SUMMER TRAINING PROJECT REPORT ON

COMPARATIVE STUDY OF ICICI PRUDENTIAL PRODUCTS WITH HDFC STANDARD LIFE AND BAJAJ ALLIANZ IN BAREILLY

Submitted in partial fulfillment for the award of Master of Business Administration (2009-2010).
Submitted To :
Mrs.Bushra Khan

Submitted By :
Vishal Gupta MBA IIIrd sem Roll No- 0914270098

Invertis Institute of Management Studies, Bareilly

Preface
The present management education has two major aspect i.e. practical and Theoretical approaches. The practical training is the key in management courses, which has received a vital importance in present scenario. Its exposure to the potential manager to aware a management student about the actual work situation in the organization. By this practical training a student rich insight in to what practically going inside the insurance companies in India. In fact its the implementation of theory into practice which is the life force of management. Six weeks summer training is an obligatory requirement of the Master of Business Administration. It was a great advantage for me of receiving practical training in ICICI PRUDENTIAL LIFE INSURANCE COMPANY

LIMITED, Bareilly in their Marketing Department.

The management of Company offered an excellent learning situation their have been considerable change in the technology, operation and structure of the insurance company due to Globalization, merger and environmental issue and available insurance policies and also new excellences been imposed by the changing consumer satisfaction and multiple market requirements are forcing insurance companies to adapt new technology.

Acknowledgement
Words are inadequate to express deep sense of gratitude towards the management of

ICICI PRUDENTIAL LIFE INSURANCE COMPANY LIMITED,

Bareilly, and (Uttar Pradesh), who accepted us as winter trainee, in their esteemed organization. Its my great privilege to express my regard towards to Mr. Vivek Srivastava,

A.S.M. & Sumer Training Officer & Project Guide PRACHI PATHAK & ALL THE FACULTY MEMBERS, who made my work possible through
his inspiring guidance and constructive criticism throughout the period of training. I am very thankful to Mr. Saurav Saxena, Sales Development Manager of ICICI PRUDENTIAL and Mr. Bilal, Financial Consultant, who provided me the sales guidance needed in the completion of the project. I am also thankful to our training & Placement Officer of our institute. This project has been made possible through the direct and indirect motivation of all my family members, relatives and friends who inspired me to work with full devotion and consistency.

LIST OF CONTENT
1.

INTRODUCTION

4-11 12-16 17-45 46-48 49-54 55-56 57-71 72-73 74 75 76-77 78 79-80 -

About life Insurance

2. 3. 4. 5. 6. 7. 8. 9.

ABOUT IRDA ICICI PRUDENTIAL LIFE HDFC STANDARD LIFE PRODUCT BAJAJ ALLAINZRESEARCH METHODOLOGY DATA INTERPRETATION FINDINGS DIFFICULTIES &LIMITATIONS -

10. RECOMMENDATION 11. CONCLUSION

12. BIBLIOGRAPHY 13. COPY

OF QUESTIONNAIRE -

SCOPE
The scope of the present report is limited to the COMPARATIVE STUDY OF INSURANCE COMPANIES. The findings are based solely on primary data gathered by interviewing the financial consultants, the Sales Development Manager of the firm and few executive of the firm, besides data obtained from, office records and other office journals. This project report has been divided into different chapters and contains different perspective and information about Insurance Companies. Information collected by the survey conducted for the consumer preference of at random samples. Thus, the primary data and secondary data both have provided the basis for completing of his report.

About Life Insurance

What is Life Insurance Scope of Life Insurance Need of Life Insurance Roles of Life Insurance Benefits of Insurance

What is Life Insurance?

Life Insurance is a contract between you and a life insurance company, which provides your beneficiary with a pre-determined amount in case of your death during the contract term. Buying insurance is extremely useful if you are the principal earning member in the family. In case of your unfortunate premature demise, your family can remain financially secure because of the life insurance policy that you have purchased. The primary purpose of life insurance is therefore protection of the family in the event of death. Today, insurance is also seen as a tool to plan effectively for your future years, your retirement, and for your childrens future needs. Today, the market offers insurance plans that not just cover your life and but at the same time grow your wealth too.

Insurance

Uncertain Event

Financial Loss

Then What
Insurance

?
Compensates for the Loss

SCOPE OF INSURANCE
Why does one need Life Insurance?
Life insurance is designed to protect you and your family against financial uncertainties that may result due to unfortunate demise or illness. You can also view it as a comprehensive financial instrument as a part of your financial planning offering you savings & investment facilities along with cover against financial loss. By choosing the right policy as per your needs i.e. customized solutions, you will be able to plan for a secure future for yourself and your loved ones.

Choosing the right plan

Identifying the right plan basis your needs is the first crucial step towards insurance planning. At HDFC SL we help you through this decision by identifying your various needs and offering plans that are customized for you. You may also choose a plan for yourself by identifying the life stage you are at.

Analyzing Needs
The following needs of a person can be fulfilled by insurance:Protection
Need for a sound income protection in case of your unfortunate demise

Investment
Need to ensure long-term real growth of your money

Saving
Save for the milestones and protect your savings too

Pension
Need to save for a comfortable life post retirement Once you have analyzed your needs as per above classification, you need to then ascertain important factors such as type of cover, insurance amount as per one's income, life stage and dependents

Need for Life Insurance

Risks and uncertainties part of lifes great adventureaccident, illness, theft, natural disaster- they are all built into the working of the Universe, waiting to happen. Insurance then is mans answer to the vagaries of life. If you cannot beat man-made and natural calamities, well, at least be prepared for them and their aftermath. Insurance is a contract between two parties the insurer and the insured. Wherein the insurer agrees to pay the insured for financial losses arising out of any unforeseen events in return for a regular payment of premium. These unforeseen events are defined as risk and that is why insurance is called a risk cover. Hence, insurance is essentially the means to financially compensate for losses that life throws at people corporate and otherwise.

Uncertainty on Human Life

Death (untimely) Disability Diseases Destitution (Retirement) Debt ..and the way to protect is; only by way of insurance

5 Ds

Roles of Life Insurance

Role 1: Life Insurance as Investment
Insurance is an attractive option for investment. While most people recognize the risk hedging and tax saving potential of insurance, many are not aware of its advantage as an investment option as well. Insurance products yield more compared to regular investment options, and this is besides the added incentives offered by insurers. You cannot compare an insurance product with other investment schemes for the simple reason that it offers financial protection from risks, something that is missing in non-insurance products. In fact, the premium you pay for an insurance policy is an investment against risk. Thus, before comparing with other schemes, you must accept that a part of the total amount invested in life insurance goes towards providing for the risk cover, while the rest is used for savings. In life insurance, unlike non-life products, you get maturity benefits on survival at the end of the term. In other words, if you take a life insurance policy will come back to you with added returns. In the unfortunate events of death within the tenure of the policy, the family of the deceased will receive the sum assured.

Thus insurance is a unique investment avenue that delivers sound returns in addition to protection.

Role 2: Life insurance as Risk cover

Insurance provides you with that unique sense of security that no other form of investment provides. By buying life insurance, you buy peace of mind and are prepared to face any financial demand that would hit the family in case of an untimely demise.

Insurance also provides a safeguard in the case of accidents or a drop in income after retirement. An accident or disability can be devastating, and an insurance policy can lend timely support to the family in such times. It also comes as a great help when you retire, in case no untoward incident happens during the term of the policy.

Role 3: Life insurance as Tax planning

Insurance serves an excellent tax saving mechanism too. You will be eligible for tax benefits under section 80C and Section 10(10D) of the Income Tax Act 1961. Under Section 80C, you can save up to Rs. 33,600 from your tax each year as premiums up to Rs. 100,000 are allowed as a deduction from your taxable income. Under Section 10 (10D), the benefits you receive from this policy are completely tax-free subject to the exclusions.

10

BENEFITS OF LIFE INSURANCE

Superior to Any Other Savings Plan
Unlike any other savings plan, a life insurance policy provides full protection risk of death. In the event of death of a policyholders, near and dear ones. In comparisons, any other savings plan would amount to the total savings accumulated till date. If any other incidence occurs prematurely, such savings can be much lesser than the sum assured. Evidently, the potential financial loss to the family of the policyholder is cease able.

Encourages and Forces Thrift

A saving deposit can easily be withdrawn. The payment of life insurance premium, however, is considered sacrosanct and is viewed with the same seriousness as the payment of interest on a mortgage. Thus, a life insurance policy in effect brings about compulsory savings.

Easy Settlement and Protection against Creditors

A life insurance policy is the only financial instrument the proceeds of which can be protected against the claims of a creditor of the assured by effecting a valid assignment of the policy.

A Ready Marketability and Suitability For Quick Borrowings

A life insurance policy can, after a certain time period (generally 3 years), be surrendered for a cash value. The policy is also acceptable as a security for a commercial loan, for example a student loan, it is particularly advisable for housing loans when an acceptable policy may also cause the lending institution to give loan at lower interest rates. 11

Disability Benefits
Death is not the only hazard that is insured, many policies also provide disability benefits. Typically, these provide for waiver of future premiums and payment of monthly installment spread over certain time period.

Accident Death Benefits

Many policies can also provide for an extra sum to be paid (typically equal to the sum assured) if death occurs as a result of accident.

Tax Relief
Under the Indian tax act, the following tax relies are available 30% of the premium paid can be deductible from your total income-tax 100% of the premium paid is deductible from your total taxable income. When these benefits are factored in, it is found that most policies offer return that are comparable/or even better than older savings modes such as PPF, NSC etc. Moreover, the cost of insurance is very negligible.

liability.

12

About IRDA

What is IRDA Notification IRDA Journals Composition of Authority under IRDA Act 1999 Duties, Power and functions of IRDA

13

What is IRDA?
The IRDA Regulations, 2002 deals with the vast area of rights of the investors starting with the rights to obtain a copy of the proposal, the free look in period in respect of the life policies, a copy of the concluded policy to be furnished to the client and also the obligations of the insurance company regarding servicing and extending of the policy, payment of interest in case of delay settlement of the policy claims, etc. The regulations also prescribe a procedure for settlement of the grievances including the appointments of the Insurance Ombudsman at specific centers in India. In addition to this, the IRDA Act empowers the Authority to look into the settlement of the grievances and in cases where the policyholders approach the Authority directly; the Authority often intervenes with the insurers for the protection of their rights.

14

Duties, Powers and Functions of IRDA

Section 14 of IRDA Act, 1999 lays down the duties, Powers and functions of IRDA. (1) Subject to the provisions of this Act and any other law for the time being in force, the authority shall have the duty to regulate, promote and ensure orderly growth of the insurance business and re-insurance business. (2) Without prejudice to the generality of the provision contained on sub-section (1), the powers and functions of the Authority shall include Issue to the applicant a certificate of registration, renew, modify, withdraw, suspend or cancel such registration. Protection of the interests of the policy holders in matters concerning assigning of policy, nomination by policy holders, insurable interest, settlement of insurance claim, surrender value of policy and other terms and conditions of contracts of insurance. Specifying requisite qualifications, code of conduct and practical training for intermediary of insurance intermediaries and agents. Specifying the code of conduct for surveyors and loss assessors. Promoting efficiency in the conduct of insurance business. Promoting and regulating professional organizations connected with the insurance and re-insurance business. Levying fees and other charges for carrying out the purposes of this Act. Calling for information from, undertaking inspection of, conducting enquiries and investigations including audit of the

15

Control and regulation of the rates, advantages, terms and conditions that may be offered by insurers in respect of general insurance business but so controlled and regulated by the Tariff

Advisory Committee under section 64U of the Insurance Act, 1938 (4 of 1938). Specifying the form and manner in which books of account shall be maintained and statement of accounts shall be rendered by insurers and other insurance intermediaries.

Regulating investment of funds by insurance companies. Regulating maintenance of margin of solvency. Adjudication of disputes between insurers and intermediaries or insurance intermediaries. Supervising the functioning of the Tariff Advisory Committee. Specifying the percentage of premium income of the insurer to finance schemes for promoting and regulating professional organizations referred to in clause (f).

Specifying the percentage of life insurance business and general insurance business to be undertaken by the insurer in the rural of social sector

Exercising such other powers as may be prescribed.

16

ICICI Prudential Life

17

ICICI Prudential Life

The Partnership:
ICICI Prudential Life Insurance Company is a joint venture between ICICI Bank, a premier financial powerhouse, and prudential plc, 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. ICICI Prudential capital stands at Rs. 21.60 billion with ICICI Bank and Prudential plc holding 78% and 29% stake respectively, As of March 31, 2007, the company garnered Rs.4, 843 crore of weighted retail + group new business premiums and wrote over 2.96 million retail policies. The company has assets hold to the tune of over Rs. 15,000 crore. ICICI Prudential is also the only private life insurer in India to receive a National Insurer Financial Strength rating of AAA (Ind) from Fitch ratings. The AAA (Ind) rating is the highest rating, and is a clear assurance of ICICI Credentials ability to meet its obligations to customers at the time of maturity or claims. For the past six 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.

Distribution
ICICI Prudential has one of the larges distribution networks amongst private life insurers in India. As of March 31, 2007 the company has over 580 offices across the country and over 234,000 advisors. The company has over 22 banc assurance partners, having tie-ups with ICICI Bank, Federal Bank, Bank of India, Lord Krishna Bank, Idukki District Co-operative Bank, etc.

18

Individual Products
Plans
Saving plans

Benefit
ICICI Prudential offers a variety of policies that give customer the benefits of protection and the opportunity to save for important assets of events, like a home, a car or a wedding. Childrens plan is especially designed to provide flexibility and safeguard customers childs future education and lifestyle, taking all possibilities into account. ICICI Prudential presents Retirement solutions that combine the best of insurance and investment. Employee benefits have proven to be an excellent tool to optimize the retention of talent and improve an organizations bottom line.

Childrens plans

Retirement plans Group Solutions

Flexible Rider Options

ICICI Prudential Life offers flexible riders, which can be added to the basic policy at a marginal cost, depending on the specific needs of the customer. ICICI Prudential Protection Plan offers LIFE GUARD, which offers life cover at low cost. ICICI Prudential Health Assure is a regular premium plan which provides long term cover against 6 critical illnesses by providing policyholder with financial assistance, irrespective of the added advantage of an equivalent life insurance cover. It is a regular premium plan that pays cash benefit on the diagnosis as well as at different stages in the treatment of various cancer conditions. It is a fixed benefit plan covering various stages of treatment.

Protection Plans Health Assure Plus

Cancer Care

Hospital Care

19

ICICI PRUDENTIAL LIFES key strengths

Financial Expertise: As a joint venture of leading financial services groups, ICICI

Prudential Life has the financial expertise required to manage your long-term investments safely and efficiently.

Range of solutions: We have a range of individual and group solutions, which can
be easily customized to specific needs. Our group solutions have been designed to offer you complete flexibility combined with a low charging structure.

Track Record so far: Our cumulative premium income, including the first year
premiums and renewal premiums is Rs. 1532.21 Crores Apr-Mar 2005 - 06. We have covered over 1.6 million individuals out of which over 5, 00,000 lives have been covered through our group business tie-ups.

20

ICICI Limited
ICICI is Indias leading housing finance institution and has helped build more 35,00,000 houses since its incorporation in 1977.

1) In Financial Year 2003-04 its assets under management crossed Rs.56,000 Cr. 2) As at March 31, 2004, outstanding deposits stood at Rs. 9,840 crores. The depositor base now stands at around 1 million depositors . 3) Rated AAA by CRISIL and ICRA for the 10th consecutive year 4) Stable and experienced management 5) High service Prudential s 6) Awarded the Economic Times Corporate Citizen of the year Award for its long-standing commitment to community development. 7) Presented the Dream Home award for the best housing finance provider in 2004 at the third annual outlook money awards. .

21

About the group companies of ICICI

ICICI ICICI Bank ICICI Mutual Funds ICICI Securities ICICI realty.com Internet Credit Information Bureau (India) Limited ICICI Chubb General Insurance Company Limited

22

Individual Products

Each of us leads a unique life and so has unique needs. ICICI Prudential Life offers a range of products and invites you to choose the one that suits you best.

Pension Plan
Personal Pension Plan Unit Linked Pension Plan

Saving Plans
Endowment Assurance Plan Unit Linked Endowment Plan Money Back Plan Childrens Plan Unit Linked Young star Plan

Investment Plans
Single Premium Whole Of Life Plan

Protection Plans
Term Assurance Plan Loan Cover Term Assurance Plan

What is personal pension plan?

ICICI Personal Pension Plan is an insurance policy that is designed to provide a postretirement income fir life with the freedom to choose your retirement date.

23

Customer can choose the premium, the Sum Assured and the retirement date. At the end of the policy term, you will receive the Sum Assured Plus any attaching bonus, which will provide your post-retirement income. ICICI Personal Pension Plan is an insurance policy, which can benefit customer in following ways: Provides a post retirement income in your golden years. Gives you the flexibility to plan your retirement date. Gives you tax benefits on your premiums. In case of unfortunate demise during the policy term, your nominee will receive the following benefits: Demise within first year : 80% of the premium paid Demise after first year : premium paid to date along with compound interest calculated at 8% p.a.

What is Retirement Age?

Customer can select age of retirement at between 50 years and 70 years. The eligibility ages are as follows: Minimum Age At Entry 18 years

Maximum Age At Entry

Minimum Term Maximum Term 40 years

60 years
10 years

What are the customer premiums?

Customer agrees to pay a level premium regularly, either quarterly, half yearly or annually, throughout the term of the policy. The minimum premium amount is Rs. 5000 each year. Premiums can be paid by cash, cheque or demand draft.

24

Does Personal Pension Plan offer you Tax Benefit?

Tax benefits described in Section 80C, Section 80D, and Section 10 (10D) of the Income Tax Act are applicable. Under Section 80C, you can save up to Rs. 33,660 from your tax each year as premiums up to Rs. 1,00,000 are allowed as a deduction from your taxable income. Under Section 10 (10D), the benefits received from this policy are completely tax-free.

Exclusions
No death benefit will be paid if the death has occurred directly or indirectly as a result of suicide within one year from the date of first being covered under the policy.

What is Unit Linked Pension Plan?

The ICICI Unit Linked Pension Plan is an insurance policy that is designed to provide a retirement income for life with the freedom to maximize your investment returns. It allows you build up a retirement fund for the future and during that time, give you the knowledge that your family will receive a cash lump sum to provide for them in the event of your unfortunate demise. Customer can choose your premium and the investment fund or funds. In the event of your unfortunate demise during the policy term, your spouse will receive a cash lump sum to help him or her manager the retirement years.

What are the customer premiums?

Customer agrees to pay a level premium regularly, either quarterly, half yearly or annually, throughout the term of the policy. The minimum premium amount is Rs. 10,000 each year.

25

 Premiums can be paid by cash, cheque or demand draft.

Beneficiaries:
Customer will receive the benefits due on maturity at the end of the policy term. In the event of your unfortunate demise, your nominee will receive the benefits due.

What are the Investment Funds?

You can choose from all or any of the following 6 funds: FUNDS Bank Deposits Govt. Equity Risk & Return Rating to 15% 30% to 30% 60% Low Low Moderate to Moderate to High & Money Securities Market & Bonds Liquid Funds Secure Managed Fund Defensive Managed Fund Balanced Managed Fund Equity Managed Fund Growth Fund 100% 100% 70% 85% 40% 70% 0 to 40% -

60% to Very High 100% 100% Very High

What happen if customer surrenders the policy?

The policyholder can surrender the policy at any point of time during the contract term. The amount payable will be the unitized fund value after applying additional surrender charges mentioned below: 1. In first three years: - Insurance plans are long-term investments with significant tax advantages. Therefore, for the first three years of your plan, you may not

26

surrender the plan or withdraw any portion of your funds from it. These funds will be paid out to you only at the end of the third year. If you stop paying your regular premium before three years have passed, your life cover will cease and funds will be held in suspense after deduction of surrender charges. 2. From the fourth year onwards:- you can choose to surrender the policy at any time and the surrender value will be the value of the units in the funds. We will enforce surrender only if you have stopped paying regular premiums and your fund value is less than your original annual regular premium amount. You can make lump sum partial withdrawals from your funds at any time with in the policy term chosen provided:

The minimum withdrawal amount is Rs. 10,000. After the withdrawal the fund does not fall below your original annual regular premium amount. After the withdrawal, the fund does not fall below the sum of single premium top-ups paid to date.

Are you eligible?

The eligibility ages for the life assured under the plan are as follows: Minimum Age At Entry 18 years

Maximum Age At Entry

Minimum Age At Vesting Maximum Age At Vesting Minimum Term: 10 years

65 years
50 years 75 years Maximum Term: 40 years

Charges:
ICICI SLIC will deduct charges from the policy to cover ICICI SLIC costs. These charges are:

27

1. Premium Allocation Charge:- This is premium based charge. After deducting this charge from premium, the remainder is invested to buy units. This percentage is called the Allocation Rate. Premium paid Regular- 1st year Regular- 2nd year Regular- 3rd year onwards Allocation Rate 75% 75% 99% Allocation charge 25% 25% 1%

2. Fund Management Charge:- This charge is 0.80% of the fund value per annum
taken on a daily basis.

3. Switching Charge:- 24 switches will be given free in a policy year and any
additional switch will be charged Rs 100 per switch.

What is Unit Linked Endowment Plan?

The unit linked endowment plan is an insurance policy that is designed to pay a lump sum on maturity or on earlier death. On maturity customer receive the value of customer units. On death customer receive the greater of the value of customer units and customer selected basic sum assured.

What are the benefits?

There are 4 different options available to choose from:

1. Life Option

Death Benefit

On death within the policy term, the greater of the Sum Assured and the value of fund will be paid to customer nominee. The policy will terminate.

2. Extra Life Option

Death Benefit + Accidental Death benefit

28

If death occurs within the policy term as the result of an accident, an extra benefit equal to the Sum Assured will be paid.

3. Life and Health Option Benefit

Death

Benefit

+ Critical

illness

On death or earlier diagnosis of any one of six common critical illnesses within the policy term, the greater of the Sum Assured and the value of the unit-linked fund will be paid to customer nominee. The illnesses covered under this option are cancer, coronary artery by pass graft surgery, heart attack, kidney failure, major organ transplant and stroke. If death occurs within the policy term as the result of an accident, an extra benefit equal to the Sum Assured will be paid.

What are the customer premiums?

Customer agrees to pay a level premium regularly, either quarterly, half yearly or annually, throughout the term of the policy. The minimum premium amount is Rs. 10,000 each year. Premiums can be paid by cash, cheque or demand draft.

What are the levels of protections?

Minimum of the term. Maximum 40 times.

What are the Investment Funds?

You can choose from all or any of the following 6 funds: FUNDS Bank Deposits Govt.Securities Equity Risk

29

& Money Market Liquid Funds Secure Fund 100% 100%

& Bonds & Return Rating Low Low Moderate

Managed -

Defensive Managed Fund Balanced Fund Equity Fund Managed Managed -

70% to 85% 40% to 70% 0 to 40% -

15% to 30% Moderate 30% to 60% High 60% 100% 100% to Very High Very High

Growth Fund

What happen if customer surrenders the policy?

The policyholder can surrender the policy at any point of time during the contract term. The amount payable will be the unitized fund value after applying additional surrender charges mentioned below: 1. In first three years: - Insurance plans are long-term investments with significant tax advantages. Therefore, for the first three years of your plan, you may not surrender the plan or withdraw any portion of your funds from it. These funds will be paid out to you only at the end of the third year. If you stop paying your regular premium before three years have passed, your life cover will cease and funds will be held in suspense after deduction of surrender charges. 2. From the fourth year onwards:- you can choose to surrender the policy at any time and the surrender value will be the value of the units in the funds. We will enforce surrender only if you have stopped paying regular premiums and your fund value is less than your original annual regular premium amount. You can make lump sum partial withdrawals from your funds at any time with in the policy term chosen provided: The minimum withdrawal amount is Rs. 10,000. After the withdrawal the fund does not fall below your original annual regular premium amount. After the withdrawal, the fund does not fall below the sum of single premium top-ups paid to date. 30

Is customer eligible?
The age and term limits for taking out a ICICI Unit Linked Endowment are as shown below: Benefit options Term Period (yrs) Min. Life Option Extra Life Option Life and Health Option Extra Life and Health option 10 10 10 10 Max. 30 30 30 30 Age at entry (yrs) Min. 18 18 18 18 Max. 65 55 55 55 Max. Age at Maturity (yrs) 75 70 65 65

Does Endowment Assurance Plan offer you Tax Benefit?

Tax benefits described in Section 80C, Section 80D, and Section 10 (10D) of the Income Tax Act are applicable.

Charges:
ICICI SLIC will deduct charges from the policy to cover ICICI SLIC costs. These charges are:

1. Premium Allocation Charge:- This is premium based charge. After deducting

this charge from premium, the remainder is invested to buy units. This percentage is called the Allocation Rate. Premium paid Regular- 1st year Regular- 2nd year Regular- 3rd year onwards Allocation Rate 70% 70% 99% Allocation charge 30% 30% 1%

2. Fund Management Charge:- This charge is 0.80% of the fund value per annum
taken on a daily basis.

3. Switching Charge:- 24 switches will be given free in a policy year and any
additional switch will be charged Rs 100 per switch.

4. Policy Administration Charge:- A charge of Rs. 20 per month is charged to

cover regular administration costs.

31

Exclusions
No death benefit will be paid if the death has occurred directly or indirectly as a result of suicide within one year from the date of first being covered under the policy. We will not pay Extra Health Benefits if the critical illness has occurred within 6 months of the start of the contract. We may not pay Extra Health Benefits if we do not receive a duly completed claim from within 26 weeks of he illness, disability, operation or other circumstances giving rise to the claim.

What is Money Back Plan?

It is a participating insurance plan that offers the following features: A proportion of the basic Sum Assured as Cash lump sums at regular 5 years intervals within the policy term. A lump sum payment on survival up to maturity date. In case of the unfortunate death of the life assured within the term of the policy, the basic sum assured plus any bonus additions is provided. This is over and above the earlier payouts.

What optional benefits are available with this plan?

You can add 4 optional benefits to customize your policy to suit your needs:

1. Critical Illness Benefits:- It provides an amount, equal to the Sum Assured

selected under this benefit, on diagnosis of any one of the 6 critical illnesses. The Sum Assured is payable only if you survive for 30 days after date of Critical Illness Benefit claim.

2. Additional Term Benefit:- It provides an additional amount, equal to the Sum

Assured selected under this benefit, in case of your unfortunate demise.

3. Accidental Death Benefit:- It provides an additional amount, equal to the Sum

Assured selected under this benefit, in case of your unfortunate death:

32

 Due to an accident, and Within 90 days of the accident.

What are the customer premiums?

Customer agrees to pay a level premium regularly, either quarterly, half yearly or annually, throughout the term of the policy. The minimum premium amount is Rs. 5000 each year. Premiums can be paid by cash, cheque or demand draft.

KEY BENEFITS:
POLICY TERM 10 15 20 25 30 5th year 40% 30% 25% 20% 15%
SURVIVAL BENEFIT

DEATH BENEFIT 25th year 20%+A.B 15% 30th year 15%+A.B 100%Su m Assured+ Attaching Bonus

10th year 60%+A.B 30% 25% 20% 15%

15th year 40%+A.B 25% 20% 15%

20th year 25%+A.B 20% 15%

Is customer eligible?
This plan can be taken on a single life basis or a joint life (first claim) basis. The eligibility ages are as follows: Benefit options Term Period (yrs) Min. Basic policy Critical Illness Benefit Additional Term Benefit Accidental Death Benefit 10 10 10 10 Max. 30 30 30 30 Age at entry (yrs) Min. 12 18 18 18 Max. 60 55 60 55 Max. Age at Maturity (yrs) 75 70 75 65

33

Beneficiaries:
Customer will receive the benefits due on maturity at the end of the policy term. In the event of your unfortunate demise, your nominee will receive the benefits.

Does Money Back Plan offer you Tax Benefit?

Tax benefits described in Section 80C, Section 80D, and Section 10 (10D) of the Income Tax Act are applicable.

Exclusions
No death benefit will be paid if the death has occurred directly or indirectly as a result of suicide within one year from the date of first being covered under the policy. We will not pay Extra Health Benefits if the critical illness has occurred within 6 months of the start of the contract. We may not pay Extra Health Benefits if we do not receive a duly completed claim from within 26 weeks of he illness, disability, operation or other circumstances giving rise to the claim. We will not pay Accidental Death Benefit if Death occurs after 90 days from the date of the accident. We will not pay Additional Term benefit, Accidental Death Benefit if the death is caused directly or indirectly from taking part or practicing for any hazardous hobby or pursuit or race unless previously agreed to by us in writing.

34

What is childrens plan?

The ICICI Childrens Plan is designed to secure your childs future by giving your child a guaranteed lump sum, on maturity or in case of your unfortunate demise,early in the policy term. Childrens Plan receives simple reversionary bonuses, which are usually added annually. This is a flexible plan with three options for you to choose from, depending on your requirements.

What are the options that are available with this plan?
You will have the choice of 3 options at the start of the policy:

PLAN OPTION BEBEFIT

Accelerated benefit Plan

DEATH BEBEFIT

MATURITY

Maturity Benefit Plan Double Benefit Plan

Company will pay the Company will pay the Sum Assured + Sum Assured + Bonuses Bonuses Declared. Declared. The policy terminates immediately. Future premiums We will pay the Sum waived and the policy Assured + Bonuses continues till maturity. Declared. Company will pay the We will pay the Sum Sum Assured. Assured + Bonuses Declared. Future premiums waived, and the policy continues till maturity.

What are the customer premiums?

Customer agrees to pay a level premium regularly, either quarterly, half yearly or annually, throughout the term of the policy. The minimum premium amount is Rs. 5000 each year. Premiums can be paid by cash, cheque or demand draft.

35

Are you eligible?

The eligibility ages for the life assured under the plan are as follows: Minimum Age At Entry 18 years

Maximum Age At Entry

Maximum Age At Maturity Minimum Term: 10 years

60 years
75 years Maximum Term: 25 years

Does Childrens Plan offer you Tax Benefit?

Tax benefits described in Section 80C, Section 80D, and Section 10 (10D) of the Income Tax Act are applicable. Under Section 80C, you can save up to Rs. 33,660 from your tax each year as premiums up to Rs. 1,00,000 are allowed as a deduction from your taxable income. Under Section 10 (10D), the benefits received from this policy are completely tax free.

36

Exclusions
We will not pay any benefit if the death of the life assured has occurred directly or indirectly as a result of suicide within one year of the date of commencement or the date of issue, if later and the policy will lapse without any value.

What is Unit Linked Young Star Plan?

As a parent, your priority is your childrens future and being able to meet their dreams and aspirations. Today, providing a geed education, establishing a professional career or even a modest wedding is expensive. To help you save for your child, we at ICICI Prudential Life, present the ICICI Unit Linked Young Star Plan. ICICI Unit Linked Young Star Plan is designed to provide a lump sum to the child at maturity. It also provides financial security to the child in the future, even in case of the insured parents unfortunate death during the policy term. The Unit Linked Young Star Plan also gives the option of additional protection against the six common critical illnesses. Your premiums are invested in units of the investment funds of your choice, based on the prevailing unit prices. On maturity the value of the units will be paid. On death the selected basic sum assured is paid, and the policy continues until maturity.

What are the customer premiums?

Customer agrees to pay a level premium regularly, either quarterly, half yearly or annually, throughout the term of the policy. The minimum premium amount is Rs. 10,000 each year. Premiums can be paid by cash, cheque or demand draft.

What are the levels of protections?

37

 Minimum 5 times. Maximum 40 times.

What are the Investment Funds?

You can choose from all or any of the following 6 funds: FUNDS Liquid Funds Secure Fund Bank Deposits MoneyMarket 100% Managed Govt.Securities & Bonds 100% 70% to 85% 40% to 70% 0 to 40% 15% 30% 30% 60% 60% 100% 100% Equity Risk & ReturnRating Low Low Moderate to Moderate to High to Very High Very High

Defensive Managed Fund Balanced Fund Equity Fund Managed Managed -

Growth Fund

What happen if customer surrenders the policy?

The policyholder can surrender the policy at any point of time during the contract term. The amount payable will be the unitized fund value after applying additional surrender charges mentioned below: 1. In first three years: - Insurance plans are long-term investments with significant tax advantages. Therefore, for the first three years of your plan, you may not surrender the plan or withdraw any portion of your funds from it. These funds will be paid out to you only at the end of the third year. If you stop paying your regular premium before three years have passed, your life cover will cease and funds will be held in suspense after deduction of surrender charges. 2. From the fourth year onwards:- you can choose to surrender the policy at any time and the surrender value will be the value of the units in the funds. We will enforce surrender only if you have stopped paying regular premiums and your fund value is less than your original annual regular premium amount. You can make lump sum partial withdrawals from your funds at any time with in the policy term chosen provided: The minimum withdrawal amount is Rs. 10,000. 38

 After the withdrawal the fund does not fall below your original annual regular premium amount. After the withdrawal, the fund does not fall below the sum of single premium top-ups paid to date.

Are you eligible?

The eligibility ages for the life assured under the plan are as follows: Minimum Age At Entry 18 years

Maximum Age At Entry

Maximum Age At Maturity Minimum Term: 10 years

65 years
75 years Maximum Term: 25 years

Charges:
ICICI SLIC will deduct charges from the policy to cover ICICI SLIC costs. These charges are:

1. Premium Allocation Charge:- This is premium based charge. After

deducting this charge from premium, the remainder is invested to buy units. This percentage is called the Allocation Rate.

Premium paid Regular- 1 year Regular- 2nd year Regular- 3rd year onwards
st

Allocation Rate 70% 70% 99%

Allocation charge 30% 30% 1%

2. Fund Management Charge:- This charge is 0.80% of the fund value per annum
taken on a daily basis.

3. Switching Charge:- 24 switches will be given free in a policy year and any
additional switch will be charged Rs 100 per switch.

4. Policy Administration Charge:- A charge of Rs. 20 per month is charged to

cover regular administration costs.

Does Unit Linked Young Star Plan offer you Tax Benefit?
39

Tax benefits described in Section 80C, Section 80D, and Section 10 (10D) of the Income Tax Act are applicable. Under Section 80C, you can save up to Rs. 33,660 from your tax each year as premiums up to Rs. 1,00,000 are allowed as a deduction from your taxable income. Under Section 10 (10D), the benefits received from this policy are completely tax free.

Exclusions
No death benefit will be paid if the death has occurred directly or indirectly as a result of suicide within one year from the date of first being covered under the policy. We will not pay Extra Health Benefits if the critical illness has occurred within 6 months of the start of the contract. We may not pay Extra Health Benefits if we do not receive a duly completed claim from within 26 weeks of he illness, disability, operation or other circumstances giving rise to the claim. We will not pay Accidental Death Benefit if Death occurs after 90 days from the date of the accident. We will not pay Additional Term benefit, Accidental Death Benefit if the death is caused directly or indirectly from taking part or practicing for any hazardous hobby or pursuit or race unless previously agreed to by us in writing.

40

What is Single Premium Whole Life Insurance Plan?

ICICI Single Premium Whole of Life Insurance Plan is a tailor made plan, well suited to meet your long-term investment needs. This participating plan offers youre the following benefits: It provides long-term real growth of your money. Single premium investment plan. In case of your unfortunate death during the policy term, this participating insurance plan will pay your family the Sum Assured and compound reversionary Bonuses, which are usually added annually. An additional Terminal Bonus may be paid depending on the performance of the underlying investments. During Guaranteed Surrender Periods customer get the Sum Assured and all bonuses vested as at the date of surrender.

In case of unfortunate death

Your nominee gets the sum assured secured by your premium, plus any attaching bonuses.

Are you eligible?

The eligibility ages for the life assured under the plan are as follows: Minimum Age At Entry 18 years

Maximum Age At Entry

65 years

What are the payment options?

A single premium can be paid by cash, cheque or demand draft. Minimum Sum Assured : 25,000

41

Maximum Sum Assured

50,00,000

Premium Rate: 950 per Rs. 1,000 of Sum Assured.

What happen if customer surrenders the policy?

Customer can terminate the policy any time, after it has been in force for at least 6 months and receive a surrender value. However, after completion of 3 years there will be a guaranteed surrender value of 50% of premium paid.

42

Tax Benefits:
Currently Section 80C benefit is available for the premium paid under the plan to the extent of 20% of the sum assured. In the event of a death claim the money paid is exempt as per Section 10(10D), of the income Tax Act 1961. We would recommend you to consult your tax consultant for further clarifications.

Exclusions:
Company shall not be liable to pay the benefit amount indicated in your policy schedule if the death of the life assured or the death of the first to die of the lives assured is caused directly or indirectly by suicide within one year of the date of commencement, or the date of issue of the policy, if later.

What is Term Assurance Plan?

The ICICI Term Assurance Plan is an insurance policy that is designed to help secure our familys financial needs. It does this by providing a lump sum to the family of the life assured in case of death or critical illness of the life assured during the term of the contract. Under this plan, a um assured is payable in case of death of the life assured during the term of the contract. One can choose the lump sum that would replace the income lost to ones family in the unfortunate event of ones death. Since this non- participating plan is a pure risk cover plan, no benefits are payable on survival to the end of the term of the policy.

What optional benefits are available with this plan?

You can add the following optional benefit to customize your policy to suit your needs:

1. Critical Illness Benefits:- It provides an amount, equal to the Sum Assured

selected under this benefit, on diagnosis of any one of the 6 critical illnesses. The Sum 43

Assured is payable only if you survive for 30 days after date of Critical Illness Benefit claim.

2. Accidental Death Benefit:- It provides an additional amount, equal to the Sum

Assured selected under this benefit, in case of your unfortunate death: Due to an accident, and Within 90 days of the accident.

What are the customer premiums?

Customer agrees to pay a level premium regularly, either quarterly, half yearly or annually, throughout the term of the policy. The minimum premium amount is Rs. 5000 each year.

Beneficiaries:
Customer will receive the benefits due on maturity at the end of the policy term. In the event of your unfortunate demise, your nominee will receive the benefits due.

Are you eligible?

Benefit options Term period (yrs) Min. 10 10 10 Death Max. 30 30 30 Age at entry Max. Age At (yrs) Min. 12 18 18 Maturity Max. 60 55 55 (yrs) 65 65 65

Basic policy Critical Illness Benefit Accidental Benefit

Does Term Assurance Plan offer you Tax Benefit?

44

Tax benefits described in Section 80C, Section 80D, and Section 10 (10D) of the Income Tax Act are applicable. Under Section 80C, you can save up to Rs. 33,660 from your tax each year as premiums up to Rs. 1,00,000 are allowed as a deduction from your taxable income. Under Section 10 (10D), the benefits received from this policy are completely tax-free.

Exclusions
No death benefit will be paid if the death has occurred directly or indirectly as a result of suicide within one year from the date of first being covered under the policy. We will not pay Extra Health Benefits if the critical illness has occurred within 6 months of the start of the contract. We may not pay Extra Health Benefits if we do not receive a duly completed claim from within 26 weeks of he illness, disability, operation or other circumstances giving rise to the claim. We will not pay Accidental Death Benefit if Death occurs after 90 days from the date of the accident. We will not pay Additional Term benefit, Accidental Death Benefit if the death is caused directly or indirectly from taking part or practicing for any hazardous hobby or pursuit or race unless previously agreed to by us in writing.

45

HDFC Standard Life

46

The Partnership:
HDFC and Standard Life first came together for a possible joint venture, to enter the Life Insurance market, in January 1995. It was clear from the outset that both companies shared similar values and beliefs and a strong relationship quickly formed. In October 1995 the companies signed a 3-year joint venture agreement. In October 1998, the joint venture agreement was renewed and additional resource made available. Around this time Standard Life purchased 2% of Infrastructure Development Finance Company Ltd. (IDFC). Standard Life also started to use the services of the HDFC Treasury department to advise them upon their investments in India. Towards the end of 1999, the opening of the market looked very promising and both companies agreed the time was right to move the operation to the next level. Therefore, in January 2000 an expert team from the UK joined a hand picked team from HDFC to form the core project team, based in Mumbai. In a further development Standard Life agreed to participate in the Asset Management Company promoted by HDFC to enter the mutual fund market. The Mutual fund was launched on 20th July 2000.

47

Incorporation of HDFC Standard Life Insurance Company Limited

The company was incorporated on 14th August 2000 under the name of HDFC Standard Life Insurance Company Limited. Our ambition from as far back as October 19954 was to be the first private company to re-enter the life insurance market in India. On the 23rd of October 2000, this ambition was realized when HDFC Standard Life was the only life company to be granted a certificate of registration. HDFC are the main shareholders in HDFC Standard Life, with 81.4%, while Standard Life owns 18.6%. Given Standard Lifes existing investment in the HDFC Group, this is the maximum investment allowed under current regulations.

Our Mission:
We aim to be the top new life insurance company in the market. This does not just mean being the largest or the most productive company in the market; rather it is a combination of several things like Customer service of the highest order Value for money for customers Professionalism in carrying out business Innovative products to improve service standards Use of technology to improve service standards Increasing market share.

48

49

Bajaj Allianz
The Partnership:
Bajaj Allianz life insurance co. Ltd. is a joint venture between two leading conglomerates Allianz AG, one of the worlds largest insurance companies, and Bajaj auto, one of the biggest 2 and 3 wheeler manufacturers in the world.

Bajaj Allianz Life Insurance:

No.1 Private Life Insurance Company in India for 2005-06 Growth rate of 216%for financial year 2005-2006 Over 20,00,000 satisfied customers A countrywide network of 900+ offices Assets under management Rs. 5,500 cr. Shareholder capital base of Rs. 700 cr

Individual products

Plan
Life long Gain

Benefits
Life long Gain comes with a host of features to allow you to have the best of all worlds-regular income for you and the added benefit of providing for customer loved ones too..

New Unit gain Plus:-

This plan offers the unique option of combining the protection of life insurance

50

with the attractive prospects of investing in securities. NRI Insurance You can now easily steer customer savings from future. Term Care This plan is a term insurance plan. This plan is not only offers you life insurance covers at a low cost, but also provide for return of premium on maturity. Loan Protector The Allianz Bajaj Loan Protector plan is a mortgage term insurance plan that covers the outstanding principal amount of a loan. It is an economical way to protect the family from the burden of repayment of the loan in case of death of the loanee. overseas to conveniently meet customer familys needs now and in the

Child Gain

Taking care of a child is perhaps the most important job a parent can have .it is but natural that you would like to give customer child customer best, and therefore, this is the time when careful financial planning can help you fulfill the aspirations that you have for customer children.

Risk Care

This plan offers you life insurance cover at lost possible cost for a selected term .It is an ideal option to cover customer near & dear ones against financial risks arising

51

out Lifetime Care

of

lifes

adversities. This plan provides you with the comfort that customer near & dear ones will continue to live their life without financial worries, even when you are not around. New Unit Gain Easy Pension Plus Bajaj Allianz New Unit Gain Easy Pension Plus, is a plan that helps you take control of your future and ensure a retirement you can look forward to. This is a regular premium investment linked deferred annuity policy. Available as: New Unit Gain Easy Pension Regular Premium & New Unit Gain Easy Pension Single Premium. This is a three-year health insurance plan, providing comprehensive health cover with life insurance benefit. You can choose the amount of cover for each benefit separately in multiples of the minimum cover amount, subject to a maximum multiple of 10.

Health Care

SWOT Analysis Of HDFC SLIC

STRENGTH
Covered Vast Area. High Grade Products. AAA rated by CRISIL and ICRA for eight consecutive years. Efficient and effective Management information System Lotus Notes. On-line program control HDFC SLIC improves customer orientation on a sustained basis.

WEAKNESS
Not optimum utilization of available resources.

52

 Poor advertisements. Opportunities.

OPPORTUNITIES
Availability of lives and resources is sound. Significant demand pattern and better quality policies like medical policy & services are more in demand. Special drive for awareness of literacy and mass education by Government. Opportunity opened for the technically superior, upgraded and bettermanaged mills to go for value added product range, fetching higher realization.

THREATS
Absence of Govt. Policy leads to uncertainties about long-term availability of the resources. High power tariff, increasing prices of administrated products have added to the woes of domestic industry competing with abroad enjoying advantages of economies of scale, advanced technology, low cost of finance, cheaper power tariff etc Current per capital consumption of policies in India is far less, then other countries.

OBJECTIVE OF THE STUDY

1. To know about the sales policy. 2. To identify the peak sale period of the year. 3. Co-operation level extended from the companys side. 4. Motivational enhancement tools being followed by the company. 5. To study the consumer response towards the policies.

53

6.

To identify the schemes offered by the company to there consumers.

7. To know the service level expectations of customers.

RESEARCH METHODOLOGY
When we talk about research methodology, we do not talk only of research method but also consider the logic behind the method that be used in context research study. We also evaluate why we are using a particular method and the used technique should be such that the research is capable of being evaluated by the researcher and as by others. This project work involves three types of research:-

DESCRIPTIVE RESEARCH
Descriptive research is one , which involves describing the state of affairs, as they exist. This type of research was used in the study of marketing strategies for the sale of companys product also while studying about the parameters, which affect competitiveness of the product.

APPLIED RESEARCH
A part of this is applied research because it aims at identifying trends among the customers about the basis expectations so that company get insight into the demand of customers which if fulfilled will result in complete customer satisfaction.

ANALYTICAL RESEARCH
In this kind of research, the research uses facts or information already available and analysis these to make a critical evaluation. We have used facts available about the

54

marketing strategies policies and information of companys position in respect of image, quality of product, packaging methods and supply and distribution and real market situation than we analysis them and made a critical evaluation of these facts to suggest certain recommendations.

SAMPLING SIZE
For conducting our study I have covered 200 respondents in Bareilly region.

RESEARCH INSTRUMENTS
The contact method used in the study were: Questionnaire Methods.

DATA COLLECTION
Data collection was done using through both primary and secondary data.

SECONDARY DATA
These data are already existing but might nave been collected originally for some other purpose like: Previous record of company Research Methodology by C.R. Kothari. In addition, other official sources.

PRIMARY DATA
Face to face conversation with the consumers/dealers. With the help of Questionnaire. 55

DATA ANALYSIS
Data become useful only after they are properly analyzed. Data analysis involves converting a series of recorded observation into descriptive statement and inferences about relationship. This task is helpful in identifying the areas where the company can improve further by focusing on those attributes in which the industry is performing ineffectively and inefficiently. Data has been analyzed on the basis of following:Fig. 1 Fig. 2 Fig. 3 Fig. 4 Fig. 5 Fig. 6 Fig. 7 Fig. 8 Fig. 9 Fig. 10 Fig. 11 Fig. 12 Fig. 13 Awareness about life insurance policy Priority while taking any policy Easy mode of Payment Company Affordable premium of insurance company Promotional Activities company Player in better services Player in wide variety of policies Company that saves money Company for investment Good return on maturity Company for children future Company for money back policy Company for endowment policy 56

Fig. 14

Most acceptable company

Awareness About Life Insurance

Yes
55%

No
45%

No 45% Yes 55%

INFERENCE: Only 55 % respondent are aware about Life Insurance.

57

Major Priority While Taking Any Policy

Security
12

Future Needs
16

Saving Money
28

Rebate in Income Tax

14

Rebate on Income Tax 7%

Security 20%

Saving Money 46%

Future Needs 27%

58

INFERENCE: Majority of customers will take life insurance policy for

saving money followed by future needs, security and rebate in income tax.

Most Expected Easy Mode Of Payment Company

ICICI Prudential 35

HDFC SLIC 45

Bajaj Allianz 20

Bajaj Allianz 20%

HDFC SL 45%

ICICI PRU 35%

59

INFERENCE: HDFC SLIC provides easy mode of payment followed by other insurance companies.

Most Expected Affordable Premium Of Insurance Company

ICICI Prudential 35 HDFC SLIC 40 Bajaj Allianz 25

Bajaj Allianz, 25 HDFC SL 40

ICICI PRU,35

INFERENCE: HDFC

SLIC provides affordable premium of insurance followed by other insurance companies.

60

Most Expected Maximum Promotional Activities By Insurance Company

ICICI Prudential 36

HDFC SLIC 30

Bajaj Allianz 34

Bajaj Allianz 34%

HDFC SL 30%

ICICI PRU 36%

61

ICICI Prudential does maximum promotional activities than other insurance companies.
INFERENCE:

Major Players in Better services

ICICI Prudential 33

HDFC SLIC 36

Bajaj Allianz 31

Bajaj Allianz 31%

HDFC SL 36%

ICICI PRU 33%

INFERENCE: HDFC SL provides better services followed by 62

other insurance companies.

Major Players in Wide Variety of Policies

ICICI Prudential 37 HDFC SLIC 32 Bajaj Allianz 31

Bajaj Allianz 31%

HDFC SL 32%

ICICI PRU 37%

INFERENCE: ICICI

Prudential provides wide varieties of policies followed by other insurance companies.

63

Most Appealing Company to Save Money

ICICI Prudential 34 HDFC SLIC 37 Bajaj Allianz 29

Bajaj Allianz 29%

HDFC SL 34%

ICICI PRU 37%

INFERENCE: ICICI Prudential provides better plans for saving

money followed by other insurance companies.

64

Major Player in Good Return On Maturity

ICICI Prudential 38

HDFC SLIC 33

Bajaj Allianz 29

Bajaj Allianz 29%

HDFC SL 38%

ICICI PRU 33%

INFERENCE: HDFC SL provides good return on maturity

followed by other insurance companies.

65

Most Expected Company For Children Future

ICICI Prudential 44

HDFC SLIC 34

Bajaj Allianz 22

Bajaj Allianz 22%

ICICI PRU 44%

HDFC SL34%

INFERENCE: HDFC SL helps to secure childrens future followed by

other insurance companies

66

Most Appealing Company In Money Back Policy

ICICI Prudential 36 HDFC SLIC 32 Bajaj Allianz 32

Bajaj Allianz 32%

ICICI PRU 36%

HDFC SL 32%

INFERENCE: ICICI Prudential provides good plans in money back

policy followed by other insurance companies.

67

Major Player Of Endowment Policy

ICICI Prudential 32 HDFC SLIC 35 Bajaj Allianz 33

Bajaj Allianz 33%

ICICI PRU 35%

HDFC SL 32%

INFERENCE: ICICI Prudential leads a major role in endowment policy

followed by other insurance companies.

68

Most Acceptable Company

ICICI Prudential 35 HDFC SLIC 32 Bajaj Allianz 33

Bajaj Allianz 33%

ICICI PRU 35%

HDFC SL 32%

INFERENCE: HDFC SL is the most accepted company followed by other

insurance companies.

69

Most Appealing Company For Investment

ICICI Prudential 37 HDFC SLIC 33 Bajaj Allianz 30

Bajaj Allianz 30%

ICICI PRU 37%

HDFC SL 33%

INFERENCE: HDFC SL provides better plans for investment followed

by other insurance companies.

70

FINDINGS
The project report is the compilation of COMPARATIVE STUDY OF PRIVATE INSURANCE COMPANIES.

1. The maximum respondents get the information about the insurance policy from the customer executive. 2. HDFC SLIC and ICICI Prudential have the major market share of insurance services. 3. ICICI Prudential and HDFC SLIC are more preferred by the customers while purchasing a policy in Bareilly city. 4. More than 60% respondents are satisfied by insurance policy provided by company. 5. Most of the people dont prefer to invest in private life insurance companies. 6. Those respondents who are not satisfied by insurance policy are due to incomplete information provided by the financial consultant.

71

STRATEGIC RECOMMENDATIONS

HDFC standard Life will have to work hard in the following areas: 1. Change the perception of the about the life insurance product in the mind of the people. 2. To influence the customer to view it as a protection instrument and not a savings instrument alone. 3. Position itself as a provider of a social security ad family protection. 4. Strengthen its distribution force especially Banc assurance as a channel of distribution. The strategic alliance with banks will convert bank customers into insurance policy holders. 5. Strategy for reduction in management expenses and operations costs. 6. R & D department of the company should design the products in such a manner that will generate more revenue with lowest cost. 7. The company should focus in the rural market. At the end, HDFC Standard Life Insurance Company should take steps to overcome the threats form the external environment, turn their weaknesses into strengths, and take benefit of the opportunities to remain the leader among the private players in the industry.

72

DIFFICULTIES AND LIMITATIONS

During my summer training I have got great experience and knowledge about insurance sector and working procedures over there. I tried to deliver my best to the company but some difficulties that I faced during that time are as follows: I was not given particular area to be targeted. I had to make my own choices. I used to focus mainly on the property dealers and medical shops. Some persons used to get agreed at the start but after some time they used to deny. While selling a policy, I had to make persons convinced about each facet policy, they had full knowledge about policy. But as I did not get a training for selling policies but only to get an overview to it. Thus, it was difficult to persuade them. I used to meet 5 10 customers daily, some of them were co-operative, and they used to give a positive response while others response was negative. There wasnt any proper database through which I can make calls to the targeted people. So I had to figure out the potential customers.

73

RECOMMENDATIONS

The survey conducted has provided with ample insight and information. In this regard, certain recommendations should be made which may prove helpful to the organization.

1. Sales executive is an important link between the company and customer so executive should have complete knowledge and should be well trained. 2. Companies should provide good services and flexibilities after the sales of policy. 3. There should be insurance cum loan scheme. 4. There should be insurance policies with lesser premium. 5. HDFC SLIC and ICICI Prudential have good market share so they should come with some new policies and benefits. 6. People are taking interest in availing the services of private companies, so private companies should try to provide better services. 7. Company should provide monthly mode of payment for premium. 8. Some free gifts or any other promotional scheme should be given.

9.

Company should go for relation building exercise with their agents and customers.

74

CONCLUSIONS

The Indian Insurance sector in todays scenario has transformed into a buyers market, where the customer has the choice to select from a variety of products, services and service providers. More and more customers are now identifying newer dimension attached to life insurance to match their life-cycle needs. Given uncertainty about lifes duration and about increasing costs and responsibilities, consumers would definitely opt for a life Insurance policy, but which one will depend on the competitive edge of the Life insurance companies as measured on the above Five factors. The present study looks at customer levels in a Life Insurance product. This kind of customer orientation is necessary in a market like India, where the market in turning competitive due to large number of players with varied financial musicale and expertise of reinvestment. The small investors purchase behavior does not have a high level of coherence due to the influence of different purchase factors. The buying intent of a Life Insurance product by a small investor can be due to multiple reasons depending upon customers risk return trade off. Due to the reduction in the bank interest rates & high degree of volatility in Indian Stock Market, investors are looking for an alternative for their small time as well as long time investment which will provide them a higher return & also safety to their investment. The Stock market is also passing through a recession due to interest parity with bank instruments. Thus Life insurance offers the best alternative to small investors in India. A prudent Product design, by adding the feature expected by investors and spelt out in this research will make the new Life Insurance Product more attractive for investors. The factor identified in the study provide key information inputs regarding investors preference and priorities that will guide future Life Insurance Product Managers.

75

The current state of insurance distribution in India is still in flux. On one hand, insurers are awaiting regulations to be approved for brokerages and bancassurance to be truly launched. On the other hand they are trying the corporate model of intermediaries in addition to the traditional models in the market. There is no right and wrong in all this. The success of marketing insurance depends on understanding the social and cultural needs of the target

population, and matching the market segment with the suitable intermediary segment. In addition a major segment of the Indian population has low disposable income, meaning that every penny won will be obtained after a lot of persuasion and the expected value for money is high. As per the study conducted we found that-

Only 55% of people are aware about life insurance policy. Majority of customers take life insurance policies for saving money followed by future needs, security and rebate in Income Tax. ICICI Prudential does maximum promotional activities than other insurance companies. HDFC SLIC provides better services followed by the other companies. ICICI Prudential provides wide varieties of policies followed by other insurance companies. HDFC SLIC provides good return on maturity followed by other insurance companies. HDFC SLIC is most accepted company followed by other insurance companies. More than 60% respondent is satisfied by Insurance policy provided by company.

76

ICICI Prudential and HDFC SLIC are more preferred by customers while purchasing policies in Bareilly city.

BIBLIOGRAPHY
Websites
www.newstoday.com www.irdaindia.org www.omkotakmahindra.com www.hdfclifeinsurace.com www.bajajallianz.com www.iciciprulife.com

77

Primary data --- Questionnaire

Journals
IRDA Journal

Books
Consumer behavior Research Methodology Marketing Management shiffman and knauk C.R Kothari Phillip Kotler

QUESTIONNAIRE Name: Address : .

. .

Contact No. Occupation Salary:(1) 50000 to 100000

: .

: ..
(2) 1,00,000 to 1,50,000 (4) 2,00,000 to 2,50,000

(3) 1,50,000 to 2,00,000 (5) 2,50,000 & Above

78

Q1. Do you have Life Insurance Policy? YES (a) Security (c) Saving Money NO (b) Future Needs (d) Rebate in Income Tax Q2. What are major Priorities while taking any policy for you?

Q3. Which company offers you easy mode of payment? (a) HDFC SLIC (a) HDFC SLIC (b) ICICI Prudential (c) Bajaj Allianz (b) ICICI Prudential (c) Bajaj Allianz Q4. Which company offers you the affordable premium of insurance?

Q5. Which company carries out maximum promotional activities? (a) HDFC SLIC (b) ICICI Prudential (c) Bajaj Allianz

Q6. Which company offers you better services? (a) HDFC SLIC (b) ICICI Prudential (c) Bajaj Allianz

Q7. Which company offers wide variety of policies? (a) HDFC SLIC (b) ICICI Prudential (c) Bajaj Allianz

Q8. Which company does think, would be better to save money? (a) HDFC SLIC (b) ICICI Prudential (c) Bajaj Allianz

Q9. Which company does think, would be better for investment? (a) HDFC SLIC (b) ICICI Prudential (c) Bajaj Allianz

Q10. Which company offers you good return on maturity? (a) HDFC SLIC (b) ICICI Prudential (c) Bajaj Allianz

Q11. Which company do you think is better for your childrens future? (a) HDFC SLIC (b) ICICI Prudential (c) Bajaj Allianz

79

Q12. Which company offers you better money back policy? (a) HDFC SLIC (b) ICICI Prudential (c) Bajaj Allianz

Q13. Which company has better endowment policy? (a) HDFC SLIC (b) ICICI Prudential (c) Bajaj Allianz

80