A SUMMER TRAINING REPORT

ON

MARKETING IN GENERAL
INSURANCE OF ICICI LOMBARD

SUBMITTED IN PARTIAL FULFILLMENT OF THE REQUIREMENT

OF BACHELOR OF BUSINESS ADMINISTRATION (BBA)

Under Supervision of: Submitted by:

Mr. Ankur Bhupender
Sales Manager Roll No.
HCL

SESSION 2008-2011
GURU JAMBHESHWAR UNIVERSITY OF
SCIENCE & TECHNOLOGY
HISAR
 ACKNOWLEDGEMENT

I take this opportunity to thank all the people who helped me with valuable inputs,
guidance and suggestions during my tenure of project, without which this report would
not have taken its final shape.

I thank Mr. Ankur, Manager of ICICI Lombard who spared his valuable time and gave
me opportunity to work and undertake this project and guided me through out this
project.

This acknowledgement would be incomplete without thanking Mr. Sales Consultant &
Mr. Rajesh Singh, Senior Sales Executive, ICICI Pvt. Ltd. who helped me in all possible
manner at all possible time during the course of this project and all the above I would like
to give my heartiest regards & my Institute faculty & my internal guide whose timely
guidance and support at crucial junctures made the undertaking of this project an
enriching learning experience. I would also like to thank all the people who participated
in this project directly or indirectly. Last but not least I would like to thank all my friends
who have been a great help in this project with their innovative ideas and suggestions

BHUPENDER
 CONTENTS

TOPIC PAGE NO.

1. COMPANY PROFILE

2. INTRODUCTION

3. OBJECTIVE OF THE STUDY

4. RESEARCH METHODOLOGY

5. ANALYSIS AND INTERPRETATION OF DATA

6. FINDINGS / CONCLUSIONS AND SUGGESTIONS

BIBLIOGRAPHY
 EXECUTIVE SUMMARY

Insurance is one of the fastest growing industry. Insurance is basically divided into two
heads one is Life Insurance and other is General Insurance. In the beginning there was
one insurer that was LIC, but after 2000 insurance industry was open for the private
players. As of now there are 12 private and 1 public insurance company that is LIC.

This Project is prepared with the aim that the person who read this project will come to
know about the different strategies of ICICI Lombard which is # 1 Private insurance
company and also help the consumer to choose the right policies for themselves.

The basic objective of the study is to get adequate knowledge of regarding the entire
process of recruitment and buying behavior of customers who are dealing with private
concern like ICICI Lombard.
The conclusion drawn and recommendation are being presented towards the end of
project.

With excessive competition prevailing in the market, it becomes important on the part of
organization to keep itself updated on the changing trends in the market regarding to the
need of people.
 CHAPTER-1

COMPANY’S PROFILE
 COMPANY’S PROFILE

India's second-largest bank with asset size of over Rs. 3,446.58 billion (US$
79 billion) and profit after tax of Rs.31.10 billion for the year ended March 31, 2007

A network of over 950 branches and extension counters and over 3,300 ATMs in India
and presence in 17 countries.

Presence across all financial products

Only FI in India to pierce sovereign rating

Currently has subsidiaries in the United Kingdom, Russia and Canada, branches in
Singapore, Bahrain, Hong Kong, Sri Lanka and Dubai International Finance Centre
and representative offices in the United States, United Arab Emirates, China, South
Africa and Bangladesh, Thailand, Malaysia and Indonesia

Listed at the NYSE, around 72% of the company’s equity is held by foreign investors

Technology-enabled products and processes

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COMPETITIVE ANALYSIS OF THE PRODUCT

Features ICICI Psu-medi Bajaj Alliainz Cholaman-

Lombard Claim Health Guard dalam

Floater cover for family X X

2 year assured cover X X X

Cashless hospital-
ization

No claim cash- back X X X

Free hea- lth chk up X X X

19
SWOT ANALYSIS OF ICICI LOMBARD

ICICI Lombard is one of the most powerful, world class Life Insurance Co., gaining
appreciation for their strong work ethics, excellent performance, professionalism and
team work which led them to progress in today’s challenging environment . Though with
its excellence performance and every efforts has been made to present the most authentic
and truly representative finding, but some uncontrollable factors do affect the
performance and thus bring about some deviation and hurdles in progress. So with its
strengths and good quality, the company is having some weaknesses, and threats and
opportunities its SWOT analysis is as below:

Strengths

1. ICICI Lombard is the largest private player in the insurance industry in India
Excellent services.

2. Customization of Product as per customer’s needs

3. Brand Image

4. Business Experience.

5. Strong financial Base.

6. Innovative products, Technology, Organization culture and climate.

7. The company has a large network of branches, which is helpful to customer for
the payment.

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Weakness

1. Target only higher income group whereas other companies are trying to catch
middle – lower level people.

2. Lot of competitors are in the market offer same product by the title difference in
the premium and offering.

3. Higher premium as compared to the other companies.

4. Clients face problems to get insured due to large number of formalities.

Opportunities

Huge market is literally untapped. Out of 320 million insurable markets only 20% of the
population is insured. In a conservative society of India where people are more inclined
towards risk free investment such as bank Fad’s and saving rather than equity and high
risk investments insurance offers the best of both worlds – the security with high returns.
So there exist high potential for insurance company like ICICI Lombard.

In the pension field where people want good life after their retirement. Indian people are
more emotional towards their child that’s why children plans are selling like hot cakes.
Health insurance and pension schemes, an estimated market potential of approximately
$15 billion.

21
Threats

1. Week perception of private players in the minds of Indian people due to frequent
financial scams.
2. Large number of insurance players.
3. Existing wrong business practices of companies like LIC first premium is paid by
their agents where –as IRDA suggests that even forms to be filled by the clients
themselves.
4. Entry of many other private companies with equally strong experience and
financial strength of foreign partners making the competition difficult and
saturating the urban markets.
5. LIC has woken up from sleep and is following competitive strategies. Its huge
surplus in life fund gives a capability to lodge price war.
6. Current government policies do not encourage gross domestic saving. If the tax
liability of the service class rises, the customer will have little money to invest.
7. For the insurance sector government set the authority that is IRDA (insurance
regulatory and development authority) which is undertaken to track record of all
the companies and change rule day by day more rigid which is very difficult for
the companies.

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 1
What is General Insurance?

Insurance other than ‘Life Insurance’ falls under the category of General Insurance.
General Insurance comprises of insurance of property against fire, burglary etc, personal
insurance such as Accident and Health Insurance, and liability insurance which covers
legal liabilities. There are also other covers such as Errors and Omissions insurance for
professionals, credit insurance etc.

Non-life insurance companies have products that cover property against Fire and allied
perils, flood storm and inundation, earthquake and so on. There are products that cover
property against burglary, theft etc. The non-life companies also offer policies covering
machinery against breakdown, there are policies that cover the hull of ships and so on. A
Marine Cargo policy covers goods in transit including by sea, air and road. Further,
insurance of motor vehicles against damages and theft forms a major chunk of non-life
insurance business.

In respect of insurance of property, it is important that the cover is taken for the actual
value of the property to avoid being imposed a penalty should there be a claim. Where a
property is undervalued for the purposes of insurance, the insured will have to bear a
ratable proportion of the loss. For instance if the value of a property is Rs.100 and it is
insured for Rs.50/-, in the event of a loss to the extent of say Rs.50/-, the maximum claim
amount payable would be Rs.25/- ( 50% of the loss being borne by the insured for
underinsuring the property by 50% ). This concept is quite often not understood by most
insured.

Personal insurance covers include policies for Accident, Health etc. Products offering
Personal Accident cover are benefit policies. Health insurance covers offered by non-life
insurers are mainly hospitalization covers either on reimbursement or cashless basis. The
cashless service is offered through Third Party Administrators who have arrangements
with various service providers, i.e., hospitals. The Third Party Administrators also
provide service for reimbursement claims. Sometimes the insurers themselves process
reimbursement claims.

Accident and health insurance policies are available for individuals as well as groups. A
group could be a group of employees of an organization or holders of credit cards or
deposit holders in a bank etc. Normally when a group is covered, insurers offer group
discounts.

2
Liability insurance covers such as Motor Third Party Liability Insurance, Workmen’s
Compensation Policy etc offer cover against legal liabilities that may arise under the
respective statutes— Motor Vehicles Act, The Workmen’s Compensation Act etc. Some
of the covers such as the foregoing (Motor Third Party and Workmen’s Compensation
policy ) are compulsory by statute. Liability Insurance not compulsory by statute is also
gaining popularity these days. Many industries insure against Public liability. There are
liability covers available for Products as well.

There are general insurance products that are in the nature of package policies offering a
combination of the covers mentioned above. For instance, there are package policies
available for householders, shop keepers and also for professionals such as doctors,
chartered accountants etc. Apart from offering standard covers, insurers also offer
customized or tailor-made ones.

Suitable general Insurance covers are necessary for every family. It is important to
protect one’s property, which one might have acquired from one’s hard earned income. A
loss or damage to one’s property can leave one shattered. Losses created by catastrophes
such as the tsunami, earthquakes, cyclones etc have left many homeless and penniless.
Such losses can be devastating but insurance could help mitigate them. Property can be
covered, so also the people against Personal Accident. A Health Insurance policy can
provide financial relief to a person undergoing medical treatment whether due to a
disease or an injury.

Industries also need to protect themselves by obtaining insurance covers to protect their
building, machinery, stocks etc. They need to cover their liabilities as well. Financiers
insist on insurance. So, most industries or businesses that are financed by banks and other
institutions do obtain covers. But are they obtaining the right covers? And are they
insuring adequately are questions that need to be given some thought. Also organizations
or industries that are self-financed should ensure that they are protected by insurance.

Most general insurance covers are annual contracts. However, there are few products that
are long-term.

It is important for proposes to read and understand the terms and conditions of a policy
before they enter into an insurance contract. The proposal form needs to be filled in
completely and correctly by a proposer to ensure that the cover is adequate and the right
one.

3
We face a lot of risks in our daily lives. Some of these lead to financial losses. Insurance
is a way of protecting against these financial losses. For a payment (premium), an
insurance company will take the responsibility of compensating your financial losses.

Anyone who owns an asset can buy insurance to protect it against losses due to fire or
theft and so on. Each one of us can insure our and our dependents’ health and well being
through hospitalization and personal accident policies. To buy a policy the person should
be the one who will bear financial losses if they occur. This is called insurable interest.

One of the main reasons one should insure is to protect one’s belongings and assets
against financial loss. When one has earned and accumulated property, protecting it is
prudent. The law also requires us to be insured against some liabilities. That is, in case
we should cause a loss to another person, that person is entitled to compensation. To
ensure that we can afford to pay that compensation, the law requires us to buy liability
insurance so that the responsibility of paying the compensation is transferred to an
insurance company.

Insuring anything other than human life is called general insurance. Examples are
insuring property like house and belongings against fire and theft or vehicles against
accidental damage or theft. Injury due to accident or hospitalization for illness and
surgery can also be insured. Your liabilities to others arising out of the law can also be
insured and is compulsory in some cases like motor third party insurance.

4
TYPES OF INSURANCE

Insurance may be classified as:

1. LIFE INSURANCE

2. NON-LIFE INSURANCE

LIFE INSURANCE:

Term life insurance provides coverage for a limited period of time, the relevant term.
After that period, the insured can drop the policy or pay annually increasing premiums to
continue the coverage. If the insured dies during the term, the death benefit will be paid
to the beneficiary. Term insurance is often the most inexpensive way to purchase a
substantial death benefit on a coverage amount per premium dollar basis.

Term insurance functions in a manner similar to most other types of insurance in that it
satisfies claims against what is insured if the premiums are up to date and the contract has
not expired, and does not expect a return of Premium dollars if no claims are filed. As an
example, auto insurance will satisfy claims against the insured in the event of an accident
and a home owner policy will satisfy claims against the home if it is damaged or
destroyed by, for example, an earthquake or fire. Whether or not these events will occur
is uncertain, and if the policy holder discontinues coverage because he has sold the
insured car or home the insurance company will not refund the premium. This is purely
risk protection.

5
Life insurance or life assurance is a contract between the policy owner and the insurer,
where the insurer agrees to pay a sum of money upon the occurrence of the policy
owner's death. In return, the policy owner (or policy payer) agrees to pay a stipulated
amount called a premium at regular intervals.

NON-LIFE INSURANCE / GENERAL INSURANCE

Basically non-life or general insurance is all about making things insured which are other
than life.
All insurance excluding life insurance comes under general insurance. General Insurance
is, broadly, insurance, which does not include any investment element, and covers risk of
other natural, individual, political and economic risks. The general insurance products for
individuals include health, home, travel, student, motor, accident and other business
insurance.
Buying general insurance policies are a provision in case of any uncertain loss that might
come up during the normal course of activities. Hence an insurance cover rids you of the
tension and the financial burden that you would suffer in case of a calamity.

The non life insurance industry in India has grown above 80% within the last five years.
With 81% contribution, public sector companies accounted for almost the entire market
share. However, the private sector companies had to content with a meager 19% of
market share.

6
As per a recent market research report named, “Indian Insurance Industry Forecast
(2007-2009)” published by RNCOS, “The present growth in the non life insurance
sector is anticipated to continue in the years to come. Growing at the Compound Annual
Growth Rate of 13%, the insurance market in India shall touch the mark of $9 billion by
2009”.

“In spite of the entry of new companies and nationalized banks in the insurance sector in
India, the Public Sector Life Insurance Corporation still holds a substantial share of
72%”, as per experts at RNCOS.

PRINCIPLES OF GENERAL INSURANCE

Business, as indeed life in general, is subject to various types of risk and uncertainty. It is
difficult to know when any loss by way of accident or death might befall a person.
Insurance is means of providing against loss caused by natural or man made factors.
Insurance has cone to occupy an important place in the smooth running of the business.

1. SECURITY: Insurance secures the insured person against risk of loss due to
happening of an uncertain event. This means that a businessman can carry on his
operations without worrying about a possible loss. He can even take calculated
risk in running and development of his business.

2. DISTRIBUTION OF RISK: In case of loss to the insured from any risk covered
under the contract of insurance, he is paid by the insurer the amount of loss upto
the sum assured but he himself bear the effect of such. He only distribute the loss
suffered and insured person among others who are exposed to similar risk and
who have insured against such risk. Thus, insurance is an attempt at pooling of
risk under which a large number of people contribute to a fund out of which
compensation is paid to the persons suffering a particular type of loss.

7
3. COMPETITIVENESS: A businessman who has insured against a possible loss
in business can be more confident in handling its affairs. He knows that even if
his compensate and save him from possible ruin. Thus, the businessman can
afford to be bold and unconventional in decision to meet and beat competition.

4. SPECIALIZATION: Insurance enables the businessman to give undivided time

and attention to successful running of his business. If the risk of loss are duly
covered, there will be nothing to disturb the peace of mind of the businessman in
planning and accomplishing ambitious projects. The insurer, who is himself an
expert in the business of risk bearing will always be there to rescue the
businessman from loss of any kind

5. OPTIMUM USE OF AVAILABLE CAPITAL: If a business is adequately

insured, there is no need to set apart capital for use in case of a business loss. This
is because in the event of loss, the business will receive sufficient money from the
insurer to cope with the loss of capital. In other words, entire capital at the
disposal of the business can be utilize in its operations to earn higher profits.

6. PROMOTION OF FOREIGN TRADE: transport of goods from one country to

another is beset with various risks. Insurance plays an important role in covering
these risks to boost foreign trade.

7. LOAN FACILITY: Insurance companies offers loans against the security of

policies issued by them. Buying a house, construction of house etc. are the few
Examples. Insurance companies also provide underwriting facility in case of issue
of shares, debentures etc.

8. SOCIAL WELFARE: Insurance is a small well-wearing effort to promote social

good. It encourages people to provide for the future, such as old age, education
and marriage of children.

8
 CHAPTER- 2

RESEARCH METHODOLOGY

9
Research methodology is understood as a science of studying how research is done
scientifically. In various steps are studied that are generally adopted by a researcher in
studying his research problems along with the logic behind.

Thus research methodology includes not only research methods also consider the logic
behind the methods we use in the context of our research studies and explain why we are
using this particular method.

Scope of Study
The scope of my study begins with the study of history of ICICI Lombard and it further
extends to various issues related to marketing strategies of the company.

Time frame
In the whole process time taken was 2 months that is 26th may 07- 26th july 07 .

OBJECTIVE

Projects are basically carried out to find out any appropriate solution of any particular
problem. It helps in the proper grooming of our analytical skill. While dealing with any
project we can understand various aspect of any case

The main objective behind the projects are such as:

1. To improve our analytical skill.

2. To make a comparative analysis of documentation process.

10
 3. To find out the area where ICICI Lombard can get competitive age in their
documentation process.

4. To conduct a deep research for getting and appropriate out comes.

5. To judge the satisfaction level of customers

DATA COLLECTION
Data has been collected both from primary as well as secondary described below:

Primary Sources
The primary sources of data were interview conducted as part of survey this data forms
the backbone of the analysis of the customer’s requirements. As I have collected all the
data mainly from customers and internet. Everybody had different responses regarding
the various policies of the company. Few people were more interested in public sector
rather than private sector.

.
Secondary Sources
The secondary sources of data were the various websites and insurance manuals.
Secondary data- Secondary data is already available and published. It could be external
and internal source of data.
Internal source- It is the one which originates from specific field or area where research is
carried out. Example- public brochure, official reports etc.

External source- this originates outside the field of study like books, periodicals, journals
and internet etc.

11
LIMITATIONS

The main limitation of my project is as follows:-

Time Constraints

Behaviour of the people

Primary data collection

OJT work pressure

Time Constraints: - I have less time to work on project because all the time I have to
work on OJT to complete my OJT targets.

Behave of the people: - People of Delhi are not so much co-operative as I approached to
the office of other Life Insurance Companies they refused me to give information about
the project.

Primary data collection: - It’s a tough job to collect primary data from market and we
have to collect data from the main source and it is not an easy task.

OJT work pressure: - I have to complete my OJT targets also so I have to adjust my
time according to OJT as well as for Project work.

12
 CHAPTER-3

INTRODUCTION OF ICICI LOMBARD

13
ICICI BANK

ICICI Bank means ICICI Bank Limited, a company incorporated under the Companies
Act, 1956 and having its registered office at Landmark, Race Course Circle, Vadodara
390 007.

ICICI Bank is India's second-largest bank with total assets of Rs. 3,446.58 billion (US$
79 billion) at March 31, 2007 and profit after tax of Rs. 31.10 billion for fiscal 2007.
ICICI Bank is the most valuable bank in India in terms of market capitalization and is
ranked third amongst all the companies listed on the Indian stock exchanges in terms of
free float market capitalization*. The Bank has a network of about 950
branches and 3,300 ATMs in India and presence in 17 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 and
affiliates 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 Singapore, Bahrain, Hong Kong, Sri Lanka and Dubai
International Finance Centre and representative offices in the United States, United Arab
Emirates, China, South Africa, Bangladesh, Thailand, Malaysia and Indonesia. Our UK
subsidiary has established a branch in Belgium.

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).

14
ICICI Lombard

ICICI Lombard General Insurance Company Limited, a company incorporated under the
Companies Act, 1956 and licensed under and in terms of the Insurance Act, 1938 and the
Insurance Regulatory and Development Authority Act, 1999 to carry out the business of
general insurance and having its registered office at ICICI Bank

Lightning fast claims settlement

Instant online policy issuance

Comprehensive product line

Highest security level offered through 128-bit encryption in case of online data
exchange

First company to provide digitally signed documents through an online interface

Achieved financial breakeven in first full year of operations

Achieved underwriting breakeven in second year of operations

Awarded the NDTV Profit Business Leadership Awards 2007 in the General
Insurance category on July 27, 2007

Adjudged as the most Customer Responsive Company in the Insurance category at the
Economic Times Avaya Global Connect Customer Responsiveness Award 2006

Awarded the Best Housing Insurance in the Smart Living Awards by 360 degrees, a
Times of India Group subsidiary, in Nov 2006.

15
Awarded the Gold Shield for "Excellence in Financial Reporting" by the ICAI
(Institute of Chartered Accountants of India) for the year ended March 31, 2006

Among the top three General Insurance Companies to be awarded the "General
Insurance Company of the Year" at the 10th Asia Insurance Industry Awards

Adjudged amongst the top three in the Insurance Website of the Year category at the
9th Asia Insurance Industry Awards function held in Singapore during Septembe2005.

16
HISTORY

ICICI Lombard General Insurance Company Limited is a 74:26 joint venture between
ICICI Bank Limited and the Canada based $ 26 billion Fairfax Financial Holdings
Limited. ICICI Bank is India's second largest bank, while Fairfax Financial Holdings is a
diversified financial corporate engaged in general insurance, reinsurance, insurance
claims management and investment management.

Lombard Canada Ltd, a group company of Fairfax Financial Holdings Limited, is one of
Canada's oldest property and casualty insurers. ICICI Lombard General Insurance
Company received regulatory approvals to commence general insurance business in
August 2001.

The principal objective was to create a development financial institution for providing
medium-term and long-term project financing to Indian businesses. In the 1990s, ICICI
transformed its business from a development financial institution offering only project
finance to a diversified financial services group offering a wide variety of products and
services, both directly and through a number of subsidiaries and affiliates like ICICI
Bank.

17
 CHAPTER- 4

PRODUCT PROFILE

23
1. HEALTH INSURANCE
Illnesses can weaken your financial stability. Adding to the already existing
emotional stress. In order to reduce the risk of unexpected medical costs, ICICI
Lombard, known for their innovative insurance products has thoughtfully
structured a Health Product Suite. The plans under the suite vary widely in terms
of coverage, costs and benefits. So that you are well prepared in the face of any
health crisis.

1.1 Critical Care

Lump-sum benefit on diagnosis of Critical Illness/Major Medical Illnesses and
Procedures, Personal Accident and Permanent Total Disablement (PTD)

Critical Care Insurance

Critical Care protects you or your spouse against loss of income on diagnosis of
any of the 9 major medical illnesses and procedures. The first of its kind, it offers
a lump sum benefit on diagnosis of Cancer, Bypass Surgery, Heart Attack,
Kidney Failure, Major Organ Transplant, Stroke, Paralysis, Heart Valve
Replacement Surgery or Multiple Sclerosis. Critical Care Insurance also provides
cover against accidental death and permanent total disablement (PTD).

1.1.1 Critical Illness Cover

The Critical Care Insurance shall cover, subsequent to 90 days from the policy
start date, the following major medical illnesses and procedures:
1. Cancer
2. Coronary Artery Bypass Graft Surgery
3. Myocardial Infarction (Heart Attack)

24

4. Kidney Failure (End Stage Renal Failure)

 5. Major Organ Transplant
6. Stroke
7. Paralysis
8. Heart Valve Replacement Surgery
9. Multiple Scleros

PRICE CHART

Critical Care Sum Insured Table

Covers Sum Insured Options

Critical Illness/Major Medical Illness Rs. 6,00,000 or Rs. 12,00,000

Diagnosis

Accidental Death

Permanent Total Disability (PTD)

25
Critical Care Premium Table
Policy Sum Insured = Rs. 6 Lakh Sum Insured = Rs. 12 Lakh
Tenure/Age 3 Years (Rs.) 5 Years (Rs.) 3 Years (Rs.) 5 Years (Rs.)
Groups
(Years)

20 – 25 5,800 9,700 11,600 19,400

26 – 30 6,600 11,280 13,200 22,600

31 – 35 8,300 14,000 16,600 28,000

36 – 40 10,300 18,400 20,600 36,800

41 – 45 20,500 38,200 41,000 76,440

(Inclusive of Service Tax @ 12.36% and Education Cess at 2%)

The premium depends on the applicant's age* and the policy tenure opted for.

*Age is calculated as on the date the policy is issued (i.e. age completed as on his last
birthday)

26
1.2 Health Advantage Plus Insurance

A unique policy that covers hospitalization and Outpatient Department Expenses

(including Dental treatment, cost of medicines and drugs) and enables optimum
tax savings of up to Rs. 5099 u/s 80D

The `Health Advantage Plus Health Insurance Policy’ is a unique health insurance policy
that covers unexpected medical emergencies like hospitalization costs as well as
Outpatient Treatment Expenses (OPD) in the form of reimbursement of cost of
medicines, drugs, ambulance charges and dental expenses. You avail optimum tax-saving
benefit, this policy enables you to save up to Rs. 5099* under Section 80 D of the Income
Tax Act.

Moreover, the 45 year age limit for ‘no health check-up’ for policy issuance is now
extended to 55 years of age.

This Plan is available for all ages between 5-65 years and senior citizens aged 66 and
above (renewable up to 70 years).

Basic Hospitalization Cover

This covers inpatient hospitalization expenses up to sum insured of Rs. 2 or Rs. 3 Lakhs
(depending on the plan chosen). You can avail the cashless claim facility in any of the
4000+ network hospitals across India.

Basic Hospitalization cover includes:

Medical expenses incurred as an inpatient during hospitalization for more than 24 hours,
including room charges, doctor’s / surgeon’s fee, medicines, diagnostic tests, etc.

27
 30 days prior to hospitalization

60 days post hospitalization

Pre-existing disease can be covered after the 2nd year provided the policy is
renewed with us for three consecutive years.

Technologically advanced treatment that do not need 24-hour hospitalisation but are
covered under this policy are:-

- Cataract
- Lithotripsy (Kidney Stone Removal)

Tonsillectomy

- Eye Surgery
- Dialysis
- Dilatation & Curettage
- Chemotherapy
- Radiotherapy
- Coronary Angiography’s
- Cardiac Catheterization

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1.3 Family Floater Plan

A single policy that secures the hospitalization expenses of your entire

family.

For the first time in India, one single policy takes care of the hospitalization
expenses of your entire family. Family Floater Health Plan takes care of all the
medical expenses during sudden illness, surgeries and accidents

Policy Coverage

The policy covers medical expenses:

Incurred as an inpatient during hospitalisation for more than 24 hours, including room
charges, doctor/ surgeon's fee, medicines, etc.

30 days prior to hospitalisation.

60 days post hospitalisation.

Day Care expenses incurred on advanced technological surgeries and procedures like
Dialysis, Radiotherapy, and Chemotherapy, requiring less than 24 hours of
hospitalisation.

Pre-existing disease can be covered after the 4th year provided the policy is renewed
with us for four consecutive years.

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FAMILY FLOATER HEALTH INSURANCE POLICY PREMIUM TABLE

Premium for 1 Year plans in Rupees

Plan C Plan D Plan E Plan F

Plan Plan A Plan B
2 Adults & 1 2 Adults & 2 1 Adult & 1 1 Adult & 2
Details Individual 2 Adults
Kids Kids Kid Kids

Age of
senior
2 3 3
most 1 Lac 3 Lac 2 Lac 3 Lac 2 Lac 3 Lac 2 Lac 3Lac 2 Lac 2 Lac
Lac Lac Lac
family
member

5 - 18 yrs. 1,790 1,990 2,290 - - - - - - - - - -

19 - 35
2,490 2,690 3,100 4,035 4,650 5,229 6,024 6,423 7,398 3,533 4,069 4,406 5,073
yrs.

36 - 45
3,120 3,370 3,744 5,055 5,616 6,249 6,990 7,443 8,364 4,094 4,600 4,916 5,556
yrs.

46 - 55
5,700 6,000 6,667 9,600 10,667 10,794 12,041 11,988 13,415 6,593 7,378 7,188 8,082
yrs.

56 - 60
8,167 11,760 13,067 12,954 14,441 14,148 15,815 7,782 8,698 8,268 9,282
yrs.

30
FAMILY FLOATER HEALTH INSURANCE POLICY PREMIUM TABLE

Premium for 2 Year plans in Rupees

Plan I Plan J Plan L

Plan Plan G Plan H Plan K
2 Adults & 1 2 Adults & 2 1 Adult & 2
Details Individual 2 Adults 1 Adult & 1 Kid
Kids Kids Kids

Age of
senior
most 1 Lac 2 Lac 3 Lac 2 Lac 3 Lac 2 Lac 3 Lac 2 Lac 3Lac 2 Lac 3 Lac 2 Lac 3 Lac
family
member

5 - 18 yrs. 3,222 3,582 4,122 - - - - - - - - - -

19 - 35
4,482 4,842 5,580 7,263 8,370 9,412 10,843 11,561 13,316 6,359 7,324 7,930 9,131
yrs.

36 - 45
5,616 6,066 6,739 9,099 10,109 11,248 12,582 13,397 15,055 7,369 8,280 8,848 10,001
yrs.

46 - 55
10,830 11,400 12,667 18,240 20,268 20,509 22,878 22,777 25,489 12,527 14,019 13,657 15,355
yrs.

56 - 60
16,334 23,520 26,134 25,908 28,882 28,296 31,630 15,563 17,397 16,536 18,563
yrs.

31
1.4 Personal Accident Insurance

A Policy that covers personal accident, permanent total disablement (PTD) and
loss due to terrorism.

ICICI Lombard Personal Accident Insurance policy covers you against Accidental
Death, Permanent Total Disablement (PTD) and Permanent Partial Disablement
(PPD). As a special offer, we now bring 3 new Personal Accident flexible plan
options (Accidental Death & Permanent Total Disablement cover only) with a
sum insured of Rs. 3, 5 and Rs. 10 Lakh.

Personal Accident Comprehensive Plan:

Amount of Cover Rs. 2,000,000

This is a comprehensive Personal Accident Plan that shall cover the insured
for:

Death of the Insured person

Permanent Total Disablement (PTD)

Permanent Partial Disablement (PPD)

Carriage of Dead Body

32
 PRICE CHART

Accidental Death & Permanent Total Disablement Cover

Capital Sum Insured (Rs.)

Policy Period 3,00,000 5,00,000 10,00,000

3 years Premium (Rs.) 1125 1875 3750

4 years Premium (Rs.) 1500 2500 5000

5 years Premium (Rs.) 1875 3125 6250

33

2. MOTOR INSURANCE
MOTOR INSURANCE IS OF 3 TYPES:

2.1 Car Insurance

A comprehensive policy that not only covers you against third party but also against
accidents, damage, injury and much more.
ICICI Lombard brings to you a comprehensive Package Policy for your four-
wheelers, which covers Third Party Liability (TPL) for bodily injury and/or
death, Personal Accident cover for owner-driver and loss or damage to
the vehicle insured (Own Damage or OD).
-

Policy Coverage

Our Motor insurance Policy is governed by the Indian Motor Tariff. It covers you for:

Loss or damage to your vehicle: The policy covers you against any loss or damage
caused to the vehicle or its accessories due to the following natural and man made
calamities.

Natural Calamities – Fire, explosion, self-ignition or lightning, earthquake, flood,

typhoon, hurricane, storm, tempest, inundation, cyclone, hailstorm, frost,
landslide,rockslide.
Man made Calamities – Burglary, theft, riot, strike, malicious act, accident by external
means, terrorist activity, any damage in transit by road, rail, inland waterway, lift,
elevator or air.
The rates of the vehicle and its parts are subject to depreciation as per the schedule
provided by the Indian Motor Tariff.
34

Personal accident cover: The motor insurance provides compulsory personal

 accident cover for individual owners of the vehicle while driving. You can also opt for
a personal accident cover for passengers.

Third party legal liability: This protects you against legal liability arising due to
accidental damages.

- Any permanent injury/ death of a person

- Any damage caused to the property.

2.2 Two Wheeler Insurance

A composite policy that protects you against unfortunate accidents, third party
liability, injuries and damages.

Two- wheeler riding calls for a constant alertness from theft and accidents. Two-
wheeler policy guarantees safety for your vehicle and yourself, thereby making
your ride stress- free.

Policy Coverage
Two-wheeler insurance policy is governed by the Indian Motor Tariff. It covers
you for:
Loss or damage to your vehicle: The policy covers you against any loss or
damage caused to the vehicle or its accessories due to the following natural
and man made calamities.

35
Natural Calamities – Fire, explosion, self-ignition or lightning,
earthquake, flood, typhoon, hurricane, storm, tempest, inundation, cyclone,
 hailstorm,frost,landslide,rockslide.

Man made Calamities – Burglary, theft, riot, strike, malicious act, accident
by external means, terrorist activity, any damage in transit by road, rail,
inland waterway, lift, elevator or air. The rates of the vehicle and its parts
are subject to depreciation as per the schedule provided by the Indian
Motor Tariff.

Personal accident cover: The motor insurance provides compulsory

personal accident cover for individual owners of the vehicle while driving.
You can also opt for a personal accident cover for passengers.

Third party legal liability: This protects you against legal liability arising
due to accidental damages
- Any permanent injury/ death of a person
- Any damage caused to the property

Sum Insured
The vehicles are insured at a fixed value called the Insured’s Declared Value
(IDV). IDV is calculated on the basis of the manufacturer’s listed selling price of
the vehicle (plus the listed price of any accessories) after deducting the
depreciation for every year as per the schedule provided by the Indian Motor
Tariff. If the price of any electrical and / or electronic item installed in the vehicle
is not included in the manufacturer’s listed selling price, then the actual value
(after depreciation) of this item can be added to the sum insured over and above
the IDV.
36
2.3 Commercial Vehicle Insurance
 ICICI Lombard brings you Commercial Vehicle Insurance offering the most crucial
cover of Third Party Liability (TPL). A specialised cover for Goods-carrying
Vehicles – be it Public or Private Carriers. You can now rest assured that your
vehicle is covered and your business stays protected against liability due to
accidental death or injury to third parties or passenger(s).

Policy Coverage
ICICI Lombard Commercial Vehicle insurance offers Third Party only cover for
Goods-carrying Commercial vehicles. This cover is applicable to Public and Private
Carriers including Motorized Three Wheelers and Motorized Pedal Cycles.

Our Commercial Vehicle insurance Policy is governed by the Indian Motor Tariff.
It defines Goods-carrying Commercial Vehicle as:

Public Carriers (other than three wheelers)

Private Carriers (other than three wheelers)
Goods Carrying Motorized Three Wheelers and Motorized Pedal Cycles. (Public
Carriers)
Goods Carrying Motorized Three Wheelers and Motorized Pedal Cycles. (Private
Carriers)

It covers you for:

a) Personal Injury
b) Property damage.

37
3. TRAVEL INSURANCE
3.1 Individual Overseas Plan
All overseas travel policies charge premium on a slab basis. Which means if you
are on a 16 day trip, you end up paying for 21 days, as the slab is 14 to 21 days.
But with us you ‘pay per day’

Overseas Travel Insurance Policy Features

Eligibility: Insurance policy available for all ages between 1 – 70 years and senior
citizens between 71 to 85 years

Policy Duration: Cover trips from as short as 7 days to 180 days. Can be extended
online

Policy Maximum: The Plans offer various coverage options (US $ 50,000 to US $
250,000)

Premium: Premium is payable on a pay per day basis and not slab rates, pay at 0%
EMI on ICICI Bank Credit Cards

Pre-existing diseases: Pre-existing ailments and maternity are excluded except in case
of life-threatening situations i.e. until the insured's heath is stable

A (Excellent) Rating: ICICI Lombard has received an A (Excellent) rating from

General Insurance Company of India and iAAA rating from ICRA signifying highest
claims paying ability

Deductible/Policy Excess: There is a Deductible/Policy Excess of US $ 100. This

implies for any claim the first $100 are to be borne by the insured.

38

Additional Coverage: Coverage’s include Dental Treatment, Medical Evacuation,

 Repatriation, Baggage Loss/Delay, Trip Cancellation and Interruption, etc.

Insurance Direct: Buy insurance online or Dial-A-Policy at 1800 222 555 to buy
your policy over the phone

Claim: In order to make a claim, please contact our TPA (Third Party Administrator)
SOS International, which has tie-ups with network hospitals worldwide

3.2 Student Medical Insurance

A comprehensive cover, which insures you against unfortunate incidents or
unexpected expenses abroad and provides timely assistance and support when you
need it the most.

COMPARE PLANS (Click on Plan names to know more)

Coverage Gold Bronze
Plus Plan
amount Plan Plan
US$ 50,000 The Plus Plan is an
MedicalExpenses* (includes to add - on plan that can
1) -
Medical evacuation cost) US $ be bought in addition
500,000 to the Gold or the
2) Dental Treatment* US$ 250 - Silver plan.

3) Checked Baggage loss US$ 1,000

US$
4) Personal Liability
100,000
5) Bail Bond US$ 5,000
6) Study Interruption US$ 7,500
7) Sponsor Protection US$ 10,000
8) 2Way Compassionate Visit US$ 7,500
9) Passport Loss** US$ 200
US$ US$
10) Personal Accident
25,000 10,000

39
 Up to -
Repatriation of remains Medical
11)
Sum
Insured

43
Scenario 1 : Premium for 20 year Insured for
Rs. Gold Plus Plan
student traveling to US / Canada US$ -
15,966 Rs. 19, 767
university for one year. 100,000
Scenario 2 : Premium for 20 year Insured for
Rs. Rs. Gold Plus Plan
student traveling to UK / European / US$
8,931 7,630 Rs.11,031
Australian university for one year 100,000

40
4. Home Insurance
It is imperative that you secure your home from natural and man-made
catastrophes. Our Home Insurance Plan ensures you peace of mind by protecting
the structure and the contents of your home

The calamities covered are:

- Fire
- Riot, strike & malicious damage
- Explosion & implosion
- Earthquake
- Lightning
- Storm, cyclone, tempest, tornado, hurricane, flood & inundation
- Damage due to impact by vehicle
- Missile testing operation
- Subsidence, landslides and rockslides
- Leakage from automatic Sprinkler installation
- Aircraft damage
- Bursting and/or overflowing of water tanks, apparatus and pipes

Key Benefits

Comprehensive cover - Covers both structure and contents of your home.

Avail 15% discount on a 3 years home insurance policy and 25% discount on
5 years policy.

Optional covers available - Terrorism and Additional expenses of rent for alternative
accommodation.

Need for Policy

1. Protect your single largest investment against losses due to natural or man-made
calamities like fire, floods, burglary, earthquake.
41
2. Cover your household contents including furniture, durables, clothes, utensils,
jewellery, at market value to accommodate inflation.

4.1 Householder’s Insurance

4.1.1 Risk covered under this policy:

Section-1: Deals with fire and allied Perils. This section insures your house
and the contents of your ouse against fire, lightning, explosion of gas
cylinders, bursting and overflowing of water tanks and pipes, earthquake,
flood, storm, cyclone, landslide, damage by aircrafts or articles dropped
from an aircraft,and it even takes care of damage by riots, strikes and
malicious acts, Terrorism.

4.1.2 Types of construction covered:

Only buildings of CLASS ‘A’ construction are covered.

CLASS ‘A’ construction –building should fulfill the following conditions.

(i). External walls of stone, bricks, blokes, etc.
(ii) Roof of R.C.C./masonry/asbestos/concrete sheet or boarding on
R.C.C/steel/wooden frame work.

4.1.3 Others sections of this policy:

Section2: Damage of property: this sections covers losses or damage to the property
arising out of burglary, housebreaking, larceny or theft

If the clients desires to specifically insure items of jewellery and valuables under this
section, please ensure that they are also covered under Section 1 for the same value.

Section3: all risks: this section insures your jewellery and valuables against loss or
damage by accident or misfortune while you are traveling anywhere in India. However, it
is subject to certain limitations.

Section 4:plate glass: this policy covers accidental breakage/such glass.

42
Section 5: break down of domestic appliances damage cause to domestic electrical,
electronic or mechanical appliance by mechanical or electrical breakdown are covered.

Section 6: covers TV sets and VCR against fire, lightning explosion of the domestic
appliances bursting and over flowing of water tanks, apparatus and pipes, air-crafts or
articles dropped there from, earthquake, fire or shock, flood inundation, hurricane,
cyclone, theft etc.

BURGLARY INSURANCE

Burglary Insurance policy covers property contained in business premises, stocks

owned, or for which insured is responsible or held in trust and/or commission. It also
covers cash, valuables, securities kept in a locked safe or cash box in locked steel
cupboard on specific request.

What does this Policy cover ?

This Burglary Insurance covers loss or damage caused by Burglary and Theft (i.e.
theft following upon an actual forcible and violent entry of and / or exit from the
premises).

Robbery : In respect of contents of offices, warehouses, shops, etc. and cash in safe
or strong room and also damage caused to the premises
Extensions

It is possible to extend the policy to include loss of the insured property to cover
burglary as a result of riot & strike risks.

It is possible to extend the cover to include theft and larceny not accompanied by
violent ingress or exit. The extension does not cover losses detected during routine
stock taking/ checking.

43
 Benefits
Costs for changing locks and cost for repair of damage caused to the insured premises
after an insured event up to 10 % of the total sum insured. This extension is available
regardless of whether the Insured is a tenant responsible for such repairs or owner of
the premises.

Loss minimisation expenses up to 10 % of the total sum insured

Expenses towards restoring paper files, plans, records and drawings, data and
installation costs for computer programs up to Rs 10000

Expenses towards clearance of debris and movement and protection up to 10 % of the

loss subject to a maximum of Rs 10,000

Loss or damage to the properties of the employees of the Insured up to Rs 5,000

44
 CHAPTER- 5

DISTRIBUTION CHANNEL

45
MEANING

Today’s Indian insurance market, the challenge to insurers and intermediaries is two-
pronged:
1. Building faith about the company in the mind of the client
2. Intermediaries being able to build personal credibility with the clients

Traditionally tied agents have been the primary channels for insurance distribution in the
Indian market; the public sector insurance companies have their branches in almost all
parts of the country and have attracted local people to become their agents. The agents
are from various segments in society and collectively cover the entire spectrum of
society. A person who has lived in the locality for many years sells the products of the
insurance company with a local branch nearby. This ensures the last mile touch point
being closer to the customer. Of course, the profile of the people who acted as agents
suggests they may not have been sufficiently knowledgeable about the different products
offered, and may not have sold the best possible product to the client. Nonetheless, the
customer trusted the agent and company. This arrangement worked adequately in the
absence of competition.

In today's scenario agents continue as the prime channel for insurance distribution in
India, as is the case in most markets, supported by call centers to a small extent. Almost
all the new players follow this model primarily because the regulations for other channels
are yet to be put in place.
However there is great excitement in the industry over the impending broker regulations
and companies are planning possible channels in their enthusiasm to increase volumes.
The belief that all these channels will grow and seamlessly integrate to bring in business
seems a fallacy.
46
What have emerged is a much more difficult and evolving market scene with existing
players, more new players coming in, and global marketing practices and ideas being
tested. But none of this has changed the fundamental character of the market, which we
believe will take more time than expected.

What should the companies look at?

Basically companies have to take a look at the intermediaries they are using, whether it is
optimal to use them, and what are the alternatives?
The new companies have attempted appealing only to the middle, upper middle and elite
classes in the major cities. Contrasted with Public sector insurance companies, with their
offices across the country, the new companies have miles to go before they reach
anywhere. They must overcome the mindset of the customer that life insurance is Life
Insurance Corporation of India (LIC) and general insurance is General Insurance
Corporation of India (GIC) if they hope to grow in the market. Meanwhile, the public
sector companies are going to great lengths to revamp their image to look and feel more
contemporary. Both the public and new private sector companies are fighting their own
battles from the perspective of customer perception management:

NEED FOR ALTERNATIVE DISTRIBUTION CHANNEL

Financial Liberation
The liberalization of national financial and capital markets; coupled with the
globalization of national economies has catalyzed financial innovation and spurred the
growth of cross- border capital movements. The regulatory authorities in many countries
have altered rules governing financial intermediation to allow a broader range of
institutions to provide financial services and thus new classes of non-bank financial
institutions have emerged. The Insurance (amendment) Bill, 2002 passed on 23.09.2002
provides for setting up of Cooperatives exclusively for carrying on Insurance business.

47
The cooperatives would be subject to some paid up capital requirements, deposits with
RBI and other regulations concerning accounts and audit.

Cost Advantage

The existing two-tier structure needed a relook and use of technology with agency
channel was poor and inadequate. Besides, the levels of service were poor not consistent
with the costs. To maximize reach in the market place, many insurers are aiming to
derive channel advantage because each channel has unique strengths. For e.g., a direct
sales force is usually optimal for complex, high cost transactions where face-to-face
interaction is expected and required. Brokers and Corporate Agents can dramatically
expand market reach through local access and penetration. The Internet can be used to get
the message out to untold millions, at an extremely low cost.

The companies that choose and cleverly integrate the right mix of channels can build
market systems that respond optimally to each of the requirements of the products and
markets. They can, for example, use expensive sales force representatives only to acquire
and grow the most important key accounts. They can then use brokers to reach dispersed
groups of smaller customers and to provide local sales support. They can use call centers
to close simple sales, generate sales leads for other channels and follow up on direct mail
campaigns. They can use the Internet to reach customers who prefer to serve themselves
and want to save money. These efforts add up to a huge competitive advantage in terms
of revenue growth, market reach, customer loyally and higher productivity. Experience
shows better averages in terms of policy size, first premium per policy and first premium
per Rs.1000 sum assured.

48
Advances in Information and Computer Technologies
The integration of voice and data enabled entry of interactive voice response system
(IVRS). The policyholder can manage his policies through his facility. The website,
though initially started as a spin of, became interactive enabling the policyholders to
know product information, calculate the premium quotes, know the premium position and
various other benefits and redress grievances. The touch screen kiosks have been
introduced to create awareness of the products and for servicing. The metro area
networks and the wide area networks facilitated payment of premium anywhere and
provided access to policy information anywhere in the country. As a result of the above
initiatives the customer has become ever more informed, demanding and intervening in
the purchase decision-making. The market became highly segmented and warranted
multiple channels to exploit it.

AGENTS

Today's insurance agent has to know which product will appeal to the customer, and also
know his competitor's products in the same space to be an effective salesman who can
sell his company, the product, and himself to the customer. To the average customer,
every new company is the same. Perceptions about the public sector companies are also
cemented in his mind. The new companies are looking for educated, aware individuals
with marketing flair, an elite group who can be attracted only with high remuneration and
the lure of a fashionable job, all of which may not be possible in this business with its
price pressures and the complexity of selling insurance. Unable to attract this segment,
they have started easing recruitment conditions as against the stringent norms they had
earlier, thereby diluting the process.
While the public sector companies are able to attract agents, they continue to suffer from
high attrition rates due to indiscriminate agent appointment. The most successful of these
companies' tied agents are hardly of the elite variety of salesman.

49
They are still the neighborhood do gooders -- the postman, the schoolteacher, and the
shopkeeper -- who know the people and are themselves known in the community. The
challenge here is the lack of knowledge of the competitive market and the inability to do
intelligent comparisons with the competitor's products. Educating and training these
agents is a serious challenge for the insurance company.

The relevance of this kind of agent continues even today as agents are sought or
contacted by families by word of mouth. Insurance companies are advised not to follow
the path of FMCG's/credit card companies, believing that a suited and booted customer
care consultant or financial consultant will necessarily appeal to the average Indian
customer. Another social feature in the market is the considerable respect for age in
Indian society and a belief that an older person knows better. A very young up-market
agent who is a typical salesman may not appeal to a large segment of the middle class,
which is looking for a solid trustworthy person from whom they can buy insurance. In
this context it might be a rewarding exercise to recruit some older people (who have
taken VRS2 from banks and other financial institutions) to sell some lines of products like
pension plans, annuities etc.

50
MARKETING STRATEGIES

Marketing Strategy #1: Gain Customer Confidence. Customer indecisiveness,

skepticism, indifference, or confusion are among the top sales killers in the business
world. It's up to you to project an image of experience, quality, dependability, excellent
customer service, and/or added value to your prospective customers in order to win their
confidence. If you haven't clearly communicated the advantages and solid reasons for
them to do business with you, then they'll be hesitant to commit and the sale will go to
your competitor.

Marketing Strategy #2: Penetrate awareness of your target audience by using some
form of integrated marketing. In other words, the more ways the public hears about you,
the better your chances are for achieving brand recognition, credibility, and greater
market share. Effective marketing is partly the result of exposing your target audience to
your name and your selling points (unique selling proposition) as often as
possible(frequency), in as many ways as possible, and as cost-effectively as possible.

Marketing Strategy #3: Sincere enthusiasm, in both print and in person, is contagious
(and I'm not talking about using multiple exclamation points after sentences!!! That
detracts from your credibility and perceived professionalism.) If you deeply believe in
your products, services, your company, and yourself, then your prospects will pick up on
that passionate attitude and feel confident and optimistic about doing business with you.

Marketing Strategy #4: Purchasing is an emotional decision. Instill in your prospects

good feelings about your company, your business relationship with them, and how you
can improve their lives or solve their problem. Accomplishing that is at least as important
in the sales and marketing process as focusing attention on product features and benefits.

Marketing Strategy #5: Dispel distrust. Gain customer confidence and overcome
potential feelings of distrust by offering written guarantees of satisfaction whenever
possible, customer testimonials, references, and by joining respected and well-known
professional organizations, such as the Better Business Bureau, Chambers of Commerce,
and industry associations.

51
Marketing Strategy #6: Impose a deadline.Counteract one of the biggest obstacles to
closing a sale known to mankind: procrastination. To overcome the natural human
tendancy to deliberate, postpone, and delay, it's often necessary to inject a sense of
urgency into your ads, sales presentations, and marketing messages. Whether supplies are
limited or prices are going up at the end of the month, some prospects need to have a
deadline or an incentive to motivate them to take action now.

Marketing Strategy #7: Create a business marketing plan to identify and capitalize on
your strengths and opportunities. Your marketing strategies should also take into account
factors such as your weaknesses (and possible remedies), external threats (competition,
economic factors, etc.), your marketing mix strategy (products/services, promotional
goals, pricing strategy, and distribution decisions), media strategy, sales and expense
budgets, target market analysis (know your customers), and readily available marketing
tools, as well as marketing tools that you need to research or acquire.

52
CHAPTER- 6

JOB PROFILE

53
JOB DESCRIPTION

After the product training and initial understanding of the policies, we were required to
generate leads by doing telecalling. In the RO department, there are no separate
telecallers and the ROs are supposed to generate their own leads and do the sales. Initially
we were supported by a database given to us, but later we were asked to generate own
database. Thus we generated the data base through internet search mainly and some other
through directories of certain specific areas in Delhi. The database and leads were
generated through both in- office work as well as field work. It is described in the
following sections:

6.1 TELECALLING

The telecalling was done not to pitch the product on phone but the main idea was
to convince the prospective customers to listen to us, about the blank, the services
provided, get him interested in the wealth management area and convince him for
an appointment. The telecalling function included all the following things: -
6.1.1 Conforming the person’s name
6.1.2 Greeting the person
6.1.3 Introducing myself with my name and bank’s name.
6.1.4 Telling him about the investment services provided by the bank
6.1.5 Convince him for appointment.
6.1.6 Note down the time and address of the appointment.
6.1.7 If the person asks to call later, ask for his preferred time.

54
DIFICULTIES FACED DURING THE TELECALLING PROCESS

6.1 Person or contact number

6.2 Person that moment
6.3 Person not interested at all.
6.4 Person asking for the details, but not ready to give appointment.

6.2 DATABASE GENERATION IN FIELD WORK

1. Database generation for motor insurance

In between there was surge of activities related the ICICI Lombard general
insurance sales. There were more of training on general insurance products and
also for generating more leads for the sales of general insurance. For the
generation of leads, all the summer’s trainees were given a form seeking
information about the four-wheeler owner {for the purpose of motor insurance}

A one page form was used which sought the following information:
The vehicle model
The month and year of purchase
The name and contact number

2. Cold Calling

We also did cold calling for the purpose of lead generation and so as to get
experience of facing the prospective customers personally and handling the client
objections all by myself.

55
3. Cross selling of Credit Cards

Meanwhile our summer training the newly launched credit cards of CBOP known
by the name of miracle card, was floated in the wealth management department
also for cross selling.

During the cold calling, we used to pitch the credit cards and sold some of the
credit cards. For the credit cards to be granted to the customers, the verifications
of documents was a crucial step and thus we learnt about the know your
customers norms by RBI for credit cards, which is a list of the required
documents for a credit card sale. The credit card sale pften required two or three
visits to the customers for complete documentation.

56
CHAPTER- 7

OBJECTIONS

57
QUESTION 1: Am I too young to invest?

The power of compounding: the last moment. Longer you delay the greater will be
the financial burden on you to meet your goals. On the other hand, you will b
surprised by what you can achieve by saving a small sum of money regularly at an
early age. Moreover the earliar you invest; the longer your money works for you and
greater will be the power of compounding.

QUESTION 2: I don’t want to invest in private insurance companies.

Insurance is a long term business entered into by companies only after very careful
deliberation and recognizing a deep commitment to a market. Aviva combines the
financial powers and integrity of the dabur group, with the international expertise and
financial strength of aviva.

QUESTION 3: Does Aviva guarantees returns like LIC?

The returns of Aviva policies are not guaranteed. The rate of return would vary as per
the product and the fund chosen by the customers. You would also have noticed that
the most companies are moving away from the guaranteed products. Many
guaranteed return product have been withdrawn from the market. Take example of
Jeevan Shree, Bima Nivesh, children’s money back , Jeevan Suraksha. All these
products have been withdrawn one after the another in few last years.

58
QUESTION 4: What if the company winds up operations after few years? who
will be responsible for my policy?

The philosophy of the insurance is the long term commitment by the insurers to the
policyholders, more particularly in case of life insurance business. The insurers can
carry out insurance business in India only after being registered with IRDA. Prior to
grant of this registration, the authority does an examination of the credibility,
financial strength and commitment of the applicants to the Indian market. Only in
suitable cases will the authority grant the registration to the applicant. As a policy, the
authority looks into the business projections of an applicant for 10 years to ensure that
the business plan to be carried out by the applicant would be on a sound basis and
there would not be any attempt to under cut the interests of or under price a product
of a competitor which will affect the strength and solvency of the insurer.

QUESTION 5: If my agent offers me a discount, can I accept it or is discounting

illegal?

The agent is bound by law not to offer a rebate from out of commission he gets; if he
gives the discount to the customer from the commission that he receives from the
insurance company, it will be an offence under the insurance act, 1938.

59
OBSERVATIONS DURING SELLING EXPERIENCE

 Disinterest in insurance – people are not very much interested in the concept of
insurance. They think the risk coverage part to just a liability on their returns.
Even in the ULIP plans, they are more interested in the investment part they take
ULIP plans for tax benefits. The ‘insurance’ in insurance has a less weightage
than the investment in insurance.

 Lack of awareness about ULIP – people do not fully understand what ULIP is
all about and they tent to think it is yet another mutual fund. During my calls, to
my surprise I found that a good number of investors were not even aware that
they have already taken ULIP policy previously which they think to be as ‘some
fund’.

 Reluctance towards long term plans- people are keen to invest in short term like
mutual funds and direct equity market. They are reluctant to make a long term
commitment. This is another reason why people shy away from insurance. Even
in mutual funds, they are more interested in short term. They also prefer liquidity.

 Lack of knowledge about investments- I saw that many people are not aware
about mutual funds, demat system of securities etc. the sales offer in that case
should strive to make him understand first about all the investment avenues before
his making a decision.

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 Apathy towards investment planning- some people I found out were not even
interested in planning how their own money should be invested. They just rely on
intermediaries for their investment and do their investment as and when there is a
surplus.

 Customers interested in discounts- some clients are more interested in dealing

with brokers and agents who give out some of their own commission to the client
as a payback.

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 CHAPTER – 8

SUGESSTIONS AND RECOMMENDATIONS

62
Two months of our Summer Training proved to be a great learning experience for us.
However during these two months of tenure we noticed some areas which may need
small improvements which are as follows:

i. More of Tellecalling
As there is no tellecalling department, more focus is required to do telecalling by ROs.
For this they must be supported by a quality of database. Also training on telecalling
requires attention. Setting up a telecalling department though is practiced in other banks
but it has also got its own demerits.

ii. Large Product Mix

As of now ROs are selling only two products life long and saveguard since they provide
maximum revenue to the banks. But bank can offer more products of aviva under its
contract. So allowing and encouraging ROs to also sell other products will enable them to
offer large mix of products to their clients.

iii. Realistic Targets

tough setting high targets are always practiced but setting them too high may sometime
also be a source of demotivation.

iv. Increase in advertisement and promotional campaigns

Till now there is no ad on TV or other media. There is lack of awareness about the bank.
The canopies put up by us helped in promotional campaign. In future too, the objectives
of such activities should not be restricted to database collection, but the focus should be
long term brand building for the bank.

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 v. Focus on portfolio designing
Currently the focus of employees is mainly on selling of life insurance of products only.
This focus should be changed to whole of portfolio designing. This will require training
from expert in this field. For example Financial planning Model can be used.

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 CHAPTER- 9

CONCLUSIONS

65
Our summer training provided us valuable learning about the industry, The product
insurance and mutual funds and the work experience of selling investment tools,
especially life insurance.

Banking industry and insurance industry today has enormous scope in the form of bank
assurance. Insurance industry has seen enormous changes in the form of innovations. The
innovation of ULIP has brought a major change and has revolutionized the growth of
insurance industry. ULIP has turned out to be a flexible, customer centric financial tool
having the advantage of both insurance and an investment.

We learned about technical features of the product and at the same time, learned the soft
skills needed to sell investment tools. Especially selling of life insurance involve a lot of
relationship building, empathizing and developing trust with the customers. It involves a
lot of patience as well.

We found that there is a gross lack of awareness about the investment tools, especially
the ULIP products, which can greatly be improved by the sales peoples’ effort to educate
the customers about all the investment tools. The effort should be to equip them with
knowledge to let them make better decision, rather than making decision on their behalf.
The latter is a short term approach to selling, while the former will go a long way in
building the faith of the customer and thus the strong client.

We could generate some leads for the bank and the database that we hope would
materialize into sales. We learned greatly from this experience and we tried to put in the
best of our effort to achieve our targets.

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CHAPTER - 10

ANNEXURE

67
FAQ’s OF MARKETING

Q1. WHO Might YOU Choose to Reach With a Prudent Marketing- Inspired
Approach?

UNORGANIZED WORKERS

This would entail the clear identification of the target (from a single bargaining unit to a
broad economic sector) and extensive research on their distinctive characteristics. Based
on this insight, I would prepare with the union an itemized written organization plan for
the elected officials' approval which would include advice on the implementation, follow-
up and evaluation of the outcome. (More detailed information appears in an organizing
example.)

DUES PAYERS IN BARGAINING UNIT (S)

YOU may decide that in a given unit or units, more members should be signed up,
participation increased, or loyalty and satisfaction with the union reinforced. Various
research methods and marketing techniques could provide YOU with the information
necessary to draft a strategic plan to advise YOU on appropriate strategies to accomplish
these goals.

THE GENERAL PUBLIC

Faced with a difficult conflict, YOU may be considering a boycott of an employer's

product(s), service(s) or outlet(s). A thorough inventory of the target employer's
marketing position and strategies is essential. From this would flow the elaboration of a
counter-marketing plan aimed at diminishing the target employer's market share. YOU
could then authorize a clearly focused boycott.
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Q2.WHEN might YOU consider a marketing-based campaign?

When the circumstances, nature, size and consequences of the organizing campaign,
boycott or consolidation operation that YOU are preparing justifies the extra time, further
planning and manifestly additional monies involved.

Q3.WHERE might YOU apply such a marketing plan?

A city, a county, a province or right across Canada or the United States.

Q4.HOW could YOU determine whether a marketing approach is beneficial and

relevant for your labour organization?

Contact Allen Gottheil. I will gladly meet with YOU to examine the situation
(organization drive, consolidation project, boycott or other campaign). I will then submit
to YOU, in writing, at absolutely no charge, a three to five page blueprint of what
relevant services I could offer (and their benefits), a time frame for their performance and
an estimate of the direct costs.

Q5.WHY should YOU consider hiring an "outsider"?

As an "outside" marketing consultant, I believe that I would be able to recommend

innovative and imaginative approaches in many situations. Often, it can be a very distinct
advantage to have someone with an uncommitted and unconventional perspective, who is
"not" involved in the daily internal union routine, to suggest some novel and hopefully
appropriate strategies.

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When a labour union or federation contemplates committing resources to a major
campaign I believe that I could be very helpful in the planning, the mechanics, the
execution and the follow up of such a drive (or perhaps even in counselling against
embarking on the proposed campaign). Independent marketing consultants are often
brought in by profit-seeking companies to recommend innovative approaches to problems
in which the "outsider" is viewed as someone who may not be able to see the trees but
can have a constructive view of the forest.

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PROFIT AND LOSS ACCOUNT OF ICICI BANK
Assets
Current Assets
Cash And Cash Equivalents 1,479,000
Short Term Investments -
Net Receivables 194,000
Inventory -
Other Current Assets -

Total Current Assets -

Long Term Investments 1,185,000
Property Plant and Equipment 48,000
Goodwill -
Intangible Assets -
Accumulated Amortization -
Other Assets 81,000
Deferred Long Term Asset Charges -

Total Assets 2,987,000

Liabilities
Current Liabilities
Accounts Payable -
Short/Current Long Term Debt -
Other Current Liabilities 2,454,000

Total Current Liabilities -

Long Term Debt 57,000
Other Liabilities 215,000
Deferred Long Term Liability Charges -
Minority Interest -
Negative Goodwill -

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Total Liabilities 2,726,000

Stockholders' Equity
Misc Stocks Options Warrants -
Redeemable Preferred Stock -
Preferred Stock -
Common Stock 45,000
Retained Earnings 44,000
Treasury Stock -
Capital Surplus 171,000
Other Stockholder Equity 1,000

Total Stockholder Equity 261,000

Net Tangible Assets $261,000

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 CHAPTER- 11

BIBLIOGRAPHY

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1. WWW.ICICILOMBARD.COM
2. WWW.GOOGLE.COM
3. WWW.YAHOO.COM