ICICI Prodential4

Summer Training for the
partial fulfillment of MBA

Program.
Completed training under: Report Submitted to:

Ms.Divya Singh Mrs. Meera Mathur
Manager - Priority Circle Placement Coordinator
ICICI Prudential FMS, MLSU
Head Office Udaipur (Raj)
Jaipur (Raj)
2
Report submitted by: -Ramesh Kumar Meena

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Awards & Recognitions
Prudence Customer Centricity Award 2004 &

2005
Prudential Corporation Asia
Silver Effie for Effectiveness of the ‘Retire
from Work not life’ advertising campaign
Effies 2003
Superbrand 2003-04

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India's Most Customer Responsive Insurance
Company
Avaya GlobalConnect - Economic Times
Customer
Organisation with Innovative HR Practices

Indira Group of Institutes
Organisation with Innovative HR Practices

Asia-Pacific H R Congress Awards for HR Excellence
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TABLE OF CONTENTS
Page No.
Executive Summary 4
Acknowledgement 5
Insurance Introduction 6
Common types of Insurance 8
The global insurance industry 10
The determinants of insurance needs 12
Insurance Research and Development Authority 15
Facts of insurance industry 20
Life insurance market in India 24
About Income Tax 34
About ICICI Prudential 39
Products and Services snapshot 46
ICICI Prudential Priority Circle 52
ICICI control structure 54
Portfolio Management 57
Nature of Job as a Trainee 58
Annexure 64
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Bibliography 65
EXECUTIVE SUMMARY
Insurance is a system to alleviate financial losses by transferring

risk of loss from one entity to another. Earlier there was only
Life Insurance Corporation of India (LIC) who was taking the
burden of insuring people from certain and uncertain risk. This
was the scenario before a regulatory authority was introduced.
After coming of the IRDA that is Insurance Regulatory
Development Authority, many private players attacked the
market. There were 14 new players introduced which reported to
IRDA including LIC. ICICI is one of them.
ICICI started its journey in 2001. ICICI Prudential Life Insurance
Company is a joint venture between ICICI Bank, a premier
financial powerhouse and Prudential plc., a leading international
financial services group headquarted at United Kingdom, and in a
span of 4 years it has grown in a tremendous pace and is still
growing. Today it is no.1 private insurance player in the market
and has huge potentials to grow further. There are number of
products to satisfy customers needs and gives products according
to their needs.
ICICI priority circle is an executive branch of ICICI Prudential,
which deals with high net worth individuals. The managers here
appoint financial advisors after a tough selection process. These
advisors are then trained and after getting an IRDA license start
soliciting insurance. This business is based on trust and
relationship building.
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ACKNOWLEDGEMENT
Many of the ideas that lead us to design and develop the

“Recruitment and Training to Financial advisor Insurance Sale”
resulted from a distillation of the experience and opinions of
many people. It would be prudent to commence this report with a
sincere tribute to all those who have played an indispensable role
in the accomplishment of this work by providing whenever and
wherever their able guidance was required.
My first and foremost note of thanks is due to our institute

director for creating such a congenial environment to be able to
complete the project territories effectively.
I would sincerely like to thank my project guide

‘Ms.Divya Singh’, Manager ICICI Prudential Priority Circle, for
his valuable guidance, constant supervision and motivation
during the project period.
My last but not the least thanks are due to my parents for their
constant support and strongest motivation, which has been a
source of inspiration for me at every step of my life
RameshKumarMeena

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INSURANCE INTRODUCTION
MEANING OF INSURANCE
Insurance or assurance is device for indemnifying or
guaranteeing an individual against loss. Reimbursement is
made from a fund to which many individuals exposed to the
same risk have contributed certain specified amounts, called
premiums. Payment for an individual loss, divided among
many, does not fall heavily upon the actual loser. The essence
of the contract of insurance, called a policy.
The entity that is transferring the risk — which may be an

individual or association of any type, including a government
or government agency — is called the "insured". The entity
accepting the risk is called the "insurer". The agreement
between the two by which the risk is transferred is called the
"policy": this is a legal contract that sets out exactly the terms
and conditions of the coverage. The fee paid by the insured to
the insurer for assuming the risk is called the "premium". This
is usually determined by the insurer to fund estimated future
claims paid, administrative costs, and profit.
For example, let us assume that a couple buys a home costing

Rs.100,000. Knowing that the loss of their home would bring
them financial ruin, they acquire insurance coverage in the
form of a homeowner's policy. That policy will pay them the
cost of replacing or repairing their home in the event of a
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catastrophe. The insurance company charges them a premium
of Rs.1,000 a year. Risk of loss has been transferred from the
homeowners to the insurance company.
The major operations of an insurance company are

underwriting, the determination of which risks the insurer can
take on; and rate making, the decisions regarding necessary
prices for such risks. The underwriter is responsible for
guarding against adverse selection, wherein there is excessive
coverage of high-risk candidates in proportion to the coverage
of low risk candidates. In preventing adverse selection, the
underwriter must consider physical, psychological, and moral
hazards in relation to applicants. Physical hazards include
those dangers, which surround the individual or property,
jeopardizing the well being of the insured. The amount of the
premium is determined by the operation of the law of averages
as calculated by actuaries. By investing premium payments in
a wide range of revenue-producing projects, insurance
companies have become major suppliers of capital, and they
rank among the nation's largest institutional investors.

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COMMON TYPES OF INSURANCE
Life insurance, originally conceived to protect a man's

family when his death left them without income, has
developed into a variety of policy plans. There are two type
of basic policies. Term Policy & Endowment Policy. Today
what are most offered to market by various companies are
 In a “whole life” policy, fixed premiums are paid
throughout the insured's lifetime; this accumulated
amount, augmented by compound interest, is paid to a
beneficiary in a lump sum upon the insured's death; the
benefit is paid even if the insured had terminated the
policy.
 Under “universal life,” the insured can vary the amount
and timing of the premiums; the funds compound to
create the death benefit.
 With “variable life,” the fixed premiums are invested in a
portfolio (with earning reinvested), and the death benefit
is based on the performance of the investment.
 In “term life,” coverage is for a specified time period
(e.g., 5–10 years); such plans do not build up value
during the term. Annuity policies, which pay the insured
a yearly income after a certain age, have also been
developed. In the 1990s, life insurance companies began
to allow early payouts to terminally ill patients.
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Fire insurance usually includes damage from lightning; other
insurance against the elements includes hail, tornado, flood,
and drought.
Automobile insurance includes not only insurance against fire
and theft but also compensation for damage to the car and for
personal injury to the victim of an accident (liability
insurance); many car owners, however, carry only partial
insurance. In many states liability insurance is compulsory,
and a number of states have instituted so-called no-fault
insurance plans, whereby automobile accident victims receive
compensation without having to initiate a liability lawsuit,
except in special cases. Bonding, or fidelity insurance, is
designed to protect an employer against dishonesty or default
on the part of an employee.
Title insurance is aimed at protecting purchasers of real estate
from loss by reason of defective title.
Credit insurance safeguards businesses against loss from the
failure of customers to meet their obligations.
Marine insurance protects shipping companies against the loss
of a ship or its cargo, as well as many other items, and so-
called inland marine insurance covers a vast miscellany of
items, including tourist baggage, express and parcel-post
packages, truck cargoes, goods in transit, and even bridges and
tunnels. In recent years, the insurance industry has broadened
to guard against almost any conceivable risk; companies like
Lloyd's will insure a dancer's legs, a pianist's fingers, or an
outdoor event against loss from rain on a specified day.
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THE GLOBAL INSURANCE INDUSTRY
The insurance industry forms an integral part of the global

financial market, with insurance companies being significant
institutional investors. In recent decades, the insurance sector,
like other financial services, has grown in economic
importance. This is through direct contributions to gross
domestic product (GDP) via increased levels of employment
within the sector; and indirectly through higher levels of risk
transfer and financial intermediation.
Expanding further on this issue, it must be remembered that

the insurance industry’s primary function is to supply
individuals and businesses with coverage against specified
contingencies.
Insurance companies, therefore, engage in underwriting,

managing, and financing risks. According to Sigma (2001) the
largest insurance sectors are to be found in the U.S. and Japan,
which together generates more than fifty percent of global
premium income; followed by the UK, Germany, France and
Italy. Furthermore, during the last four decades the global
insurance sector has on average outpaced global economic
growth. Between 1984 and 2001, the global insurance industry
grew at an overall rate of 483.6 percent (roughly comprising
of 664.8 percent from the life insurance sector, and 334.3
percent from the non-life sector. Over the last few years,
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growth in the global non-life insurance market has
significantly slowed down and has only grown in line with
general economic growth (Sigma, 2001). This is in contrast to
the life insurance sector, which has continued to grow at a fast
rate. Sigma (2002a) estimates this to be in the region of 5.4
percent worldwide since 2000. Measured in total premiums,
OECD countries accounted for 95.52 percent and 93.99 percent
of the life insurance business, and 91.19 percent and 92.50
percent of non-life insurance premium volume in 1994 and
2001, respectively.
Outside of the OECD, a more recent development since the

early nineties has been the ability of the emerging markets to
strengthen their global market share in the life insurance
segment, with growth rates often reaching double-digit
figures. Furthermore, insurance markets within the OECD
countries have faced falling premium income, reduced capital
market yields and low interest rates, all of which has put
insurers under some pressure (Sigma, 2002a). Also, the
growing importance of the insurance industry in emerging
markets is reflected in growing insurance density and
insurance penetration of the non-OECD insurance markets
(Sigma, 1996, 2001). Nevertheless, and despite these
developments, emerging markets still have some way to go
before matching the relative sizes and importance that the
insurance industry has in industrialized countries.
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THE DETERMINANTS OF INSURANCE
DEMAND
The theoretical and empirical research to date has suggested

that, on average, an overwhelming positive relationship
between financial development and economic growth is
evident and that a well-developed financial sector contributes
to economic growth. However, on a single country-by-country
basis, Ward and Zurbruegg (2000) have shown that differences
in the causal relationship between insurance market
development and economic growth are apparent. Research
efforts have, therefore, moved onto understanding the factors
that encourage the development of financial institutions. By
identifying the determinants that encourage insurance demand,
policymakers are able to aid financial development, thereby
positively influencing economic growth. These determinants
that have been empirically tested can be grouped under three
broad subheadings; economic, political / legal, and social
factors. To further explore exactly how these factors influence
insurance demand, they are each considered in turn below.
Economic factors
First, it is important to highlight that the relative importance
of an insurance market within a country is likely to depend
upon economic development, since with a greater rate of
economic growth the consumption of insurance products
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should increase. Indeed, early findings highlighted that the
demand for life insurance is positively correlated with income,
researches made by Yaari (1965), Hakansson (1969), Fortune
(1973), Fisher (1973), and Lewis (1989). These results are also
confirmed by the more recent cross-country based studies of
Beenstock et al. (1986), Truett and Truett (1990), and Browne
and Kim (1993), Ward and Zurbruegg (2002) also extend these
findings further
When analyzing the impact of national income on non-life

insurance demand, Beenstock. (1988) indicate a positive
relationship exists between national income in industrialized
countries and spending on property-liability insurance.
Browne et al. (2000) extend these findings when analyzing
motor vehicle and liability insurance in OECD countries, and
do not only show that a positive and statistically significant
relationship can be found between premium density and
income, but also that income has a more pronounced effect on
motor vehicle insurance, than on general liability insurance
consumption. Esho et al. (2003) also test the impact of
national income on property and casualty insurance by
analyzing data from developed and developing nations
between,1984-1998. Again, they detect a strong positive
relationship between national income and non-life insurance
demand. The World Bank confirms these findings and states
that non-life insurance can be regarded as a normal good
implying that insurance demand rises as income increases
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(Lester, September 2002). Despite these findings, insurance
penetration in some countries differs from the international
average.
Social factors
Insurance can also be seen as a product that is valued
subjectively by its consumer. In fact Hofstede (1995) points
out that the level of insurance within an economy depends on
the national culture and the willingness of individuals to use
insurance as a means of dealing with risk. It is not surprising
that Douglas and Wildavsky (1982) show that the demand for
life insurance in a country may be affected by the unique
culture of the country to the extent that culture affects the
degree of risk aversion. Moreover, Schlesinger (1981) reveals
that an optimal insurance decision is directly related to the
level of risk aversion of the insured person and shows,
following Pratt (1964) and Szipiro (1985), that the more risk
adverse an individual is the higher the amount insured. Using
education and the uncertainty avoidance index to approximate
the level of risk aversion Esho et al (2003) confirm that risk
aversion has a significant impact on non-life insurance
demand. This is in line with the work by Outreville (1996),
which emphasizes that education promotes an understanding of
risk and hence aids insurance demand. However, in the case of
property casualty insurance Esho et al. (2002) highlight that
the demand for insurance is in the main unaffected by cultural
factors.
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INSURANCE REGULATORY DEVELOPMENT
AUTHORITY (IRDA)
Prior to 1999 the there were only two players in the market
 Life insurance corporation of India (LIC)
 General insurance corporation (GIC)
Then to protect the interests of the policyholders, to regulate,

promote and ensure orderly growth of the insurance industry,
IRDA was set up. After this the private players started
entering the market.
Composition of Authority under IRDA Act, 1999
As per the section 4 of IRDA Act' 1999, Insurance Regulatory

and Development Authority (IRDA, which was constituted by
an act of parliament) specify the composition of Authority
The Authority is a ten member team consisting of

(a) A Chairman;
(b) five whole-time members;
(c) four part-time members,
(all appointed by the Government of India)
Insurance Industry in the year 2000-2001 had 16 new entrants,
namely:
Life Insurers:
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S. Reg. Date of Name of the Company
No Number Reg.
1 101 23.10.2000 HDFC Standard Life Insurance
Company Ltd.
2 104 15.11.2000 Max New York Life Insurance Co.
Ltd.
3 105 24.11.2000 ICICI Prudential Life Insurance
Company Ltd.
4 107 10.01.2001 Kotak Mahindra Old Mutual Life
Insurance Limited
5 109 31.01.2001 Birla Sun Life Insurance Company
Ltd.
6 110 12.02.2001 Tata AIG Life Insurance Company
Ltd.
7 111 30.03.2001 SBI Life Insurance Company
Limited .
8 114 02.08.2001 ING Vysya Life Insurance
Company Private Limited
9 116 03.08.2001 Bajaj Allianz Life Insurance
Company Limited
10 117 06.08.2001 Metlife India Insurance Company.
General Insurers :
S. Reg. Date of Name of the Company

No. No. Reg.
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1 102 23.10.2000 Royal Sundaram Alliance
Insurance Company Limited
2 103 23.10.2000 Reliance General Insurance
Company Limited.
3 106 04.12.2000 IFFCO Tokio General Insurance
Co. Ltd
4 108 22.01.2001 TATA AIG General Insurance
Company Ltd.
5 113 02.05.2001 Bajaj Allianz General Insurance
Company Limited
6 115 03.08.2001 ICICI Lombard General Insurance
Company Limited.
Yr: 2001-2002: (From 1st Jan 2001 to Dec. 2002)

Insurance Industry in this year, so far has 5 new entrants;
namely
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Life Insurers:
S.No. Registratio Date of Name of the Company

n Reg.
Number
1 121 03.01.2002 AMP Sanmar Life Insurance
Company Limited.
2 122 14.05.2002 Aviva Life Insurance Co.
India Pvt. Ltd.
General Insurers :
S.No. Registration Date of Name of the Company

Number Registration
1 123 15.07.2002 Cholamandalam General
Insurance Company Ltd.
2. 124 27.08.2002 Export Credit Guarantee
Corporation Ltd.
3. 125 27.08.2002 HDFC-Chubb General
Insurance Co. Ltd.
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Yr: 2005-2006: (From 1st Jan 2006 till Date)
Insurance Industry in this year, so far has 1 new entrants;
namely
Life Insurers:
S.No Registration Date of Name of the Company

Number Reg.
1 127 06.02.2004 Sahara India Insurance Co.
Ltd.
FACTS OF LIFE INSURANCE INDUSTRY
Life insurance premium accounts for 72% of the total premium

collection in India as against the global average of 59%.
Market Potential
 The size of the Insurance market is 31.2 Crores which
makes it one of the hottest destination for any company
 While 5 crore people have a capacity to pay an annual
premium of Rs 10000 per annum, 10 crore people have a
capacity to pay Rs 7000 per annum , and another 15 crore
people have a capacity to pay Rs 3500 per annum
No. Of Players
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 Before nationalization of Insurance in 1956, there were
254 life Insurers and 106 general insurers to serve the
population of 36 crores in India
 UK has more than 500 insurance companies to serve a
population of 6 crores
 USA has over 2200 insurance companies to serve a
population of 26 Crores
 Even Japan has 90 Insurance Companies to serve its
population of 12 Crores
Emerging Trends
 The Non life market was the size of Rs 10000 crores last
year with a potential of growing up to at least Rs 45000
Crores provided it develops the way it is expected to
develop.
 As on date the total insured losses arising out of
unfortunate incident of Sept 11 in WTC is on date $42-43
Billion
The Industry
 The growth rate of the insurance sector is about 10%
which is expected to go up to 12%
 Before opening up the growth rate was 14% which means
there is a dip of 4.5% which could be traced to the
prevailing economic recession
 The per capita insurance premium in India is just US $ 8
which is less then even Malaysia which is US $144
Current trends and strategies
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 Growth of the pension market today: groups as well as
individual.
 Emerging health insurance market with third party
administrators (TPAs) trying to make a place for them
selves as and when the regulations are in place
 New types of products –Unit linked single premium-
becoming popular.
Current trends and strategies
 New distribution channels are evolving and public will
have greater choice even in the matter of point of
purchase.
 Distribution and servicing are becoming more technology
intensive and closely regulated.
 Insurers are trying to distinguish their products but only
time and experience will tell.
Emerging trends
 People are slowly moving from purely savings oriented
products to products that offer higher degree of life
cover.
 The realization that insurance is basically about
protection. So far insurance has been widely understood
by the market as another tax saving oriented investment
option
 There are several products becoming available in the
market that are suited to the life style of the people.
 There is a lot of scope for tailor made products
depending upon the need of the customer.
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Bank Assurance
 Insurance products distributed through the bank counters
all over the country can bring vast improvement in the
insurance coverage in the quickest possible time
 Banks today are the most credible agencies (However
Banks also do have to go for Bankers’ Blanket
Insurance!!!)
 The public has immense faith in them
 Regulators keep a tight vigil over them
 Millions of bank staff are highly educated and trained
 Banks can accept lower commissions, and the benefit
goes on to the consumer by charging a lower premium
rate
 Half of insurance policies sold in Europe is through
banks
Insurance and IT
Key areas where differentiation is considered critical for the
future of the insurance companies include the following:
 Product Development
 Back Office
 Customer Service
 Distribution
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LIFE INSURANCE MARKET IN INDIA
Many may not be aware that the life insurance industry of

India is as old as it is in any other part of the world. The first
Indian life insurance company was the Oriental Life Insurance
Company, which was started in India in 1818 at Kolkata. A
number of players (over 250 in life and about 100 in non-life)
mainly with regional focus flourished all across the country.
However, the Government of India, concerned by the unethical

standards adopted by some players against the consumers,
nationalised the industry in two phases in 1956 (life) and in
1972 (non-life). The insurance business of the country was
then brought under two public sector companies, Life
Insurance Corporation of India (LIC) and General Insurance
Corporation of India (GIC).
In line with the economic reforms that were ushered in India

in early nineties, the Government set up a Committee on
Reforms (popularly called the Malhotra Committee) in April
1993 to suggest reforms in the insurance sector. The
Committee recommended throwing open the sector to private
players to usher in competition and bring more choice to the
consumer. The objective was to improve the penetration of
insurance as a percentage of GDP, which remains low in India
even compared to some developing countries in Asia.
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Reforms were initiated with the passage of Insurance
Regulatory and Development Authority (IRDA) Bill in 1999.
IRDA was set up as an independent regulatory authority,
which has put in place regulations in line with global norms.
So far in the private sector, 12 life insurance companies and 9
general insurance companies have been registered
COUNTRIES INSURANCE INSURANCE DENSITY

PENETRATION (Per Capita premiums in
(Premiums as a % of USD)
GDP)
United Kingdom 12.71 3028.5
Japan 8.70 3165.1
United States 4.48 1611.4
South Africa 14.04 392.9
Australia 6.04 1193.5
South Korea 9.09 935.6
India 1.77 7.5
China 1.12 5.5
Malaysia 2.13 85.4
Indonesia 0.54 4.0
Brazil 0.36 12.9
By any yardstick, India, with about 200 million middle class

households, presents a huge untapped potential for players in
the insurance industry. Saturation of markets in many
developed economies has made the Indian market even more
attractive for global insurance majors with the per capita
income in India expected to grow at over 6% for the next 10
years and with improvement in awareness levels, the demand
for insurance is expected to grow at an attractive rate in India.
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An independent consulting company, The Monitor Group has
estimated that the life insurance market will grow from Rs.218
billion in 1998 to Rs.1003 billion by 2008 (a compounded
annual growth of 16.5%)
WINDS OF CHANGE
Reforms have marked the entry of many of the global
insurance majors into the Indian market in the form of joint
ventures with Indian companies. Some of the key names are
AIG, New York Life, Allianz, Prudential, Standard Life, Sun
Life Canada and Old Mutual.
The entry of new players has rejuvenated the erstwhile

monopoly player LIC, which has responded to the competition
in an admirable fashion by launching new products and
improving service standards
The following are the key winds of change brought about by

privatization.
 Market Expansion: There has been an overall expansion

in the market. This has been possible due to improved
awareness levels thanks to the large number of
advertising campaigns launched by all the players. The
scope for expansion is still unlimited as virtually all the
players are concentrating on large cities and towns -
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except by LIC to an extent there was no significant
attempt to tap the rural markets
 New Product Offerings: There has been a plethora of new

and innovative products offered by the new players,
mainly from the stable of their international partners.
Customers have tremendous choice from a large variety
of products from pure term (risk) insurance to unit-linked
investment products. Customers are offered unbundled
products with a variety of benefits as riders from which
they can choose. More customers are buying products
and services based on their true needs and not just
traditional money-back policies, which is not considered
very appropriate for long-term protection and savings.
However, there are still some key new products yet to be
introduced - e.g. health products.
 Customer Service: Not unexpectedly, this was one area
that witnessed the most significant change with the entry

of new players. There is an attempt to bring in
international best practices in service and operational
efficiency through use of latest technologies. Advice and
need based selling is emerging through much better
trained sales force and advisors. There is improvement in
response and turnaround times in specific areas such as
delivery of first policy receipt, policy document,
premium notice, final maturity payment, settlement of
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claims etc. However, there is a long way to go and
various customer surveys indicate that the standards are
still below customer expectation levels
 Channels of Distribution: Till two years back, the only

mode of distribution of life insurance products was
through Agents. While agents continue to be the
predominant distribution channel, today a number of
innovative alternative channels are being offered to
consumers. Some of them are bank assurance, brokers,
the internet and direct marketing. Though it is too early
to predict, the wide spread of bank branch network in
India could lead to bank assurance emerging as a
significant distribution mechanism.
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LIFE INSURANCE INDUSTRY IN INDIA FY 2005 – 2006
COMPANY PREMIUM % of POLICIES % of

(Rs. TOTAL (In Million) TOTAL
Million) POLICIES
LIC 59187 88.8 9.9 94.2

ICICI
Prudential 2464 3.7 0.14 1.3
Birla Sunlife 988 1.5 0.05 0.5
Tata AIG 792 1.2 0.06 0.8

HDFC
Standard 760 1.1 0.08 0.8
Bajaj
Allianz 582 0.9 0.08 0.8
Max New
York 526 0.8 0.05 0.5
Others 1386 2.0 0.22 2.0
Total 66683 100 10.4 100
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STRATEGIC ALTERNATIVES
If one analyses the history of growth of the insurance industry
since reforms, it is marked by all-round growth of all players.
More or less all players (including the market leader LIC)
have aggressively recruited and trained advisors, appointed
agents, launched new products, improved customer service
standards and revamped/expanded their distribution networks.
If at all there was any major difference between players it was
only in time lag in launching of services. Every player would
like the customers to believe that its service standards are the
best or that its agents are the most informed and ethical, but is
debatable whether there are any significant differences. In
other words, each company is trying to be ‘everything to
everybody’
Our argument is that the strategy of being everything to

everybody is risky. Some players justify the above strategy on
the basis that the Indian market is huge and it can
accommodate everybody. Still, in a market where it is difficult
to distinguish oneself sufficiently on service or any other
parameter to be able to charge a premium, it will lead to
unmitigated price competition to the detriment of all players.
One may achieve sales turnover, but margins and profitability
will suffer severely.
In the insurance industry where large amounts of capital are

required, this is risky, While there is room for a few scale
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players with a finger in every pie, it is profitable for other
players to focus on different segments to survive and thrive in
a multi-firm open environment. While each company has to
choose its own unique positioning based on its unique
strengths, the below-mentioned generic positioning
alternatives appear worth considering. Needless to say the
positioning choices discussed here are not mutually exclusive
and can be overlapping.
Variety-based Positioning
This type of positioning is based on varieties in products and
services rather than customer segments. It is a sensible
strategy for those companies who have distinctive advantages
or strengths in offering certain products and services.
In the insurance industry too, it is possible to achieve a unique

position by focusing on certain category of products. One such
example is Birla Sunlife Insurance, which has been placing
particular focus on investment-related products since its
launch in India.
Through its superior fund management capabilities, the

insurance company can deliver better returns on its
investment-linked products and thereby carve for itself a
leadership position in this segment.
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Then there is the entire category of pension products which is
widely touted to have immense growth potential in India due
to imminent pension reforms. It is possible to achieve
profitable positioning by focusing and excelling in only
pension products.
Needs-based Positioning
This is the most commonly understood positioning and is
based on the differing needs of different groups of consumers.
This can be done successfully if a company has unique
strengths to service a group of customer needs better than
others.
The insurance needs of customers vary significantly for

different groups of customers.
The insurance needs of young family with small children will

be quite different from that of a family in which the income-
earner is close to retirement. However, in India most of the
life insurance companies have a wide variety of products
tailored for different customer needs and there is no company
focusing on a particular customer need.
An example would be a life insurance company that focuses

only on High Net-worth Individuals (HNIs). The needs of
HNIs would be quite different from those of a general
consumer and would require an entirely different marketing
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mix right from the type of products offered and the way they
are distributed, to the promotion methods employed.
Access-based Positioning
Positioning of customers can also be done by the way they are
accessible. That is different groups of customers may be
accessible in different ways even though they may have
similar needs. Access is typically a function of customer
geography or customer scale. There is excellent opportunity in
the insurance industry to employ access-based positioning by
targeting the rural insurance sector. The rural market for life
insurance is very different from the urban market in terms of
needs, income levels and distribution (seasonality, for
example), penetration of media and so on. So far except for
LIC, no other player has paid any attention or focus on the
rural sector. Contrary to common perception it is a big
opportunity as emphasized repeatedly by such eminent
strategists like C.K. Paroled. Rural market can be a highly
profitable position if one is able to carefully plan and tailor an
entire set of low-cost activities of advertising, distribution,
and product design etc. to successfully exploit the potential.
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ABOUT INCOME TAX
Given below is the proposed Income Tax Ready Reckoner for

income/tax rebates available for the year 2005-06.
TAX RATES
Income Tax Rate Surcharge
Up to Rs100000 Nil Nil
Rs100001 – 10% on income above Rs100000/= Nil
150000
RS150001- Rs5000 + 20% on income above Nil
250000 Rs150000/=
Rs250001- Rs25000 + 30% on income above Nil
1000000 Rs250000/=
Rs1000001 & Rs25000 + 30% on income above 10% on tax
above Rs250000/=
 For women employee tax rates starts only from

Rs.1,25,000 instead of Rs.1,00,000
 Education Cess of 2% chargeable on Income Tax and
Surcharge.
STANDARD DEDUCTION
Effective financial year 2005-06, benefit of standard deduction
on salary income withdrawn.
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DEDUCTION FROM TOTAL INCOME
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Section Description Maximum Rate Proof required
Amount of
Deduc
tion
80C LIC Pension plan or Rs1,00,000 100% Premium Receipt
other equivalent /= -------------
schemes of private -------------
insurance companies, Through Salary
PF, Through Salary
VPF, Deposit Challan/
PPF, Passbook
NSC, Copy of
ULIP, Certificates
CTD Copy of
NSC-interest Certificates
Accrued, Tuition Deposit Challan
fees, Previous year
House loan principal NSC’s
repayment, Deposit Challan
Infrastructure Bonds Interest
certificate
-----------
Copy of Bonds
80D Medical Insurance Rs10,000/= 100% Premium Receipt
Premium
80DD Medical Treatment Rs50,000/= 100% Certificate from
for handicapped a Govt hospital
dependent
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80U Permanent physical Rs50,000/= 100% Certificate from
disability a Govt hospital
80 E Interest on loan taken Rs40000/= Certificate given
for higher education by the lender
HRA REBATE
Least of the following is allowed as a deduction from total
income
 Actual HRA received
 50% of Basic (40% in case of non-metro city)
 Excess of rent paid over 10% of basic
Proof Required
Copies of monthly rent receipts with the following details
without which HRA rebate will not be allowed
1. Name and address of the landlord
2. Address of the rented residential property
3. Month/ Duration
4. Rent amount
5. Signature of the landlord on revenue stamp
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LOSS on HOUSE PROPERTY to be claimed in Form 12C
Following supports/proofs are mandatory for claiming loss on

house property
 Interest Certificate for the financial Year 2005-2006
 Copy of Possession Letter/ Sale Deed
 Joint Property declaration if loan is in joint names
 In case house is rented/let out, copy of the lease deed is
required
 The property for which the deduction is being sought
must be in the name of the employee. In case of joint
property the first joint owner must be the employee and
an undertaking has to be given by the employee in Joint
Property Declaration attached
 No deduction is available for purchase of plots or for a
property where construction has not yet been
completed/possession not yet taken
IMPORTANT NOTE
 Both HRA rebate and loss on house property can not be
availed if both the properties, rented and the own, are in
the same town
 Loss on house property can not be claimed for a vacant
house located in the same city where the office is located
 Loss on house property can not be claimed without
taking possession of the property.
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 Loss on house property can be claimed only for a
residential house property (not a plot)
TAX REBATE
Effective financial year 2006-07 benefit u/s 88 for tax rebate
and u/s 88C for tax rebate Rs. 5000/- for women employees
have been withdrawn.
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ABOUT ICICI PRUDENTIAL
ICICI Prudential Life Insurance Company is a joint venture

between ICICI Bank, a premier financial powerhouse and
Prudential plc, a leading international financial services group
headquartered in the United Kingdom. ICICI Prudential was
amongst the first private sector insurance companies to begin
operations in December 2000 after receiving approval from
Insurance Regulatory Development Authority (IRDA).
ICICI Prudential's equity base stands at Rs. 15.85 billion with

ICICI Bank and Prudential plc holding 74% and 26% stake
respectively. In the financial year ended Sep 30, 2006, the
company garnered Rs 1,626 crore of new business premium for
a total sum assured of Rs 64,113 crore and wrote nearly
6,58,437 policies. The company has a network of about 1,
20,000 advisors; as well as 19 banc assurance and 200
corporate agent tie-ups. For the past four years, ICICI
Prudential has retained its position as the No. 1 private life
insurer in the country, with a wide range of flexible products
that meet the needs of the Indian customer at every step in
life.
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Our vision:
To make ICICI Prudential the dominant Life and Pensions
player built on trust by world-class people and service.
This we hope to achieve by:
 Understanding the needs of customers and offering them
superior products and service

 Leveraging technology to service customers quickly,
efficiently and conveniently

 Developing and implementing superior risk management
and investment strategies to offer sustainable and stable

returns to our policyholders
 Providing an enabling environment to foster growth and
learning for our employees

 And above all, building transparency in all our dealings.
The success of the company will be founded in its unflinching

commitment to 5 core values -- Integrity, Customer First,
Boundary less, Ownership and Passion. Each of the values
describes what the company stands for, the qualities of our
people and the way we work.
We do believe that we are on the threshold of an exciting new

opportunity, where we can play a significant role in redefining
and reshaping the sector. Given the quality of our parentage
and the commitment of our team, there are no limits to our
growth.
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Promoters
ICICI and Prudential came together in 1993 to form Prudential
ICICI Asset Management Company, which has today emerged
as one of the leading mutual funds in India. The two
companies bring together two of the strongest financial service
brands in Asia, known for their professionalism, excellent
quality of service and long term commitment to YOU. Riding
on the success of this relationship, the two companies joined
hands once more in 2000, to form ICICI Prudential Life
Insurance, with a commitment to provide leading-edge life
insurance solutions.
ICICI Bank has 74% stake in the company, and Prudential plc
has 26%.
ICICI Bank (NYSE:IBN) is India’s second largest bank with

an asset base of Rs. 2823.72 billion. ICICI Bank provides a
broad spectrum of financial services to individuals and
companies. This includes mortgages, car and personal loans,
credit and debit cards, corporate and agricultural finance. The
Bank services a growing customer base of more than 7 million
customer accounts and 17 million bondholders’ accounts
through a multi-channel access network. This includes about
635 branches and extension counters, 2325 ATMs, call centres
and Internet banking. ICICI Bank posted a net profit of Rs.1,
865 crore for the year ended March 31, 2005. ICICI Bank is
the only Indian company to be rated above the country rating
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by the international rating agency Moody’s and the only Indian
company to be awarded an investment grade international
credit rating. The Bank enjoys the highest AAA (or
equivalent) rating from all leading Indian rating agencies.
Established in 1848, Prudential plc is a leading international

financial services company in the UK, with around US$400
billion funds under management and more than 16 million
customers worldwide. Prudential has brought to market an
integrated range of financial services products that now
includes life assurance, pensions, mutual funds, banking,
investment management and general insurance. In Asia,
Prudential is a UK’s largest life insurance company with a vast
network of 22 life and mutual fund operations in twelve
countries - China, Hong Kong, India, Indonesia, Japan, Korea,
Malaysia, the Philippines, Singapore, Taiwan, Thailand and
Vietnam. Since 1923, Prudential has championed customer-
centric products and services, supported by over 10,000 staff
and agents across the region.
Fact sheet
ICICI Prudential Life Insurance Company is a joint venture
between ICICI Bank, a premier financial powerhouse, and
prudential plc, a leading international financial services group
headquartered in the United Kingdom. ICICI Prudential was
amongst the first private sector insurance companies to begin
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operations in December 2000 after receiving approval from
Insurance Regulatory Development Authority (IRDA).
ICICI Prudential’s equity base stands at Rs. 12,041 crore with
ICICI Bank and Prudential plc holding 74% and 26% stake
respectively. In the period April-December 2005, the company
garnered Rs 1,200 crore of new business premium for a total
sum assured of over Rs 64,113 crore and wrote nearly 6,58,437
policies. Today the company is the No.1 private life insurer in
the country.
Distribution
ICICI Prudential has one of the largest distribution networks
amongst private life insurers in India, having commenced
operations in 271 cities and towns in India. These are: Agra,
Ahmedabad, Ajmer, Allahabad, Amritsar, Aurangabad,
Bangalore, Bareilly, Bhatinda, Bhopal, Bhubhaneshwar,
Calicut, Chandigarh, Chennai, Coimbatore, Dehradun,
Durgapur, Faridabad, Goa, Guntur, Gurgaon, Guwahati,
Gwalior, Hyderabad, Hubli, Indore, Jaipur, Jalandhar,
Jamnagar, Jamshedpur, Jodhpur, Kanpur, Karnal, Kochi,
Kolkata, Kolhapur, Kota, Kottayam, Lucknow, Ludhiana,
Madurai, Mangalore, Meerut, Mumbai, Mysore, Nagpur,
Nasik, Noida, New Delhi, Patiala, Pune, Raipur, Rajkot,
Ranchi, Rourkela, Salem, Siliguri, Surat, Thane, Thrissur,
Trichy, Trivandrum, Udaipur, Vadodara, Vapi, Varanasi,
Vashi, Vijayawada and Vizag.
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The company has seven bank assurance tie-ups, having
agreements with ICICI Bank, Federal Bank, South Indian
Bank, Bank of India, Lord Krishna Bank and some co-
operative banks, as well as over 200 corporate agents and
brokers. It has also tied up with organizations like Dhan for
distribution of Salaam Zindagi, a policy for the socially and
economically underprivileged sections of society.
ICICI Prudential has recruited and trained about 1,20,000
insurance advisors to interface with and advise customers.
Further, it leverages its state-of-the-art IT infrastructure to
provide superior quality of service to customers.
ABOUT THE PROMOTERS

ICICI Bank is India's second-largest bank with total assets of
about Rs.112,024 crore and a network of about 635 branches
and offices and about 2,325 ATMs. It 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, asset management and information technology. ICICI
Bank posted a net profit of Rs.1,637 crore for the year ended
March 31, 2006. ICICI Bank's equity shares are listed in India
on stock exchanges at Chennai, Delhi, Kolkata and Vadodara,
the Stock Exchange, Mumbai and the National Stock Exchange
of India Limited and its American Depositary Receipts (ADRs)
are listed on the New York Stock Exchange (NYSE).
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Established in London in 1848, Prudential plc, through its
businesses in the UK and Europe, the US and Asia, provides
retail financial services products and services to more than 16
million customers, policyholder and unit holders worldwide.
As of June 30, 2006, the company had over US $400 billion in
funds under management. Prudential has brought to market an
integrated range of financial services products that now
includes life assurance, pensions, mutual funds, banking,
investment management and general insurance. In Asia,
Prudential is the leading European life insurance company
with a vast network of 24 life and mutual fund operations in
twelve countries - China, Hong Kong, India, Indonesia, Japan,
Korea, Malaysia, the Philippines, Singapore, Taiwan, Thailand
and Vietnam.
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PRODUCTS AND SERVICES SNAPSHOT
Insurance Solutions for Individuals

ICICI Prudential Life Insurance offers a range of innovative,
customer-centric products that meet the needs of customers at
every life stage. Its 20 products can be enhanced with up to 6
riders, to create a customized solution for each policyholder.
Savings Solutions
 SecurePlus is a transparent and feature-packed savings
plan that offers 3 levels of protection.

 CashPlus is a transparent, feature-packed savings plan
that offers 3 levels of protection as well as liquidity

options.
 Save n Protect is a traditional endowment savings plan
that offers life protection along with adequate returns.

 CashBak is an anticipated endowment policy ideal for
meeting milestone expenses like a child’s marriage,

expenses for a child’s higher education or purchase of an
asset.
 LifeTime & LifeTime II offer customers the flexibility
and control to customize the policy to meet the changing

needs at different life stages. Each offer 4 fund options
Preserver, Protector, Balancer and Maximiser.
 LifeLink II is a single premium Market Linked
Insurance Plan which combines life insurance cover with
the opportunity to stay invested in the stock market.
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 Premier Life is a limited premium paying plan that
offers customers life insurance cover till the age of 75.

 InvestShield Life is a Market Linked plan that provides
capital guarantee on the invested premiums and declared

bonus interest.
 InvestShield Cash is a Market Linked plan that provides

bonus interest along with flexible liquidity options.
 InvestShield Gold is a Market Linked plan that provides

bonus interest along with limited premium payment
terms.
Protection Solutions
LifeGuard is a protection plan, which offers life cover at very
low cost. It is available in 3 options level term assurance,
level term assurance with return of premium and single
premium.
Child Plans
SmartKid education plans provide guaranteed educational
benefits to a child along with life insurance cover for the
parent who purchases the policy. The policy is designed to
provide money at important milestones in the child’s life.
SmartKid plans are also available in unit-linked form both
single premium and regular premium.
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Retirement Solutions
 ForeverLife is a retirement product targeted at
individuals in their thirties.
 SecurePlus Pension is a flexible pension plan that
allows one to select between 3 levels of cover.
Market-linked retirement products
 LifeTime Pension II is a regular premium market-linked
pension plan
 LifeLink Pension II is a single premium market-linked
pension plan.
 InvestShield Pension is a regular premium pension plan
with a capital guarantee on the investible premium and

declared bonuses.
ICICI Prudential also launched Salaam Zindagi, a social

sector group insurance policy targeted at the economically
underprivileged sections of the society.
Group Insurance Solutions
ICICI Prudential also offers Group Insurance Solutions for

companies seeking to enhance benefits to their employees.
ICICI Pru Group Gratuity Plan: ICICI Pru’s group gratuity
plan helps employers fund their statutory gratuity obligation in
a scientific manner. The plan can also be customized to
structure schemes that can provide benefits beyond the
statutory obligations.
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ICICI Pru Group Superannuation Plan: ICICI Pru offers a
flexible defined contribution superannuation scheme to
provide a retirement kitty for each member of the group.
Employees have the option of choosing from various annuity
options or opting for a partial commutation of the annuity at
the time of retirement.
ICICI Pru Group Term Plan: ICICI Pru’s flexible group

term solution helps provide affordable cover to members of a
group. The cover could be uniform or based on
designation/rank or a multiple of salary. The benefit under the
policy is paid to the beneficiary nominated by the member on
his/her death.
Flexible Rider Options

ICICI Pru Life offers flexible riders, which can be added to
the basic policy at a marginal cost, depending on the specific
needs of the customer.
 Accident & disability benefit: If death occurs as the
result of an accident during the term of the policy, the

beneficiary receives an additional amount equal to the
sum assured under the policy. If the death occurs while
traveling in an authorized mass transport vehicle, the
beneficiary will be entitled to twice the sum assured as
additional benefit.
 Accident Benefit: This rider option pays the sum assured
under the rider on death due to accident.
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 Critical Illness Benefit: protects the insured against
financial loss in the event of 9 specified critical

illnesses. Benefits are payable to the insured for medical
expenses prior to death.
 Major Surgical Assistance Benefit: provides financial
support in the event of medical emergencies, ensuring

benefits are payable to the life assured for medical
expenses incurred for surgical procedures. Cover is
offered against 43 surgical procedures.(This Rider has
been withdrawn w.e.f. 1 s t May 2005)
 Income Benefit: This rider pays the 10% of the sum
assured to the nominee every year, till maturity, in the

event of the death of the life assured. It is available on
SmarKid, SecurePlus and CashPlus
SERVICE STANDARDS
Six sigma
ICICI prudential realized early on that quality could be a

significant differentiar with respect to the competition. Hence
it launched a six-sigma initiative as a quality measurement
tool to understand and fulfill customer needs, set industry
benchmarks and make its operations salable with a focus on
customers and costs. Through Six sigma there has been a
continuous focus on the customer, which fits in ideally with a
focus on the customer, which fits in ideally with ICICI
Prudential’s customer centric approach.
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Investment philosophy
Their investment philosophy aims to proactively achieve

superior risk-adjusted returns on our funds under management.
The focus is on ensuring long-term safety. Stability and
profitability of portfolio.
The framework to achieve this objective is based on sound

investment process and controls coupled with a rigorous and
sophisticated risk management strategy. There is clearly
articulated asset allocation strategy depending on risk
characterstics of corresponding liability.
Portfolio management is a function o extensive research and is

based on data and reasoning. Debt investments target a
judicious mix of credit and interest rate risk. Investments in
equity target long term appreciation and follow a value
oriented investment style.
Information technology
At ICICI Prudential, the strategic use of technology provides

the consumer with value –added services. There is a robust
system which is employed as the backbone of the company.
Initiatives have been taken to provide complete CRM solutions
so that the consumer can access complete information on the
policies online, from accessing payment details to sending in
the premium. Channel partners can manage their entire
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business on the web through premium alerts, client diaries and
premium calculators.
Recruitment of advisors
 To be come an advisors one has to :
- Age should be more than 25 yrs.
- Married
- Graduate
- Residing in the same area for more than 5 years.
- Family income more than 5 lac p.a
Telecalling & insurance sale

 Collection of database from :
- Fill up “my market 100”
- Doctors
- Advocate
- Friends
- Telephone directory
Training to advisors
 After clearing irda exam all advisor will an code.
 Working as an offroll in company
 An e-mail ,i-card, visting card
 Account opening at zero balance
 In future chance of becoming mdrt,cot,tot.
Working on commission base
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ICICI PRUDENTIAL PRIORITY CIRCLE
THE PRIORITY CIRCLE

Priority circle is an opportunity to diversify the business and
widen the gamut of services and solutions offered to the
clients. One can now enhance the business with capital
investment and yet earn high returns. Step into the arena of
private life insurance, one of the most dynamic industries
today with Priority Circle of ICICI prudential life insurance
company ltd, the leader in today’s private life insurance
industry.
The vast reach

 91 branches spread over 61 locations
 A committed team of tied and corporate agents, brokers,
banks and call centre executives
 An advisor force of more than 75,000 agents .
 Tie ups with India’s leading banks like ICICI bank, Bank
of India, federal bank and south Indian bank.
ICICI prudential customers enjoy the privilege of approaching

the company as per their convenience. Its vast reach across
India places the company far ahead of its pears.
The pleasant experience service
The company maintains its undisputed leadership by

proactively achieving superior risk adjusted returns on its
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funds. The prime focus is on ensuring long term safety,
profitability, stability of the portfolio. Quality service at ICICI
Pru is not an isolated function but a practice. From people and
products to process at every stage of the policy, it is an
experience for the customers so everyone’s a customer service
associate including you.
THE ADVISORS FORTE

An advisor at ICICI Prudential is one of the main strengths of
the company. It’s a partnership that results in unlimited
growth opportunity with the company.
THE ROLE
To identify prospective customers, provide tailor-made
solutions to cater to their individual needs, conduct regular
reviews to keep customers on track and last but not the least
achieve targets,
THE BENEFIT
A premium product portfolio that caters to a wide range of
financial needs, excellent back-end support, attractive returns
and benefits, round the clock customer service and extensive
training for that edge over the competition
THE ADVANTAGE
No start up capital, no supervisor, flexible working
environment and an unlimited earning potential.
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ICICI PRUDENTIAL PRIORITY CIRCLE
CONTROL STRUCTURE
The control structure of ICICI Prudential Priority Circle goes

like this:
COUNTRY
HEAD
HIMALAYAS AND
PENINSULA
SALES HEAD
ZONAL HEAD
TERRITORY
MANAGER
MANAGER –
PRIORITY
CLIENTS
As a whole till Zonal Head the levels are same in all sectors of
ICICI but after that when comes the Territory Manager, the
unique levels of Priority Circle begins.
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Under the Country Head come 2 regions:
1. Peninsula
2. Himalayas
Under those come there respective Sales Head, Zonal Head,

Territory Manager, Manager – Priority Clients.
Management Team:
Country Head (CEO) : Mrs. Shikha Sharma.

Himalayas Sales Head : Mr. Chander Chalani.
Zonal Head : Mr. Vikas Seth.
Territory Manager : Mr. Anuj Pawara.
Manager – Priority Clients : Miss Divya Singh.
The MPC’s are not allowed to sell insurance directly, but they
have to go through the advisors under them.
The advisors under the MPC’s are the High Network

Individuals which bring business. They are selected by the
MPC’s by completing certain formalities.
The person has to pay Rs. 1000/- for becoming an Advisor.

That person is given an 8 days intensive training in which he
is also given product details.
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After the training is over the person has to give an
examination named as IC 33 taken by Insurance Regulatory
and Development Authority.
Once the person clears his examination a code is generated in
his name. The person know becomes an Advisor and is ready
to bring business.
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PORTFOLIO MANAGEMENT
Portfolio Management is used to select a portfolio of new

product development projects to achieve the following goals:
 Maximize the profitability or value of the portfolio
 Provide balance
 Support the strategy of the enterprise
Portfolio Management is the responsibility of the senior

management team of an organization or business unit. This
team, which might be called the Product Committee, meets
regularly to manage the product pipeline and make decisions
about the product portfolio. Often, this is the same group that
conducts the stage-gate reviews in the organization.
A logical starting point is to create a product strategy -

markets, customers, products, strategy approach, competitive
emphasis, etc. The second step is to understand the budget or
resources available to balance the portfolio against. Third,
each project must be assessed for profitability (rewards),
investment requirements (resources), risks, and other
appropriate factors.
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Rs In Crs
Assets held as on Oct 31,2006 Rs 12,041 Crs
Equity 58% 6,970
Debt 42% 5,072
Total 100% 12,041
Assets held by :
Other than Linked

2,107
policy holders
Linked policy
9,935
holders
12,041
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ICICI Prudential Investments Team
Puneet Nanda: Chief Investment Officer
Puneet is an engineer with a PGDM from IIM, Lucknow. He has 12 years
of experience in the areas of treasury, trading and fund management. He
has been with ICICI Prudential since the inception of the company and
has overall responsibility for managing the entire investment portfolio of
the company. Prior to joining ICICI Prudential, he has worked in JP
Morgan and ICICI Securities and Finance Co. Ltd.
Fund Management & Research Team

Manish Kumar: Head -Equity
Manish Kumar is an engineer with a PGDM from IIM Kolkata. He has 13
years of experience in the area of fund management. Prior to ICICI
Prudential, Manish has been with a leading Indian asset management
company
Lakshmikanth Reddy: VP-Investments

Lakshmikanth Reddy is an engineer with a PGDM from IIM Ahmedabad.
He has 9 years of experience in the area of equity analysis. Prior to
joining ICICI Prudential, Lakshmikanth has worked with leading foreign
financial institutions.
Jitendra Arora: AVP-Investments

Jitendra Arora is a commerce graduate and has a PGDM from IIM
Bangalore. He has been with ICICI Prudential since 2001 in the areas of
financial risk management and actuarial.
Arun Srinivasan: AVP-Fixed Income

Arun Srinivasan has a post graduate degree from MET, Mumbai. He has
9 years of experience in the areas of treasury and trading. Prior to ICICI
Prudential, Arun worked with a leading Indian fund house.
Akalp Gupta: Analyst

Akalp Gupta is an engineer with a post graduate degree from IIM
Kozhikode. He has 3 year of experience as an equity analyst. Prior to
ICICI Prudential, he has worked with both Indian and foreign financial
institutions
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S/o Mr. R.S Meena
NATURE OF JOB AS A TRAINEE
At priority circle, nature of the job included recruitment of the

channel members who were further assigned to solicitate
insurance. The database was provided to us which had the
names of the selected people across Jaipur. They were invited
to office for the first meet with the manager- priority clients.
The MPC job is to explain the course of action followed to
join the business.
After the first meet if the prospect is satisfied he is given a

document called ‘market 100’ to explore his contacts which
would help him grow his business. The prospect fills the
document and brings it to the office. The MPC scrutinizes the
document. The next step is to meet the territory manager who
would judge the prospect whether he is capable to do the job
or not. If the territory manager is satisfied, then the person
fills other formalities like form, age proof and other
documents and is ready to receive the training.
The training is conducted by the lead trainer of the branch for

about 9 days, following which an exam is held. After clearing
the exam the IRDA license is given, post which the advisor is
ready to sell insurance and do financial consulting for his
clients.
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S/o Mr. R.S Meena
I also got the questionnaire filled up by the staff of some
reputed firms like American Express, Glaxo Smithkline, and
Virgin Atlantic.
The job was to study their profile and investment plans

through this questionnaire and manage their portfolios.
I designed the chart of their investments and had a detailed

brain storming on their portfolios so that I could give them the
best product in terms of saving tax and good returns.
I took over individual clients from the database and sent them
courier consisting of their present investment pattern and the
imaginary pattern which I made for him which could be very
beneficial for them, all the brochure related to the product
which I advised him, and a letter explaining him what he is
doing right know and what he should.
I gave them consultation on the insurance products which

included switching over from one product to other beneficial
product or switching from one fund to other.
I also gave them consultation that they should switch over

from the policies of certain companies to ICICI Prudential as
it would very beneficial because ICICI Prudential has very
flexible products. I myself appreciated there product named as
LIFETIME which had a lock in period of 3 years and after that
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S/o Mr. R.S Meena
you can withdraw all your without interrupting your sum
assured.
The following questionnaire was filled up by the client’s form
which I got the information about their investment.
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S/o Mr. R.S Meena

How long have you been working with the specified company?
What’s your Date of Birth?

Are you Married:
66
If yes where is your spouse working
Please help me in finding the right
Rollcategory:
No. 36
S/o Mr. R.S Meena
Your annual salary
2 – 3 lacs
How long have you been working with the specified company?
What’s your Date of Birth?

Are you Married:
If yes where is your spouse working

Please help me in finding the right category:
Your annual salary
2 – 3 lacs
3 – 4 lacs
4 lacs and above

Where have you invested your money to save tax:
PPF
NSC
BONDS
INSURANCE
MUTUAL FUNDS
Name: _______________________
ANNEXURE
1. Visiting Card
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2. Product Brochures enclosed
3. Prudential PLC Interim Report 2006
4. ICICI Prudential Presentations
I worked under Ms. Divya Singh (MPC) her visiting card is
attached below:
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BIBLIOGRAPHY
1. www.iciciprulife.com
2. www.indiainfoline.com
3. ICICI Prudential Product Brochures.
4. ICICI Prudential Presentations.
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ICICI Prodential4

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Summer Training for the

partial fulfillment of MBA

Completed training under: Report Submitted to:

Report submitted by: -Ramesh Kumar Meena

Prudence Customer Centricity Award 2004 &

Report submitted by: -Ramesh Kumar Meena

Organisation with Innovative HR Practices

Organisation with Innovative HR Practices

Report submitted by: -Ramesh Kumar Meena

Common types of Insurance 8

The global insurance industry 10

The determinants of insurance needs 12

Insurance Research and Development Authority 15

Facts of insurance industry 20

Life insurance market in India 24

About Income Tax 34

About ICICI Prudential 39

Products and Services snapshot 46

ICICI Prudential Priority Circle 52

ICICI control structure 54

Nature of Job as a Trainee 58

Report submitted by: -Ramesh Kumar Meena

Insurance is a system to alleviate financial losses by transferring

Report submitted by: -Ramesh Kumar Meena

Many of the ideas that lead us to design and develop the

My first and foremost note of thanks is due to our institute

I would sincerely like to thank my project guide

Report submitted by: -Ramesh Kumar Meena

The entity that is transferring the risk — which may be an

For example, let us assume that a couple buys a home costing

Report submitted by: -Ramesh Kumar Meena

The major operations of an insurance company are

Report submitted by: -Ramesh Kumar Meena

Life insurance, originally conceived to protect a man's

Report submitted by: -Ramesh Kumar Meena

Report submitted by: -Ramesh Kumar Meena

The insurance industry forms an integral part of the global

Expanding further on this issue, it must be remembered that

Insurance companies, therefore, engage in underwriting,

Report submitted by: -Ramesh Kumar Meena

Outside of the OECD, a more recent development since the

Report submitted by: -Ramesh Kumar Meena

The theoretical and empirical research to date has suggested

Report submitted by: -Ramesh Kumar Meena

When analyzing the impact of national income on non-life

Report submitted by: -Ramesh Kumar Meena

Report submitted by: -Ramesh Kumar Meena

Then to protect the interests of the policyholders, to regulate,

Composition of Authority under IRDA Act, 1999

As per the section 4 of IRDA Act' 1999, Insurance Regulatory

The Authority is a ten member team consisting of

Report submitted by: -Ramesh Kumar Meena

S. Reg. Date of Name of the Company

Report submitted by: -Ramesh Kumar Meena

Yr: 2001-2002: (From 1st Jan 2001 to Dec. 2002)

Report submitted by: -Ramesh Kumar Meena

S.No. Registratio Date of Name of the Company

S.No. Registration Date of Name of the Company

Report submitted by: -Ramesh Kumar Meena

S.No Registration Date of Name of the Company

FACTS OF LIFE INSURANCE INDUSTRY

Life insurance premium accounts for 72% of the total premium