A Study of customer satisfaction on ICICI Prudential Life Insurance product in Moradabad

Preface
This project entitled to determine customer satisfaction of ICICI Prudential in MORADABAD and its nearby regions is based on market survey done by me and submitted to management department, TMU, MORADABAD is part of curriculum of BBA of Fifth Semester, during the session 2011-2012.

Table of Content

Acknowledgement Preface Introduction Company Profile Research Methodology Results & Findings Conclusion

Bibliography Annexure - Questionnaire

INTRODUCTION TO THE TOPIC

The aim of all insurance is to compensate the owner against loss arising from a variety of risks, which he anticipates, to his life, property and business. insurance is mainly of two types: Life insurance and general insurance. General insurance means Fire, Marine and Miscellaneous insurance which includes insurance against burglary or theft, fidelity guarantee, insurance for employers liability, and insurance of motor vehicles, livestock and crops. The Insurance Act. 1972 and the General Insurance Business (Nationalisation) Act, 1972 govern Fire and Marine Insurance, while the Indian Marine Insurance At, 1963 governs marline insurance in our country. These laws contain provisions relating to the constitution, management and winding up of insurance companies and the conduct of insurance business of all types. Al insurance business in India has been nationalized. A contract of insurance is a contract by which one party undertakes to make good the loss of another, in consideration of a sum of money, on the happening of a specified event, e.g. fire accident or death. Law recognizes insurance as a system of sharing risk too great to be borne by one individual

What is insurance? Every asset has a value for its owner and also for those who are benefited with the existence of that asset. Insurance is concerned with the protection of economic value of assets. All of us are interested in the creation of assets because: 1. All assets have values 2. They yield income to the owner. 3. They meet some other needs of the owner. 4. They may provide satisfaction of some needs and also yield income to the owner. Purpose and need for insurance: Assets are likely to be destroyed or made non-functional due to accidental occurrences called perils. Assets can, therefore, be insured. A few examples of perils are :: fire, floods, breakdowns , lightning, and earthquake. Perils are the events. Risks are the consequential losses or damages. Possibility of damage to asset caused by any peril is the risk that asset is exposed to.

 Risk means uncertainty or unpredictability about future loss or damage, which may or may not happen. This refers to the losses, which may happen suddenly and unexpectedly. This is because of uncertainty about the risk that insurance plays the role. Insurance becomes relevant only if there are uncertainties of occurrence of event leading to loss/es. Insurance is done against the contingency of the happening of such events. No uncertainty No insurance.

Company Profile
ICICI Prudential's equity base stands at Rs.6.75 billion with ICICI Bank and Prudential plc holding 74% and 26% stake respectively. In the year ended March 31, 2004, the company had issued over 430,000 policies, for a total sum assured of over Rs.8,000 crore and premium income in excess of Rs.980 crore. The company has a network of about 30,000 advisors; as well as 12 bancassurance tie-ups. Today the company is the #1 private life insurer in the country

Vision and Value

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, Boundaryless, Ownership and Passion. Each of the values describe 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.

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
ICICI Bank (NYSE:IBN) is India''s second largest bank with an asset base of Rs. 106812 crore. 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 5 million bondholders accounts through a multi-channel access network. This includes about 450 branches and extension

counters, 1675 ATMs, call centres and Internet banking (www.icicibank.com). ICICI Bank posted a net profit of Rs.1,206 crore for the year ended March 31, 2003. ICICI Bank is the only Indian company to be rated above the country rating 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.

Prudential plc

Established in 1848, Prudential plc is a leading international financial services company in the UK, with around US$250 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 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 60,000 staff and agents across the region.

ORGANISATIONAL STRUCTURE

ICICI SECURITIES

ICICI PRUDENTIAL LIC LTD.

ICICI LOMBARD GIC LTD. ICICI BANK LTD.

ICICI VENTURE

MARKET SHARE CAPTURED BY ICICI PRUDENTIAL

June July 05

Tata AIG 7.1% SBI Life Om Kotak 3.4% 4.3%

Others 9.6% ICICI Pru 39.3%

Allianz Bajaj 7.8% Birla Sun Life 11.9% HDFC Standard 9.6% Max NYL 6.9%

Board of Directors

The ICICI Prudential Life Insurance Company Limited Board comprises reputed people from the finance industry both from India and abroad. Mr. K.V. Kamath, Chairman Mr. Mark Norbom Mrs. Lalita D. Gupte Mrs. Kalpana Morparia Mrs. Chanda Kochhar Mr. Kevin Holmgren

Mr. M.P. Modi Mr. R Narayanan Ms. Shikha Sharma, Managing Director

INSURANCE BUSINESS IN INDIA

Table 1 shows that Life - Insurance funds constitute approximately 10 percent of gross household saving in financial assets in India, and a little more than 1 percent of gross domestic product. Life - Insurance in India is characterized by the following conditions :

TABLE 1 LIFE - INSURANCE, HOUSEHOLD SAVING & GDP

Life - Insurance

as a % of saving in financial Year assets

as a % if cross domestic product

1980-81

7.6

0.7

1985-86 1990-91 1994-95 1996-97

7.0 9.5 8.1 10.3

0.7 1.0 1.2 1.2

There is very limited coverage Life - Insurance funds account for only 10 % of gross household saving in financial assets; Life - Insurance premiums constitute only 6 % of gross

domestic savings (GDS) : only 22 % of the insurable population has been tapped according to the 1993 Malhotra Committee Report (A report prepared by a committee tasked with

determining the status of Insurance in India), indicating low market penetration. There are high premiums and low returns. A competitive

industry should be able to increase coverage, mobilize larger savings and provide higher returns. 80 % of LIC Investment is in the public sector. A very small proportion of LIC investments are in the private sector.

A comparison across countries shows that India is ranked 27 in mobilizing saving in the form of Insurance. In countries such as South

Africa and the U.K. Life - Insurance premiums constitute over 50 % of GDS. Life - Insurance premiums account for over 25 % of GDS in the U.S., Japan & France, because premiums account for less than 6 % of GDS in India, there is a tremendous scope for mobilizing Insurance savings, assuming that India achieves conditions existing in the

aforementioned countries in the future.

INSURANCE PENETERATION
Compared to developed and industrialized countries, India is at the lower end of the spectrum when it comes to penetration of the market. Among countries in the lower per capita income band of less than USD 2,000 per annum, India is second only to Zimbabwe.

DENSITY
Switzerland is the worlds largest per capita Insurance spender (USD 4,663 per inhabitant), ahead of Japan (USD 4,132 per inhabitant) and far ahead ( 200 percent more) of North America, and even further ahead (250 percent more ) of Western Europe. India i s ranked near

the bottom of the list of countries on Insurance spending with USD 6 percent inhabitant.

In 1999, the total premium collected world wide by the Insurance industry (both life and non life ) was estimated at US $ 2,324 billion (US $ 2,155 billion in 1998 and US $ 2,131 billion in 1997).

LIBERALIZATION
While effecting reforms in the banking sector and capital markets during the 1990s the GOI also recognized the importance of Insurance as an important part of the overall financial system wh ere it was necessary to undertake similar reform measures. In April 1993, the

COI appointed a Committee on Reforms in the Insurance Sector (The Malhotra Committee). The Committee, which submitted its report in January 1994, recommended that the Insurance business in India be opened up to private players and laid down several guidelines for managing the transition. The decision to allow private companies to sell Insurance products in India rests with Indian Parliament. Opening up the Insurance sector required crossing at least two legislative hurdles. These were the

passage of the Insurance Regulatory Authority (IRA) Bill, which would make IRA a statutory regulatory body and amendment of the LIC and GIC Acts, which would end their respective monopolies. Subsequently, in pursuance to the announcement made by the Union Finance Minister in his Budget Speech of 1998 -99 the Insurance

Regulatory & Development Authority (IRDA) Bill 1999 was passed by

both Houses of Parliament. The bill was assented to by the P resident and notified on December 29, 1999 coming into force the Insurance industry has been opened up for the private sector.

The Act provides for the establishment of a statutory IRDA to protect the Insurance interests policy holders and to regulate, pr omote and ensure orderly growth of the Insurance industry. The IRDA Act was formed by an Act of Parliament on April 19, 2000. also seeks to amend the Life Insurance Act, 1956. The IRDA Act The General

Insurance Business (Nationalization) Act 1972, and t he consequential provisions in the Insurance Act, 1938 with a view to seizing the exclusive privilege of LIC & GIC in the life and non -life businesses respectively.

Under the IRDA Act, an Indian Insurance Company will be allowed to conduct Insurance bus iness provided it satisfies the following conditions. It must be formed and registered under the Companies Act, 1956. The aggregate holdings of equity share by a foreign company either by itself or through its subsidiary companies or its nominees should not exceed 26 % paid up equity capital of the Indian Insurance Company.

IRDAs sole purpose must be to carry on the life Insurance business or general Insurance business or reinsurance business.

It has also been provided in the IRDA Act that on or after the commencement of the Act, no insurer will be allowed to carry on the life Insurance and general Insurance business in India, unless it has a paid up equity capital of Rs. 1 billion. For carryin g on the reinsurance business, the minimum paid up equity capital has been prescribed as Rs. 2 billion. The Reserve Bank of India (RBI) has also issued guidelines for banks, prior into the Insurance business.

The RBI would give permission to banks on a case-by-case basis, keeping in view all relevant factors. Banks having a minimum net

worth of Rs. 5 billion and satisfying other criteria in respect of capital adequacy profitability, non performing asset (NPA) level and track record of existing subsidiaries can undertake Insurance business through joint ventures, subject to certain safeguards. Following the passage of the IRDA Act by March 2001, nine new life Insurers had received a license from IRDA : 5 new non life insurers had also received licenses. have commenced operations Although private Insurance companies during FY 2001, the nationalized

Insurance companies are expected to dominate the market in the near future. ICICI Prudential Life Insurance, a private insurance company, had sold an estimated 6,387 policies till end of FY 2001. HDFC

Standard Life which commenced operations in December 2000 has set a target of 25,000 fresh policies in the first year of operation. The limiting factor for prospective private insurers will be the

extensive and costly distribution structure required. The new entrants cannot expect to duplicate the extensive distribution network of the nationalized Insurance companies. Building a distribution network is expensive and time consuming. Private insurers are expec ted to

follow a strategy similar to that of the foreign banks, i.e. starting from the affluent segment and gradually building up the distribution network to reach out to the middle income ( even if urban) segment.

INTRODUCTION TO INSURANCE

The economic value of human life arises out of its relation lives. Whenever continuance of a life is financially valuable to others, either to family depends, business associates, or educational and philanthropic situations, the necessity for life insurance is present. Solomon S. Huebner (1882_1964)

Insurance ensures protection of economic value of assets. For example, insurance is a mechanism that helps reduce adverse consequences.

PURPOSE OF INSURANCE

Assets are insured against the risk of being destroyed or made non functional through accidental occurrence.

Concept of Risk Possibility of adverse results flowing occurrence. Uncertainty gives risk to risk. For risk to exit there should be at least two possible outcomes of which one is undesirable. In insurance parlance risk implies: . peril to be insured against e. g. fire , theft etc. . person/property e. g. young people vis--vis old people.

Risk is condition where there is a possibility of an adverse deviation from an expected outcome.

Mechanism of Insurance People exposed to the same risks together and pool funds to each individual against risk. Therefore , risk is spread out. Insurance companies collect money in advance and create a fund from which losses are paid

Life Insurance Human life is an income generating assets. This asset can be lost through unexpected death or made non functional sickness or disability caused by accident. There is no certainty that death will happen. On the other hand there is a certainty that death will happen. but its remaining uncertain.

Life insurance protects against loss of income of individual. Life Insurance Does not protect the asset Does not prevent loss

INSURANCE DOCUMENTS

Proposal form

The proposal form is the basis of contract in Life Insurance. The following details are generally asked in the form:

1. Name 2. Address 3. Date of Birth 4. Nominees name and relationship 5. Plan applied for 6. Mode of payment (monthly/quarterly/half-yearly/yearly) 7. Present Occupation 8. Name of present employer 9. Educational Qualification 10. If in armed forces 11. If any other new policy or policy on life is being considered for revival 12. Has a proposal (or an application for revival of a policy) on your life made to any office of the Corporation ever been . Withdrawn, Deferred, Dropped or Declined . Accepted with Extra Premium or Lien ? . Accepted on terms otherwise than those proposed ? 13. Details of previous policies 14. Family and medical history with relevant details/reports

Other important documents to be submitted with the form are: . Proof of age . Medical report

. Personal statement containing personal and family history details . Agents report or report from a higher ranking official

Why Financial Planning ?

Inflation
Cost of Education / Medical increasing exponentially

Rising Life expectancy

estimated to increase from 77 to 85 in next decade

Financial Planning

Protect lifestyle of family

Protection against the uncertainty

Balanced Asset Allocation

Investment and Protection

Inflation means Rs 10,000 would be

180000 160000 140000 120000 100000 80000 60000 40000 20000 0 10 20 30 10% 8% 6%

174494

67275 25937

Therefore Cost of Delaying would be high.

2000 1800 1600 1400 1200 1000 800 600 400 200 0 A B
Saving Retirem ent kitty

Power of Compounding

A
Saves From 25 to 35

B
Saves From 35 to 60

How to do your Financial Planning

Define & prioritize your goals

Set Goals Current Status and Gap Analysis

Project income, expenses & investments

Changing Lifestyle, changing

Create & Monitor Savings Plan

Financial Goals

Investment and Insurance

Risk Appetite and Protection needs

Priorities in Financial Planning

Retirement Planning
Taking care of your long retirement years

Family Protection Define & Prioritize Goals

To ensure that the financial loss to the family is negated, in case something unfortunate befalls.

Asset Creation
Creation of physical and financial assets

Childrens Higher Education

Matching the increasing educational expenses and protecting against any uncertainty.

Retirement Planning
Inflation Rising Life expectancy

Average Life Expectancy would increase from 75 years to 80 years in the next two decades.
Protecting lifestyle

Financi al Plannin g Asset Allocation

What does this mean?

Working Retirement Years

The Yesteryears!!

Working

As it looks today!!
Retirement Years

Retirement Planning
Inflatio n Rising Life expectancy

Living costs will increase dramatically over the next 20 years

Protecting lifestyle Financi al Planni ng Asset Allocation

10 years ago 1 Kg of Potato Rs1.50 1 Ltr. Of Petrol Rs17.00 1 Mum-Dli Train Ticket Rs350.00

Today % Increase Rs8.00 533% Rs31.00 182% Rs1750.00 500%

Expected Cost after 10 years Rs43.00 Rs57.00 Rs8750.00

When do you spend more money- While at work or at Vacation??

So what do you think is Retirement for you?

Shouldnt you have enough provisions to take care of the increasing costs during your vacations- Retirement?

Retirement Planning
Inflati on Financ ial Planni ng Protecting lifestyle Asset Allocation Rising Life expectancy

Medical Science has advanced, but so have diseases and medical costs...

No. of Visits to Disease doctor/month Spondylitis Once in 3 months Arthritis Once in 2 months Asthma Once in 45 days Diabetes Once in a month

Cost in 1992 Cost in 2002 2500 8000 250 850 175 600 225 750

Projected cost in 2012 25600 2890 2060 2500

What you require is a Retirement Solution that will

Give you the flexibility of starting your pension whenever you wish to. Give you the control to invest for your retirement the way you want to. Give you the flexibility to choose protection on your life and health, if you
want.

Give you the flexibility to decide how you want to pay. Give you the flexibility to choose for your pension.

Childrens Higher Education

Inflatio n Rising Life expectancy
Financi al

Cost of Education would not remain the same over the years...
Protecting lifestyle

Planni ngg

Asset Allocation

Educational Milestone Present Cost Expected Cost Class Xth 10000 34500 Class XIIth 15000 62600 Graduation 25000 139000 Post Graduation 40000 270000
The costs have been worked at an inflation of 5% and actual increase of cost at 5%.

Education subsidies been slowly removed.

Childrens Higher Education

Inflati on Financ ial Planni ng Protecting lifestyle Asset Allocation Rising Life expectancy

WHAT IF Your child does not have enough money for critical educational milestones.

WHAT IF. There is not enough money to take care of a quality upbringing of your child.

WHAT IF..Any unfortunate event jeopardizes your childs future.

What you want is a solution for you.

. That will free you of all your WHAT IFs

Provides your child the security, no matter whatever be the circumstances.

Solution that Guarantees your Dreams whatever be the uncertainty in the future.

Protection of Lifestyle
Rising Life expectancy

Do you have enough savings to protect your familys lifestyle

Inflati Inflatio on n Financ ial Planni ng Protecting lifestyle

Asset Allocation

What is Human Life Value? - Capitalized value of your net earnings for the rest of your working span

Age
30 years 35 years 40 years

Human Life Value Index

8 Times 6 Times 3.5 Times

Assuming you have no present life cover. Rate of inflation is 5%, Income grows at 10% p.a. and you retire at the age of 50 years.

Protection of Lifestyle
Let us take an example: Ramesh is 35 years old and has an annual income of Rs4 lacs.

He has also taken a house loan of Rs.10 lacs.

He presently has an insurance cover of Rs15 lacs. Most of us would think it is enough. But is it so?? According to the simple HLV index:

Rameshs HLV = 6*Rs4 lacs= Rs 24 Lacs.

House Loan= Rs.10 Lacs. Total Cover he requires= Rs.34 lacs What he has = Rs.15 lacs.

Still you think it is enough?

Prioritizing your long-term/short-term goals.

Just think before investing

Analyzing your current financial position, therefore understanding the gap.

PRODUCT RANGE
Life Insurance Products are designed to suit the requirements of customers. Fundamentally the products provide for: Risk Cover Investment Health cover In every product to a certain degree risk cover is imperative for it to fall under the category of Insurance. Based on the coverage of the product -the premiums are calculated and the customer pays accordingly. It is essential for an agent to understand the customer requirements well in order to suggest the right product. There are four main types of insurance policies: Term assurance Whole-life assurance Endowment assurance, and An annuity

Term insurance
Term insurance pays a death benefit to the legal heirs if a person should die during the term of the policy.

The terms of coverage vary, and some policies allow one to renew the policy at end of the given period. Depending on the, the term insurance premium rates often increase at each renewal date, but renewal is generally guaranteed up to a certain age. Term insurance can usually be converted to a cash value policy.

Term assurance is the form of life assurance that pays out if the assured dies within a stipulated period (e.g. while a businessman is on a specific journey).

Whole life insurance

Whole life insurance guarantees a minimum death benefit throughout the course of life, provide the required premiums are paid .

Typically the premiums remain at the same level for the life of the insured. Whole life insurance usually requires premiums to be paid for as long as the insured life, but some cash value policies required premiums for a shorter period, such as 20 yrs or until age 65. Premiums for these policies will be higher, since the premiums will be paid for fewer paid years. Whole life insurance builds cash value. Whole life insurance, life term insurance, can also earn dividends as early as the policys third anniversary. These dividends which can not be guaranteed can be paid in cash, or they can reduce the amount of premium you pay. The advantage of whole life insurance is that the policy, if kept current, covers you or your for entire life, to term insurance that covers you only for a term of years. Whole life assurance pays out on the death of the assured whenever it occurs. Premiums may continue to be paid throughout the assureds life or may cease at a stipulated age (e.g. 65).

Endowment assurance
An integral part of life assurance financing is the fund of collected premiums, invested in its turn for capital growth, and income. Over the course of time, insurance companies become more expert investor, and in recent decades stop market values grew strongly. The fund was thus found increasingly to be surplus to payments needs. A further important refinement then emerged in the shape of endowment assurance. This is a development of term insurance in which the lump sum is payable either on death during the term, or certainly at the end of the term.

Endowment assurance pays out either on the death of the assured, .whenever it occurs, or after a fixed number of years (e.g. when the assured reaches the age of 60).

Most assurors require the assured to undergo a medical examination before granting whole- life or endowment assurance

Annuities
A form of pension in which an insurance company makes a series of periodic payments to a person (annuitant) or his or her dependents over a number of years (term), in return of the money paid to the insurance company either in a lump sum or in installments. An immediate annuity begins at once and a deferred annuity after a fixed period. An annuity certain is for a specific number of years. A life annuity is paid from a certain age until death. Perpetuity continues indefinitely. Annuities start where life insurance ends. A specified capital sum is paid by a person and in return of a promise from insurer to make a series of payments as long as the person lives. Annuity stops on death of the person, whereas theoretically life insurance starts on death of the assured.

Immediate Annuity
Purchaser pays a lump sum caned purchase price, in return of a promise to receive monthly /half-yearly /yearly annuity. The annuity can be paid for 5, 10, 15, 20 or 25 years. If the person buying annuity dies during the term, his legal heirs or nominees get the remaining installments.

Deferred Annuity
Annuity purchased through lump sum payment or through installments Annuity payment starts after lapse

of a selected period caned deferment period

Unit Linked Policies

A life-assurance policy in which the benefits depend on the performance of a portfolio of shares.

Each premium paid by the insured person is split: one part is used to provide life-assurance cover, while the balance (after the deduction of costs, expenses, etc.) is used to buy units in a unit trust. In this way a small investor can benefit from investment in a managed fund without making a large financial commitment. As they are linked to the value of shares, unit-linked policies can go up or down in value. Policyholders can surrender the policy at any time and the surrender value is the selling price of the units purchased by the date of cancellation (less expense). Small part of the contribution is used for providing life cover and the balance is invested in units. Legal heirs are entitled to the amount of insurance cover and entitled units in case of death of the member.

With Profits and Without Profits Policies

A life-assurance policy , that has additional amounts added to the sum assured, or paid separately as cash bonuses, as a result of a surplus or profit made on the investment of the fund of the life-assurance office, is called a with profits policy . The surplus generated by the insurance company is retained and also distributed as bonus to policyholders. Policies may be with profits, entitling the assured to a share in the assurer's profits (which is added to the sum assured when it is paid out), or, for a lower premium, Without profits, in which case only the sum assured is paid out (which in times of inflation may have considerably less purchasing power than the assured intended). Without profit policies are not entitled to bonus

ICICI Pru Product Basket

ICICI Prudential today provides a board spectrum of insurance solutions that cater to all segments of the society and create value for the client.

The following is a short graphical depiction of the ICICI Prudential product basket

Regular Premium Life Guard ROP

Regular Premium Forever Life Deferred Annuity Pension

Single Premium Life Guard Term Insurance

Single Premium Plans

Endowment Plans

Special Products Life Link Life Time

Assure Invest ReAssure Life Time Pension Life Link Pension

Regular Premium Cash Back

Regular Premium Save n Protect Smart Kid

ICICI Pru Save 'n' Protect

As the name suggests this is the policy that helps the client in compulsory saving creating wealth and having life protection.

This is the ever-popular endowment plan. Catering to the masses this plan has been a huge success and is the best in its category.

The plan is a with profits plan and has an unique feature of Extended life cover In which the life assured is protected even after the maturity of the plan for a period of 5 years for 50% of the sum assured. During this period there is no premium commitment. Four riders can be attached with this plan: Accident and Disability Rider: Providing protection to the policy holder against accidental death and worse -permanent disability. Level Term Insurance Rider: Providing that extra protection, at a very low cost ensuring the policyholder to have more protection in a cost effective manner Critical Illness Rider: Covering 9 critical illnesses, -this rider provides benefits. When a critical illness strikes. Major Surgical Assistance Rider: 43 surgical procedures are covered .in this rider protecting the family and the policyholder against the financial stress involved. Along with the riders -ICICI Pru Save n' Protect provides an unparallel to the Policy holder. The plan is available for people between the age groups of 15 and 60 and the minimum sum assured is 50,000/ Tax benefit: The plan has section 88 and 10(10) D benefits.

ICICI Prudential Save n Protect At a Glance

Minimum Sum assured Maximum Sum Assured Minimum Age at Entry Maximum Age at Entry Minimum Maturity Age Maximum Maturity Age Minimum Term Maximum Term Sum Assured Multiples of Premium Payment Frequencies Premium Payment Period Benefit Coverage Period Death Benefit During the Term of Policy <7years of age >7years of age During ELC period 5 years after Maturity Maturity Benefits
Premiums paid will be refunded Sum assured + Guarantee Additions + Vested Bonus (if any) 50% of Sum Assured in case the policy holder dies during the 5 year extended term Sum assured + Guarantee Additions @ 3.5% compounded annually (for the first 4 years) + vested bonus Rs.50,000 Rs.1,00,00,000 (1 crore) 0 years 60 years 18 years 70 years 10 years 30 years Rs.1,000 Yearly, Half-yearly, and Monthly. The monthly and quarterly modes are only through ECS (Electronic Clearing Service). The entire term of Policy Term of Policy + 5 years after maturity (exceed life cover)

Surrender / Paid-up Policy Loans Riders allowed

After 3 full years premiums have paid Allowed after the surrender value period Critical Illness Benefit Rider (CIBR) Major Surgical Assistance Rider (MSAR) Accident & disability Benefit Rider (ADBR) Accident Benefit Rider (ABR)

IC IC I Pr u

Minimum Premium Commitment Remarks

Rs.4800 p.a.

Extended cover will be given only if policy is in force for the sum assured at maturity.

C as

hbak
Providing liquidity, protection and returns -ICICI Pru Cashbak is the answer to the needs of people with young family. This is an anticipated endowment plan along with profits available for 2 term of 15 years and 20 years. The minimum sum assured begins at 75,000/ -and all four riders can be attached with this plan. In the 15 year plan in increasing percentages money part of sum assured is given to the policy holder after every 3 years and incase of 20 years after every 4 years. By the end of the policyholder receives 120% of the sum assured.

Four riders can be attached with this plan: Accident and Disability Rider Accident benefit rider Critical Illness Rider Major Surgical Assistance Rider

Tax benefit: The plan has section 88 and 10(10) D benefits.

Minimum Sum assured Maximum Sum Assured Minimum Age at Entry Maximum Age at Entry Minimum Maturity Age Maximum Maturity Age Term

Rs.75,000 Rs.1,00,00,000 16 years 55 years Not applicable 70 years 15 years and 20 years

ICICI Prudential Cashbak At a Glance

Sum Assured Multiples of Premium Payment Frequencies Premium Payment Period Benefit Coverage Period Death Benefit During the Term of Policy Survival Benefit (% age of the sum assured)

Rs.1,000.00 Yearly, half yearly and monthly. The monthly mode is only through ECS (Electronic Clearing Service). The entire term of policy Term of policy Sum assured + guaranteed addition + Vested Bonus (if any) Death Benefit will be paid even if the survival benefits have been paid. 15 year plan / 20 year plan 3rd year / 4th year = 10% 6th year / 8th year = 15% 9th year / 12th year = 20% 12th year / 16th year = 25% 15th year / 20th year = 50% (maturity) Total = 120%

Maturity Benefits Surrender / Paid-up Policy Loans Riders allowed

50% of sum assured + Guaranteed Addition @3.5% compounded annually (for the first 4 years) + Vested Bonus After 3 full years premium have been paid NO LOANS Critical Illness Benefit Rider (CIBR) Major Surgical Assistance Rider (MSAR) Accident & disability Benefit Rider (ADBR) Accident Benefit Rider (ABR)

IC IC I Pr u Li fe G

Remarks

The entire death benefit is payable even if the complete survival benefit is paid.

uard

Providing the basic form insurance -ICICI Pro Life Guard introduced actively the concept of term insurance. There are two modifications available in this -single premium and regular premium. Both these provide pure life cover however in the regular premium plan at the end of the term the policyholder receives the premiums paid back. The single premium starts at a life cover of 200,000 and the regular premium starts at 100,000] Along with the regular premium plan accident and disability rider can be attached.

ICICI Prudential LifeGuard with Return of Premium At a Glance

Minimum Sum assured Maximum Sum Assured Minimum Age at Entry Maximum Age at Entry Maximum Maturity Age Minimum Term Maximum Term Sum Assured Multiples of Premium Payment Frequencies Premium Payment Period Benefit Coverage Period Death Benefit During the Term of Policy Maturity Benefits Surrender / Paid-up Policy Loans

Rs.1,00,000.00 Rs.10,00,000.00 18 years 50 years 65 years 5 years 25 years Rs.1,000 Yearly, half yearly and monthly. The monthly mode is only through ECS (Electronic Clearing Service). The entire term of policy Term of policy The entire sum assured

Sum of premiums paid. After 3 full years premiums have been paid NO LOANS

Riders allowed

Accident Disability Benefit Rider(ADBR) Accident Benefit Rider(ABR)

Remarks

Minimum Annual Premium needs to be Rs.2,400.00

ICICI Prudential LifeGuard without Return of Premium At a Glance

Minimum Sum assured Maximum Sum Assured Minimum Age at Entry Maximum Age at Entry Maximum Maturity Age Minimum Term Maximum Term Sum Assured Multiples of Premium Payment Frequencies Premium Payment Period Benefit Coverage Period Death Benefit During the Term of Policy Maturity Benefits Surrender / Paid-up

Rs.1,00,000.00 Rs.10,00,000.00 18 years 50 years 65 years 5 years 25 years Rs.1,000 Yearly, half yearly and monthly. The monthly mode is only through ECS (Electronic Clearing Service). The entire term of policy Term of policy The entire sum assured

Nothing is payable after the maturity Nill

Policy Loans Riders allowed

NO LOANS Accident Disability Benefit Rider(ADBR) Accident Benefit Rider(ABR)

Remarks

Minimum Annual Premium needs to be Rs.2,400.00

ICICI Pru Smartkid

This is the new age children insurance plan that helps parents plan for the future of their little one. This plan is one of the most popular products. ICICI Pro Smartkid provides with life protection periodic payments and maturity benefits which can be planned by the parent to coincide with the education milestone of the child making the plan immensely flexible and value oriented. The minimum cover begins at 100,000 and can go as high as 30,00,000/ -. An unique rider -The income benefit rider can be attached with this plan that ensures complete protection and security for the child's education in case the parent (Life assured) passes away. Accident and disability rider can also be attached with this plan.

Four riders can be attached with this plan:

Income benefit rider Accident and disability benefit rider Waiver of Premium Rider

Tax benefit: The plan has section 88 and 10(10) D benefits.

Age at Entry of Child

0 12 years

ICICI Prudential Smart Kid - At a Glance

Maturity age of Child Min. age of the Parent Max. age of the Parent Term (Calculated as) Min term Max term Min Sum Assured Max Sum Assured Premiums Riders Periodic and Maturity Benefits(1)

22 years 25 years 20 years 60 years Maturity age of child age at entry of child 10 yrs 25 yrs 100000 (One Lakh) 3000000 (Thirty Lakh) Regular Premium Plan with yearly, half yearly and monthly modes of payment ADBR, ABR, and Income Benefit rider T 7 = 20% T 5 = 25% T 2 = 25% T=30% + G A @ 3.5% +VB

Periodic and Maturity Benefit(2)

T 4 = 25% T 3 = 20% T 2 = 20% T 1 = 20% T 20% + GA @ 3.5% + VB

Death Benefits Surrender Remarks

Sum assured paid immediately + WOP + Periodic benefits continue as it is. After three years of premiums paid. Minimum annual premium needs to be Rs.8000/The policyholder can choose between 1 or 2 of the afore mentioned survival benefits. Currently only option one is

available, however the policyholder can change to the other survival benefit option, 6 months prior to T 7 From May 2003 both the options will be available on the policy certificate.

ICICI Pru ForeverLife

This is a new generation deferred annuity plan that has made significant in roads in the Indian insurance market. Retirement planning is becoming more and more popular as the lifestyle of individuals and families change. The life expectancy is increasing and the active earning period is reducing. ICICI Pru Forever life helps people plan for the retirement prudently with lot of flexibility and opportunity.

All the four riders can be attached with the plan and the health riders -Critical Illness and major surgical provide benefit even after the deferment period is over -depending on the term opted.

ICICI Pru Forever life helps people plan for the re opportunity. All the four riders can be attached with the plan major surgical provide benefit even after the defer opted.

The annuitant can extend the vesting age, taken an open market option where in the annuity will paid to the annuitant from the company which the annuitant desires. There are four annuity options that the annuitant can opt for taking the annuity. These options help the annuitant to get the maximum benefit. During the deferment period the annuitant also has full life protection. The minimum sum assured commences at 50,000/- and the minimum age is 20 years.

ICICI Prudential Forever Life - At a Glance

Minimum Sum assured Maximum Sum Assured Minimum Age at Entry Maximum Age at Entry Minimum Vesting age Maximum Vesting age Minimum Term Maximum Term Sum Assured Multiples of Premium Payment Frequencies Premium Payment Period Death Benefit During the term of Policy Maturity Benefits

Rs.50,000.00 Unlimited 20 years 60 years 50 years 70 years 5 years 30 years Rs.1,000 Yearly, Half-Yearly, and monthly

The entire term of policy Sum assured + Guaranteed Additions + Vested Bonus used to generate annuity for the spouse can take the lump sum. If spouse is not there then given as lump sum to the nominee Annuity to be chosen from 4 annuity option: 1. Life annuity 2. Life annuity with return of purchase price. 3. Joint Life, last survivor annuity with return of purchase price. 4. Life annuity guaranteed for 5, 10 and 15 years. After 3 full years premiums have been paid No Loans Critical Illness Benefit Rider (CIBR) Major Surgical Assistance Rider (MSAR) Accident & disability Benefit Rider (ADBR) Accident Benefit Rider (ABR)

Surrender / Paid-up Policy Loans Riders allowed

Options

Open Market Option Extension of Vesting age 25% of purchase price can be commuted

ICICI Pru LifeLink

This is a part of the new age insurance products, which provide a lot of flexibility to the client.

This is a single premium plan in which the investment is made as per the clients direction in three funds growth, debt and balanced. The client has the flexibility of adding in more money, withdrawing, switching funds and investing as per the market trends.

The single premium starts at 20,000/- and in case of death there is a capital guarantee.

The product moves on a NAV basis, which is available on the biweekly basis- Wednesday & Saturday in all the national dailies under the mutual fund column.

ICICI Prudential LifeLink Pension - At a Glance

Minimum Premium p.a. Death Benefit

Rs.25,000 105% of the single premium paid & top ups made

Minimum age at entry Maximum age at entry Minimum term Maximum term Life Protection band Top- up

18 years 62 years 3 years 52 years 18 years to 70 years else value of units is paid After policy issuance minimum 10,000/- & in multiples of 500

Withdrawal

No withdrawals if desired after 1 year the policy can be surrendered at market value

Funds

Three funds Maximizer equity based fund, Protector debt based funds & Balancer debt & equity based fund.

Switch

1 free switch each policy year, more than that 1 % charges on switch

Remarks

Daily NAV in the newspapers. NAV on single pricing mechanism

Minimum Deferment period of the plan is 3 years

ICICI Pru Lifetime

This again is a new generation product 'with three funds to invest in- growth, debt & balanced. This is however a regular premium plans with flexibility that has never been witnessed in the Indian insurance market.

The plan is immensely flexible where in the client can choose the amount of life cover and can increase and decrease as per lifestyle changes.

Funds can be switched, top -ups can be made full and partial withdrawal facilities, premium holiday and premium redirection facilities makes it an excellent investment & protection tool.

the minimum premium is 18,000/- per annum that can be paid on monthly, quarterly, half yearly and yearly basis.

the product moves on a NAV basis, which is available on biweekly basis Wednesday & Saturday in all the national dailies under the mutual fund column.

Flexibility
Increase your death benefit Decrease your death benefit Premium holiday option

Three riders can be attached with this plan:

Accidental and disability rider Critical Illness Rider Major Surgical Assistance Rider

ICICI Prudential Lifetime Pension - At a Glance

Minimum Premium p.a. Minimum Death Benefit Maximum Death Benefit Minimum age at entry Maximum age at entry Minimum term Maximum term Life Protection band Top- up Withdrawal Funds

Rs.10,000 (modes yearly, half yearly & monthly) Rs.100,000 Rs.50,00,000 18 years 60 years 10 years 52 years 18 years to 70 years else value of units is paid After policy issuance minimum 10,000/- & in multiples 0f 500 No withdrawals if desired after 3 years the policy can be surrendered at market value Three funds Maximizer equity based fund, Protector debt based fund & balancer debt & equity based fund.

Switch Death Benefit Increase Death Benefit Decrease Premium Holiday Annuity Option

1 free switch each policy year, more than that 1 % charges on switch 3 free Increases 25% of the Death benefit or 100,000 which ever is lower. Above that as per underwriting In Multiples of 100,000 once decreased , no free increases Available after 10 years life and rider protection continues. Charges deducted from the unit fund Annuity to be chosen from 4 annuity option: 1. Life annuity 2. Life annuity with return of purchase price . 3. Joint Life, last survivor annuity with return of price. Accident & disability Benefit Rider (ADBR) Critical Illness Benefit Rider (CIBR) Major Surgical Assistance Rider (MSAR)

Riders allowed

Remarks

Daily NAV in the newspapers. NAV on Single pricing mechanism. For riders min SA is 100,000

Research Methodology
RESEARCH DESIGN

The research design is the conceptual structure with in which research is conducted it consist the blue print of the collection measurement and analysis of data. In that project the research design was adopted for the Descriptive research study the exploratory research studies are also termed as formulative research studies. The main purpose of such studies is that of formulating a problem for more precise investigation or of developing the working hypothesis from an operational point of view The main purpose of the study was to tell the consumer perception in A . The major emphasis was on the discovery of the ideas and opinions of the consumers at different levels in the existing environment. Two methods that are used for the study are: 1. The survey of concerning literature. 2. The experience study.

SAMPLE DESIGN A sample design is a definite plan for obtaining a sample from a given population. It refers to the technique or the procedure the researcher would adopt in selecting items for the sample. The sample design is determined before data are collected. The sampling used for the study is Convenience Sampling. Under this sampling design every item or the universe has equal chance or inclusion in the sample because this is Consumers Perception survey, so we give each person at any place an equal probability of getting into the sample. The importations of random sampling are: 1. It gives each element in the population an equal probability of getting into the sample; and all choices are independent of one another. 2. It gives each possible sample combination an equal probability of being chosen. DATA COLLECTION TYPES OF DATA In the survey two types of data are collected: 1. Primary data: These datas are those which are collected for the first time and therefore original in nature. Secondary data: Data, which have already been collected by someone else and hence passed through the statistical process.

DATA SOURCE PRIMARY DATA COLLECTION For the collection of the primary data following methods were used: 1. Interview method: Personal interviews of the customers are taken at different levels to get their opinions and suggestions. And the interview was structured in nature. 2. Questionnaire method: Structured questionnaire on the basis of information collected from different sources. The questionnaire contains both open and ended questions. SECONDARY DATA COLLECTION Secondary data were collected from the following sources: a. Books related to topic b. Organization documents c. Magazines d. Websites

Under Methodology, we would study the following

OBJECTIVES OF THE STUDY

ASSUMPTIONS TAKEN RESEARCH FRAMEWORK and METHODS USED UNDER THIS STUDY

LET US DEAL WITH THEM ONE BY ONE.

Research objective

To study the customers satisfaction towards ICICI life Insurance product.

Assumption
The customer of ICICI PRUDENTIAL life insurance company are satisfied.

Research Framework
To find out customer satisfaction on ICICI prudential life insurance product in Moradabad. Questionnaire is used as a tool for collecting data. The sample size considered is 50 units and respondents are the customers of ICICI prudential life insurance. Simple Random technique is used for sampling the data. Pie charts are used for analysis & interpretation of data.

Data analysis & Interpretation

Q.1. Do you have any life insurance policy? (a). Yes-65% (b). No-35%

yes no

Q.2. If yes, which companys insurance policy do you have? (a). ICICI prudential life insurance-53% (b). Others-47%

Q.3.What do you think about ICICI PRU agents behavior ? (a) Good-70% (b) very good-20% (c) outstanding-10%

good very good outstanding

Q.4.Are you satisfy with the fund switching services of ICICI PRU? (a) Yes-60% (b) No-40%

yes no

Q.5.Do you think the there is no hidden charges in ICICI PRU? (a) Yes -75% (b) No-25%

yes no

Q.6. Do you think that pay a system is ______? (a) Easy-63% (b) convenient-23% (c) difficualte-14%

Easy convinient difficult

Q.7. what do you think about policy returns? (a) Good-70% (b) bad-15% (c) average-15%

good bad

Q.8. In case of any complication are the manager or advisor helpful? (A) Yes -70% (B) No- 30

yes no

Q.9. Is the information of the product and services easy available? (A) Yes -80% (B) No-20%

yes no

Q.10. Would you recommend this company to others? (A) Yes -80% (B) No-20%

yes no

Findings
Moderate number of respondents has clear understanding about quality of services. Maximum number of respondents believe that ICICI PRU more reliable. Maximum respondents are willing to refer ICICI insurance to others. Maximum respondents are satisfy with ICICI Pru Services.

Conclusion
It has been proven in surveys that most customers do come back to certain business establishment because of the indifferent attitudes towards them by business owners, managers and employees regardless if they like the products or services these businesses offer. Most of the time, these dissatisfied customers will just simply walk away and never come back thus decreasing potential revenue without your knowledge. It is therefore true to say that many businesses cannot succeed for a long time without giving importance to customer service. This crucial factor has somewhat leveled the opportunities for both large and small businesses. This provides each business to offer consumers quality service in which they can be known for. In this way, they are able to differentiate themselves from the competition.

Bibliography

PHILIP KOTLER MARKETING MGMT C.R.KOTHARI RESEARCH METHODOLOGY WWW.ICICIPRULIFE.COM WWW.BIMAONLINE.COM

Annexure Questionnaire
Q.1. Do you have any life insurance policy? (a). Yes (b). No

Q.2. If yes, which companys insurance policy do you have? (a). ICICI prudential life insurance (b). Others Q.3.What do you think about ICICI PRU agents behavior ? (a) Good (b) very good (c) outstanding Q.4.Are you satisfy with the fund switching services of ICICI PRU? (a) Yes (b) No

Q.5.Do you think the there is no hidden charges in ICICI PRU? (a) Yes (b) No

Q.6. Do you think that pay a system is ______? (a) Easy (b) convenient (c) difficualte Q.7. what do you think about policy returns? (a) Good (b) bad (c) average Q.8. In case of any complication are the manager or advisor helpful? (A) Yes (B) No

Q.9. Is the information of the product and services easy available? (A) Yes (B) No

Q.10. Would you recommend this company to others?

(B)

(A) Yes

(B) No