PROJECT REPORT

CONSUMER RECRUITMENT OF FINANCIAL

ADVISOR AND INSURANCE PRODUCTS OF
ICICI

PRUDENTIAL

LIFE

INSURANCE

CO.LTD.
. A Survey

ICICI PRUDENTIAL LIFE INSURANCE CO.

(BRANCH SHIMLA)
IN THE PARTIAL FULFILLMENT OF THE DEGREE OF
MASTER OF BUSINESS ADMINISTRATION (MBA)
(2005-2007)

SUBMITTED BY:
MAHENDER SINGH
MBA

PANJAB INSTITUTE OF MANAGEMENT & TECHNOLOGY

MANDI GOBINDGARH
1

ACKNOWLEDGEMENT

If words are considered as symbol of approval and taken of appreciation

then let the words play the heralding role of expressing my sincerest
gratitude and thanks

I am indebted to Rajender Pathania Unit Manager ICICI Prudential Life

Insurance Co., Shimla for providing me an opportunity to go through summer
training.
I would like to express my sincere gratitude towards Rajender Pathania (Course
Leader) for having provided me with this golden opportunity to be part of the
company for this span of time and also for letting me work on this project.
I would like to extend my warm gratitude to the other ICICI PRUDENTIAL
LIFE INSURANCE members for their help in completing the project.

MAHENDER SINGH

PREFACE
Risks and uncertainties are part of lifes great adventure- accidents,
illness, theft, natural disaster they are all built into working of the universe
waiting to happen. So far that there is a solution - insurance.
To overcome these risks and uncertainties this project describes about
various policies and schemes of different insurance companies. How these
companies provide different benefits to policyholders. Insurance is a
cooperative venture where risks and uncertainties are shared by many. Now a
days a lot is being done to create awareness among the insuring public about the
need and importance of the insurance in the field of a human being. In this
direction IRDA has planned to create awareness through electronic and print
media.
A study of life insurance describes the meaning, various policies,
comparison and their analysis market prospective changing customer scenario.

To Whom It May Concern

This is to certify that Mr. MAHENDER SINGH (MBA) of PIMT under
Punjab Technical University has undergone and successfully completed the
summer Training with our organization at SHIMLA Branch from--------------He has done an extensive research on the subject CONSUMER
RECRUITMENT

OF

FINANCIAL ADVISER

AND

INSURANCE

PRODUCTS OF ICICI PRUDENTIAL LIFE INSURANCE. He has

submitted his Project Report.

We wish he success in life.

For ICICI PRUDENTIAL LIFE INSURANCE.

RAJENDER PATHANIA
(UNIT Manager)

Place:
Date:

VISION
1.

Understanding the needs of customers and offering them superior

products and service
2.
Leveraging technology to service customers quickly, efficiently and
conveniently
3.
Developing and implementing superior risk management and investment
strategies to offer sustainable and stable returns to our policyholders
4.

Providing an enabling environment to foster growth and learning for our

employees

5.

And above all, building transparency in all our dealings.

About us
ICICI 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 equity base stands at Rs. 11.85 billion with ICICI Bank and
prudential plc holding 74% and 26% stake respectively. In the financial year
ended March 31, 2005, the company garnered Rs 1584 crore of new business
premium for a total sum assured of Rs 13,780 crore and wrote nearly 615,000
policies. The company has a network of about 56,000 advisors; as well as well
as 7-banc assurance and 150 corporate agent tie-ups. For the past four years,
ICICI prudential has retained its position as the No.1 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.

Fact Sheet
THE COMPANY
ICICI 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 capital base stands at Rs. 1335 crore with ICICI Bank and
prudential plc holding 74% and 26% stake respectively. For the year ended
March 31, 2006, the company garnered Rs. 2,412 crore of weighted new
business premiums and wrote 837,963 policies. The sum assured in force stands
at over Rs 56,000 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 rating is the highest rating, and is a clear assurance of ICICI Prudential
ability to meet its obligations to customers at the time of maturity or claims.
For the past five years, ICICI prudential has retained its position as the No.1
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. To know more about
the company, please visit www.iciciprulife.com.

DISTRIBUTION
ICICI prudential has one of the largest distribution networks amongst private
life insurers in India with a network of over 83,000 advisors, and having
commenced operations in 207 cities and towns in India, stretching from Bhuj in
the west to Guwahati in the east, and Jammu in the north to Trivandrum in the
south.
The company has 9 banc assurance partners, having tie-ups with ICICI Bank,
Bank of India, Federal Bank, South Indian Bank, and Lord
Krishna Bank, and some co-operative banks; as well as over 200 corporate
agents and brokers. It has also tied up with NGOs, MFIs and corporate for the
distribution of rural policies.

PRODUCTS
Insurance 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 4 riders, to create a customized solution for each
policyholder.

Savings & Wealth Creation Solutions

1.
Cash plus is a transparent, feature-packed savings plan that offers 3 levels
of protection as well as liquidity options.
2.
Save'n'protect is a traditional endowment savings plan that offers life
protection along with adequate returns.
3.
Cashbook is 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.
4.
Lifetimes Super& Lifetime Plus are 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 4 fund options? Preserver, Protector, Balancer
and Maxi miser.
5.
Life Link Super is a single premium unit linked insurance plan, which
combines life insurance cover with the opportunity to stay invested in the stock
market.
6.
Premier Life Gold is a limited premium-paying plan specially structured
for long-term wealth creation.
7.
Invest Shield 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.
8.
Invest Shield Cashbook is a unit linked plan that provides
premium
guarantee on the invested premiums along with flexible liquidity options.

Protection Solutions
1.
Lifeguard is a protection plan, which offers life covers at very low cost. It
is available in 3 options? Level term assurance, level term assurance with return
of premium and single premium.
2.
Home Assure is a mortgage reducing term assurance plan designed
specifically to help customers cover their home loans in a simple and costeffective manner.

Child Plans
Education insurance under the Smart kid 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. Smart kid plans are also available in unit-linked
form? Both single premium and regular premium.

Retirement Solutions
1.

Forever Life is a traditional retirement product that offers

guaranteed returns for the first 4 years and then declares bonuses
annually.
2.
Lifetime Super Pension is a regular premium unit linked pension
plan
that helps one accumulate over the long term and offers an annuity option
(guaranteed income for life) at the time of retirement.
3.
Life Link Super Pension is a single premium unit linked pension plan.

Health Solution
1.
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.
2.
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.

Group Insurance Solutions

ICICI prudential also offers Group Insurance Solutions for companies seeking
to enhance benefits to their employees.

1.

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.
8

2.

Group Superannuating Plan: ICICI pru offers both defined

contribution (DC) and defined benefit (DB) superannuating schemes to

optimize returns for the members of the trust and rationalize 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.

3.

Group Immediate Annuities:

In addition to the annuities

offered to existing superannuating customers, we offer immediate annuities to
superannuating funds not managed by us.
4. 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.

1.

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 the death occurs
while traveling in an authorized mass transport vehicle, the beneficiary will be
entitled to twice the sum assured as additional benefit.
2
Critical Illness Benefit: Protects the insured against financial loss
in the event of 9 specified critical illnesses. Benefits are payable to the insured
for medical expenses prior to death.
3. Income Benefit: This rider pays the 10% of the sum assured to the
nominee every year, till maturity, in the event of the death of the life assured. It
is available on Smart kid and Cash Plus.
4. Waiver of Premium: In case of total and permanent disability due
to an accident, the future premiums continue to be paid by the company till the
time of maturity. This rider is available with Lifetime super, Lifetime Super
pension and Cash Plus.

ABOUT THE PROMOTERS

ICICI Bank (NYSE:IBN) is India's second largest bank with an asset base
of Rs. 2513.89 billion as on March 31, 2006. ICICI Bank provides a broad
spectrum of financial services to individuals and companies. This includes
mortgages, car and personal loans, credit and debit cards, corporate and
agricultural finance. The Bank services a growing customer base of more than
17 million customers through a multi-channel access network which includes
over 620 branches and extension counter, 2200 ATMs, call centers and Internet
banking (www.icicibank.com.).
Established in London in1848, prudential plc, through its businesses in the UK
and Europe, the US and Asia, provides retail financial services products and
services to more than 16 million customers, policyholder and unit holders
worldwide. As of December 31, 2005, the company had over US$ 400 billion in
funds under management. Prudential has brought to market an integrated range
of financial services products that now includes life assurance, pensions, mutual
funds, banking, investment management and general insurance. In Asia,
prudential is the leading European life insurance company with a vast network
of 23 life and mutual fund operations in twelve countries-China, Hong Kong,
India, Indonesia, Japan, Korea, Malaysia, the Philippines, Singapore, Taiwan,
Thailand and Vietnam.

10

CONTENTS
Preface
Certificate
Acknowledgement
Introductions:

Definition

Need for Life Insurance

Role of Life Insurance

Evaluation of Insurance Industry in India

Vision
Distribution
Products
Promoters
Opening of Insurance Sector in India
Objectives of Liberalization of Insurance
Changing Expectations of Customers
Major Players in Life Insurance

Life Insurance of India (LIC)

ICICI Prudential

RELIANCE LIFE INSURANCE

Comparison of the products of various companies

Research Methodology
Research Methodology
Objectives
Target
Strategy
Achievement
Limitations

Data Analysis and Findings

Conclusion
Findings
Suggestions

Appendices
11

 Question

Bibliography

Insurance is basically risk management device. The losses to assets

resulting from natural calamities like fire; flood, earthquake, accident etc. are
met out of the common pool contributed by large number of persons who are
exposed to similar risks. This contribution of many is used to pay the looses
suffered by unfortunate few. However the basic principle is that loss should
occur as a result of natural calamities or unexpected events, which are
beyond the human control. Secondly insured person should not make any
gains out of insurance.
It is natural to think of insurance of physical assets such as motor car
insurance or fire insurance but often be forget that creator all these assets is
the human being whose effort have gone along way in building up to assets.
In that scene human life is a unique income generating assets. Unlike
physical assets, which decrease with the passage of time, the individual
become more experienced and mature as he advances in age. This raises his
earning capacity and the purpose of life insurance is to protect the income to
individual and provide financial security to his family, which is dependent on
his income in the event of his pre-mature death. The individual also himself
also needs financial security for the old age or on his becoming permanently
disabled when his income will stop. Insurance also has an element of saving
in certain cases.
Insurance is are rupees 400 billion business in India and yet its spread in
the country is relatively thin. Insurance as a concept has not being able to
make headway in India. Presently LIC enjoys a monopoly in Life Insurance
business while GIC enjoys it in general insurance business. There has been
very little option before the customer to decide the insurer. A successful
passage of the IRA bill has clear the way of private sector operators in
12

collaboration with their overseas partners. It is likely to bring in a more

professional and focused approach. More over the foreign players would
bring sophisticated actuarial techniques with them, which would facilitate
the insurer to effectively price the product. It is very important that the
trained marketing professionals who are able to communicate
Specific features of the policy should sell the policy. In the next millennium
all these activities would play a crucial role in the overall development and
maturity of the insurance industry.

DEFINITION GENERAL DEFINITION: In the words of John Magee, Insurance is a plan by which large
numbers of people associate themselves and transfer to the shoulders
Of all risks that attach to individuals

FUNDAMENTAL DEFINITION: In the words of D S Han sell, Insurance may be defined as a

social device providing financial compensation for the effects of misfortune,
the payments being made from the accumulated contributions of all
participating in the scheme.

CONTRACTUAL DEFINITION: In the words of justice Tindall Insurance is a contract in which a sum of
money is paid to the assured as consideration of insurers incurring the risk
of paying a large sum upon a given contingency.

13

CHARACTERISTICS OF INSURANCE
Sharing of risk
Co-operative device
Evaluation of risk
Payment on happening of special event
The amount of payment depends on the nature of losses incurred

NEED OF THE LIFE INSURANCE: The original, basic intention of life insurance is to provide for ones
family and perhaps others in the event of death. Originally, polices were to
provide for short periods of time, covering temporary risk situations, such as sea
voyages. As life insurance became more established. It was realized what a
useful tool it was in a number of situations, including:
1. Temporary needs/ threats:

The original purpose of Life Insurance remains an important element,

namely providing for replacement of income on death etc.
2. Regular Saving:

Providing ones family and oneself, as a medium to long-term exercise

(through a series of regular payment of premiums). This has become more
relevant in recent times as people seek financial independence from their
family.
14

3. Investment:

Put simply, the building up of saving while safeguarding it from ravages

of inflation. Unlike regular saving products are traditionally lump sum
investments, where the individual makes are one time payment.
4. Retirement:

Provision for ones on later years has become increasingly necessary,

especially in changing culture and social environment. One can buy a
suitable insurance policy, which will provide periodical payments in ones
old age.

BENEFITS:
1. It is superior to traditional saving machine:

As well as providing a secure vehicle to build up saving etc. it

provides piece of mind to the policyholder. In the event ultimately
death, of say the main earner in the family, the policy will pay out
guaranteed sum assured, which is likely to be significantly more
then the total premiums paid. With more traditional saving
vehicles, such as fixed deposits, the only return would be the
amount invested plus any interested accrued.
2. It encourages saving and forces thrift:

Once an insurance contract has been entered into, the insured has a
publication to continue paying premiums, until the end of the term
15

of policy, otherwise the policy will lapse. In other words, it

becomes compulsory for the insure to save regularly and spend
wisely. In contrast savings held in a deposit account can be
accessed or stop easily.
3. It provides easy settlement and protection against creditors

Once a person appointed for receiving the benefits or a transfer of

rights is made (assignment), a claim under the life insurance
contract can be settled easily. In addition, creditors have no right to
any mommies by the insurer, where the policy is written under
trust. Under the married womans act the money available from the
policy forms a kind of trust, which creditors cannot claim on.
4. It can be enchased and facilities borrowing:

Sum contracts may allow the policy can be surrendered for a cash
amount, if policyholder is not in a position to pay the premium. A
loan, against certain policy, can be taken for a temporary period to
tide over the difficulty. Presence of life insurance policy facilitates
credit for personal or commercial loans as it can be offered as
collateral security.
5. Tax relief:

The policyholder obtains income tax rebates by paying the insurance

premium. The specified form of saving which enjoys a tax rebate u/s
88 of the income tax act. Include Life Insurance premiums and
contribution to a recognized PF etc.

ROLE OF LIFE INSURANCE

Role 1: Life Insurance as investment
16

Insurance is an attractive option for investment. While most people

recognize the tax hedging and tax saving potential of life insurance, many are
not aware of its advantages as an investment option as well as. Insurance
products yield more compared to regular investment option as this is besides the
added incentives (read bonuses) offered by insurers.
You cannot compare an insurance product with other investment schemes for
simple reason that it offers financial protection from risks, something that is the
missing in non- insurance products.
Infect, the premium you pay for a investment against risk. Thus, before
comparing with other scheme, you must accept that a part of total amount
invested in life insurance goes towards providing for the risk cover, while the
rest is used for savings.
In life insurance, unlike non-products, you get maturity benefits on
survival at the end of the term. In other words, if you take a life insurance policy
for 20 years and survive the term the amount investor as premium in the policy
will come back to you with added returns. In the unfortunate event of death
within the tenure of the policy, the family of the deceased will receive the sum
assured.
Now, let us compare insurance as an investment options. If you invest Rs.
10000/- in PPF, year money grows to Rs. 10950 at 9.5% interest over a year.
But in this case, the access to your funds will be limited. One can withdraw
50% of the initial deposit only after four years.
The sane amount of Rs. 10000/- can give you an insurance cover of up to
approximately Rs. 5 to 12 lacks. (Depending upon the plan, age and medical
condition of life insure etc.) And this amount can become immediately available
to the nominee of the policyholder on death. Thus insurance is a unique
investment avenue that delivers sound returns in addition to protection.

Role 2: Life Insurance as Risk Cover

17

First and foremost, insurance is about risk cover and protection

financial protection, to be more precise-to help out last once unpredictable
losses. Designed to safe guard against losses suffered on account of an
unforeseen events. Insurance provide you with that uniqueness sense of security
that no other form of investment provides. By buying life insurance, you buy
peace of mind and are prepared to face any financial demand that would hit the
family incase of an untimely demise.
To provide such protection, insurance firms collect contributions for
many people who face the same risk. A loss claim is paid out of the total
premium collected by the insurance companies, who act as trustees to the
monies.
Insurance also provides a safeguard in the case of accident or a drop in
income after retirement. An accident or disability can be devastating and an
insurance policy can lend timely support to the family in such time. It also
comes as a great help when you retire, in case untoward incident happens during
the term in the policy.
With the entry of private sector player in insurance, you have a wide
range of products and services to choose from. Further, many of these can be
further customized to fit individual/group specific needs considering the amount
you have to pay now, its worth buying some extra sleep.

ROLE 3: Life Insurance as Tax Planning

Insurance serves as an excellent tax saving mechanism too. The Govt. of

India has offered tax incentives to life insurance products in order to facilitate
the flow of funds into productive assets. U/S 88 of Income Tax Act 1961, an
individual is entitled to rebate 20% on the annual premium payable on his/her
life and life of his/her children or adult children. The rebate is reducible from
18

tax payable by a individual or Hindu undivided family. This rebate is can be

availed up to a maximum of Rs 12000/- on payment of yearly premium of Rs
60000/- a year, you can buy anything upward of Rs 100000/- in sum assured.
This means that you get Rs 12000/- tax benefit. This rebate is deductible from
the tax payable by an individual or a Hindu undivided family.

THE EVALUATION OF INSURANCE INDUSTRY IN INDIA:

Life Insurance in its modern form is a western concept. The Indian
insurance industry is as old as it is in other part of the world. Although life
insurance business
Has been taking shape for the last 300 years; it came to India with the arrival of
Europeans. First Life Insurance Company was established in 1818 as Oriental
Insurance Company, mainly to provide for widows of Europeans. The
companies that follow mainly catered to Europeans and charged extra premium
on Indian Lives. The first insurance company insuring Indian Lives at standard
rates was BOMBAY MUTUAL LIFE INSURANCE COMPANY, which was
formed in 1870. This was also the year when the British Parliament passed 1st
Insurance act. The years subsequent to the Swadeshi movement saw the
emergence of several insurance companies. At the end of the year 1955 there
were 245 insurance companies. All the insurance companies were nationalized
in 1956 and brought under one umbrella- LIFE INSURANCE CORPORATION
OF INDIA (LIC) which enjoyed a monopoly of the Life Insurance business
until near the end of 2000. By enacting the IRDA act 1999, the Govt of India
effectively ended LICs monopoly and opened the doors for private Insurance
companies.

19

20

OPENING OF INSURANCE SECTOR IN INDIA

The union government of India decided to open the insurance sector to
make it more dynamic and customer friendly.
OBJECTIVE OF LIBERALIZATION OF INSURANCE :The Main objective for the opening up the Insurance sector to the private
insures as under: To provide better coverage to the India citizens.
To augment the flow of long-term financial resources to finance the growth
of infrastructure.
Indian Insurance industry has ten new entrants in year 2000-2001 in Life
Insurance sector.
S.No

Reg No

Date of Reg

Name of Company

1
2

101

23.10.2000

Reliance Life Insurance Co. Ltd.

HDFC Standard Life Insurance CO. Ltd

104

15.11.2000

Max New York Life Insurance CO. Ltd

105

24.11.2000

ICICI Prudential Life Insurance CO. Ltd

107

10.01.2001

OM Kotak Mahindra Life Insurance CO Ltd

109

31.01.2001

Birla Sun Life Insurance CO. Ltd

110

12.02.2001

Tata AIG Life Insurance CO. Ltd

111

20.03.2001

SBI Life Insurance CO. Ltd

114

02.08.2001

ING Vyasya Life Insurance CO. Ltd

10
11

116
117

03.08.2001
06.08.2001

Allianz Bajaj Life Insurance CO. Ltd

MetLife Insia Life Insurance CO. Ltd
21

22

CHANGING CUSTOMER EXPECTATIONS IN INSURANCE SECTOR

PRE TO POST LIBERALISATION
RESEARCH OBJECTIVE AND METHODOLOGY
OBJECTIVE: To provide insight into customers experiences prior to recent
liberalization, mapping changes in expectations after liberalization and
perceived performance of insurance players vis a vis expectations.
RESEARCH APPROACH: In depth qualitative study to capture indicative trends which can be
strictly validated, if required:
Geographical coverage: Delhi, Mumbai, Kolkata, Hyderabad and Banglore

RESEARCH DESIGN: RESPONDENT SEGMENT

Life Policy Holders: Old Customers: Taken Insurance prior to liberalization only.
Evolved Customer: Taken insurance both in per and post liberalization.
New customers: Taken Insurance in post liberalization only.

23

ROLE OF IRDA:
Educate public on regulatory safeguards, investments guidelines and
plough back of profits (several people have expressed concern about
security of their money, credibility of private insurance company
investment of funds in foreign markets.
Inform public on social and rural obligation of private players (several
people believed that only LIC was responsible for insuring the poor.
POST PURCHASE PROCESS: LIFE
Pre Liberalization

Post Liberalization

Premium Notice Intimation from company/reminder from agent

* Cash

43%

* Cash

41%

* Cheque

57%

* Cheque

49%

* Credit Card

10%

* No case of payment through Internet

Was observed, due to low awareness
And security apprehensions.
* Includes deposits at private company
Collection centers.
WHO DEPOSITS PREMIUM?
* Self

44%

* Self

37%

* Agent

49%

* Agent

49%

* Salary saving Scheme 7%

* Salary saving Scheme 14%

Includes relatives & friends

includes relatives & friends

24

CORRESPONDENCE

(Other

than

premium

notice)

FROM

COMPANY/AGENT
Generally no correspondence from

Mailers

from

both

private

either company or agent except for

companies and LIC on product and

late premium payment reminder

services,

from company

birthdays, anniversary and new

Agent maintained informal contact

with close customers

greetings

cards

on

product.
Phone calls from private company
call centers.
Agent in regular contact for offer
new product.

DELAY IN PREMIUM PAYMENT

Incidence of delay high 30%

Incidence of delay high 30%

(Due to irregular receipt of premium

(Due to irregular receipt of premium

notice from company/reminder from

notice from company/reminder from

agent)

agent)

CHANGING TRENDS IN SAVINGS PATTERN

Pre Liberalization
Saving Instrument % of Respondents
Insurance
23%

Post Liberalization
Saving Instrument % of Respondents
Insurance
33%

Bank Deposit

28%

Bank Deposit

44%

PPF

19%

PPF

8%

NSC

12%

NSC

Share

7%

Share

3%

Post Office

7%

Post Office

3%

Bonds

Bonds

9%

Gold
Total

4%
100

Gold
Total

0%
100

25

26

27

28

INTRODUCTION
ICICI Prudential Life Insurance Corporation Ltd. was incorporated on
20.7.2002. This company is a joint venture of ICICI (74%) and Prudential
plc UK (26%).
The company was granted certificate of registration for carrying out Life
Insurance Business, by the Insurance Registry and Development authority on
Nov 24.2000. It commenced commercial operations on Dec 19.2000, becoming
one of the few private sector players to enter the liberalized arena.

DETAILS OF ICICI: This is Indian participate company of this insurance Co. World Bank, the
govt of India and the Indian Industry, to promote industrial development of
India by providing project and corporate finance to Indian Industry, established
ICICI LTD in 1955.
Since inception, ICICI has grown from a development bank to a financial
conglomerate and has become one of the largest public financial institutions in
India. ICICI has thus far financed all the major sectors of the economy, covering
6848 companies and 16851 projects.

DETAILS OF PRUDENTIAL PLC: Prudential Plc was founded in 1848. Since then it has grown to become
one of the largest providers of a wide range of savings products for the
29

individuals including life insurance, pensions, annuities, unit trust and personal
banking. It has presence in 15 countries, and caters to the financial needs of
over 10 million customers.
Prudential is the largest life insurance company in the United Kingdom.
Asia has always been a region for prudential and it has had a presence in Asia
for 75 Years. In fact prudential first overseas operation was in India, way back
in 1923 to establish Life and General Branch agencies.
This is the only company who market maximum product with goof
feature in competition with LIC. In my opinion these companys stand seconds
in merits. It has introduced the following Insurance product: 1. Save n Protect
2. Cash Back
3. Smart Kid
4. ICICI PRU Life Guard
5. Life Time Pension.
1.

SAVE N PROTECT: It is a fix term policy that combines saving with life cover in this plan,

you pay premium regularly during the term. On death of the life assure up to
age 7 years the basic premium paid will be return without interest. On the death
of the life assured after 7 years, the beneficiary will get the sum assured,
guaranteed additions 3.5% compounded interest annually for the first 4 years
and the vested bonuses was the policy matured at the end of the term, you can
get the full sum assure and guaranteed addition, 3.5% compounded annually for
the 1st 4 years as well as the vested bonuses.
Minimum Age 0 years
30

Maximum Age 60 years

Term to Avail the plan :

Minimum term 10 years, maximum term 30 years
The maximum cover ceasing age is 70 years.
Advantages of this plan :
The plan not only covers your life but also provides you with a survives
benefit payout every five years.
In the unfortunate event of death of life insure, the beneficiary would
receive the death benefit.
On the maturity, you would receive the sum of the survivals benefit, bonus
addition and guaranteed addition.
You have the choice of paying your premium either in yearly, half yearly
modes, depending upon your conveniences.
Money back plan offers the tax benefit U/s 88, Sec 80D and Sec 10(10D)
Of the Income Tax Act, 1961 are applicable.
You can take a loan against this plan.
2.

CASH BANK: -

31

A fixed term policy of 15 to 20 years in which premiums are paid through

out the term of the policy. Survival benefit payment at regular intervals are
paid to provide you with the liquidity full sum assured, along with the
guaranteed addition 3.5% compounded annually for the 1st four years at the
vested bonuses would be payable on death, irrespective of the survival benefit
paid. On death of the life assured, the beneficiary will get the full sum assure,
the guaranteed bonuses and the vested bonuses, irrespective of the survival
benefit already paid. The survival benefit payable are as per the table:

Policy Term

15 Years

At end of year

Survival pay. a

Policy Term

20 Years

% At the end of year

Survival pay a % bas

basic

sum assured

sum assured
10%

10%

15%

15%

20%

12

20%

12

25%

16

25%

15 (Maturity)

50% gur add. Bonus

20 (Maturity)

50% gur add. Bonus

Minimum Age 16 Years

Maximum Age 55 years
Term to Avail Plan:
Minimum Term 15 years
Maximum Term 20 Years
32

The maximum maturity age is 70 years

Advantages of this Plan : The plan not only covers your life but also provide you with a survivals
benefit payout every five years.
In the unfortunate event of death of the life insure, the beneficiary would
receive the death benefit.
On maturity, you would receive the sum of the survivals benefit, bonus
addition and guaranteed addition.
You have the choice of paying your premium either in yearly, half yearly
modes, depending on your conveniences.
Money back plan offers the tax benefits U/s 88, Sec 80D and Sec 10(10D)
of the Income tax Act, 1961 are applicable.
3.

SMART KID: Smart kid is so designed that it provides you the flexibility to structure

the benefit in accordance to your needs. You get the security of assured
payments under your plan depending upon the benefit structure chosen by you.
Whats more, you can decide the term of the plan, so that the benefit are paid
when you need it. You can also choose the policy to mature between 22-25
years of the childs age. In case of survivals during the term of the policy you
can get the payouts after some intervals.

33

At the end of

Childs age

Payouts

10 yr of the policy

15 years

20% of the sum assured

12 yr of the policy

17 years

25% of the sum assured

15 yr of the policy

20 years

25% of the sum assured

17 yr of the policy

22 years

30% of the sum assured

+ GA + VB

Minimum Age 0 Years

Maximum Age 12 years
Parents of Minimum age 20 years and Maximum age 60 years
Term to Avail Plan:
Minimum Term 10 years
Maximum Term 25 Years
Advantages of this plan : On maturity you would receive the sum assured plus the bonus addition
The automatic cover maintenance facility ensures the policy remains
enforce for at least 3 years.
You have the option of paying premium half yearly or yearly.
Money back plan offers the tax benefit U/s 88, Sec 80D and Sec 10(10D) of
the Income tax Act, 1961 are applicable.
4.

LIFE TIME PLAN: 34

ICICI Prudential Life time Pension Plan combine the best of investment
and insurance. The solution gives the power of maintaining your life style needs
for as long as you live. It is a regular premium plan it gives you the freedom to
choose the amount, the premium, and invest your money in the market-linked
funds, to generate potentially higher returns. A part of the premium paid is used
to pay for the death benefit (if any) opted for by you and the rest be invested in
the plan of your choice. On the retirement date the accumulated value of the
units will be used to purchase and annuity-to provide you with regular income
for life.
Minimum Age 18 Years
Maximum Age 60 years
Term to Avail Plan:
Minimum Term 10 years
Maximum Term 52 Years
Advantages of this Plan : Power to choose the retirement age between 52-70 years.
You can increase your investment during the deferred period.
You can increase or decrease the protection level.
You can invest in a plan based on your priorities.
Money back plan offers the tax benefit U/s 88, Sec 80D and Sec 10(10D) of
the Income tax Act, 1961 are applicable.
35

 Your policy acquires a paid up and surrender value after 3 years premiums
are paid in life time pension plan.
5.

LIFE GUARD: Under this plan, a sum assure is payable in case of death of the life assure

during the term of contract. One can choose the lump sum that would replace
the income lost to ones family in the unfortunate event of the ones death. Since
this non-participating (without profits) plan is a pure, risk cover plan, no
benefits are payable on survival to the end of the term of the policy.
Minimum Age 18 Years
Maximum Age 50 years
Term to Avail Plan:
Minimum Term 5 years
Maximum Term 25 Years
Maximum age that plan covers is 65 years
Minimum premium payable is 2400 per annum
Advantages of this Plan: On maturity, you would receive the sum assure plus the bonuses addition.
Bonuses addition is the amount in the accumulation account. In cases of the
sum assure.
Cover you for a term (years) of your choice
At the same time does not burden you with the liability to pay premiums for
the entire life

36

 Entitled you to a bonus addition for the entire term of the plan.
Premium to be paid for the Full policy term or policy holders death,
whichever is earlier.
You have the choice of paying premium either in yearly, half yearly and
quarterly modes or of paying a single one time premium
Level term Assurance life guard plan will have the option with returns of
premium. In case of death you will receive the sum assure plus bonuses. On
survival till maturity, all the premium paid, will be returned without interest.
The minimum premium payable is Rs 2400/- per annum
Money back plan offers the tax benefit U/s 88; Sec 80D and Sec 10(10D) of
the Income tax Act, 1961 are applicable.

GENERAL BENEFITS
Accident Death Benefit: This benefit provides an additional amount (Over and above basic sum
assured) to the beneficiary in the death of the accidental death of the assured.
The maximum cover available under this benefit is equal to the basic sum
assured (subject to a maximum of Rs 10 lac). If accident death occurs while
traveling as a passenger in mass transport system like train or bus amount
payable would be double of the sum assure.

37

Critical Illness Benefit: The benefit can be taken with the basic life insurance policy to provide
financial support in the event of medical emergencies. On the first occurrence of
critical illness during the term of the policy, you would receive a portion of the
sum assured to reduce your financial burden in this emergency.
Permanent Disability Benefit: This benefit provides financial support in case of your permanent
disability due to an accident. The amount payable is over and above the basic
sum assured and would be paid out as an annuity. The maximum permanent
disability benefit that permanent disability is defined as a permanent and
immediate inability to work, the permanent loss of two limbs or a total and
permanent loss of a sight.
Major Surgical Rider: This is a cover available against the major surgical procedures.
Depending upon the surgery, 50%, 30% or 20% of the sum assured under the
rider is paid. This provides the cover of the sum, subject to maximum of 65
years. Claims for this rider are not admitted for the first 6 months of the policy.

38

OTHER BENEFITS: 1. Tax Benefit

2. Loan Facility
3. The policy holder can pay the premium yearly, half yearly and quarterly
4. If policy holder avail any additional, he will paid more premium
5. When the age of the person grow old. The premium also increased
6. Premium rate increased in case of person taking intoxicants in
comparison to healthy person.

39

40

(1) Objective
(2) Target/Tasks
(3) Strategy
(4) Achievements
(5) Limitation

41

Objective of on the training is to understand

(1) How work goes in corporate world
(2) How to work in a company
(3) How to adjust your self in a company
(4) How practical is different from your theoretical
knowledge
(5) How to relate your theoretical knowledge to practical
(6) How to handle different situations
(7) How to come out from the problems
(8) Decision-making
(9) To take experience
This training will tell us that where actually we stand and it
will make us aware of our weaknesses so that we can improve
on that in future.

42

My targets for on the job training are as following: (1) To recruit 15 people as life insurance advisors in 40 days.
(2) To get the references of persons as many as possible
(3) To convince every person about our company (brand
building)

43

Following are the strategies followed by me to achieve my

targets: (1) Firstly I see that which age group wants to do the work in
this sector.
(2) There after I see where I can find most of these age
groups.
(3) Then I take references of other people from then.
(4) Then to contact reference persons and to get more
references.

44

(1) Till date I have recruited 4 persons as life insurance

Advisors.
(2) Till date I have got references of 100 persons.
(3) Till date I have got 10 hot leads.

45

(1) It is very difficult to convince any person about private insurance

company because most of the people want to do work with government
companies.
(2) People are not satisfied with the commission rates provided by our
company because it is less than other company's.
(3) People those who want to do work are of University age group and right
now there are exams in university so people don't have time to do this work
(4) As Bilaspur is a very small town so we don't found many peoples in a city
like Bilaspur
(5) In starting we are doing both the things recruitment+ insurance but after I
month we have been told to do recruitments only

46

47

OBJECTIVES OF THE STUDY: 1. To know about the requirement habit of the people in the region of
BILASPUR (H.P)
2. To know about the views of people regarding various Insurance
Companies.
3. Position of the Insurance companies in the mind of the consumer
4. To know about the competition regarding various Insurance Companies.
5. To find out the position of Insurance Companies in the market.

48

DATA ANALYSIS AND FINDINGS: QUES 1: Awareness of the various companies:

S.No.

Particulars

%Age

ICICI

80%

HDFC

75%

OM Kotak Mohindra

5%

RELIANCE LIFE INSURANCE

30%

SBI Life Insurance

10%
ICICI

80%
70%

HDFC

60%
50%
40%

OM KOTAK
MOHINDRA

30%
20%
10%
0%

RELIANCE
LIFE
INSURANCE
SBI LIFE
INSURANCE

49

QUES 2: What the people think about the ICICI PRUDENTIAL?

S.No.

Particulars

%age

Necessity

Security
Imposition of an extra burden of 5%

expenses
A compulsory tool for tax 78%

for

protection 89%

saving

100%
80%
60%
40%
20%
0%

%age

Neccesity for protection Security

Imposition of an extra burden of expenses
A compulsory tool for tax saving

50

QUES 3: Is financial Advisor is the requirement of time?

S.No.
A
B

Particulars
Yes
No

%age
80%
20%

80%
70%
60%
50%
40%
30%
20%
10%
0%

%age
Yes

No

QUES 4: From where a respondent purchase the previous Insurance

Policy
S.No.

Particulars

%age
51

A
B
C
D

Directly from the company

Any unknown agent
Any known agent
Others

10%
10%
90%
5%

90%
80%
70%
60%
50%
40%
30%
20%
10%
0%
%age
Directly from the company
Any unknown agent
Any known agent
Others

MARKET SURVEY TO RECRUITMENT OF FINANCIAL ADVISOR

52

Respondents: 200 customers

1. Do you know about ICICI prudential Life Insurance?

Yes
75%

No
25%

80%
70%
60%
50%
Yes
No

40%
30%
20%
10%
0%

2. How much importance you will give to top three Insurance Companies?
LIC
40%

ICICI PRUENTIAL
38%

BAJAJ ALLIANZ
22%
53

40%
35%
30%
25%
20%
15%

LIC
ICICI
BAJAJ

10%
5%
0%

54

3. What do you think is expected of Insurance Agent?

Better Services
Knowledge of Product & Competition
Analysis need & suggest right product
Must be well known

30%
20%
10%
40%

0.4
better services

0.35
0.3

knowledge of
product &
cometition
analysis need &
suggest right
product
must be well
known

0.25
0.2
0.15
0.1
0.05
0
30%

4. How many people aware about Financial Advisor?

55

Aware
60%

Not aware
40%

60%
50%
40%
30%

aware
not aware

20%
10%
0%

56

5. Are you aware of a large number of successful Insurance Advisor of a

company growing up the value chain and becoming leaders with stable
earning of much more than 5 lakh?
Yes
40%

No
60%

60%
50%
40%
30%

Yes
No

20%
10%
0%

57

6. Would you like to get registered with ICICI Prudential Life Insurance as
financial advisor?
Yes
60%

No
40%

60%
50%
40%
30%

Yes
No

20%
10%
0%

58

7. Have you taken life Insurance for you?

Yes
80%

No
20%

80%
70%
60%
50%
40%

Yes
No

30%
20%
10%
0%

59

8. Who is your insurer?

INSURER
LIC
Private sector insurance
Both

PERCENTAGE
85%
10%
5%

90%
80%
70%
60%
50%
40%
30%

LIC
Private sector
insurance
Both

20%
10%
0%

60

QUES.5 Recruitment of financial advisor according to city.

City/ town

No. Of people

Bilaspur

Ghumarwin

Hamirpur

2
1.8
1.6
1.4
1.2
1
0.8

Bilaspur
Ghumarwin
Hamirpur

0.6
0.4
0.2
0

61

9. How many people know about existed financial Advisor in their natural
Market?
Bilaspur
Ghumarwin
Hamirpur

70%
60%
80%

80%
70%
60%
50%
40%
30%

Bilaspur
Ghumarwin
Hamirpur

20%
10%
0%

62

10. How many financial Advisors satisfied with the services providing by
ICICI Prudential Life Insurance?

Satisfied
Not satisfied

70%
30%

70%
60%
50%
40%
30%

Satisfied
Not satisfied

20%
10%
0%

63

10. How much corporate you will give to ICICI Prudential Life Insurance
to become as a Financial Advisor?
High
Medium
Low

70%
20%
10%

70%
60%
50%
40%
30%

High
Medium
Low

20%
10%
0%

64

11.How much peoples related with all Life Insurance Companies as a

financial Advisor?
LIC
ICICI
BAJAJ ALLIANZ
RELIANCE INSURANCE
TATA INSURANCE

90%
80%
60%
70%
50%

90%
80%
70%
60%
50%
40%
30%

LIC
ICICI
BAJAJ
RELIANCE
TATA

20%
10%
0%

65

CONCLUSIONS
==================

FINDINGS AND RECOMMENDATIONS:

1. The Monopoly of LIC has been broken because private Insurance
companies came into the market.
2. 90% respondents are aware of privatization of Insurance Industry and
10% respondents do not know about private companies.
3. 80% people know about ICICI Insurance Company. 75% people know
about HDFC Insurance Company and 15% people know about other
companies.
4. Some people preferred to the private companies because of their better
services.
5. Some people believe only or preferred only Public Insurance companies
like LIC.
6. As majority of the population of BILASPUR (H.P) belongs to the service
class so they consider tax saving rather than purchasing a Life insurance.
7. The Financial growth of Private companies is much more than Life
Insurance companies
66

8. The private companies always keep in touch with their customers with
the latest information.
9. Most of the respondent said that private companies should not be
trustworthy
10.Most of the people go for Children benefit because of Triple benefit.
11.Now, a day people preferred to invest the money in Insurance policy
rather than in Banks because of better benefits of Insurance polices
growth money with life cover.
12.The respondents are above 45 they believe in Public Insurance companies
and those respondents who are less than 45 believe in Private Insurance
companies
13.HDFC has made its presence felt in the market in a short span of time.

SUGGESTIONS:
1. Advertisement should be done on Television and especially Posters and
Banners. This will greatly help in raising awareness level.
2. Insurance company should show more commitment with the customer.
3. Private companies give better services to the customers comparatively to
Public companies.

67

4. The private company should create good relation and communication.

5. Private companies should work together to spread awareness regarding
the benefit given by the Private Companies.
6. Private Insurance Companies give some discount to attract the customer
7. A public relation officer should be appointed in the company who deals
with customers and their needs.
8. Cross training should introduce in Private Companies.
9. Private Companies needs to the market their product better and should
create greater awareness about their product and services. They need
extensive marketing advertising about the additional benefit provided by
them in comparison to the policies offered by LIC.
10.Agents have got maximum influence on a customer. They are the one
who introduce the prospect to different policies. So agents should be
given full-fledged training and the training should be strict.
11.Special emphasizes should be on known cover policies because these type
of policies have more potential in the market.

68

BIBLIOIGRAPHY
Study Material Of LIC
Study Material Of ICICI PRUDENTIAL
Study Material Of Financial Advisor
WEBSITES
www.iciciprudentiallifeinsurance.co.in

69