m

 

m

m
m m

m m
m m, m* m-m .
 /m
* m *m m, m
 m-mm*0m
m

m

m m
 m
 m m
mmm !m"#$%m&m'$$#(m" )m#m !m m&m
m* m" )mm
m+m,m*  m

m
m

m


m
 m

 m
 m m
1m
m m, m* m-m .
 /m*m
 m, m
 m-m
m* 2m
m
m
 




m 


m




mm 
!  m 

m
m

 
  



m     m

 "m
 m  m
  



m #$%&




?
 
 



 


CERTIFICATE

m
m

This is certifying that the Management thesis titled _________________________

__________________________________________________________________
submitted by______________________ enroll no.__________________________
during semester_______ of the MBA program (the class of 2008-10) embodies
original work done by him/her.

Signature of the faculty supervisor

Name (in capitals) : ________________________________________________

Designation : ________________________________________________

Campus : ________________________________________________

Campus head

(Signature)


'm

m
m

It is matter of great privilege for me to be attached with icici and do research,

which enhanced my practical knowledge. I do acknowledge that this research
report is outcome of constructive support and cooperation of many
individual.
First of all I wish to pay my deep sense of gratitude to our centre head MR.
SANDEEP DUBEY for providing me an opportunity to undergo practical
training in a reputed organization like | | |. Secondly I am thankful to my
faculty guide MR. SRIDHAR Kumar for this co-operation and friendly
behavior to bring this project in this present form.
Thirdly, I am highly thankful to all the employee of | | |, Patna for
providing me a great opportunity of working on my research for a dynamic
and growing organization and allow me to carry out a very challenging and
satisfying project. In this regard I especially thanks to Mr. Shahbudin (ICICI
PRU, Patna) for his co-operation and guidance. I also want to express my
thank to Mr. S. k. sanjeev (branch manager, jago india advisory pvt. ltd.),
who make me understand the know-how of insurance industry.
At last but not the least, I sincerely thank to my entire batch mates for
providing me a valuable suggestions, guidance and cooperation and
generosity in completing my research work.

 
This management thesis is a scientific study of real issues on a problem with
the application of the management skills. In this research work, I have tried to
highlight the relationship between the market potential and market share in
Insurance industry. The research can deal with small and big issues in any

m
m

division of Insurances organization. Like; marketing mix, advertisement,

distribution etc. the essential equipment of a research is that should contain
scientific collection of data, analysis and Interpretation of data leading to
valid situations.
Research study is an essential part of all professional institutions and those
who are aspire of being an MBA. Every student of the ICFAI University is
required to submit a management thesis report on a particular topic in its
management program.
Actually it is a way to practice what we learnt. It enables me to apply my
conceptual knowledge in a practical situation and to learn situation and to
learn the art of conducting study and presenting its finding in scientific &
systematic manner. I have fully utilized optimum possible data within a short
span of time.
This management thesis has been prepared in partial fulfillment of the MBA
program.
This experience gained by me in period which I anticipated would help me
lot in the future.


()*&%+*
My management thesis research project with ICICI PRU LIFE INSURANCE
as ³a thesis on customer survey titled to study the market potential of existing
product and market share of ICICI PRU life insurance products´ and research
analyst of Insurance product. For this a research plan was devised and as a
part of the research, primary data was collected on different aspect of

m
m

insurance industry and then this data collected would be analyzed to find out
the investment pattern of an individual, time horizon of the investment and
preferred investment option.
The sample data for the survey has been collected from various locations of
Patna.
Apart from conducting survey on investment pattern of an individual, this
research project also includes the study of insurance product in Indian
market. A brief report on the insurance industry studied till date is included in
this report.

AJIT KUMAR PANDEY

8NBPA102
MBA (2008-10)
ICFAI UNIVERSITY, DHERADUN

  



?

        

 ?
 
 
  

 ? 

m
m

 

  
  
 


  

 ? !""#$

§ m



§ § m

  

§ § § m








§ §  m  

§ §  m

§ §  m  

§ § ! m" 

§  m #
 " 

§  § m" 

§   m"

§   m 
 $

§   m%



§  ! m"

§  & m'
    ( )



§  * m% 

§  + m, 

§  - m, 

m
m

 m .$
$ ")
/.

 m /
.'. .,
.0

 § m 
 

  

  m   





  m # 




  m / $ 




 ! m  1
2

 & m #

 * m #  # 

m
m

 m .$.' %./34

 § m 15  $

  m   2 "  2

  m 6 

 

 

  m $"$$ # 
 )



  § m #
 2 # 

   m'
    '

 
 
 #
 

   m



 

   m) '
    #2 )

  ! m) '
   

 
 "   )

  & m 

 '
     
 

 # 

  * m

 
 2

  + m" #


  - m'   $

 ! m    7 8 
'
  

 & m   %7 #

 
 %7 $2

 * m % 
  %7 "
 
 %7 $2

 + m '
   
 )



! m .%%.'
$ ' /.'
3 %.

& m /$


* m '.9.$

* § m 6 



+ m 

/3'"4

m
m

((&,-.%*./0)

I.C.I.C.I.:- Industrial Credit and Investment Corporation of India.

Pru.:- Prudential
U.L.I.P.:- Unit Linked Insurance Plan
H.L.V.:- Human Life Value
I.R.D.A.:- Insurance Regulatory Development Authority.
DC: - Defined Contribution.
DB: - Defined Benefit
SHGs: - Self Help Groups

m
m

1!
mm 
In the year 2009 whole world witness the global
turmoil in the financial sector. The financial crisis arises from U.S.A. and
soon captures the whole world in its tight grip, and its result falling G.D.P.,
tumbling of world stock markets, shutting down of industry, down fall in
profit, cut down in salary, lay off of employees and in result down fall in
personal income. Insurance industry is also affected by this financial crisis
and A.I.G. the world¶s leading insurance company is the most affected by this
global financial turmoil.
Although Indian market are least affected by this financial crisis but you
can¶t neglect the impact of this turmoil.
In the start of this year world also witness that scaling of new peaks by Indian
stock market where B.S.E. sensex almost touch 21k mark and its emerged as
the second best performing market in the world with a dollar return of 83.71
percent in 2008. The popular Bombay stock exchange (BSE) benchmark
index, sensex, also posted its highest ever absolute gain of 8300 points in
over two decades.
Survey is the medium or tool which is used to communicate to the customers
about the product and its market potential. Whereas market potential of the
company¶s product. Survey is made at the corporate level to evaluate the
performance of product and to analyze the market condition. Market
strategies are recommended as per the interpretation of primary data got from
the survey conducted. This also helps in promoting sale.
As brand image plays an important role in the sale of any product. So for a
company like | | | which on regular basis measure the performance of its

m
m

sales and after sales to give better service to the customers and satisfy their
growing expectation. It is necessary for a company to continuously review
their performance and other promotional schemes and constantly monitoring
the changes taking places to face the growing competition.
The study mainly concentrates on the market potential of imaging product
and measuring the market share of | | | products and secondly to know the
strength and weakness of | | | whether customer is satisfied with the
product.
Need for this study arises as surveys play a key role in finding the status of
product in market. It helps in interacting with customer directly; through
which customer could easily give their input. Therefore it becomes necessary
for any firm to know about performance of his product and the customer
satisfaction level. This study was done at | | | ltd. Patna.
The liberalization if the rules for the entry of domestic and foreign players
have had a favorable impact on this sector, leading to premium collections
growing by 18.7 percent in 2008-09, compared to the world average of 2.9
percent. Consequently India became the 12th largest insurance market from
26th April in 2009. This growth looks particularly impressive when seen
against the fact the combined penetration of both life and non-life is less than
2 percent of the GDP compared to world average of 7.52 percent. Clearly, the
scope for growth is enormous.
With increasing per capita income, insurance penetration and entry of new
players, the Indian insurance industry is estimated to grow to US$ 50.9
billion by 2010 from around 24.72 billion in 2008. The private players are
likely to see a growth rate of 160 percent during this period.
Life insurance marketing in India has seen about many changes sweeping the
Indian insurance industry on the marketing front after the sector was opened
up for private players in the year 2000. Various new promotional and product
development strategies were been adopted by the new, private players. The
Indian insurance before 2000 didn¶t focused on the innovative product

m
m

development strategies and customer- friendly pricing and promotional

practices in the Indian insurance industry.
This topic focuses on a detail account of the kind of products and
promotional techniques that private player (especially I.C.I.C.I. prudential)
adopted. In July 2002, India¶s state-owned insurer life insurance corporation
of India (LIC) launched a new insurance policy, µANMOL JEEVAN¶
(priceless life).
This was seen by industry observers as something LIC µhad¶ to do in the
wake of the increasing competition in the insurance sector. Before the launch
of Anmol Jeevan, two of LIC¶s major competitors, ICICI Pru life and HDFC
Standard life had launched similar, competitively priced insurance products.
In the newly opened Indian insurance sector, private insurers were coming up
with many innovative products, offering riders on the policies in the order to
woo the consumers, LIC, which had been exercising in the Indian insurance
sector, had been offering only µplain¶ policies without any riders to its
policyholders. Analysts pointed out that LIC never seemed to have had any
proper strategy for bringing out innovative products and customer friendly
pricing of its products.
Though LIC offered around 60 products, only seven to eight were popular
with policyholders. With almost all private players premium rates being more
or less similar to LIC¶s premium rates, the only areas where they could
distinguish themselves was in the marketing, distribution and product
innovation. The new players launched a host of group insurance and term-life
schemes, as LIC had not focused intensively on these aspects of insurance.
however, the private players soon began to launch products designing and
intelligent promotional methods. The insurance industry in India has got a
huge potential to grow as the number of people insured are very less. There is
a huge scope for expansion for the insurance company in India, till the year
1999 LIC was the only company in the Insurance sector. In 1999 private
companies were allowed inter into the insurance sector. The market is vast

m
m

and there is a lot of pressure for new entrants to operate alongside our
public sector giants viz. LIC & GIC.
The industry is expected to grow at an average annual inflation adjusted rate
of 5.6%. IRDA (Insurance regulatory and development authority) has
recently submitted a report to finance Ministry, which lays down a roadmap
for the opening up of this sector.
The business of the insurance companies is carried out through the financial
advisors who are the recruited by respective companies. So these financial
advisors are the backbone of the company and there successes lead to the
company¶s success. Hence the study of the financial advisors becomes
extremely important.
These financial advisors are the brand ambassadors of the company.
Therefore utmost care should be taken in the recruitment of these advisors.
The report will drive you to analysis of the profiling and recruitment process
of ICICI prudential and the marketing aspects involved.
Now since people are demanding money today, and are looking to make a lot
more, they are looking up for an extra source of revenues. This is where
financial advisor comes into picture. He/she takes charges of client¶s wealth
and advises him/her on how to best invest the money and where to invest.

.. ) . $4

Need for this study arises as there are many market players of these products.
Therefore it becomes necessary for any firm to know about the performance
and customer satisfaction level. This study was done at | | |
ltd., Patna.
Implementation of the suggestion can help the company to face the
challenges posed by their competitors and will help increase their reach by
attracting new customers.

:.
,.$ ) . ":.

m
m

The main objective of the project is to identify and profile competent channel
partners for enhancement of retail insurance business. Apart from the main
objective there are some subsidiary objectives, which are as follows:
3mTo identify ways for improving the quality of the company's agency
force.
3mTo find out strategies devised by competitors for strengthening their
agency force and developing the distribution network.
3mPromotion of the business opportunities provided by ICICI Prudential
in order to attract competent channel partners.
3mTo study the customer satisfaction level of different | | |
product.
3mTo ascertain the overall performance of | | | projector and other
imaging product.
3mBased on the outcome of the survey, to suggest areas in which the
company should focus more in order to enhance the sale of
product.

$". ) . ":.

This study aims to look the market potential of product through customer
survey. Outcome of this survey will give clear picture as to where company
should focus more in order to increase the sale of product. Insurance is need
of the hour and more and more people are opting for various Insurance
policies. With various insurance companies in the market offering various
policies, this project will help in knowing the market for ICICI prudential in
particular. This project will help understand the customer¶s preferences for
various policies. The scope includes understanding the people¶s opinion
about insurance policies. The scope of this project also includes
understanding the investment criteria of individuals.

Implementation of the suggestions can help the company to face the

challenges posed by their competitors and will help increase their reach

m
m

by attracting new customers. Insurance is need of the hour and more and
more people are opting for various Insurance policies. The study focuses on
the market share and market potential of a product. With various insurance
companies in the market offering various policies, this project will help in
knowing the market for ICICI prudential in particular. This project will help
understand the customer¶s preferences for various policies. The scope
includes understanding the people¶s opinion about insurance policies. The
scope of this project also includes understanding the investment criteria of
individuals.
m

3.3'"
 $".

The project area was limited to the geographic limits of PATNA city.m

.$.' %./34

Methodology describes the method which the individual use while doing the
project. In this project the Survey has been done in order to get feedback
from both Supervisors and Managers from different departments and blocks.m
m

.$.'
$%. $.

m
m

6 

; as the research instrument has been used. Questionnaire has

been designed differently for Supervisor and Managerial level.
The questionnaire is designed according to the following points as under-
3mSatisfaction level of customers
3mIdentifying the purchase needs
3m How often purchase is done and to know the methods, techniques and
aids used for selection.

/$


On the basis of study, observation and practical work, the conclusions drawn
can be given as follows-
3mICICI PRUDENTIAL does not make a balance between market
potential and market share.
3mMajority of both Supervisors and Managers believes in that. (i.e. 80 %)
3m In, ICICI PRUDENTIAL and also in other insurance company case
market potential is not the only thing which affects the purchase; there
are other things also which affect the customer¶s buying behavior.m
m

.%%.'
$
m

1.m ICICI PRUDENTIAL should maintain a balance between market

potential and market share of its product.

2.m A proper awareness of product range has to be facilitated through

advertisement in Newspapers, Internet, television etc.

m
m

3.m Appointment of brand ambassador.

4.m The advertisement should contain detailed product description and

specification with respect to purpose.

5.m Recruitment of advisor with social well being and well educated too.

6.m Timely improvement in customer services and facility in product

portfolio.

7.m Proper training of advisors.

m
m

 


!!'

§ §m
$4 ,.,
.0
The liberalization if the rules for the entry of domestic and foreign players
have had a favorable impact on this sector, leading to premium collections

m
m

growing by 18.7 percent in 2008-09, compared to the world average of 2.9

percent. Consequently India became the 12th largest insurance market from
26th April in 2009. This growth looks particularly impressive when seen
against the fact the combined penetration of both life and non-life is less than
2 percent of the GDP compared to world average of 7.52 percent. Clearly, the
scope for growth is enormous.
With increasing per capita income, insurance penetration and entry of new
players, the Indian insurance industry is estimated to grow to US$ 50.9
billion by 2010 from around 24.72 billion in 2008. The private players are
likely to see a growth rate of 160 percent during this period.
§ § §m
$'.


'
The Insurance sector in India has come a full circle from being an open
competitive market to nationalization and back to a liberalized market again.
Tracing the development in the Indian insurance sector reveals the 360
degree turn witnessed over a period of almost two centuries. Life insurance
marketing in India has seen about many changes sweeping the Indian
insurance industry on the marketing front after the sector was opened up for
private players in the year 2000. Various new promotional and product
development strategies were been adopted by the new, private players. The
Indian insurance before 2000 didn¶t focused on the innovative product
development strategies and customer- friendly pricing and promotional
practices in the Indian insurance industry.
In general term Insurance stands for the protection of economic value of
assets. Because every assets have a certain life period and its create value for
his owner, and insurance cover the risk of uncertain damage of that product.
Therefore, Insurance is the need of the hour´.
§ § m .
) 
$4
The history of life insurance in India dates back to 1818 when it was
conceived as a means to provide for English Widows. Interestingly in those

m
m

days a higher premium was charged for Indian lives than the non-Indian lives
as Indian lives were considered more risky for coverage.
The Bombay Mutual Life Insurance Society started its business in 1870. It
was the first company to charge same premium for both Indian and non-
Indian lives. The Oriental Assurance Company
was established in 1880. The
General insurance business in India, on the other hand, can trace its roots to
the Triton (Tital) Insurance Company Limited, the first general insurance
company
established in the year 1850 in Calcutta by the British. Till the end
of nineteenth century insurance business was almost entirely in the hands of
overseas companies.
Insurance regulation formally began in India with the passing of the Life
Insurance Companies
Act of 1912 and the provident fund Act of 1912.
Several frauds during 20's and 30's sullied insurance business in India. By
1938 there were 176 insurance companies. The first comprehensive
legislation was introduced with the Insurance Act of 1938 that provided strict
State Control over insurance business. The insurance business grew at a
faster pace after independence. Indian companies strengthened their hold on
this business but despite the growth that was witnessed, insurance remained
an urban phenomenon. The insurance industry in India has got a huge
potential to grow as the number of people insured are very less. There is a
huge scope for expansion for the insurance company in India, till the year
1999 LIC was the only company in the Insurance sector. In 1999 private
companies were allowed inter into the insurance sector.
The market is vast and there is a lot of pressure for new entrants to
operate alongside our public sector giants viz. LIC & GIC.
The industry is expected to grow at an average annual inflation adjusted rate
of 5.6%. IRDA (Insurance regulatory and development authority) has
recently submitted a report to finance Ministry, which lays down a roadmap
for the opening up of this sector.

m
m

The business of life insurance in India in its existing from started in India in
the year 1818 with the establishment of the Oriental life insurance company
in Calcutta.
Some of the important milestones in the life insurance business in India are:
1.m 1912: The life assurance companies Act enacted as the statute to
regulate the life insurance business.
2.m 1928: The Indian Insurance companies Act enacted to enable
government to collect statistical information about both life and non-
life insurance businesses.
3.m 1938: Earlier legislation consolidated and amended to by the Insurance
Act with the objective of protecting the interests of the insuring public.
4.m 1956: 245 Indian and foreign insurers and provident societies taken
over by the central government and nationalized. LIC formed by an Act
of Parliament, viz. LIC Act, 1956, with a capital contribution of Rs. 5
crore from the Government of India.
The general Insurance business in India, on the other hand, can trace its roots
to the Triton Insurance Company Ltd., the first general insurance company
established in the year 1850 in Calcutta by the British.
Some of the important milestones in the general insurance business in India
are:
1907: The Indian mercantile insurance Ltd. set up, the first company to
transact all classes of general insurance business.
1957: General insurance council, a wing of the insurance association of India,
frames a code of conduct for ensuring fair conduct and sound business
practices.
1968: The insurance Act amended to regulate investment and set minimum
solvency margins and the tariff Advisory committee set up.

m
m

1972: The general insurance business (Nationalization) Act, 1972

nationalized the general insurance business in India with effect from 1st
January 1973. 107 insurance amalgamated and grouped into four company
viz. the National insurance company Ltd., and the United India insurance
company Ltd. GIC incorporated as a company.
§ § m
$'. $. .)%$
m

In 1993, Malhotra Committee, headed by former finance secretary and RBI

Governor R. N. Malhotra was formed to evaluate the Indian insurance
industry and recommended its future direction.
The Malhotra committee was set up with the objective of complementing the
reforms initiated in the financial sector.
The reforms were aimed at ³creating a more efficient and competitive
financial system suitable for the requirements of the economy keeping in the
mind the structural changes currently underway and recognizing that
insurance is an important part of the overall financial system where it was
necessary to address the need for similar reforms..´
In 1994, the committee submitted the report and some of the key
recommendations included:
a)m STRUTURE
2m Government stake in the insurance companies to bought down
to 50%
2m Government should take over the holdings of GIC and its
subsidiaries can act as independent corporations
2m All the insurance companies should be given greater freedom
to operate

b)mCOMPETITION

m
m

2m Private companies with a minimum paid up capital of Rs. 1bn

should be allowed to enter the industry.
2m No company should deal in both life and general Insurance
through a single entity.
2m Foreign companies may be allowed to enter the industry in
collaboration with domestic companies.
2m Postal life insurance should to operate in the rural market.
2m Only one state level life insurance company should be
allowed to operate in each state.

c)m REGULATORY BODY

2m The insurance act should be changed
2m An insurance regulatory body should be set up
2m Controller of insurance (currently a part from the finance
ministry) should be made independent.

d)mINVESTMENTS
2m Mandatory investments of LIC life fund in government
securities to be reduced from 75% to 50%
2m GIC and its subsidiaries are not to hold more than 5% in any
company (there current holdings to be brought down to his
level down to this level over a period of time)

e)m CUSTOMER SERVICE

2m LIC should pay interest on delays in payments beyond 30
days
2m Insurance companies must be encouraged to set up unit linked
pension plans.

m
m

2m Computerization of operations and updating of technology to

be carried out in the insurance industry.

The committee emphasized that in order to improve the customer services

and increase the coverage of the insurance industry should be opened up to
competition. but at the same time, the committee felt the need to exercise
caution as any failure on the part of new players could ruin the public
confidence in the industry.

§ § m .3/'4 4
THE INSURANCE REGULATORY AND DEVELOPMENT AUTHORITY
Reforms in the insurance sector were initiated with the passage of the IRDA
bill in parliament in dec. 1999. The IRDA since its incorporation as a
statutory body in april 2000 has fastidiously struck to its schedule of framing
regulations and registering the private sector insurance companies.
The other decisions taken simultaneously to provide the supporting systems
to the insurance sector and in particular the life insurance companies were the
launch of the IRDA¶s online service for issue and renewal of licenses to
agents.
The approval of institutions for imparting training to agents training has also
ensured that the insurance companies would have a trained workforce of
insurance agents in place to sell their products.
Which are expected to be introduced by early next year, since being set up as
an independent statutory body the IRDA has put in a framework of globally
compatible regulations. In the private sector 18 life insurance and 15 non-life
insurance companies have been registered.

m
m

To know further more about life Insurance in India and the regulations that
govern Life Insurance, please visit www.irdaindia.org
§ § !m "/'4.$
The introduction of private players in the industry has added to the colors in
the dull industry. The initiatives taken by the private players are very
competitive and have given immense competition to the on the time
monopoly of the market LIC. Since the advent of the private players in the
market the industry has seen new and innovative steps taken by the players in
the sector. The new players have improved the service quality of the
insurance
The following companies are present in the life insurance industry in India.

'%. ) "/'4.
Bajaj Allianz life insurance company industry limited
Bharthi AXA Life Insurance Co. ltd
Birla Sun life Insurance co. ltd
Future Generalli Life Insurance Co. ltd
HDFC Standard Life Insurance Co. ltd
ICICI Prudential Life insurance Co. ltd
Ing Vysya Life Insurance Pvt. Ltd
Life Insurance corporation of India
Max New York life Insurance Co. ltd
Met Life India Insurance Company Pvt. Ltd
Kotak Mahindra Old Mutual Life Insurance ltd
SBI Life Insurance Co. ltd
Tata AIG Life Insurance Company ltd.
Reliance life insurance company limited
Religare life insurance company limited
Aviva Life Insurance Co. India Pvt. Ltd
Sahara India Life Insurance Co. ltd
Sriram Life Insurance Co. ltd
To know more about these company and their product please visit their own website.

m
m

§ m %"'4 ")
/.
§  §m ")
/.

The Industrial Credit and Investment Corporation of India (ICICI) was

the second to receive an approval from IRDA as a private life insurer on
3rd Oct. 2000 after HDFC Standard Life Insurance, but ICICI was the
first to commence business from 1st dec. 2000. As a part of insurance
liberalization of the Indian economy in 1999. ICICI Prudential
establishes its registration office in Mumbai, India.




ICICI Ltd. was established in 1955 by the World Bank, the Government of
India and the Indian Industry, to promote industrial development of India by
providing project and corporate finance to Indian industry conglomerate and
has become one of the largest public financial institutions in India.
m

mICICI Prudential Life Insurance Company Limited was incorporated on July

20, 2000. The authorized capital of the company is Rs.2300 Million and the
paid up capital is Rs. 1500 Million. The Company is a joint venture of ICICI
(74%) and prudential plc UK (26%).

The Company was granted Certificate of Registration for carrying out Life
Insurance business, by the Insurance Regulatory and Development Authority
on November 24, 2000. It commenced commercial operations on December
19, 2000, becoming one of the first few private sector players to enter the
liberalized arena.

The Company is now operational in Mumbai, New Delhi, PATNA, Chennai,

Kolkata, Bangalore, Chandigarh, Ahmadabad, Hyderabad, PATNA, Nasik,
Jaipur, Cochin, Meerut, Mangalore and Ludhiana.

Till March 31,2002 the Company has issued 100,000 polices translating into
a Premium Income of around Rs. 1,200 Million and a sum assured of over
Rs.15,000 Million.

m
m

".
'/

Prudential was founded in 1848. Since then it has grown to become one of
the largest providers of a wide range of savings products for the individual
including life insurance, pensions, annuities, unit trusts and personal banking.
It has a presence in over 15 countries, and caters to the financial needs of
over 10 million customers.
Prudential is the largest life insurance company in the United Kingdom
(Source: S&P's UK Life Financial Digest, 1998). Asia has always been an
important region for Prudential Prudential's first overseas operation was in
India, way back in 1923 to establish Life and General Branch agencies.
It has had a presence in Asia for over 75 years. In fact Prudential's first
overseas operation was in India, way back in 1923 to establish Life and
General Branch agencies.
In October 1998, Prudential launched a "branchless" bank based on the
internet. Unusually titled as " egg:|". The bank has in a short span of its
existence become a leading banking service provider in the UK. Infect in the
first six months of its existence it garnered over 5 billion (US$ 8 billion) in
deposits from over 500,000 customers.
Development of superior products and services that offer value for money
and security while producing superior financial returns, enables Prudential to
maximise the value of its shareholder's investment and to establish lasting
relationships with customers and policy holders.

ICICI and Prudential came together in 1993 to provide mutual fund products
in India and today are the largest private sector mutual fund company 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.

m
m

,
$
 ' %
$$


Their vision is to make ICICI Prudential Life Insurance Company the

dominant new insurer in the life insurance industry. This they hope to achieve
through their commitment to excellence, focus on service, speed and
innovation, and leveraging our technological expertise.
The success of the organization will be founded on its strong focus on values
and clarity of purpose. These include:
2m Understanding the needs of customers and offering them superior
products and service
2m Building long lasting relationships with their partners
2m Providing an enabling environment to foster growth and learning for
their employee


. :
 ,..

ICICI Prudential life insurance Company limited was incorporated on July

20, 2002. The authorized capital of the company is Rs. 2300 Million. The
paid up capital is Rs. 1900 million. The company is a joint venture of ICICI
(74%) and prudential plea. UK (26%).





".
'/< :
 ,.. "'.$
"
We have built a powerful joint venture partnership with a highly innovative,
market leading local player.

m
m

$.

2  2   2   2 

=

The company gets the prospective clients through three channels. It¶s a one
level marketing channel at ICICI Prudential, with three distribution
networks.
m

mmmmm m m m | | |
|
m

 m   mmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmm|m  mmmmmmmmmmmmm m m  m  m

 m

§>m'( '$$'.<

Bank assurance is a word coined in the western world, when banks
began to get involved in the marketing of the insurance business.. In
some countries the same institution would offers both banking and
insurance products, separately or together as the customer may need.

m
m

>m
. '3.<

The Unit Manager appointed these agents and these people work under
their respective Unit Managers. Their main work is to create awareness
among the customers and then the prospective customers after knowing
their needs.

>m"'. '3.$<

These people work through sales executives. They appoint different
people under them, who in turn get the business for the company. All
the above mentioned agents have to undergo a 100 hours training and
getting license from IRDA, after which they are authorized to sell the
product

m
m

3'
$'
 $.

 m-m


3 m
 / 


4 m
 / 

 m
 / 

 m
 / 


m
 / 

/ m

 / 


m/ m
 / 

 m / 




 m m
 / 

m
m

" ")
/.

$'. $/
$ )

,
'/$

ICICI Prudential Life Insurance offers a range of innovative, customer-

centric products that meet the needs of customers at every life stage. Its
products can be enhanced with up to 4 riders, to create a customized solution
for each policyholder.
$',
3$ ? 0.'/ .'
 $/
$

 2 "  is a transparent, feature-packed savings plan that offers 3 levels of

protection as well as liquidity options.

$ @
@ " is a traditional endowment savings plan that offers life
protection along with adequate returns.

 2 7 is an anticipated endowment policy ideal for meeting milestone

expenses like a child's marriage, expenses for a child's higher education or
purchase of an asset. It is available for terms of 15 and 20 years.

/  $# ? /  "  is unit-linked plans that offer customers
the flexibility and control to customize the policy to meet the changing needs
at different life stages. Each offer 4 fund options? Preserver, Protector,
Balancer and Maxi miser.

/ /
7 $# is a single premium unit linked insurance Plan which
combines life insurance cover with the opportunity to stay invested in the
stock market.

" / 3  is a limited premium paying plan specially structured for

long-term wealth creation

  $2  /  is a unit linked plan that provides premium
guarantee on the invested premiums and ensures that the customer

m
m

receives only the benefits of fund appreciation without any of the risks of
depreciation.

  $2   2 17 is a unit linked plan that provides premium
guarantee on the invested premiums along with flexible liquidity options.

".
 $/
$

/ 3 is a protection plan, which offers life covers at very low cost. It
is available in 3 options? Level term assurance, level term assurance with
return of premium and single premium.

 '  is a mortgage reducing term assurance plan designed

specifically to help customers cover their home loans in a simple and cost-
effective manner.


/ "/'$

.



 under the $ ( brand provides guaranteed
educational benefits to a child along with life insurance cover for the parent
who purchases the policy. The policy is designed to provide money at
important milestones in the child's life. Smart Kid plans are also available in
unit-linked form, Both single premium and regular premium.

.
.%. $/
$

) / is a traditional retirement product that offers guaranteed returns

for the first 4 years and then declares bonuses annually.

/  $# "


is a regular premium unit linked pension plan that
helps one accumulate over the long term and offers an annuity option
(guaranteed income for life) at the time of retirement.

m
m

/ /
7 $# "

is a single premium unit linked pension plan.

). "/'$ ) . 3'
$'


 1

2m Strong relationships within partnership Distribution

2m Segmented distribution to improve productivity Of the sales force

#

2m Hub and spoke model

2m Quality Initiatives across delivery processes

"

2m Innovation platform for product differentiation

"# 

2m Leadership and capability development

2m Top talent management

 

2m Focus on needs based selling

2m Product Offerings for group business

m
m

 

 


2. THESIS PROFILE

m
m

The title of the thesis is ³to study the market potential of existing product and
market share of icici product.´

2.1 Basics of insurance: the thesis began with understanding basics and
fundamentals of Insurance as an investment alternative. This involved an in-
depth literature review of various financial magazines and some authentic
mutual funds research websites like valueresearchonline.com. also, the
strategies of Insurance portfolio were studied.

/ 

 ensures that your family will receive financial support in your
absence. Put simply, life insurance provides your family with a sum of
money should something happen to you. It protects your family from
financial crises.

In addition to serving as a protective cover,  


 acts as a flexible
money-saving scheme, which empowers you to accumulate wealth-to buy a
new car, get your children married and even retire comfortably.

Life insurance also triples up as an ideal tax-saving scheme.

The second stage of the thesis involved preparing a questionnaire for deriving
the factors that influence the investment decisions made by the investors.
And then compare the market potential and market share of icici products.

m
m

 
 !'

3.1 UNDERSTANDING OF TERMS

m
m

'  #

  1  
This occurs when the basic cover amount is paid earlier than death or maturity. For
example the policy may provide for the full payment of the death benefit in the
event of total and permanent disability.

'

The term accident is sometimes defined in the policy document as follows - the
accident must be caused by violent, external and visible means and cause of the
injury or injuries solely and independently of any other means.

'
 2 1

Benefit, which provides for the payment of an additional sum (usually equal to the
sum insured of the basic policy) in the event of death by an accident.

'
 "1 
This refers to the amount that is payable according to the terms and conditions of
the insurance policy to the legal owner of the insurance policy.

'



The person whose lifetime is used to measure the contractual period over which
annuity payments will be made.

'


Annuity contract is an agreement under which the insurance company, in return for
the payment of a certain sum, makes a series of agreed payments at regular
intervals from a fixed date. This continues until the death of the individual on
whose life the annuity is bought.

'

 "
The time span between each of the annuity income benefit payments made under
the annuity contract. Typically annuity income benefits are paid monthly or
annually.

'
# .


An endowment where you do not have to wait for the maturity date before
receiving part of the maturity amount.

'## 
 A 
 A   
2
The applicant is the person on whose life insurance cover is sought. Owner is the
person who has the legal title to the policy. Life of another on whose life he or she
has an insurable interest.

m
m

'## 
 


This refers to an event when a policy has lapsed or terminated by the policy owner
owing to a non-payment or late payment of a premium. The company will consider
a reinstatement of the contract in the event of an application being made as
prescribed by the company in terms of the outstanding premium, interest or
administration fees (if any) and evidence of good health. The reinstatement and
terms are at the discretion of the company.

'##

The increased value of one asset held by the policy, or by the total assets held by
the policy over a period of time.

' 7   #

The price at which units or shares can be purchased. The asked or offering price
means the current net asset value (NAV) per share plus sales charge, if any. For a
no - load fund, the asked price is the same as the NAV.

'   

A system method of investing that distributes assets to a broad array of investments

' 
The current rupee value of the pool of money shareholders has invested in a fund.

 
 

A fund that maintains a balanced portfolio, generally 60% bonds or preferred
stocks and 40% commons stocks.

 7
A period of time in which the market, or securities in general lose money.


27
A reference point that is chosen for the purposes of comparing other related values.



The person or party the owner of a life insurance policy names to receive the
policy benefit.

   #
The price at which a funds units or shares are redeemed (bought back) by the fund.
The bid or redemption price means the current net asset value per share, less any

m
m

redemption fee or back end load.

 A  #
The difference between the bid and the offer prices.

  2# 7 

A fund that consists of a portfolio of large or well known companies for the
purposes of achieving growth.



A bond is security in the form of a convertible loan with a maturity date, where the
investor lends money to a company or government.

# =

The value of a fund derived by the multiplication of the fund's share price by the
number of outstanding shares. Most often, this is applied in order to determine the
value of the specific companies.

 2 $
 , 
The amount that is available to the owner if a life insurance policy is surrendered
any time before the maturity date. The amount represents the cash value minus
surrender charges and any outstanding loans due upon cancellation of the policy.

 

Person who has as interest in the policy and making a claim on the policy.

   
 

A type of fund that offers only a fixed amount of shares, usually sold through a
brokerage firm by a broker. Most funds are not closed - end funds; they offer
unlimited shares and may be purchased and redeemed directly by the individual
through the mail by check.

  
 #
The price of stock or other security at the end of the day, after the final trade.

 
A temporary assignment of the monetary value of a life insurance policy as
security for a loan. In the event of default, the creditor would receive proceeds or
values only to the extent of his interest.

m
m

 

A fee paid by the investor to a broker or other sales agent for investment advice
and assistance.

#


Earnings on an investment's earnings. Over time, compounding can produce
significant growth in value of an investment.


 1 

When parties effect a contract, there are obligation that the parties assume and are
legally bound to fulfill these obligations. If there are not fulfilled, the other part can
resort to legal means to seek redress.



The coroner is the person who is legally authorized by the government to
determine the cause of death, when this is in doubt, or if there has been death
which is not deemed to be due from normal illnesses. He or she does it by
examining the evidence submitted including autopsy or post mortem reports,
medical reports and statements from witnesses. The coroner is usually a magistrate
or someone who possess legal qualification.

 


 #
B>
An option available on specified unit linked polices, where the policy holder can
choose to discontinue his premium payments after having made premium
payments regularly for at least three years. In such cases, the life cover of the
policy remains as is, in spite of the premium payments being discontinued. The life
cover will continue till the value of the policy funds becomes 110% of the annual
premium.

  


The date on which cover begins, following acceptance of the risk by the insurer.


 7
For non investment linked policies, the commencement date of the policy can be
backdated within the same financial year. This enables the life assured to take
advantage of the lower premium applicable to a younger age as the premiums is
calculated with reference to the date of commencement. The insurance cover will
however begin only from the date of acceptance. The extra premium on account of
dating back has to be paid upfront.

2 
 "1 

m
m

The amount payable, as stated in a life insurance policy, to the designated

beneficiary(ies) upon the death of the insured. The amount paid is the face value,
plus any riders that are applicable, less any outstanding loans.

 

This is the statement or section of the form where the person is required to declare
that the statements or answers are given fully and truthfully and that if it were not
so, there would be legal consequences.

 '


An annuity contract under which periodic benefits are scheduled to begin at some
designated future date after the date on which the annuity was purchased.

#

A decline in the investment's value.


    3 )2
Insurance contract is issued on the basis that the applicant truthfully and fully
discloses everything he or she knows about his or her health. This arises from the
recognition that the insurance company is in a disadvantageous position, as the
insurer does not know anything about the applicant. Similarly, the insurance
company should deal with the applicant with honesty and integrity.

.


A type of insurance policy which provides for the face amount stated in the
contract to be payable in a fixed date or on the life insured's earlier death.

.C
A stock or the interest in capital gains received from the ownership of a stock.

.DE  
This occurs where strict liability has not been proved but the insurer may decide
that it would be unduly harsh or cause hardship, not to make some payment. Such
payments are made out of goodwill, without admission of liability.

.DE #

These are payments made by a company where the claim is a gray area, doubt
exists but it may be to the benefit of the claimant and the company feels out of
goodwill that some form of payment should be made. The claim is made without
any admission of liability. Payment is only made on the understanding that the
claimant accepts the amount in full satisfaction of all claims he or she may have on

m
m

the policy.

.D  

A condition under which the benefit is not paid is referred to as exclusion. This is
to avoid any misunderstanding. For example, for accidental policies, there is
usually exclusion for suicide or self-inflicted injuries by the life insured.

.D
 



A provision in some policies which provides the option of continuing the insurance
for a particular insured amount as per the policy condition as term insurance.

)  2 
The medical history affecting the applicant's immediate family. It is to look for
illness that is hereditary. Focus should be on illness where the onset is before the
age of 50.

)D 
 
The category of investment vehicles that offer a fixed periodic return. A fixed
income security is a security or certificate showing that the investor has lent money
to the issuer, who is usually a company or government, in return for fixed interest
income and repayment of the principal at maturity.

)

Financial Institution.

)D 


An annuity where the insurer guarantees to credit the annuity account value with a
fixed rate of interest for a specified period of time, for one, three, five or even ten
years. At the end of the initial time period, the insurer sets a new interest rate for
the next period.

)D

 
Income, which remains constant and does not fluctuate, such as income derived
bonds, annuities and preferences shares. The percentage return from this income
varies dependent on the market price.

)
  
Amount of assets currently in the fund.

3

 

These are effectively financial instruments used by the government to borrow
money from the public. The rates of interest and term period of government bonds

m
m

are fixed.

3 "
This provision offers the policy holder additional period of time after the due date,
during which the premium can be paid. The policy continues to remain in force
during this grace period and the premium continues to be payable.

32 )

A fund whose primary investment objective is long-term growth of capital. It
invests principally in common stocks with significant growth potential.

3
 
1  #

An option which allows the policy owner to effect additional insurance at later
dates without further evidence of health and irrespective of the date of the health of
the life insured.

= 

A hobby that has high risk for insurance purpose. Example: A deep - sea diver or a
free-fall skydiver.

= #

An occupation that has high risk for insurance purposes. Example: a window
cleaner on high - rise buildings.

 


An annuity where, income benefits begin one annuity period after the annuity is
issued. If it is specified that benefits are paid annually, then the benefit payments
begin one year after issue.

 

A fund that primarily seeks current income rather than growth of capital. It will
tend to invest in stocks and bonds that normally pay high dividend and interest.

 

An asset acquired for the purpose if producing income and capital gains to its
owner.

 
 15
The financial goal (long term growth, current income, etc) that an investor or a
fund pursues.

 
  

m
m

A corporation, partnership or trust that invests the pooled monies of many

investors. It provides greater professional management and diversification of
investments than most investors can obtain independently. Mutual funds, or "open-
ended" investment companies, are the most popular for of investment company.

:
 
  #

An option on an annuity that provides that the annuity payout will continue
through the lives if two people. If one of the payees dies, payments continue to the
second payee throughout that payee's lifetime.

(




An insurance policy that a company purchases on a key employee whose
knowledge, network and experience is so essential that the untimely death of the
employee will have a severe impact on the profitability of the company.

/# 
Termination of a life insurance contract because of non-payment of premiums. If
there are non forfeiture values, the policy lapses but may remain effective reduced
paid-up insurance.

/ E#
A large sized company, or a mutual fund that invests in the stock of large,
established well known companies.

/  
1
A large insurance portfolio enables the actuary to predict better the number of
claims. The principle reduces the number of random fluctuations of claims as the
number of lives insured slowly grows. There is substantial decline in standard
deviation of claims arising from pure chance with increase in number of insured.

/

At the time the policy is issued or reinstated, as a part of the underwriting decision,
the company may impose a lien on the policy. This would mean that in the event of
a claim arising from a specific risk or within a period, a certain agreed amount
would be deducted form the claim. The insured is regarded to self insure the
amount to be deducted as the company has declined to cover the specific risk or the
insured has agreed to this arrangement instead of paying the extra premium.

/ '


An annuity that makes regular (e.g., monthly, quarterly, etc.) income payments for
the life of a person (the annuitant). The annuitant cannot outlive the payments.

m
m

Upon his/her death, however, all income payments cease and there are no
beneficiary benefits.

/ ' 
Person whose life is covered under a life insurance policy.

/ .D#

The number of years a person is expected to live as determined by actuaries using
mortality (actuarial) tables This information is used to calculate annuity payments,
life insurance premiums, and annual minimum distributions from IRAs.

/ 

This is a fund set up by an insurance company to which life insurance premiums of
certain designated category of life policies issued are paid into. Claims and
expenses occurring on these life polices are paid out of these funds.The company
actuary does a valuation of the funds periodically before any profits or the
company distributes dividends. The insurance company has a responsibility to
exercise fairness in the way it manages the fund and the actuary will ensure that the
fund is solvent at all times.

/C 

The degree to which an investment may be quickly sold in exchange for cash.
Funds are a liquid investment; at any time-shares may be redeemed. A 30-year
savings bond is not liquid. It cannot easily be sold until the 30-tear, maturity date is
reached.

% ? '
Mergers and acquisitions

%

 )
Fee levied for management of the fund and / or shareholder administrative
services. Usually a fixed percentage of the total value of your fund that is assessed
once in a year.

%7  7
Refers to the potential of loss that is possible, as a result of the short-term validity
of the stock market. Owning funds, due to their diversification, shield an investor
to some market risk that a stockholder may be vulnerable to.

%7 

A method of investing in which an investor may try to predict good or bad markets

m
m

for the purposes of determining when to buy and sell a specific security or fund.

% 

The date on which an endowment insurance policy's face amount will be paid to
the policy-owner if the life insured is still living.

%)
Mutual Fund

% # 

  
Providing the wrong facts or not giving the entire truth of a matter. This is more
serious that non-disclosure. It refers to the applicant stating wrong facts or giving
half-truths. They are material because if the underwriter knew of it this
information, the decision might be different.

%
 %7



Include short term - investments such as CD's. T-Bills, and short-term commercial
bonds. Money market mutual funds invest in these types of short-term investments;
as a result, there is little to no risk of losing any portion of the principle investment.

% 2=
Underwriting the risk affecting an application based on factors such as the personal
reputation and character of the applicant, business ethics or the existence of a
criminal record. It concerns the intention or motivation behind the buying of a life
insurance policy.

%1
The probability of disability of a life or group of lives.

% 
The probability of death of a life or group of lives.

%
This is a form of assignment used in connection with a loan. The policy is
mortgaged by the mortgager to the mortgaged who will hold it as a security for the
duration of the loan until the loan and the interest is paid. In the event, the policy
must be reassigned to the mortgagor if the amount is not paid by the required date,
the mortgagee has the right to liquidate the policy and recover the amount and
return the balance amount to the mortgagor.

 '  ,  B',>

The value of a fund share. Determined by dividing the total value of the fund's

m
m

assets by the number of outstanding shares. This value is calculated daily by the
fund.


E      
An applicant fails to disclose facts that have an impact on the decision of the
underwriter (had the underwriter known of this fact, the decision would have been
different)


E   
Cases where a medical examination is not necessary. Large number of cases are
straightforward and do not have any medical problems. For cases within limits on
age and the amount on cover, a medical examination is not necessary.


E##
 # 
Non-participating policy is also known as a without-profit or non-par policy. The
policy owner does not share in any divisible surplus made by the life insurance
company. No bonus is paid on this policy.

"'
Non-performing Asset

$.
National Stock Exchange

E#
The price to buy one share of a specific kind.

#
E
 

A fund that does not have a fixed number of shares (as does a closed end fund or
stock). The mutual fund will offer as many shares, as investors are willing to buy.
These funds need to be bought through a broker. Most funds are open-ended unless
otherwise noted.

#

A financial instrument that gives the investor the right to buy or sell a given
number of shares of the underlying stock at a fixed price within a specified time
period.


 2
A share that gives the holder part ownership of a company and entitle thee holder
to share in the company profits in the form of dividends.

m
m

"#
 " 
A participating policy is also known as a with-profits or par policy. A participating
policy charges a higher premium than a non-participating policy. In return, the
policy owner shares in the life insurance company's divisible surplus, in the form
of bonus allotted to the policy. The bonus is allotted in addition to the guaranteed
sum assured. This bonus is paid along with the basic sum assured.

"
 2#



Cross-insuring partners in a partnership business to effect a buyout of the deceased
partner's family from the business.

"2  2=

Features or facts that can be observed or evaluated. This includes reports from
agents, medical consultants or through investigations

"   


This refers to the amount stated in the policy payable in the event of death or
maturity.

"  

Loans are granted on the security of the surrender value if a policy. The amount is
usually restricted to a certain percentage of the surrender value and interest is
payable. Loans can be repaid at any time before the policy becomes a claim, when
the total indebtness is deducted and the balance is paid. If the total indebt ness
exceeds the surrender value, then the policy is declared as terminated and the
indebt-ness is written off.

"  

The period of coverage provided by an insurance policy.

" 
The collection of all holdings of a fund, such as bond's and stocks. In a fund's
annual report, a list of the fund's current portfolio will usually be contained

"  %

A specialist employed by a fund's advisor to invest the fund's assets in accordance
with pre determined investment objectives

"
This is the contribution / payment that a policyholder makes to a life insurance
company to obtain insurance cover. He or she has a responsibility to ensure that the
correct amount states is paid as and when it falls due as stated in the policy

m
m

document.

" 
This refers to all premiums due after the incident of claim is waived without any
loss of benefits whatsoever unless specifically stated.

"
#
The total amount of the initial investment plus subsequent investments.

" #
A document, usually in the form of a booklet, that provides information about a
specific mutual fund; such as the funds investment and the redemption policies.
The prospectus, according to law, must always is accompanied with the
application. Prospective investors should always read the mutual fund's prospectus
before sending money.

" 


An endowment, which provides for the payment of the sum insured only on
survival to the maturity date. On earlier death, nothing is usually paid out although
some contracts may provide for the premiums paid to be refunded either with or
without interest, after deducting appropriate expenses incurred.

6 
The creditworthiness of a bond issuer, which indicates the likelihood that it will be
able to repay its debt.

#

Fee levied for-selling shares of your index fund. Usually a fixed percentage of the
total value of your fund.



Reserve Bank of India

 # # 


Reduced paid up insurance can be offered on a policy that has been in force long
enough to acquire a cash value and where the policy holder does not wish to
continue paying further premiums. The policy is converted with the consent of the
policyholder whereby a reduced sum assured is payable on similar terms and
conditions of the original basic policy.

   
Where the sum insured proposed or existing is reduced. If such underwriting terms

m
m

are offered, you are not reducing the risk but just the liability.

#
   
This process takes place when the claims examiner looks at the policy document
and the evidence submitted to him or her and makes a decision to reject it.



The value received (income plus capital) annually from an investment, usually
expressed as a percentage.

 
 


An annuity provides that in the event of death of a person "A" during the lifetime
of a person "B", the latter will receive an annuity for the remainder of his or her
life. If "B" dies before "A", nothing is payable.


Additional or supplementary benefits that are bought together with a main life
policy on the same life and are combined for the purposes of collecting one
premium. They ride on and are considered as part of the main policy. They could
be added, amended or deleted from the main policy, any time, subject to risk
assessment. Details and the terms and conditions of the benefits are clearly
indicated in the main policy document.

 7   

This part of the underwriting process whereby the risk of the happening of the
insured event to the life insured in evaluated and a decision is made if the case can
be accepted on terms applied for by the insured. It is done by examining all
information in hand and obtained as its request and using the weight of experience
and statistical evidence and studies.

 7   

The process whereby applicants with similar levels of risk are placed in a separate
basket so that the appropriate pricing is charged for the individuals within each
respective basket.

 7  

The willingness of an investor to tolerate the risk if losing money for the potential
to make money.

   *
The formula for approximating the time it will take for a given amount of money to

m
m

double at a given compound interest rate. The formula is simply 72 divided by the
interest rate. In six years, Rs. 1000/- will double at a compound annual rate of 12%
(72 divided by 12 equals 6)

#   '

A system of investing in which an individual reinvests money into the same fund
on a regular basis usually monthly. Often investors can choose an option in which
money is automatically withdrawn from their banking account and invested into
the fund at a specified time of the month.

$.

Securities and Exchange Board of India

3.2 CLASSIFICATION OF LIFE INSURANCE

m
m





m

Health insurance policies insure you against several illnesses and guarantee
you stay financially secure should you ever require treatment. They safeguard
your peace of mind, eliminate all worries about treatment expenses, and
allow you to focus your energy on more important things, like getting better.
Let's learn more about the various types of health insurance available, and
what the best policy for you might be.
m

0'
$ /
).
$'.F

Life Insurance is an agreement that guarantees payment of a stated amount of

monetary benefits at the end of a specified term or on the death of the life
insured.

"

? 
 $ 
<

The primary objective of a pension plan is to help you provide for your
financial needs in your post retirement years. You will find a Pension
Planning Calculator on the site, meant to make your pension plan review as
simple as possible. The calculator is the first step in your Pension Plan
scheme; there are other steps towards getting the Indian #

#  you
need.

m
m

Click here to know more about our pension plan solutions.

2m


" .  "



2m


" /$ "



2m


" / $# "



2m


" //
7 $# "


2m


" )/

TYPES OF LIFE INSURANCE

2m Traditinoal plans
2m Ulip plans
2m Endownment plans
2m Regular term plan
2m One term plan

m
m

 2
 m

Now since people are demanding money today, and are looking to make a lot
more, they are looking up for an extra source of revenues. This is where

m
m

financial advisor comes into picture. He/she takes charges of client¶s wealth
and advises him/her on how to best invest the money and where to invest.

.. ) . $4

Need for this study arises as there are many market players of these products.
Therefore it becomes necessary for any firm to know about the performance
and customer satisfaction level. This study was done at | | |
ltd., Patna.
Implementation of the suggestion can help the company to face the
challenges posed by their competitors and will help increase their reach by
attracting new customers.

:.
,.$ ) . ":.

The main objective of the project is to identify and profile competent channel
partners for enhancement of retail insurance business. Apart from the main
objective there are some subsidiary objectives, which are as follows:
3mTo identify ways for improving the quality of the company's agency
force.
3mTo find out strategies devised by competitors for strengthening their
agency force and developing the distribution network.
3mPromotion of the business opportunities provided by ICICI Prudential
in order to attract competent channel partners.
3mTo study the customer satisfaction level of different | | |
product.
3mTo ascertain the overall performance of | | | projector and other
imaging product.
3mBased on the outcome of the survey, to suggest areas in which the
company should focus more in order to enhance the sale of
product.

$". ) . ":.

m
m

This study aims to look the market potential of product through customer
survey. Outcome of this survey will give clear picture as to where company
should focus more in order to increase the sale of product. Insurance is need
of the hour and more and more people are opting for various Insurance
policies. With various insurance companies in the market offering various
policies, this project will help in knowing the market for ICICI prudential in
particular. This project will help understand the customer¶s preferences for
various policies. The scope includes understanding the people¶s opinion
about insurance policies. The scope of this project also includes
understanding the investment criteria of individuals.

Implementation of the suggestions can help the company to face the

challenges posed by their competitors and will help increase their reach
by attracting new customers. Insurance is need of the hour and more and
more people are opting for various Insurance policies. The study focuses on
the market share and market potential of a product. With various insurance
companies in the market offering various policies, this project will help in
knowing the market for ICICI prudential in particular. This project will help
understand the customer¶s preferences for various policies. The scope
includes understanding the people¶s opinion about insurance policies. The
scope of this project also includes understanding the investment criteria of
individuals.
m

3.3'"
 $".

The project area was limited to the geographic limits of PATNA city.m

m
m

.$.' %./34

Methodology describes the method which the individual use while doing the
project. In this project the Survey has been done in order to get feedback
from both Supervisors and Managers from different departments and blocks.m
m

.$.'
$%. $.

6 

; as the research instrument has been used. Questionnaire has

been designed differently for Supervisor and Managerial level.
The questionnaire is designed according to the following points as under-
3mSatisfaction level of customers
3mIdentifying the purchase needs
3m How often purchase is done and to know the methods, techniques and
aids used for selection.

/
%
'
$ ) . $4<

Unwillingness of the customer to interact

Many customers were reluctant to fill the questionnaire because they felt
these feedbacks are taken only for the formalities which are done after every
6 months. No changes have been made so far. So they were not ready to
interact and give their feed back regarding performance of product.

m
m

Time constraint

Time was one of the major constraints during the study because determining
the performance and satisfaction level on the sale of the product of any
organization requires through analysis and research in order to determine the
correct level of effectiveness.

RESEARCH METHODOLOGY:

RESEARCH DESIGN

EXPLORATORY DESIGN:-

IN-DEPTH INTERVIEW: THE RESPONDENTS WERE CHOSEN ON

THE BASIS OF INDIVIUAL SEGMENT SUCH ARE:

1.m CENTRAL GOVT. ORGANIZATION

2.m STATE GOVT. ORGANIZATION
3.m EDUCATIONAL INSTITUTES.
4.m TECHNICAL INSTITUTES
5.m BANKS

DESCRIPTIVE DESIGN:-

Prepare A Set Of Questionnaire In Order To Survey Those Who Have

Purchased The ICICI Product.

SAMPLING PLAN:-

SAMPLING UNIT:- IT consists of individuals using ICICI products in Patna

region.

SAMPLING TECHNIQUE:- We have made use of non probability sampling

technique i.e. convenience sampling technique keeping in mind time and
money constraints.

SAMPLE SIZE:- sample size is 87.

m
m

DATA COLLECTION:- We are using communication as instrument which

include ±

2m Questionnaire method.
2m In-depth interview.

STATISTICAL TOOLS USED:-

2m PERCENTAGE ANALYSIS
2m WEIGHTED AVERAGE MEAN MRTHOD

DATA ANALYSIS & INTERPRETATION

The sample size of the survey is 87 which mainly constitute of individual

using ICICI products in patna region.

The study segregates the analysis and interpretation under two sections:

SECTION 1:

In this section all the respondents are taken together for analysis and
interpretations which will be a composite analysis.

SECTION 2:

In this section, using data are interpreted.

m
m

 m $"$$ " ? )

3$

SOURCE OF INFORMATION:
Alternatives response % response
advertisements 26 30%
Newspaper/magazines 46 53%
Family/friends 15 17%
others 0 0%

i

m
8

7

6

5

"#m;


9 $# #:"" &$% 

INTERPRETATION

In the above bar chart it is seen that, 30% of the customers say that they get
to know about the product through advertisement, while 17% through
family/friends and 53% trough newspapers and magazines.

m
m

BUYING FACTORS INFLUENCING DECISION

ALTERNATIVES RESPONSE % RESPONSE

PRICE 16 18%
BRAND NAME 33 38%
AFTER SALES 24 28%
SERVICE
ADVERTISEMENT 8 9%
OTHERS 6 7%

m  
* 4 m  - m

m

 
   

;
; <;

<;

5<;

In the above pie chart it is seen that 38% of the customers are influenced by
the brand of the product when it comes to buy the product while, 28% by
after sales services, 18% by price, 9% by advertisement, and 7% others things
that include commercial purpose.

m
m

PRODUCT PERFORMANCE

" %.' $. ) . '

ICICI LIC BAJAJ BIRLA AVIVA
PRU ALLIAZ SUNLIFE
' 8 9 8 7 7
. 8 8 7 8 7
".%
% 7 7 6 7 7
./
'
/
4 8 8 6 7 8
".)%'. 9 9 8 9 8
%.' 8.00 8.20 7.00 7.60 7.4

INTERPRETATION:

THE ABOVE TABLE SHOWS THE MEAN SCORE OF PERFORMANCE

FOR THE DIFFERENT BRANDS. FROM THIS RESEARCHER REVELS
THAT INFOCOUS HAVE A BETTER PERFORMANCE WITH
COMPARED TO OTHER BRAND.

AFTER SALES SERVICE

',.'3. $.
ICICI LIC BAJAJ BIRLA AVIVA
'). 8 8 7 8 7
$'/.$
$.,
.$

INTERPRETATION:

ICICI, LIC & BIRLA HAS GIVEN GOOD AVERAGE WITH RESPECT
TO AFTER SALE SERVICE.

m
m

OVERALL SATISFATION

%.' $. )
$'. '

ICICI LIC BAJAJ BIRLA AVIVA
,.'// 8.5 8 7 7.9 7.5
$'
$)'


INTERPRETATION:

FROM THE ABOVE TABLE IT BECOME CLEAR THAT OVERALL

SATISFATION ICICI PRU IS GOOD AND UP TO THE SATISFACTORY
LEVEL.

COMPARATIVE BRAND

THE BRAND IMAGE OF ICICI HAS GOT AN AVERAGE OF 9 WHICH

SHOWS THAT IT HAS A GOOD BRAND IMAGE FOLLOWED BY LIC,
BIRLA AND OTHERS.

COMPARATIVE PRICE:
Price Of The Different Brands Vary From Each Other Because Of Various
Factor, Through Price Must Be Up To The Satisfaction Level Of Customer
I.E. Neither Too High nor Too Low. And From Above figure it is clear that
ICICI Pru has a mean of 8 which is satisfactory and show good market image
and potential.

m
m

COMPARATIVE PRODUCT RANGE

PRODUCT ICICI PRU LIC BAJAJ BIRLA AVIVA

NAME
PRODUCT 8.5 7.5 8 8.5 7.5
RANGE

 m 

<08
<06
<0
<
0< *m /
08
06
0

  4++ 4 

INTERPATION:

FROM THE ABOVE BAR GRAPH IT IS CLEAR THAT. THE PRODUCT

RANGE OF ICICI IS BETTER THAN OTHER BRAND.

m
m

 3


4


.%%.'
$

m
m

1.m ICICI PRUDENTIAL should maintain a balance between market

potential and market share of its product.

2.m A proper awareness of product range has to be facilitated through

advertisement in Newspapers, Internet, television etc.

3.m Appointment of brand ambassador.

4.m The advertisement should contain detailed product description and

specification with respect to purpose.

5.m Recruitment of advisor with social well being and well educated too.

6.m Timely improvement in customer services and facility in product

portfolio.

7.m Proper training of advisors.

Y

|
Y




 |


Y

Y


Y



Y

|

YY| 
Y| 



2m 























 
 









 





2m !


















"!
 
















2m 




 













 




2m







 




















m
m

2m 


 












 




































2m 
 




















































































CONCLUSION

m
m

When a new product is launched in the market, company makes marketing

strategies through which they try to make awareness about their product.
Survey is the medium or tool which is used to communicate to the customers
about the product and its market potential. Whereas market potential of the
company¶s product. Survey is made at the corporate level to evaluate the
performance of product and to analyze the market condition. Market
strategies are recommended as per the interpretation of primary data got from
the survey conducted. This also helps in promoting sale.
As brand image plays an important role in the sale of any product. So for a
company like | | | which on regular basis measure the performance of its
sales and after sales to give better service to the customers and satisfy their
growing expectation. It is necessary for a company to continuously review
their performance and other promotional schemes and constantly monitoring
the changes taking places to face the growing competition.
The study mainly concentrates on the market potential of imaging product
and measuring the market share of | | | products and secondly to know the
strength and weakness of | | | whether customer is satisfied with the
product.
Need for this study arises as surveys play a key role in finding the status of
product in market. It helps in interacting with customer directly; through
which customer could easily give their input. Therefore it becomes necessary
for any firm to know about performance of his product and the customer
satisfaction level. This study was done at | | | ltd. Patna.
The liberalization if the rules for the entry of domestic and foreign players
have had a favorable impact on this sector, leading to premium collections
growing by 18.7 percent in 2008-09, compared to the world average of 2.9
percent. Consequently India became the 12th largest insurance market from
26th April in 2009. This growth looks particularly impressive when seen
against the fact the combined penetration of both life and non-life is less than

m
m

2 percent of the GDP compared to world average of 7.52 percent. Clearly, the
scope for growth is enormous.
With increasing per capita income, insurance penetration and entry of new
players, the Indian insurance industry is estimated to grow to US$ 50.9
billion by 2010 from around 24.72 billion in 2008. The private players are
likely to see a growth rate of 160 percent during this period.
Life insurance marketing in India has seen about many changes sweeping the
Indian insurance industry on the marketing front after the sector was opened
up for private players in the year 2000. Various new promotional and product
development strategies were been adopted by the new, private players. The
Indian insurance before 2000 didn¶t focused on the innovative product
development strategies and customer- friendly pricing and promotional
practices in the Indian insurance industry. The business of the insurance
companies is carried out through the financial advisors who are the recruited
by respective companies. So these financial advisors are the backbone of the
company and there successes lead to the company¶s success. Hence the study
of the financial advisors becomes extremely important.
These financial advisors are the brand ambassadors of the company.
Therefore utmost care should be taken in the recruitment of these advisors.
The report will drive you to analysis of the profiling and recruitment process
of ICICI prudential and the marketing aspects involved.
Now since people are demanding money today, and are looking to make a lot
more, they are looking up for an extra source of revenues. This is where
financial advisor comes into picture. He/she takes charges of client¶s wealth
and advises him/her on how to best invest the money and where to invest.
Therefore it becomes necessary for any firm to know about the performance
and customer satisfaction level. This study was done at | | |
ltd., Patna.
Implementation of the suggestion can help the company to face the
challenges posed by their competitors and will help increase their reach by
attracting new customers.

m
m

m
m

"


A SURVEY ON ICICI PRODUCT
DEAR SIR/MADAM,
I am a student of ICFAI national college, Patna. As a part of the
requirement for my post graduate program in management i am required
to do a research based thesis. Kindly, spend a few minutes of your
valuable time and fill in this questionnaire.

NAME OF RESPONDENT««««««««««««««««««
ADDRESS««««««««««««««««««««««««..
CONTACT NO««««««««««««««««««««««...
Do you have any icici pru product in your investment portfolio?
m Yes
m No

3mOVERALL SATISFATION
m Fully satisfied
m Partially satisfied
m Average
m Not at all
3mPRODUCT PERFORMANCE
m Fully satisfied
m Partially satisfied

m
m

m Average
m Not at all
3mQUALITY OF SERVICE
m Fully satisfied
m Partially satisfied
m Average
m Not at all

3mPRODUCT OPERATION
m Fully satisfied
m Partially satisfied
m Average
m Not at all
3mRELIABILTY OF PRODUCT
m Fully satisfied
m Partially satisfied
m Average
m Not at all

m
m

3mSERVICES AFTER SALES

m Fully satisfied
m Partially satisfied
m Average
m Not at all
3mHOW DO YOU RATE THE PRODUCT WITH ITS
COMPETITOR?
mSALES & MARKETING
m WORSE
m SAME
m BETTER
mPRODUCT QUALITY
m WORSE
m SAME
m BETTER
mDELIVERY & ORDER
m WORSE
m SAME
m BETTER

mFULLFILLMENT
m WORSE
m SAME
m BETTER
3mYOURS LOYALTY
m YES
m NO

m
 ‘








 








 

m

 

3mWWW.ICICI.COM
3mWWW.WIKIPEDIA.COM
3mMR. MANOJ MISHRA
3mMR. SRIDHAR KUMAR
3mWWW.GOOGLE.COM
3mICFAI BOOK ON MARKETING
3mICFAI BOOK ON FINANCE
3mICFAI JOURNALS
3mWWW.LIC.ORG
3mBOOK ONLIFE INSURANCE BY INSURANCE
INSTITUTE OF INDIA, MUMBAI

‘

 !
"#$%&


'(

m