/ #aterial used for the recruitment, training and education of an insurer;s
insurance producers which is designed to be used or is used to induce the public to
purchase, increase, modify, reinstate, borrow on, surrender, replace or retain a
policy.
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>*dvertisement? for the purpose of this regulation shall not include:
+a/ &ommunications or materials used within an insurer;s own organi"ation and
not intended for dissemination to the publicD
+b/ &ommunications with policyholders other than material urging
policyholders to purchase, increase, modify, reinstate or retain a policyD and
+c/ * general announcement from a group or blanket policyholder to eligible
individuals on an employment or membership list that a policy or program has
been written or arrangedD provided the announcement clearly indicates that it is
preliminary to the issuance of a booklet eplaining the proposed coverage.
*88%I&*9I%ITE
*. This regulation shall apply to any life insurance or annuity advertisement
intended for dissemination in this state. In variable contracts and other registered
products where disclosure re@uirements are established pursuant to federalregulation, this regulation shall be interpreted so as to eliminate conflict with
federal regulation.
9. *ll advertisements, regardless of by whom written, created, designed or
presented, shall be the responsibility of the insurer, as well as the producer who
created or presented the advertisement. Insurers shall establish and at all times
maintain a system of control over the content, form and method of dissemination
of all advertisements of its policies. * system of control shall include regular and
routine notification, at least once a year, to agents, brokers and others authori"ed
by the insurer to disseminate advertisements of the re@uirement and procedures for
company approval prior to the use of any advertisements that is not furnished by
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the insurer and that clearly sets forth within the notice the most serious
conse@uence of not obtaining the re@uired prior approval.
!$R# *deposit,? >epansion plan,? >profit,? >profits,?
>profit sharing,? >interest plan,? >savings,? >savings plan,? >private pension plan,?
>retirement plan? or other similar terms in connection with a policy in a contet or
under such circumstances or conditions as to have the capacity or tendency to
mislead a purchaser or prospective purchaser of such policy to believe that he will
receive, or that it is possible that he will receive, something other than a policy or
some benefit not available to other persons of the same class and e@ual epectation
of life.
7I&%$BRA
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*. The information re@uired to be disclosed by this regulation shall not be
minimi"ed, rendered obscure, or presented in an ambiguous fashion or
intermingled with the tet of the advertisement so as to be confusing or misleading.
9. *n advertisement shall not omit material information or use words, phrases,
statements, references or illustrations if the omission or use has the capacity,
tendency or effect of misleading or deceiving purchasers or prospective purchasers
as to the nature or etent of any policy benefit payable, loss covered, premium
payable, or state or federal ta conse@uences. The fact that the policy offered is
made available to a prospective insured for inspection prior to consummation of
the sale, or an offer is made to refund the premium if the purchaser is not satisfied
or that the policy or contract includes a >free look? period that satisfies or eceeds
regulatory re@uirements, does not remedy misleading statements.
&. In the event an advertisement uses >non-medical,? >no medical
eamination re@uired,? or similar terms where issue is not guaranteed, terms shall
be accompanied by a further disclosure of e@ual prominence and in 6utaposition
thereto to the effect that issuance of the policy may depend upon the answers to the
health @uestions set forth in the application.
7. *n advertisement shall not use as the name or title of a life insurance
policy any phrase that does not include the words >life insurance? unless
accompanied by other language clearly indicating it is life insurance. *n
advertisement shall not use as the name or title of an annuity contract any phrase
that does not include the word >annuity? unless accompanied by other language
clearly indicating it is an annuity. *n annuity advertisement shall not refer to an
annuity as a &7 annuity, or deceptively compare an annuity to a certificate of
deposit.
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A. *n advertisement shall prominently describe the type of policy advertised.
!. *n advertisement of an insurance policy marketed by direct response
techni@ues shall not state or imply that because there is no insurance producer or
commission involved there will be a cost saving to prospective purchasers unless
that is the fact. inepensive,? >low cost,? or other phrase
or words of similar import when the policies being marketed are guaranteed issue.
H. *nalogies between a life insurance policy or annuity contract;s cash values
and savings accounts or other investments and between premium payments and
contributions to savings accounts or other investments shall be complete and
accurate. *n advertisement shall not emphasi"e the investment or ta features of a
life insurance policy to such a degree that the advertisement would mislead the
purchaser to believe the policy is anything other than life insurance.
). *n advertisement shall not state or imply in any way that interest charged
on a policy loan or the reduction of death benefits by the amount of outstanding
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policy loans is unfair, ine@uitable or in any manner an incorrect or improper
practice.
%. If nonforfeiture values are shown in any advertisement, the values must be
shown either for the entire amount of the basic life policy death benefit or for each
', of initial death benefit.
#. The words > free,? >no cost,? >without cost,? >no additional cost, >at no
etra cost,? or words of similar import shall not be used with respect to any benefit
or service being made available with a policy unless true. If there is no charge to
the insured, then the identity of the payor shall be prominently disclosed. *n
advertisement may specify the charge for a benefit or a service or may state that a
charge is included in the premium or use other appropriate language.
J. Testimonials, *ppraisals, *nalysis, or Andorsements by Third 8arties
+'/ Testimonials, appraisals or analysis used in advertisements must be
genuineD represent the current opinion of the authorD be applicable to the policy
advertised, if anyD and be accurately reproduced with sufficient completeness to
avoid misleading or deceiving prospective insureds as to the nature or scope of the
testimonial, appraisal, analysis or endorsement. In using testimonials, appraisals or
analysisD the insurer or insurance producer makes as its own all the statements
contained therein, and these statements are sub6ect to all the provisions of this
regulation.
+/ If the individual making a testimonial, appraisal, analysis or an
endorsement has a financial interest in the insurer or related entity as a stockholder,
director, officer, employee or otherwise, or receives any benefit directly or
indirectly other than re@uired union scale wages, that fact shall be prominently
disclosed in the advertisement.
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policies or contracts on which the composite is based may be available in all states,
and shall provide a rating of the lowest rated insurer and reference the rating
agency, but need not identify each insurer. If an advertisement identifies the issuing
insurers, insurance issuer ratings need not be stated.
9. *n advertisement shall not use a trade name, an insurance group
designation, name of the parent company of the insurer, name of a particular
division of the insurer, a reinsurer of the insurer, service mark, slogan, symbol or
other device or reference without disclosing the name of the insurer, if the
advertisement would have the capacity or tendency to mislead or deceive as to the
true identity of the insurer or create the impression that a company other than the
insurer would have any responsibility for the financial obligation under a policy.
&. *n advertisement shall not use any combination of words, symbols or
physical materials that by their content, phraseology, shape, color or other
characteristics are so similar to a combination of words, symbols or physical
materials used by a governmental program or agency or otherwise appear to be of
such a nature that they tend to mislead prospective insurers into believing that the
solicitation is in some manner connected with a governmental program or agency.
HBRI7I&TI$
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9. *n advertisement may state that an insurer or insurance producer is
licensed in a particular state or states, provided it does not eaggerate that fact or
suggest or imply that competing insurers or insurance producers may not be so
licensed. .
*n advertisement shall not create the impression that the insurer, its financial
condition or status, the payment of its claims or the merits, desirability, or
advisability of its policy forms or kinds of plans of insurance are recommended or
endorsed by any governmental entity. 0owever, where a governmental entity has
recommended or endorsed a policy form or plan, that fact may be stated if the
entity authori"es its recommendation or endorsement to be used in an
advertisement.
I
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foreign companies are waiting in the line for the green signal to start their
operations. The Indian consumer should be ready now because the market is going
to give them an array of products, different in price, features and benefits. 0ow the
customer is going to make his choice will determine the future of the industry.
Overview of Insurance Industry :
It;s a business growing at the rate of '- per cent
annually and presently is of the order of Rs K billion. Together with banking
services, it adds about 4 per cent to the country;s 178. 1ross premium collection
is nearly per cent of 178 and funds available with %I& for investments are ( per
cent of 178. Eet, nearly ( per cent of Indian population are without life
insurance cover, health insurance and non-life insurance continue to be below
international standards. *nd this part of the population is also sub6ect to weak
social security and pension systems with hardly any old age income security. This
itself is an indicator that growth potential for the insurance sector is immense.
* well-developed and evolved insurance sector is needed for economic
development as it provides long term funds for infrastructure development and at
the same time strengthens the risk taking ability. It is estimated that over the net
ten years India would re@uire investments of the order of one trillion B dollar.
The Insurance sector, to some etent, can enable investments in infrastructure
development to sustain economic growth of the country.
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Insurance companies not only provide risk cover to infrastructure pro6ects, they
also contribute long-term funds. In fact, insurance companies are an ideal source of
long term debt and e@uity for infrastructure pro6ects. With long term liability, they
get a good asset- liability match by investing their funds in such pro6ects. IR7*
regulations re@uire insurance companies to invest not less than ' percent of their
funds in infrastructure and social sectors. International Insurance companies also
invest their funds in such pro6ects.
INSURANCE DEFINATION :
a !rom the viewpoint of the Individual : Insurance is an economic
device whereby the individual can substitute a small relatively
definite cost +premium/ for a large uncertain financial loss that
would have to be borne if insurance was not available.
b !rom the viewpoint of the ociety : Insurance is a mechanism
which relieves the individual citi"ens and the industry from the
burden of carrying on themselves the various risks , they are
likely to face from day to day.
T0A RI): There is risk insured against the policyholder .
T0A I
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%I!A I
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companies, including the ade@uacy of the bases of premia, scrutiny of the
various returns on investments, annual accounts, periodical actuarial valuations
etc. are re@uired to be submitted by the companies. The Insurance Regulatory
*nd 7evelopment *uthority *ct,'222 came into being effective '2th *pril
O!,ECTI(E OF IRDA :
> *n *ct to provide for the establishment of an *uthority to protect
the interests of holders of insurance policies, to regulate , promote and ensureorderly growth of the insurance industry and for matters connected therewith or
incidental thereto and further to amend the Insurance *ct, '25(, the %ife Insurance
&orporation *ct, '23.
FUNCTIONS OF IRDA :
To regulate , promote and ensure orderly growth of the insurance and
reinsurance business
Issue a certificate of registration, renew, modify, withdraw, suspend or cancel
such registration to the applicant i.e. insurance company
8repare a code of conduct for the agents, surveyors and loss assessors or the
intermediaries who take part in development of insurance business
To eercise all powers and perform all functions of the &ontroller of Insurance
under Insurance *ct '25(
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To promote efficiency in the conduct of insurance business
To promote and regulate professional organi"ations connected with the
insurance business
WI
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unbundled products with a variety of benefits as riders from which they can
choose. #ore customers are buying products and services based on their true needs
and not 6ust traditional money-back policies, which is not considered very
appropriate for long-term protection and savings. 0owever, there are still some key
new products yet to be introduced - e.g. health products.
&ustomer ervice:
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If one analyses the history of growth of the insurance industry since reforms, it is
marked by all-round growth of all players. #ore or less all players +including the
market leader %I&/ have aggressively recruited and trained advisors, appointed
agents, launched new products, improved customer service standards and
revampedLepanded their distribution networks. If at all there was any ma6or
difference between players it was only in time lag in launching of services. Avery
player would like the customers to believe that its service standards are the best or
that its agents are the most informed and ethical, but is debatable whether there are
any significant differences. In other words, each company is trying to be
Meverything to everybody;.
$ur argument is that the strategy of being everything to everybody is risky. ome
players 6ustify the above strategy on the basis that the Indian market is huge and it
can accommodate everybody. till, in a market where it is difficult to distinguish
oneself sufficiently on service or any other parameter to be able to charge a
premium, it will lead to unmitigated price competition to the detriment of all
players. $ne may achieve sales turnover, but margins and profitability will sufferseverely. In the insurance industry where large amounts of capital are re@uired, this
is risky.
While there is room for a few scale players with a finger in every pie, it is
profitable for other players to focus on different segments to survive and thrive in a
multi-firm open environment. While each company has to choose its own uni@ue
positioning based on its uni@ue strengths, the below-mentioned generic positioningalternatives appear worth considering.
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This type of positioning is based on varieties in products and services rather than
customer segments. It is a sensible strategy for those companies who have
distinctive advantages or strengths in offering certain products and services.
In the insurance industry too, it is possible to achieve a uni@ue position by focusing
on certain category of products. $ne such eample is 9irla unlife Insurance,
which has been placing particular focus on investment-related products since its
launch in India3. Through its superior fund management capabilities, the insurance
company can deliver better returns on its investment-linked products and thereby
carve for itself a leadership position in this segment.
Then there is the entire category of pension products which is widely touted to
have immense growth potential in India due to imminent pension reforms. It is
possible to achieve profitable positioning by focusing and ecelling in only
pension products.
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products tailored for different customer needs and there is no company focusing on
a particular customer need.
*n eample would be a life insurance company that focuses only on 0igh
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&0$$I
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In addition to such TG commercials, the private insurance companies were trying
to make their presence felt by organi"ing blood donation camps, contests and
sponsoring various events. I
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bringing out TG commercials and putting up hoarding and billboards, it entered
into a two-month long contract with hoppers top.
*llian" 9a6a6 kiosk that provided information about policies in order to attract
customers. *ccording to company sources, its plans were to try any kind of activity
that would generate awareness about company and its policies and >leads? +interest
by a prospective customer/ and converting the same into its customers. *llian"
9a6a6;s entire communication package included print advertisements, outdoor
media campaigns and direct marketing methods. *ll its print advertisements
carried a visual of human hands, which symboli"ed partnership and care to stress
on the concept of care.
imilarly, Tata *I1 entered into an agreement with Westside to set up information
kiosks in all its outlets in order to attract 8eople;s attention. *lso, Tata *I1 was
one of the first insurance companies to adopt the celebrity endorsement strategy.
Tata *I1 chose the 0indi movie star, Why does anyone need insuranceC Well,
why does a car need a spare tireC? *ccording to analysts, this advertisement
successfully pro6ected the importance of insurance for an individual. #et%ife;s
advertisements carried cartoons from the popular >8eanuts? series and carried
emotional messages.
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In addition to all the above, private players in the insurance sector charted out
various innovative marketing plans to establish their products. !or instance, I&I&I
8rudential launched the >Tru%ife &lub? for its high-value policyholders as part of
its marketing strategy. Through Tru%ife &lub, the company offered a wide range of
health-related products, health and fitness e@uipment and membership in gyms,
health resorts and clinics in India. 8olicyholders with a sum assured of Rs .
million or more were included into this club. *ccording to company sources, the
purpose of this whole eercise was to encourage a healthy life of its customers.
7uring the late-', when 9I %ife was concentrating on building its brand it was
offering packaged products to its customers.
#uralidharan, &hief of #arketing N ales, 9I %ife, said, >We are slowly and
steadily building our brand. Gery soon we will be launching print advertisements in
regional languages too. *s for launching a club for the premium segment, it;s
certainly a possibility which we are now evaluating.? *ccording to #uralidharan,
9I %ife was also eploring the possibility of advertising on the Internet in its bid
to reach out to its target audience.
*nother interesting development was regarding the punch lines used by private
insurance players that invariably tried to associate positive emotions with
insurance products. While I*dding life to insurance,? I&I&I
8rudential aid, >We cover you. *t every step in life.? imilarly, 07!& tandard
advertisements pro6ected a happy man assertingD >The 6oy of living life to the fullest, with a '5-year old epert taking care of your
insurance needs?. $m )otak highlighted its campaigns with >Heene ki a"aadi?
+!reedom to live/ and *llian" 9a6a6 stated *llian" 9a6a6, %ife insured by care.?
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. In Huly , IndiaOs state owned insurer, %ife Insurance &orporation of India
+%I&/ announced aggressive marketing plans with a budget of around Rs ' billion.
The aim of this unusual decision was to woo customers across the country through
a multimedia campaign including advertisements on the radio and the press media,
the outdoor media and the television. 0owever, this did not come as a ma6or
surprise to industry observers who said that %I& did not have too many options.
With the insurance bill being passed in , the Indian insurance sector saw a host
of private players enter the market with multinationals as their partners. These new
players resorted to aggressive marketing and advertisement strategies P something
the market had never seen earlier. This sudden spurt of advertisements and
awareness programs was visible on all the media channels.
8rint, electronic and outdoor advertisements of the new private insurers floodedcould be seen everywhere. This prompted many comparisons of such behavior of
insurance companies with the advertising fren"y of the dotcoms in India not too
long ago P with similar full-page advertisements, huge hoardings and costly
electronic media advertisements.
*ccording to a survey conducted by a leading marketing research firm, $R1
#arg, brand awareness of private insurers in India was increasing in the early 'st
century. The difference in the level of awareness of these new players as compared
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to the hitherto monopoly of %I& was decreasing fast because of the aggressive
advertising measures adopted by private insurers.
9ackground
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•Aasy settlement and protection against creditors:- a life insurance policy is
the only financial instrument the proceeds of which can be protected against
the claims of a creditors of the assured by effecting a valid assignment.
• *dministering the legacy for beneficiaries: - speculative or unwise epenses
can @uickly cause the s@uandered. everal policies have foreseen this
possibility and provide for payments over a period of years or in a
combination of installments and lump sum amounts.
• Ready marketability and suitability for @uick borrowing:- a life insurance
policy can after a certain time period +generally three years/ #ost cost
effective means to ensure that the important milestones in the children;s
lives are not hampered by the uncertainties of life.
• Investment: - life insurance also be an investment. *part from the ta
benefits that are also allowable by the government of India for investing in
life insurance, some life insurance policies offer returns on investment alongwith the cover for life. This can help you with long-term financial goals.
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• &harity:- life insurance is a great avenue to help a charitable cause. !or
people with philanthropic desire but short of means, life insurance provides
the option to contribute much more than is possible by the life insured.
• &ritical illness benefit:- many policy can also provide for cover against
&ritical illness.
• 0ospital cash benefit:- many policies can also provide for covering the
hospitali"ation epenses, along with cover for life.
• Ta benefit:- under the Indian income ta act, ta relief under section (( is
available for premium paid and section ''7 benefits are available for
7eathL maturityLsurrender proceeds from a life insurance policy.
A
*. Aach insurer shall maintain at its home or principal office a complete file
containing a specimen copy of every printed, published or prepared advertisement
of its individual policies and specimen copies of typical printed, published or
prepared advertisements of its blanket, franchise and group policies, hereafter
disseminated in this state, with a notation indicating the manner and etent of
distribution and the form number of any policy advertised. The file shall be sub6ect
to inspection by the department. *ll advertisements shall be maintained in the file
for a period of five +/ years after discontinuance of its use or publication.
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9. If the commissioner determines that an advertisement has the capacity or
tendency to mislead or deceive the public, the commissioner may re@uire an
insurer or insurance producer to submit all or any part of the advertising material
for review or approval prior to use.
&. Aach insurer sub6ect to the provisions of this regulation shall file with the
commissioner with its annual statement a certificate of compliance eecuted by an
authori"ed officer of the insurer stating that to the best of his or her knowledge,
information and belief the advertisements that were disseminated by or on behalf
of the insurer in this state during the preceding statement year, or during the
portion of the year when these rules were in effect, complied or were made to
comply in all respects with the provisions of these rules and the insurance laws of
this state as implemented and interpreted by this regulation.
G*RI$B *7GARTIA#A
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social feeds. *nd the onslaught has little to differentiate brands from the clutter of
ad campaigns.
!ather-son, !ather-daughter, on-old parents, 0usband-wife, most of these
relationships have formed the cru of life insurance campaigns since ages. o,
what can be done differently to stand out in the clutterC
0ere we look at how much Mdifferent; can one be, when it comes to promoting life
insurance in the digital space, with our focus on five ma6or life insurance brands
that have launched some interesting campaigns this ta-saving season:
$+ Tata AIA ./DaddyAur0ooey1
Tata *I* %ife insurance has started ' on a new note. The insurance company
has 6oined hands with &itibank in a bancassurance partnership under which the
company will launch products to be sold by &itibank. *long with wealth
management, life protection, saving and retirement solutions, the partnership will
see a digitisation process in place to aid smoother transactions and real-time instant
service options.
The change is being communicated through its newly launched brand makeover
campaign that is focussed on M#aking good happen;. %aunched in phases, the first
phase of the campaign uses storytelling to highlight brand values, while the later
phases will focus on the various product propositions for both new and eisting
customers.
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*t the heart of M#aking good happen; is the adorable story of a father and son P
7addy aur Qooey. The four-minute ad film conceptuali"ed by HWT tells the story
of their uni@ue relationship and what makes them family of the year.
The film begins in a hill station where a little boy is seen waking up his father in
the morning. *s the day wears on, we see the father trying his best to impress the
little boy through minor actions like getting a cookie 6ar from the top shelf and
more. The story proceeds through amusing failures by the father where we see him
being pushed around in @ueues or getting entangled in a blanket or being plain
6erky.
The boy is shown to be a big fan of superheroes making it even more mandatory
for the father to be his real life superhero.
*t the son;s birthday party, we see the father get upset as the son sits on the
shoulders of his favourite super hero, 6umping with 6oy. This makes him challenge
the superhero to an arm wrestling match which is obviously skewed towards the
stronger man.
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To the father;s surprise, his little son starts cheering for him, bringing tears to his
eyes. %ater we see the two sharing a laugh at a field, as we see the fathers; arm is
bandaged.
The voiceover in the end says, >0um 6eete haibas apno ke achche ke liye?.
The hashtag Sdaddyaur"ooey is displayed along with M#aking good happen;.
/ 9irla un %ife Insurance MS)hud)o)ar9uland;
With the ta season upon us, insurance brands are bracing up with new
communication campaigns. While some are taking the humour route, others are
leveraging pure storytelling to get their messages across. 9irla un %ife Insurance
+9%I/, the life insurance arm of *ditya 9irla !inancial ervices 1roup has come
up with the touching story of a single father;s grit and determination in raising his
autistic son.
With this positioning, the insurance brand seeks to celebrate the human spirit rather
than talk directly about how it can help you during the uncertainties of your life.
&onceptualised by Taproot India, the three-and-a-half minute film titled M)hud ko
kar buland; is already creating waves on social media.
The ad film opens rather sadly with a father learning that his son has autism. %ater
we see a photo frame of his wife with a tikka applied on it, implying she is no
more, as the little boy wails loudly for her.
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circumstances, we see this young father strive hard to take care of his son and his
special needs, while also managing the finances at home.
The story then moves on to a slightly grown up son who needs to be put into a
special school. *s destiny would have it, the factory at which the father is
employed has to shut down at the same time.
The scene then cuts to home where the son is upset at his father coming home late.
Right then the father promises him that he;ll never be late again P as the son has
been enrolled into the new program while he has started his own business venture.
* voiceover states, >0oni ko aap rok nahi sakte. 8ar honi bhi aap ko kaha rok
sakegi. *pno ko, apne sapno ko karo surakshit.?
5/ #a %ife Insurance MSecond &hance;
%ife;s uncertain. * freak accident while on a pilgrimage, a life threatening disease,
the demise of a loved one and you are reminded of the absolute uncertainty of life.
Juestions like, >Who will take care of my parentsC?, >Will my wife have to go
back to workC;, >Who will provide for my childrenC don;t take a moment to loom
large in our minds.
Time and again, we have heard of ama"ing stories of people who have had close
encounters with death. Eet the reality doesn;t settle in when it comes to facing
one;s own demise. #a %ife Insurance takes a realistic approach in its latest
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campaign titled Mecond &hance;. * 6oint venture between #a India and #, the
insurance brand is hoping to initiate awareness on the importance of life insurance
through Second&hance.
#a %ife;s econd &hance brings forth true stories of people who have had a close
encounter with death and how it 6olts them into reali"ation and not take their lives
for granted. 8artnering with creative agency $gilvy N #ather, 7elhi and digital
agency !lying &ursor for this storytelling campaign, the insurance brand has
chosen to leverage the social internet to spread second chance stories of *vani
9hati, 7r. Ra6 *nand and halabh 1oglani, all of whom have had a very close
brush with death.
*ll the films are housed at the #a %ife Mecond &hance; website. *part from
these short stories, the website also provides information on the #a %ife $nline
Term 8lan and how it can help secure one;s family and also about life cover
options available at #a %ife.
This is the real story of *vanti 9hati who has had a second chance at life. The
reali"ation of what she meant for her parents and her sister dawns on her to take
action. 8rotecting her family turned into a priority following which she can now
breathe a sigh of relief.
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7r. Ra6 *nand is a seasoned marathoner who believed he was immortal. The loving
father and husband was taken aback after surviving an unepected heart attack. 0e
shares his miraculous story of a second chance at life with story inputs from his
colleagues and family.
K/ 9I %ife Insurance S1reat7ad
%ife insurance companies are gearing up for the ta saving season. 9e it television,
radio, newspapers or the social media world, every life insurance brand is going
gung ho about the importance of having your life insured. 9I %ife Insurance P the
6oint venture life insurance company between tate 9ank of India +9I/, the largest
state-owned banking and financial services company in India, and 9
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%ike kids begin imitating their parents, this little guy follows his dad;s every action
including polishing his shoes. %ater when the son is about to fall asleep on the sofa,
tired from reading a storybook, the dad gets in 6ust in time to place a cushion
between his head and the sofa. * narrative all throughout the film takes the story
towards its message P it talks about how Mgreat dads; always make sure to be there
for their kids even in their absence.
/ 07!& %ife MS#y!amily#y8ride;
It;s the season of life insurance investments. While most working professionals are
on the lookout for ways to save their ta, life insurance companies have been
invading all forms of media in an attempt to woo them. The idea is to leave the
maimum impact while differentiating themselves from the clutter. 9ut, how much
Mdifferent; can one be, when it comes to selling life insuranceC
The recently launched, >*pno )o *pne 7um 8e Heena ikhao? is one campaign by
07!& %ife that makes sure to leave a lasting impact. 8owered by a long format 5-
minute film, it features a heart warming story of a father and his beloved daughter
who dreams of being a dancer. 0er prosthetic leg never comes in the way of her
dream, as the encouraging father instills a habit of independence and self pride in
her.
&onceptualised by %eo 9urnett and directed by filmmaker Gikramaditya #otwane
with music composed by 0anif haikh, the film opens with a little girl being
awakened lovingly by her father and then having breakfast together before fiing
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up her artificial leg. We see the two go to a dance class where she insists he put on
the dance anklets for her, while he argues that she should do it. he promises she
would do it the net time.
$n the big day when she has a group dance performance on stage, he isn;t there to
tie up her dance anklets. While she was accompanied by her grandma, he had
deliberately ecused himself with some work. *fter waiting aniously for him, she
ties it up herself 6ust before the curtains go up.
The father is actually standing backstage, as her performance goes on. It is only
when the performance ends to a loud applause and the curtains come down, that
she sees her father backstage beaming with pride. The two get into a tight hug, as
the narrative says later, >*pne parivaar ko apne dum pe 6eena sikhaosar utha ke
6iyo;. The hashtag S#y!amily#y8ride is displayed at the end.
Well aligned with the brand proposition, Mar Btha )e Hiyo;, the film has earned
positive appreciation for the brand, including the likes of veteran actor, *nupam
)her. The actor has called it a great film that portrays the father-daughter
relationship beautifully. Bploaded on 07!& %ife EouTube channel, the video hasgarnered more than 'K) views in days.
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ocial media was leveraged in a creative manner to build curiosity about the story
of a little girl and how she achieves her dream with a supportive father. 07!& %ife
began sharing teaser visuals on its social media pages, prior to releasing the ad
film. Aach of the visuals shared on its !acebook and Twitter pages took the story
forward, while creating bu"" for the new ad film.
1BI7A%I
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These guidelines issued with the above background are intended to protect the
interests of the insuring public, enhance their level of confidence on the nature of
sales material used and ultimately encourage fair business practices. They are to
be considered as the minimum standards to be adhered to, in addition to
compliance with the IR7* +Insurance *dvertisements and 7isclosure/
Regulations, +hereinafter referred to as M*dvertisement Regulations;/ and
the code of conduct prescribed by the *dvertisement tandards &ouncil of India
+*&I/ and any other regulations as applicable. These guidelines reinforce the
etant regulations on all promotional communications with
policyholdersLprospective policyholders or targeted market segment with the
ob6ective of soliciting insurance business or otherwise.
. &ategories of *dvertisements:
!or the purpose of these guidelines an advertisement may be classified into two
types:
.' Institutional *dvertisements
. Insurance *dvertisements
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