INTRODUCTION OF INSURACNE IN INDIA

The insurance industry of India consists of 53 insurance companies of which 24 are in life
insurance business and 29 are non-life insurers. Among the life insurers, Life Insurance
Corporation (LIC) is the sole public sector company. Apart from that, among the non-life
insurers there are six public sector insurers. In addition to these, there is sole national re-insurer,
namely, General Insurance Corporation of India (GIC Re). Other stakeholders in Indian
Insurance market include agents (individual and corporate), brokers, surveyors and third party
administrators servicing health insurance claims.
Out of 29 non-life insurance companies, five private sector insurers are registered to underwrite
policies exclusively in health, personal accident and travel insurance segments. They are Star
Health and Allied Insurance Company Ltd, Apollo Munich Health Insurance Company Ltd, Max
Bupa Health Insurance Company Ltd, Religare Health Insurance Company Ltd and Cigna TTK
Health Insurance Company Ltd. There are two more specialised insurers belonging to public
sector, namely, Export Credit Guarantee Corporation of India for Credit Insurance and
Agriculture Insurance Company Ltd for crop insurance.

Market Size
India's life insurance sector is the biggest in the world with about 360 million policies which are
expected to increase at a Compound Annual Growth Rate (CAGR) of 12-15 per cent over the
next five years. The insurance industry plans to hike penetration levels to five per cent by 2020.
The countrys insurance market is expected to quadruple in size over the next 10 years from its
current size of US$ 60 billion. During this period, the life insurance market is slated to cross US$
160 billion.
The general insurance business in India is currently at Rs 78,000 crore (US$ 11.7 billion)
premium per annum industry and is growing at a healthy rate of 17 per cent.
The Indian insurance market is a huge business opportunity waiting to be harnessed. India
currently accounts for less than 1.5 per cent of the worlds total insurance premiums and about 2
per cent of the worlds life insurance premiums despite being the second most populous nation.

The country is the fifteenth largest insurance market in the world in terms of premium volume,
and has the potential to grow exponentially in the coming years.
Investments
The following are some of the major investments and developments in the Indian insurance
sector.

Foreign Direct Investment in the insurance sector stood at US$ 341 million in MarchSeptember, 2015, showing a growth of 152 per cent compared to the same period last
year.

Insurance firm AIA Group Ltd has decided to increase its stake in Tata AIA Life
Insurance Co Ltd, a joint venture owned by Tata Sons Ltd and AIA Group from 26 per
cent to 49 per cent.

Canada-based Sun Life Financial Inc plans to increase its stake from 26 per cent to 49 per
cent in Birla Sun Life Insurance Co Ltd, a joint venture with Aditya Birla Nuvo Ltd,
through buying of shares worth Rs 1,664 crore (US$ 249 million).

Nippon Life Insurance, Japan's second largest life insurance company, has signed
definitive agreements to invest Rs 2,265 crore (US$ 348 million) in order to increase its
stake in Reliance Life Insurance from 26 per cent to 49 per cent.

The Central Government is planning to launch an all-in-one insurance scheme for farmers
called the Unified Package Insurance Scheme (Bhartiya Krishi Bima Yojana). The
proposed scheme will have various features like crop insurance, health cover, personal
accident insurance, live stock insurance, insurance cover for agriculture implements like
tractors and pump sets, student safety insurance and life insurance.

Government launched a special enrolment drive, Suraksha Bandhan Drive comprising of

sale of gift cheques and launch of deposit schemes in bank branches, to facilitate
enrolment under Pradhan Mantri Suraksha Bima Yojana (PMSBY) and Pradhan Mantri
Jeevan Jyoti Bima Yojana (PMJJBY).

To increase the subscriber base and ensure wider reach, the Central Government has
eased several norms for its flagship insurance scheme Atal Pension Yojana (APY),in
terms of more options for periodical contributions, voluntary and premature exits and
simplified penalty for payment delays.

Bennett Coleman and Co. Ltd (BCCL), the media conglomerate with multiple
publications in several languages across India, is set to buy Religare Enterprises Ltds
entire 44 per cent stake in life insurance joint venture Aegon Religare Life Insurance Co.
Ltd. The foreign partner Aegon is set to increase its stake in the joint venture from 26 per
cent to 49 per cent, following governments reform measure allowing the increase in
stake holding by foreign companies in the insurance sector.

GIC Re and 11 other non-life insurers have jointly formed the India Nuclear Insurance
Pool with a capacity of Rs 1,500 crore (US$ 226 million) and will provide the risk
transfer mechanism to the operators and suppliers under the CLND Act.

State Bank of India has announced that BNP Paribas Cardif is keen to increase its stake in
SBI Life Insurance from 26 per cent to 36 per cent. Once the foreign joint venture partner
increases its stake to 36 per cent, SBIs stake in SBI Life will get diluted to 64 per cent.

Bangladesh has granted permission to the Life Insurance Corporation of India (LIC) to
run its business, making it the second foreign insurance company to operate in the
country.

Reliance Life Insurance Company (RLIC) today said it will add 20,000 agents across
India in this financial year as part of its expansion plans. It will increase their agency
force by 20 per cent which now stands at 100,000.

Government Initiatives
The Government of India has taken a number of initiatives to boost the insurance industry. Some
of them are as follows:

The Insurance Regulatory and Development Authority (IRDA) of India has formed two
committees to explore and suggest ways to promote e-commerce in the sector in order to
increase insurance penetration and bring financial inclusion.

IRDA has formulated a draft regulation, IRDAI (Obligations of Insures to Rural and
Social Sectors) Regulations, 2015, in pursuance of the amendments brought about under
section 32 B of the Insurance Laws (Amendment) Act, 2015. These regulations impose
obligations on insurers towards providing insurance cover to the rural and economically
weaker sections of the population.

The Government of India has launched two insurance schemes as announced in Union
Budget 2015-16. The first is Pradhan Mantri Suraksha Bima Yojana (PMSBY), which is a
Personal Accident Insurance Scheme. The second is Pradhan Mantri Jeevan Jyoti Bima
Yojana (PMJJBY), which is the governments Life Insurance Scheme. Both the schemes
offer basic insurance at minimal rates and can be easily availed of through various
government agencies and private sector outlets.

The Uttar Pradesh government has launched a first of its kind banking and insurance
services helpline for farmers where individuals can lodge their complaints on a toll free
number.

The select committee of the Rajya Sabha gave its approval to increase stake of foreign
investors to 49 per cent equity investment in insurance companies.

Government of India has launched an insurance pool to the tune of Rs 1,500 crore (US$
226 million) which is mandatory under the Civil Liability for Nuclear Damage Act
(CLND) in a bid to offset financial burden of foreign nuclear suppliers.

Road Ahead
India's insurable population is anticipated to touch 750 million in 2020, with life expectancy
reaching 74 years. Furthermore, life insurance is projected to comprise 35 per cent of total
savings by the end of this decade, as against 26 per cent in 2009-10.
The future looks promising for the life insurance industry with several changes in regulatory
framework which will lead to further change in the way the industry conducts its business and
engages with its customers.
Demographic factors such as growing middle class, young insurable population and growing
awareness of the need for protection and retirement planning will support the growth of Indian
life insurance.

Insurance education
s for insurers. AIGIEA, AIIEA, AIIEF, AILICEF, AILIEA, FLICOA, GIEAIA, GIEU and
NFIFWI cater to the employees of the insurers. In addition, there are a dozen Ombudsman
offices to address client grievances.
Insurance education[edit]
A number of institutions provide specialist education for the insurance industry, these include;

National Insurance Academy, Pune, specialized in teaching, conducting research and

providing consulting services in the insurance sector. NIA offers a two-year PGDM program
in insurance. NIA was founded as Ministry of Finance initiative with capital support from the
then public insurance companies, both Life (LIC) and Non-Life (GIC, National, Oriental,
United & New India).

Institute of Insurance and Risk Management, Hyderabad, was established by the regulator
IRDA. The institute offers Postgraduate diploma in Life, General Insurance, Risk
Management and Actuarial Sciences. The institute is a global learning and research center in
insurance, risk management, actuarial sciences. They provide consulting services for the
financial industry.

Amity School of Insurance Banking and Actuarial science (ASIBAS) of Amity

University, located in Noida and established in 2000, offers MBA programs in Insurance,
Insurance and Banking, and M.Sc./B.Sc. actuarial sciences to a Post Graduate Diploma in
Actuarial Sciences.

Pondicherry University is offering mba in insurance management. Pondicherry university

is the only central university which offers insurance management in India.

Birla Institute of Management Technology is a graduate business school located in

Greater Noida, established in 1988, offers a PGDM-IBM program in insurance business
management. This program was launched in 2000 by the Centre for Insurance and Risk
Management and is accredited by the Insurance Regulatory and Development Authority. Life
Office Management Association (LOMA), USA is BIMTECH's educational partner and
BIMTECH is an approved centre for LOMA examination. The Chartered Insurance
Institute (CII), UK has accorded recognition (by way of credits) to the BIMTECH PGDMIBM program. Their two-year PGDM program in insurance business has been recognized as
equivalent to the Associate level of the Insurance Institute of India, Mumbai.

National Law University, Jodhpur offers a two-year MBA and one year MS (for
engineering graduates) program in insurance.

To become an insurance advisor in India, Insurance Act, 1938 mandates that the individual has to
be "a Major with sound mind". After the advent of IRDA as insurance regulator, it has framed
various regulations, viz. training hours, examination and fees which are amended from time to
time. Since November 2011 IRDA has introduced a syllabus (IC-33) conceived and developed
by CII, London. The syllabus mainly aims to make an Insurance Agent a financial professional.
Recent Initiatives: On 09 th May 2015 NDA Government led by Shri.Narendra Modi initiated
three social Insurance Security schemes named ATAL PENSION YOJANA,PRADHAN
MANTHRI JEEVAN JYOTHI YOJANA, PRADHAN MANTHRI SURAKSHA YOJANA on a
massive scale such as 8 crore people joined in these schems in just 03 weeks and still the number
growing.
The insurance sector went through a full circle of phases from being unregulated to completely
regulated and then currently being partly deregulated. It is governed by a number of acts.
The Insurance Act of 1938[4] was the first legislation governing all forms of insurance to provide
strict state control over insurance business.Life insurance in India was completely nationalized
on 19 January 1956, through the Life Insurance Corporation Act. All 245 insurance companies
operating then in the country were merged into one entity, the Life Insurance Corporation of
India.
The General Insurance Business Act of 1972 was enacted to nationalize about 100 general
insurance companies then and subsequently merging them into four companies. All the

companies were amalgamated into National Insurance, New India Assurance, Oriental Insurance
and United India Insurance, which were headquartered in each of the four metropolitan
cities.Until 1999, there were no private insurance companies in India. The government then
introduced the Insurance Regulatory and Development Authority Act in 1999, thereby deregulating the insurance sector and allowing private companies. Furthermore, foreign investment
was also allowed and capped at 26% holding in the Indian insurance companies.
In 2006, the Actuaries Act was passed by parliament to give the profession statutory status on par
with Chartered Accountants, Notaries, Cost & Works Accountants, Advocates, Architects and
Company Secretaries.A minimum capital of US$80 million(Rs.400 Crore) is required by
legislation to set up an insurance business.

Authorities
The primary regulator for insurance in India is the Insurance Regulatory and Development
Authority of India (IRDAI) which was established in 1999 under the government legislation
called the Insurance Regulatory and Development Authority Act, 1999.[5][6]
The industry recognises examinations conducted by IAI (for 280 actuaries), III (for 2.2 million
individual agents, 680 corporate agents, 380 brokers and 29 third-party administrators) and
IIISLA (for 8,200 surveyors and loss assessors). There are 9 licensed Web aggregators. TAC is
the sole data repository for the non-life industry. IBAI gives voice to brokers while GI Council
and LI Council are platforms for insurers. AIGIEA, AIIEA, AIIEF, AILICEF, AILIEA, FLICOA,
GIEAIA, GIEU and NFIFWI cater to the employees of the insurers. In addition, there are a
dozen Ombudsman offices to address client grievances.

IMPORTANCE OF INSURANCE IN INDIA

Insurance is the only sector which garners long term savings
Insurers are increasingly introducing innovative products to meet the specific needs of the
prospective policyholders. An evolving insurance sector is of vital importance for economic
growth. While encouraging savings habit it also provides a safety net to both enterprises and
Individuals.
Insurance Companies receive, without much default, a steady cash stream of premium or
contributions to pension plans. Various actuary studies and models enable them to predict,
relatively accurately, their expected cash outflows.
Liabilities of Insurance companies being long-term or contingent in nature, liquidity is excellent
and their investments are also long-term in nature. Since they offer more than the return on
savings in the shape of life-cover to the investors, the rate of return guaranteed in their insurance
policies is relatively low. Consequently, the need to seek high rates of returns on their
investments is also low. The risk-return trade off is heavily tilted in favour of risk.
As a combined result of all this, investments of insurance companies have been largely in bonds
floated by GOI, PSUs, state governments, local bodies, corporate bodies and mortgages of long
term nature.

Generates Long term funds for infrastructure and strong positive correlation between
development of capital markets and insurance/pension sector
For GDP to grow at 8 to 10%, qualitative improvement in infrastructure is essential. Estimates of
funds required for development of infrastructure vary widely. An investment of 6,19,600 crore is
anticipated in the next 5 years. Tenure of funding required for infrastructure normally ranges
from 10 to 20 years. The insurance industry also provides crucial financial intermediary services,
transferring funds from the insured to capital investment, critical for continued economic
expansion and growth, simultaneously generating long-term funds for infrastructure
development.
In fact infrastructure investments are ideal for asset-liability matching for life insurance
companies given their long term liability profile. According to preliminary estimates published
by the Reserve Bank of India, contribution of insurance funds to financial savings was 14.2 per
cent in 2005-06, viz., 2.4 per cent of the GDP at current market prices. Development of the
insurance sector is thus necessary to support continued economic transformation. Social security
and pension reforms too benefit from a mature insurance industry.
The insurance sector in India, which was opened up to private participation in the year 1999, has
completed over seven years in a liberalized environment. With an average annual growth of 37
per cent in the first year premium in the life segment and 15.72 per cent growth in the nonlife
segment, together with the largest number of life insurance policies in force, the potential of the
Indian insurance industry is still large.

Life insurance penetration in India was less than 1 per cent till 1990-91. During the 1990s, it was
between 1 and 2 per cent and from 2001 it was over 2 per cent. In 2005 it had increased to 2.53
per cent.

Spread of financial services in rural areas and amongst socially less privileged
IRDA Regulations provide certain minimum business to be done
- in rural areas
- in the socially weaker sections
Life Insurance offices are spread over nearly 1400 centres. Presence of representative in every
tehsil deeper penetration in rural areas.
Insurance agents numbering over 6.24 lakhs in rural areas.
Policies sold in rural areas (2004-05) - No. of policies - 55 lakhs, Sum assured 46,000 crores.
Social security - No. of lives covered 2003-04 17.4 lakhs 2004-05 42.1 lakhs

Insurance has evolved as a process of safeguarding the interest of people from loss and
uncertainty. It may be described as a social device to reduce or eliminate risk of loss to life and
property.
Insurance contributes a lot to the general economic growth of the society by provides stability to
the functioning of process. The insurance industries develop financial institutions and reduce
uncertainties by improving financial resources.
1. Provide safety and security:
Insurance provide financial support and reduce uncertainties in business and human life. It
provides safety and security against particular event. There is always a fear of sudden loss.

Insurance provides a cover against any sudden loss. For example, in case of life insurance
financial assistance is provided to the family of the insured on his death. In case of other
insurance security is provided against the loss due to fire, marine, accidents etc.

2. Generates financial resources:

Insurance generate funds by collecting premium. These funds are invested in government
securities and stock. These funds are gainfully employed in industrial development of a country
for generating more funds and utilised for the economic development of the country.
Employment opportunities are increased by big investments leading to capital formation.
3. Life insurance encourages savings:
Insurance does not only protect against risks and uncertainties, but also provides an investment
channel too. Life insurance enables systematic savings due to payment of regular premium. Life
insurance provides a mode of investment. It develops a habit of saving money by paying
premium. The insured get the lump sum amount at the maturity of the contract. Thus life
insurance encourages savings.
4. Promotes economic growth:
Insurance generates significant impact on the economy by mobilizing domestic savings.
Insurance turn accumulated capital into productive investments. Insurance enables to mitigate
loss, financial stability and promotes trade and commerce activities those results into economic
growth and development. Thus, insurance plays a crucial role in sustainable growth of an
economy.
5. Medical support:
A medical insurance considered essential in managing risk in health. Anyone can be a victim of
critical illness unexpectedly. And rising medical expense is of great concern. Medical Insurance

is one of the insurance policies that cater for different type of health risks. The insured gets a
medical support in case of medical insurance policy.
6. Spreading of risk:
Insurance facilitates spreading of risk from the insured to the insurer. The basic principle of
insurance is to spread risk among a large number of people. A large number of persons get
insurance policies and pay premium to the insurer. Whenever a loss occurs, it is compensated out
of funds of the insurer.
7. Source of collecting funds:
Large funds are collected by the way of premium. These funds are utilised in the industrial
development of a country, which accelerates the economic growth. Employment opportunities
are increased by such big investments. Thus, insurance has become an important source of
capital formation.
The economic development of India was dominated by socialist influenced policies, stateowner
sector, and red tape and extensive regulations, collectively known as License Raj. The Indian
economic development got a boost through its Economic reforms in 1991 and again through its
renewal in the 2000. Insurance serves a number of valuable economic functions that are largely
distinct from other types of financial intermediaries. Insurance contribution materially to
economic growth by improving the investment climate and promoting a more efficient mix of
activities then would be undertaken, in the absence of risk management instrument. Insurance
sector in India is one of the most booming sectors of the economy and is growing at the rate of
15-20 percent per annum. In India, insurance is a flourishing industry, with several national and
international players competing with each others and growing at rapid rates. Indian insurance
companies offer a comprehensive range of insurance plans, a range that is growing as the
economy matures and the wealth of the middle classes increases. Due to the growing demand for
insurance, more and more companies are now emerging in the Indian insurance sector. The
economy of India is the eleventh largest in the world by nominal GDP and the forth largest by
Purchasing Power Parity (PPP). KEYWORDS: License Raj, Economic reform, financial

intermediaries, Investment climate, Risk management instrument, Comprehensive range,

Nominal GDP, PP.
For economic development investments are necessary. Investments are made out of savings. Life
Insurance Company is a major instrument for the mobilization of savings of people, particularly
from the middle and lower group. All good life insurance companies have huge funds
accumulated through the payments of small amounts of premium of individuals. These funds are
invested in ways that contribute substantially for the economic development of the countries in
which they do business The system of insurance provides numerous direct and indirect benefits
to the individuals and his family as well as to industry and commerce and to the community and
the nation as a whole. Present day organization of industry, commerce and trade depend entirely
on insurance for their operation, banks, and financial institutions lend money to industrial and
commercial undertakings only on the basis of the collateral security of insurance.
SCOPE OF THE INSURANCE IN INDIA
Insurance is a nice-looking option for investment but most people are not aware of its advantages
as an investment option. Remember that foremost and first, insurance is about risk cover and
protection. By buying life insurance, you buy peace of mind. Insurance also serves as an
excellent tax saving mechanism. The Government of India has provided tax incentives to life
insurance products in order to facilitate the flow of funds into productive assets
.
The insurance sector has opened up for private insurance companies with the enactment of IRDA
Act, 1999. A large number of companies are competing under both general and life Insurance.
The FDI cap/equity in this sector is 26% and the proposals have to be cleared by Insurance
Regulatory and Development Authority (IRDA) established to protect the interest of holder of
Insurance policy and act as a regulator and facilitator in the industry.
Some of the major players in this sector are LIC, Max New York Life Insurance, Bajaj Allianz,
ICICI Prudential, HDFC Standard Life, Metlife Insurance, Birla Sun Life Insurance, etc

various types of instruments and policies are coming up in the market to attract more clients.
Most of the population of India is not insured, hence there is a lot of scope in this sector and a
number of companies are planning to enter the sector.
Life insurance is a financial cover for a contingency linked with human life, like death, disability,
accident, retirement etc. It provides a definite amount of money in case the life insured dies
during the term of the policy or becomes disabled on account of an accident.138
When a human life is lost or a person is disabled permanently or temporarily there is loss of
income to the household. So everyone who has a family to support and is an income earner needs
life insurance. The idea underlying the concept of life insurance is that when your family
members or dependants depend on you financially: you need to secure their future. Having your
life insured is akin to promising your family that they wont ever face a financial problem,
whether you are there or not because your responsibilities do not end with you. It means buying
life insurance is like buying peace of mind for lifetime
Thus, the significance of having a life insurance lies in the peace of mind that it brings along.
Apart from this it promotes savings, assist the family in odd situations, gives tax benefits and
facilitates easy loans thereby securing the future of insured. But in order to have 138
http://www.pnbmetlife.com/downloads/policyholderhandbook.pdf. Accessed on 14/10/13 at 8:30
P.M. 58 a financially secured future, you have to pay the insurer a life insurance premium,
which is either a regular annual payment or onetime payment as the case may be.
There are several types of insurance plans for specific needs. One of the categories is traditional
insurance plans such as term insurance, endowment and many back up plans. Such plans offer
multiple benefits in terms of life cover and returns, providing security and safety to insured. The
other category is market linked plans, also known as ULIPS. These plans provide both
protection and savings combined with flexibility to the covered person. As these products are
linked to capital markets, they may have the potential to deliver better returns than tradition plans
Life Insurance is the most popular form of Insurance as it transfers the financial risks associated
with your death to an insurance company. General Insurance like fire, marine, property, vehicle
etc. transfer the risk associated with your property to an insurance company so that you dont

have to pay out of pocket for any property damage covered under the terms of the insurance
policy. The central point of difference between the two is that life insurance is a non-indemnity
policy and the event insured is certain.
At present, life insurance enjoys maximum scope because the life is the most important property
of the society or an individual. Each and every person requires the insurance. This insurance
provides protection to the family at the premature death or gives adequate amount at the old age
when earning capacities are reduced. The insurance is not only a protection but is a sort of
investment as a certain sum is returnable to the insured at the death or at the expiry of a period.

To understand life insurance we have to first understand the scheme of insurance. Insurance is a
co-operative device to spread the loss caused by a particular risk over a number of persons who
are exposed to it and who agree to insure themselves against the risk.4 Under the plan of
insurance, a large number of people associate themselves to share different types of risks
attached to human life and property. The aim of all types of insurance is to make provision
against such risks. In other words, it is a provision which a prudent man makes against inevitable
contingencies, loss or misfortune.5 In this way, life insurance is a social device to share the risk
of loss of life.
The whole idea of insurance has developed on the fact that human life is full of uncertainties and
the life of a person itself is very uncertain. Eventualities do cast their shadows, and therefore one
has to equip oneself with possible means so as to face the unforeseen. It is well said that Life is
full of risks. For property, there are fire risks, for shipment of goods, there are perils of sea, for
human life, there is the risk of death or disability and so on and so forth.
Life insurance is a husbands privilege, a wifes right and a childs claim.2 The scheme of life
insurance provides an assurance that if such an event happens, the person or his dependents
would get financial assistance to bear the loss

It has been aptly said that life insurance offers the safest and surest means of establishing a
socialistic pattern, perhaps not without a lot of sweat but certainly without blood and tears. It
stabilizes the economic security of the policy holder and at the same time contributes its might to
promotion of industry by providing the necessary capital and supports various social security
measures.3

INTRODUCTION TO ICICI BANK

Organization Structure:
B.O.D ICICI
Prudential

C.E.O

Claims Debt
H.R HEAD

Head
SALES
HEAD

Peninsular

Operation

Himalayas

M.P
K.G

T.N
A.P

Karnataka and
Goa

Kerala

s
R. M

R. M

R. M

B. M

S. M
S.M Bellary

Haveri

A.R.
S. M

Bidar
S. M Hubli

S. M
Advisor

Hospet
Advisor

Advisor
Advisor

Advisor

ICICI Bank, Indias largest private sector bank, today crossed a milestone of supporting one
million women beneficiaries through its programme for Self Help Groups (SHG) which aims at
empowering less privileged women to become self-reliant.
SHG is a term used for a group of 10-20 less privileged women, primarily from rural and semi
urban areas, who pool their resources on a periodic basis and use this money for income
generating activities like cattle and goat rearing, kirana/grocery vending, jewellery making,
handicrafts and emergency needs among others.
Ms. Chanda Kochhar, Managing Director & CEO, ICICI Bank, handed over a cheque to
Manisha Bangar, the one millionth woman beneficiary, in Mumbai on International Womens
Day. Ms. Bangar, 29 and mother of two, represents Sant Janabai Mahila Swayam Sahaya Bachat
Gat from Sheel village in Shahpur, Thane district. Wife of a marginal farmer, Ms. Bangar works
as an assistant tailor and dreams to set-up her own tailoring shop. She will use part of the loan to
buy a new sewing machine and take the first step towards fulfilling her dream.
Speaking at the event, Ms. Kochhar said, I am delighted to announce that the Bank, through its
work with SHGs, has touched the families of a million women beneficiaries. This is an important
milestone for the Bank and I am happy to commemorate it on International Womens Day. The
zeal of these remarkable women inspires us. I believe that the entrepreneurial spirit of these
women is the reason for the success of our SHG programme. It urges us to continue funding their
dreams and help uplift their families. Over the next year, we intend to double our reach and
support over two million women with cumulative loan disbursements of Rs 2,500 crore.
In the last 30 months, ICICI Bank has helped over 70,000 SHGs across 164 districts of seven
states. The Bank runs the programme through a dedicated pool of 550 employees who look after

servicing SHGs spread across Maharashtra, Gujarat, Madhya Pradesh, Rajasthan, Tamil Nadu,
Karnataka and Kerala. It is the fastest growing bank in India in the SHG space.

A few salient features of the SHG programme are as follows:

The Bank provides an integrated savings-cum-loan product to SHGs engaged in income
generating activities like cattle & goat rearing, making and selling household food items, running
small tea / snack counters, agarbatti making, pattal dona making, tailoring, jewellery making,
handicrafts and bee keeping among others.
An integral part of the programme is to encourage savings by the SHGs. As a first step, the Bank
opens a basic savings bank deposit account with cheque book facility for every SHG.
On an average, ICICI Bank adds nearly 5,000 SHGs a month to its programme.
Around 85% of the SHGs are in rural and semi urban areas.
Around 60% of the SHGs, consisting of more than 550,000 women members, have availed credit
assistance from a formal financial institution for the first time.
ICICI Bank is the only private bank to be associated with Mahila Arthik Vikas Mahamandal
(MAVIM), a Maharashtra government undertaking for women empowerment through SHG
programme.
The Bank is also working closely with other state government agencies like District Poverty
Initiatives Project (DPIP), Govt of Madhya Pradesh and Mitigation of Poverty in Western
Rajasthan (MPOWER) for empowerment of women through the SHG model.
The Banks officials work with the SHGs in their villages, contrary to the industry practice where
these groups have to visit the bank branches. This special model of serving SHGs at their
doorstep helps in keeping the transaction costs very low for the SHGs.

ICICI Banks work with SHGs is a part of its financial inclusive initiative. The Bank, through its
network of rural branches and Business Correspondents (BCs), provides banking services across
15,400 villages and has opened 17 million basic savings accounts over the last three years. The
Bank has 3,620 branches and over 50% of these branches are in semi urban and rural areas.
Significantly, of these branches, 440 branches have been set up in unbanked villages which were
devoid of any banking facility.
To service these areas, the Bank offers a comprehensive product suite covering the entire
agricultural value chain including loans to seed/input dealers, crop loans, loans for farm
equipment, agricultural term loans for irrigation and dairy and farmer warehouse receipt finance.
The Bank has also setup about 100 credit and operation hubs across the country to expedite loan
processing and disbursements.
About Sant Janabai Mahila Swayam Sahaya Bachat Gat: The group was formed with 18
members in 1999 but disintegrated in next few years in the absence of guidance and financial
help. Last year, ICICI Bank visited the village and identified the latent potential of this group.
The Bank revived the group by bringing 16 enterprising women together and guided them at
every step of the reorganization process. For almost a year now, the group meets regularly and
has started saving earnestly. They are identifying business opportunities and they will utilize the
loan provided by ICICI Bank to invest in income generating activities like tailoring, vegetable
cultivation, cattle rearing and small kirana shops.
About ICICI Bank: ICICI Bank Limited (NYSE:IBN) is India's largest private sector bank and
the second largest bank in the country, with consolidated total assets of US $ 124 billion at
March 31, 2013. ICICI Bank's subsidiaries include India's leading private sector insurance
companies and among its largest securities brokerage firms, mutual funds and private equity
firms. ICICI Bank's presence currently spans 19 countries, including India.
ICICI Bank started as a wholly owned subsidiary of ICICI Limited, an Indian financial
institution, in 1994. Four years later, when the company offered ICICI Bank's shares to the
public, ICICI's shareholding was reduced to 46%. In the year 2000, ICICI Bank offered made an
equity offering in the form of ADRs on the New York Stock Exchange (NYSE), thereby
becoming the first Indian company and the first bank or financial institution from non-Japan Asia

to be listed on the NYSE. In the next year, it acquired the Bank of Madura Limited in an allstock amalgamation. Later in the year and the next fiscal year, the bank made secondary market
sales to institutional investors. With a change in the corporate structure and the budding
competition in the Indian Banking industry, the management of both ICICI and ICICI Bank were
of the opinion that a merger between the two entities would prove to be an essential step. It was
in 2001 that the Boards of Directors of ICICI and ICICI Bank sanctioned the amalgamation of
ICICI and two of its wholly-owned retail finance subsidiaries,
ICICI Personal Financial Services Limited and ICICI Capital Services Limited, with
ICICI Bank. In the following year, the merger was approved by its shareholders, the High Court
of Gujarat at Ahmedabad as well as the High Court of Judicature at Mumbai and the Reserve
Bank of India. 77 4.2 CURRENT SCENARIO: Financial performance: ICICI Bank is India's
second-largest bank with total assets of Rs. 3,634.00 billion (US$ 81 billion) at March 31, 2010
and profit after tax Rs. 40.25 billion (US$ 896 million) for the year ended March 31, 2010. The
Bank has a network of 2,016 branches and about 5,219 ATMs in India and presence in 18
countries. ICICI Bank offers a wide range of banking products and financial services to corporate
and retail customers through a variety of delivery channels and through its specialized
subsidiaries in the areas of investment banking, life and non-life insurance, venture capital and
asset management. The Bank currently has subsidiaries in the United Kingdom, Russia and
Canada, branches in United States, Singapore, Bahrain, Hong Kong, Sri Lanka, Qatar and Dubai
International Finance Centre and representative offices in United Arab Emirates, China, South
Africa, Bangladesh, Thailand, Malaysia and Indonesia. Our UK subsidiary has established
branches in Belgium and Germany. ICICI Bank's equity shares are listed in India on Bombay
Stock Exchange and the National Stock Exchange of India Limited and its American Depositary
Receipts (ADRs) are listed on the New York Stock Exchange (NYSE). Established in 1994,
ICICI Bank is today the second largest bank in India and among the top 150 in the world. In less
than a decade, the bank has become a universal bank offering a well diversified portfolio of
financial services.
It currently has assets of over US$ 79 billion and a market capitalization of US$ 9 billion
and services over 14 million customers through a network of about 950 branches, 3300 ATM's
and a 3200 seat call center (as of 2007). The hallmark of this exponential growth is ICICI Banks

unwavering focus on technology. Branches & ATMs ICICI Bank has a wide network both in
Indian and abroad. In India alone, the bank has 1,420 branches and about 4,644 ATMs. Talking
about foreign countries, ICICI Bank has made its presence felt in 18 countries - United States, 78
Singapore, Bahrain, Hong Kong, Sri Lanka, Qatar and Dubai International Finance Centre and
representative offices in United Arab Emirates, China, South Africa, Bangladesh, Thailand,
Malaysia and Indonesia. The Bank proudly holds its subsidiaries in the United Kingdom, Russia
and Canada out of which, the UK subsidiary has established branches in Belgium and Germany.
ICICI INSURANCE STRUCTURE
Marketing is an assessment, ascertainment, and fulfillment of consumer needs and desire
into products and services through planning and creating demand for companies products,
serving the consumer demand through planned physical distribution with the for help of
marketing channels expanding the marketing even in the face of keen competition.

As a corporate state of mind which insists integration and co-ordination of all marketing
functions in welded with all co-operative functions, with a basic objective of maximizing long
range corporate profits and satisfy the customer needs and wants.

The Creation of customer implies three things:-

1) Development of product through technical and market research on which afford sales
opportunities.
2) Persuading the customer to buy through advertisement and sales promotion.
3) Making the product available in a form at a price, time and place the customer want.

Marketing research is the function, which links the consumer / customer and public to the
marketer through information used to identify and define marketing opportunities and problems.

Objective of marketing research may be primary to gather information from different customer
attitudes

and

opinions.

The insurance sector in India has come a full circle form being an open competitive
market to nationalization and back to a liberalized market again. Tracing the developments in the
Indian insurance sector reveals the 360 degree turn witnessed over a period of almost two
centuries.
The Project I have taken up is ICICI PRUDENTIAL LIFE INSURANCE, The reason
why I took up this subject is because today, insurance industry is among the fastest growing
sector and it provides wonderful business marketing, where by people can use their free time for
the purpose of not only earning money and rewards but also build meaningful relationships.

Through this project work, I expect to come with meaningful analysis on awareness of public on
MARKETING STRATEGIES IN ICICI PRUDENTIAL LIFE INSURANCE.

OBJECTIVES
To know the marketing strategy in ICICI Prudential Life Insurance in Bellary.
To know the public interest towards the insurance.
To know the brand awareness towards ICICI Prudential Life Insurance Co., Ltd in
Bellary.
To find out which parameter is motivating insurance advisers to join insurance field.
To make suggestions and recommendations to improve upon the working of the company.
ICICI Prudential Life Insurance Company is a joint venture between ICICI Bank - one of
India's foremost financial services companies-and prudential plc - a leading international
financial services group headquartered in the United Kingdom. Total capital infusion stands at
Rs. 37.72 billion, with ICICI Bank holding a stake of 74% and Prudential plc holding 26%.

We began our operations in December 2000 after receiving approval from Insurance Regulatory
Development Authority (IRDA). Today, our nation-wide team comprises of over 954 branches in
addition to 1,015 micro-offices, over 296,000 advisors; and 21 banc assurance partners.
ICICI Prudential was the first life insurer in India to receive a National Insurer Financial
Strength rating of AAA (Ind) from Fitch ratings. For three years in a row, ICICI Prudential has
been voted as India's Most Trusted Private Life Insurer, by The Economic Times - AC Nielsen
ORG Marg survey of 'Most Trusted Brands'. As we grow our distribution, product range and
customer base, we continue to tirelessly uphold our commitment to deliver world-class financial
solutions to customers all over India.

ICICI Bank:
ICICI Bank Limited (NYSE:IBN) is India's largest private sector bank and the second
largest bank in the country, with consolidated total assets of $121 billion as of March 31, 2008.
ICICI Banks subsidiaries include Indias leading private sector insurance companies and among
its largest securities brokerage firms, mutual funds and private equity firms. ICICI Banks
presence currently spans 19 countries, including India

Prudential Plc:
Established in London in 1848, Prudential plc, through its businesses in the UK, Europe,
US, Asia and the Middle East, provides retail financial services products and services to more
than 20 million customers, policyholder and unit holders and manages over 267 billion of funds
worldwide (as of December 31, 2007). In Asia, Prudential is the leading European life insurance
company with life operations in China, Hong Kong, India, Indonesia, Japan, Korea, Malaysia,
the Philippines, Singapore, Taiwan, Thailand, and Vietnam. Prudential is one of the largest retail
fund managers for Asian sourced assets ex-Japan. Its fund management business has expanded

into ten markets, comprising of China, Hong Kong, India, Japan, Korea, Malaysia, Singapore,
Taiwan, Vietnam and United Arab Emirates.

Vision and Mission Statement:

Their vision is to make ICICI Prudential Life Insurance Company the dominant new
insurer in the life insurance industry. This they hope to achieve through their commitment to
excellence, focus on service, speed and innovation, and leveraging our technological expertise.
The success of the organization will be founded on its strong focus on values and clarity of
purpose. These include:

Understanding the needs of customers and offering them superior products and service
building long lasting relationships with their partners providing an enabling environment to
foster growth and learning for their employees and above all building transparency in all our
dealings.

They believe that they can play a significant role in redefining and reshaping the sector.
Given the quality of their parentage and the commitment of their team, they feel that there will
be no limits to their growth.

Various ICICI Life Insurance Plans.

Education Insurance Plans:

Smart Kid New Unit-linked

Regular Premium

Smart Kid New Unit-linked

Single Premium

Smart Kid Regular Premium

Wealth Creation Plans:

Wealth Advantage

LifeStage Assure

LifeTime Gold

LifeLink Super

LifeStage RP

Premium Guarantee Plans:

Invest Shield Life New

Invest Shield CashBank

Protection Plans:

Pure Protect

Life Guard

Save 'n' Protect

Cashbook

Home Assure

Retirement Solutions:

Life Stage Pension

LifeTime Super Pension

LifeLink Super Pension

ForeverLife Plan

Immediate Annuity

Health Coverage Plans

Health Saver

Medi Assure

Hospital Care

Crisis Cover

Cancer Care

Diabetes Care Active

Diabetes Assure

ICICI Pru Group Solutions Advantage

Group Super Annuation

Group Gratuity Plan

Annuity Solutions

Group Term Insurance Plan

Group Term Insurance in lieu of EDLI

Rural Plans

ICICI Pru Suraksha

ICICI Pru Suraksha Kavach

Micro Insurance Plans

ICICI Pru Sarv Jana Plan

Analysis of ICICI Prudential Life Insurance

Strength:

ICICI Prudential is One of the largest financial institutions of India.

Money power, which makes them ignorant about the gestation period.

Motivation factors provided by the Company.

Service quality, which is the crux of their mission.

A huge data base of corporate clients, retail customer, and bank customers
of ICICI.

Highest paid up capital deposited in IRDA, in comparison to all players.

Training provided to all people associating with ICICI Prudential

Weakness:

High targets for financial advisors and for the sales departments.

Many competitors in the market offer same product by the title difference
in the premium and offerings.

Very huge premium of policies.

Problematic to advisors also.

Sustainable to risk associated with investments in money market.

Opportunities:

Health insurance and pension schemes, an estimated market potential of

approximately $15 billion.

Tie up with more corporate agents all over India. And Tie up with broker
(agent) also.

Strong brand of company helps to boost sales in market.

Attract more people of providing customer centric products.

Threats:

Players like Bajaj and Birla Sun life with low premium for the similar
plans.

People are not aware of different distribution channels.

Threat from existing insurance players.

Threat from new entrants.

Changes in the policy of IRDA.

Data Analysis
Table showing classification of respondents according to occupation.

Particulars

No. of Respondents

Percentage

Job Holders

36%

Business Peoples

11

44%

Govt. Employer

20%

TOTAL

25

100

Graphical representation:

12
10
8
6
4
2
0

Job Holders

Business People

Govt. Employer

Balance sheet
Owner's fund
Equity share capital
Share application money
Preference share capital
Reserves & surplus
Loan funds
Secured loans

Mar ' 09

Mar ' 08

Mar ' 07

1,113.29
350.00
48,419.73

1,112.68
350.00
45,357.53

899.34
350.00
23,413.92

Unsecured loans

2,18,347.82

2,44,431.05

2,30,510.19

Total
Uses of funds
Fixed assets
Gross block
Less : revaluation reserve
Less : accumulated
depreciation

2,68,230.84

2,91,251.26

2,55,173.45

7,443.71
-

7,036.00
-

6,298.56
-

3,642.09

2,927.11

2,375.14

Net block

3,801.62

4,108.90

3,923.42

Capital work-in-progress
Investments
Net current assets
Current assets, loans &
advances
Less : current liabilities
& provisions
Total net current assets
Miscellaneous expenses
not written

1,03,058.31

1,11,454.34

189.66
91,257.84

34,384.06

31,129.77

23,551.85

43,746.43

42,895.38

38,228.64

-9,362.37

-11,765.62

-14,676.78

Total

97,497.56

1,03,797.62

80,694.15

Findings:
FINDINGS

Majority of the respondents believed that larger risk coverage of their policy was the
main feature that attracted them to buy that policy, low premium was the next important
feature.

ICICI Prudential is the largest private player in the insurance industry in India.

Due to the increasing concern of people towards their health/life the life insurance
business has good prospects.

There are few short term plans which are not known to the public.

Company has high policy charges which are not affordable by the lower middle and
lower class people.

Out of total population of 1 billion of country, only 22% have insurance cover.
So we can say that there is still large potential for both the public and private
companies. Private companies have to give varied customized product to compete with
the LIC which is holding about 97% of the total market.

CONCLUSION

Most of the people are interested on Sum Assured and Additional benefits and some people are
interested in minimum premium, hence company has to formulate those policies which are
mostly preferred by customers and prospects.Rural people are not interested and they are not
understanding about life insurance. So, if the company concentrates on rural area and to make
awareness of them, then they can assure their life of benefit.Company should make their

products flexible for the convenience of their customer and the companies should now try to
identify the gap between current level of customer service and customer expectations.