A PROJECT REPORT ON

“COMPARATIVE ANALYSIS OF INSURANCE

PRODUCTS AND MARKET SURVEY”
JABALPUR

Submitted In The Partial Fulfillment For The Award Of The

Degree For The
Master of Business Administration
(2006-2008)

Submitted By :
Vijay Kumar Pathak
MBA-III Semester
Roll No.: 0603370115

RAJ KUMAR GOEL INSTITUTE OF

TECHNOLOGY
5TH KM STONE, MEERUT ROAD, GHAZIABAD
 ACKNOWLEDGEMENT

It is my great pleasure to place a record of sincere thanks and

gratitude to Mr. Prashant Moudgil for his guidance, keen interest
and constant encouragement through out the entire course of my
project (who is Branch Manager, ICICI Prudential life insurance,
Jabalpur).

I would like to place my deep gratitude and words of thanks for Mr.
Prashant Mudgil (Branch Manager, Jabalpur) who gave
overwhelming and encouraging response to my questions and
queries .Without his kind attention this project would not have seen
light of the day.

Vijay Kumar Pathak

MBA
 Preface

The project and accompanied training at ICICI

Prudential gave as thorough insight of practical world of

insurance business, Apart it was beneficial in part of

exposure that we got being the part of one of the and

successfully operating Multinational insurance company.

 Table of Content

 Acknowledgement

 Preface

 Executive Summary

 Company Profile

 Introduction

 Need For Financial Planning

 Product Range

 Research Methodology

 Results & Findings

 Conclusion

 Recommendation

 Bibliography

 Annexure - Questionnaire
EXECUTIVE

SUMMARY
 EXECUTIVE SUMMARY

The project basically aims to find out the financial needs of individual

& suggest according to his requirement of money at various intervals.

In this project the special emphasis done on insurance product and

companies with ICICI Prudential and to find out the analysis of the

clients of the companies.

Through this project we came to know that how the alliances are made

& the alliances of ICICI Prudential with other banks.

 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 ICICI
PRUDENTIAL LOMBARD GIC
LIC LTD. ICICI BANK LTD. LTD.

ICICI VENTURE
MARKET SHARE CAPTURED BY ICICI
PRUDENTIAL

June – July’ 07

Others
Tata AIG 9.6%
7.1% ICICI Pru
SBI Life
Om Kotak3.4% 39.3%
4.3%

Allianz Bajaj
7.8%

Birla Sun Life

HDFC Max NYL
11.9%
Standard 6.9%
9.6%
 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

 INTRODUCTION

What is Insurance?
“Insurance is a contract between two parties whereby one party called insurer

undertakes in exchange for a fixed sum called premiums, to pay the other party

called insured a fixed amount of money on the happening of certain events.”

Insurance is a protection against financial loss arising on the happening of an

unexpected event. Insurance companies collect premiums to provide for this

protection. A loss is paid out of the premiums collected from the insuring public and

the Insurance Companies act as trustee to the amount collected.

The economic value of a human life arises out of its relations to the other lives.

Whenever continuance of a life is financially valuable to others, either to family

dependents, business associates, or educational and philanthropic situations, the

necessity for the life insurance is present.

For example, in a life policy by paying a premium to the Insurer, the family of the

insured person receives a fixed compensation on the death of the insured.

Similarly, in car insurance, in the event of the car meeting with an accident, the

insured receives the compensation to the extent of damage.

It is a system by which the losses suffered by a few are spread over many, exposed

to similar risks.
Why should you like to take Insurance?

Insurance is desired to safeguard oneself and one’s family against possible losses

on account of risk and perils. It provides financial compensation for the losses

suffered due to the happening of any unforeseen events.

By taking a life Insurance a person can have peace of mind and need not worry

about the financial consequences in case of any untimely death.

Let us consider the family of four, which consist of a man, a woman and their two

children. The earning member of the family works hard to get the money flowing to

meet the requirements of his family. They have plans to have their own house

constructed in the next two years. Everything is going as per the plans.

What could be the various events that could upset the plans?
 Burglary

 Death

 Accidental Permanent Disability

 Sickness & Critical Illness

All these events are forfituous in nature, i.e., they are out of control of the family and

more in the hands of destiny. Moreover all of these events can actually erode the

wealth of the family.

In order to reduce the element of risk to which this family is subjected and to

safeguard the wealth or economic value, insurance should be carried out.

 Insurance ensures protection of economic value of assets. Assets
are insured against the risk of being destroyed or made non-
functional due to any accidental occurrence.

There are two different branches of insurance, which are Life and Non-Life

Insurance. While Life Insurance insures the life of a person, Non-life insures

everything else.

Name some areas covered under Life and Non-Life Insurance

Certain Insurance contracts are also made compulsory by legislation. For example,

Motor Vehicle Act 1988 stipulates that a person driving a vehicle in a public place

should hold a valid insurance policy covering “Act” risks. Another example of

compulsory insurance pertain to the Environment Protection Act, Wherein a person

using a carrying hazardous substances (as defined in the Act) must hold a valid

public liability (Act) policy.

What are the other benefits of taking Insurance?

1. Tax Relief: Under section 88 of Income Tax Act, a portion of premium is paid

for life insurance policies are deducted from tax liability. Similarly, exemption

is available for Health Insurance Policy premiums.

a. Money paid as claim including Bonus under a life policy is exempted

from payment of Income Tax. However annuities received under

certain pension plans are taxable.

 2. Encourages Savings: An insurance scheme encourages thrift among

individuals. It inculcates the habits of saving compulsorily, unlike other saving

instruments, wherein the saved money can be easily withdrawn.

3. The beneficiaries to an insurance claim amount are protected from the claims

of creditors by affecting a valid assignment.

4. For a policy undertaken the MWP Act 1874, (Married Woman’s Property Act),

a trust is created for wife and children as beneficiaries.

5. Life Policies are accepted as a security for a loan. They can also be

surrendered for meeting unexpected emergencies.

6. Based on the concept of sharing of losses, the society will benefit as

catastrophic losses are spread globally.

Concept of Risk
Integral with the concept of insurance is the concept of risk. In the insurance

parlance risk is called as peril. Only where risk prevail, is insurance applicable.

Define Risk

Risk is defined as possibility of adverse results flowing from any occurrence. The

degree of risk may or may not be measurable.

Uncertainty gives rise to risk and for risk to exist there should be at least two

possible outcomes of which one is undesirable.

Greater the uncertainty, greater the risk.

 Situation
Occurrence of death is a certainty. Then why does
life-insurance exist at all.

Solution
Well, death is the ultimate truth of life, but the timing
of death is uncertain. This is from where the element
of uncertainty comes up in Life Insurance.

In insurance parlance risk implies:

Peril to be insured against e.g. Fire, theft etc.
Person/ Property e.g. young people vis-à-vis old people.

While we are on this subject, let discuss insurance and assurance, the two terms,
which are used interchangeably and also understood wrongly at times.

Insurance is used with reference to financial protection

against a possibility, such as fire, accidental damage,
theft, or medical expenses: motor insurance, household
insurance, travel insurance, health insurance.

Event that must occur at time, such as death, are

provided for by assurance.
HISTORICAL PERSPECTIVE

Insurance is over one and one-half centuries old in India. The first general
insurance company. Title Insurance Company Ltd. was established in 1850.
Life Insurance comes in its present form to India from the U.K. in 1880. with
the establishment of the Oriental Life Assurance Company in Culcutta.

The first Indian-owned Life – Insurance Company, the Bombay Mutual Life
Assurance Society, was set up in 1871. The Indian Life Assurance Companies
Act 1912 was the first statutory measure to regulate the life insurance
business in India. By 1938, the Insurance market was buzzing with 176
companies – both life and non-life. In 1938, the earlier legislation was
consolidated and amended by the Insurance Act, 1938. with comprehensive
provisions for detailed and effective control over Insurance.

At the time of Indian Independence in 1947,

 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 as a % if
  saving in cross
  financial domestic
Year assets product
   
   
1980-81 7.6 0.7
1985-86 7.0 0.7
1990-91 9.5 1.0
1994-95 8.1 1.2
1996-97 10.3 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 world’s 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 is 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 where 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 President 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,
promote and ensure orderly growth of the Insurance industry.
The IRDA Act was formed by an Act of Parliament on April 19,
2000. The IRDA Act also seeks to amend the Life Insurance
Act, 1956. The General Insurance Business (Nationalization)
Act 1972, and the 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 business 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.

IRDA’s 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
carrying 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. Although
private Insurance companies have commenced operations
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 expected 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

Insurance ensures protection of economic value of assets. For example,

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 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-à-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 ?

Rising Life
Inflation
expectancy
Cost of Education / Medical
increasing exponentially estimated to increase from
77 to 85 in next decade

Financial
Planning

Protect lifestyle of Balanced Asset

family Allocation
Protection against the Investment and
uncertainty Protection
Inflation means Rs 10,000
would be…
Therefore Cost of Delaying would
be high….

Power of
Compounding

A B
Saves Saves
From From
25 to 35 35 to 60
 How to do your Financial
Planning

Define & prioritize

your goals

Set Goals
Project income,
Current expenses &
investments
Status
and Gap
Analysis

Create &
Monitor
Changing Savings
Lifestyle,
changing
Plan
Financial Goals

Investment Risk Appetite and

and Protection needs
Insurance
 Priorities in Financial Planning

Retirement Planning
Taking care of your long retirement years

Family Protection
Define & To ensure that the financial loss to the family is
Prioritize negated, in case something unfortunate befalls.

Goals

Asset Creation
Creation of physical and financial assets

Children’s Higher Education

Matching the increasing educational expenses
and protecting against any uncertainty.
 Retirement Planning
Rising Life
expectancy
Inflation

Financ
ial
Average Life Expectancy would increase from Planni
ng
75 years to 80 years in the next two decades.
Asset
Protecting Allocation
lifestyle

What does this mean?

Working The
Yesteryears!!
Retirement
Years

Working
As it looks
today!!
Retirement Years
 Retirement Planning
Rising Life
expectancy
Inflatio
n

Living costs will increase Finan

cial
dramatically over the next 20 Plan
ning
years
Asset
Protecting Allocation
lifestyle

10 years ago Today % Increas e Ex pe cte d Co st a fte r 10 ye a rs

1 Kg of P otato Rs 1.50 Rs 8.00 533% Rs43.00
1 Ltr. Of P etrol Rs 17.00 Rs 31.00 182% Rs57.00
1 Mum-Dli Train Ticket Rs 350.00 Rs 1750.00 500% Rs8750.00

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

So what do you think is “Retirement” for you?

Shouldn’t you have enough provisions to take care of the increasing costs
during your vacations- “ Retirement”?
 Retirement Planning

Rising Life
expectancy
Inflatio
n

Finan
cial
Medical Science has advanced, Plann
ing
but so have diseases and medical costs…...
Asset
Protecting Allocation
lifestyle

Pro je cte d
No. of Vis its to co st in
Dis eas e doctor/month Cos t in 1992 Cos t in 2002 2012
S pondylitis Once in 3 months 2500 8000 25600
Arthritis Once in 2 months 250 850 2890
As thma Once in 45 days 175 600 2060
Diabetes Once in a month 225 750 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.
 Children’s Higher Education

Rising Life
Inflatio expectancy
n Financ
Cost of Education would not ial
Plan
remain the same over the years... ning
g
Asset Allocation
Protecting lifestyle

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.

 Children’s Higher Education

Rising Life
expectancy
Inflatio
n

Finan
cial
Plann
ing

Asset
Protecting Allocation
lifestyle

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 child’s future.

What you want is a solution for
you….

…. That will free you of all your

“WHAT IF’s”

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
Inflatio
Inflation
Do you have enough savings n

to protect your family’s lifestyle Fina

ncial
Plan
ning

Asset
Protecting Allocation
lifestyle

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

Age Human Life Value

Index
30 years 8 Times

35 years 6 Times

40 years 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:

Ramesh’s 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?

Just think before investing

Prioritizing your long-term/short-term goals.

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 policy’s 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 assured’s 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

Single Premium Life Guard Pension

Term Insurance
Single Premium Plans

Endowment Plans Special Products Assure Invest

Life Link ReAssure

Regular Premium Cash Back

Life Time Life Time Pension

Regular Premium Save ‘n’ Protect
Smart Kid Life Link Pension
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 Rs.50,000
Maximum Sum Rs.1,00,00,000 (1 crore)
Assured
Minimum Age at Entry 0 years
Maximum Age at Entry 60 years
Minimum Maturity Age 18 years
Maximum Maturity 70 years
Age
Minimum Term 10 years
Maximum Term 30 years
Sum Assured Multiples Rs.1,000
of
Premium Payment Yearly, Half-yearly, and Monthly. The monthly and
Frequencies quarterly modes are only through ECS (Electronic
Clearing Service).
Premium Payment The entire term of Policy
Period
Benefit Coverage Term of Policy + 5 years after maturity (exceed life
Period cover)
Death Benefit During
the Term of Policy
<7years of age Premiums paid will be refunded
>7years of age Sum assured + Guarantee Additions + Vested
Bonus (if any)
During ELC period 5 50% of Sum Assured in case the policy holder dies
years after Maturity during the 5 year extended term
Maturity Benefits Sum assured + Guarantee Additions @ 3.5%
compounded annually (for the first 4 years) +
vested bonus
Surrender / Paid-up After 3 full years premiums have paid
Policy Loans Allowed after the surrender value period
Riders allowed Critical Illness Benefit Rider (CIBR)
Major Surgical Assistance Rider (MSAR)
Accident & disability Benefit Rider (ADBR)
Accident Benefit Rider (ABR)
Minimum Premium Rs.4800 p.a.
Commitment
Remarks Extended cover will be given only if policy is in
force for the sum assured at maturity.

ICICI Pru Cashbak

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.

ICICI Prudential Cashbak At a Glance

Minimum Sum assured Rs.75,000
Maximum Sum Assured Rs.1,00,00,000
Minimum Age at Entry 16 years
Maximum Age at Entry 55 years
Minimum Maturity Age Not applicable
Maximum Maturity Age 70 years
Term 15 years and 20 years
Sum Assured Multiples Rs.1,000.00
of
Premium Payment Yearly, half yearly and monthly. The monthly
Frequencies mode is only through ECS (Electronic Clearing
Service).
Premium Payment The entire term of policy
Period
Benefit Coverage Period Term of policy
Death Benefit During the Sum assured + guaranteed addition + Vested
Term of Policy Bonus (if any) Death Benefit will be paid even if
the survival benefits have been paid.
Survival Benefit (% age 15 year plan / 20 year plan
of the sum assured) 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 50% of sum assured + Guaranteed Addition
@3.5% compounded annually (for the first 4
years) + Vested Bonus
Surrender / Paid-up After 3 full years premium have been paid
Policy Loans NO LOANS
Riders allowed Critical Illness Benefit Rider (CIBR)
Major Surgical Assistance Rider (MSAR)
Accident & disability Benefit Rider (ADBR)
Accident Benefit Rider (ABR)
Remarks The entire death benefit is payable even if the
complete survival benefit is paid.

ICICI Pru LifeGuard

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 Rs.1,00,000.00

Maximum Sum Assured Rs.10,00,000.00
Minimum Age at Entry 18 years
Maximum Age at Entry 50 years
Maximum Maturity Age 65 years
Minimum Term 5 years
Maximum Term 25 years
Sum Assured Multiples of Rs.1,000
Premium Payment Yearly, half yearly and monthly. The monthly
Frequencies mode is only through ECS (Electronic Clearing
Service).
Premium Payment Period The entire term of policy
Benefit Coverage Period Term of policy
Death Benefit During the The entire sum assured
Term of Policy
Maturity Benefits Sum of premiums paid.
Surrender / Paid-up After 3 full years premiums have been paid
Policy Loans 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 Rs.1,00,000.00

Maximum Sum Assured Rs.10,00,000.00
Minimum Age at Entry 18 years
Maximum Age at Entry 50 years
Maximum Maturity Age 65 years
Minimum Term 5 years
Maximum Term 25 years
Sum Assured Multiples of Rs.1,000
Premium Payment Yearly, half yearly and monthly. The monthly
Frequencies mode is only through ECS (Electronic Clearing
Service).
Premium Payment Period The entire term of policy
Benefit Coverage Period Term of policy
Death Benefit During the The entire sum assured
Term of Policy
Maturity Benefits Nothing is payable after the maturity
Surrender / Paid-up Nill
Policy Loans 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 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.

 ICICI Prudential Smart Kid - At a Glance

Age at Entry of Child 0 12 years

Maturity age of Child 22 years – 25 years
Min. age of the Parent 20 years
Max. age of the Parent 60 years
Term (Calculated as) Maturity age of child – age at entry of child
Min term 10 yrs
Max term 25 yrs
Min Sum Assured 100000 (One Lakh)
Max Sum Assured 3000000 (Thirty Lakh)
Premiums Regular Premium Plan with yearly, half yearly
and monthly modes of payment
Riders ADBR, ABR, and Income Benefit rider
Periodic and Maturity T – 7 = 20%
Benefits(1) T – 5 = 25%
T – 2 = 25%
T=30% + G A @ 3.5% +VB
Periodic and Maturity T – 4 = 25%
Benefit(2) T – 3 = 20%
T – 2 = 20%
T – 1 = 20%
T – 20% + GA @ 3.5% + VB
Death Benefits Sum assured paid immediately + WOP + Periodic
benefits continue as it is.
Surrender After three years of premiums paid.
Remarks 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 Rs.50,000.00

Maximum Sum Assured Unlimited
Minimum Age at Entry 20 years
Maximum Age at Entry 60 years
Minimum Vesting age 50 years
Maximum Vesting age 70 years
Minimum Term 5 years
Maximum Term 30 years
Sum Assured Multiples Rs.1,000
of
Premium Payment Yearly, Half-Yearly, and monthly
Frequencies
Premium Payment The entire term of policy
Period
Death Benefit During the Sum assured + Guaranteed Additions + Vested
term of Policy 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
Maturity Benefits 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.
Surrender / Paid-up After 3 full years premiums have been paid
Policy Loans No Loans
Riders allowed Critical Illness Benefit Rider (CIBR)
Major Surgical Assistance Rider (MSAR)
Accident & disability Benefit Rider (ADBR)
Accident Benefit Rider (ABR)
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. Rs.25,000

Death Benefit 105% of the single premium paid & top ups
made
Minimum age at entry 18 years
Maximum age at entry 62 years
Minimum term 3 years
Maximum term 52 years
Life Protection band 18 years to 70 years – else value of units is
paid
Top- up 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. Rs.10,000 (modes – yearly, half yearly &
monthly)
Minimum Death Benefit Rs.100,000
Maximum Death Benefit Rs.50,00,000
Minimum age at entry 18 years
Maximum age at entry 60 years
Minimum term 10 years
Maximum term 52 years
Life Protection band 18 years to 70 years – else value of units is
paid
Top- up After policy issuance minimum 10,000/- & in
multiples 0f 500
Withdrawal No withdrawals – if desired after 3 years the
policy can be surrendered at market value
Funds Three funds – Maximizer – equity based fund,
Protector – debt based fund & balancer – debt
& equity based fund.
Switch 1 free switch each policy year, more than that
1 % charges on switch
Death Benefit Increase 3 free Increases – 25% of the Death benefit or
100,000 which ever is lower. Above that as
per underwriting
Death Benefit Decrease In Multiples of 100,000 – once decreased , no
free increases
Premium Holiday Available after 10 years – life and rider
protection continues. Charges deducted from
the unit fund
Annuity Option 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.
Riders allowed Accident & disability Benefit Rider (ADBR)
Critical Illness Benefit Rider (CIBR)
Major Surgical Assistance Rider (MSAR)
Remarks Daily NAV in the newspapers. NAV on Single
pricing mechanism. For riders min SA is
100,000
 Research Methodology

Under Methodology, we would study the following –

 OBJECTIVES OF THE STUDY

 ASSUMPTIONS TAKEN
 HYPOTHESIS TAKEN UP
 RESEARCH FRAMEWORK and
 METHODS USED UNDER THIS STUDY

LET US DEAL WITH THEM ONE BY ONE.

Objectives Of The Study

1. To obtain a general understanding of the marketing strategies

adopted by an insurance company.

2. To analyze the strategies of ICICI Prudential Ltd. and to ascertain

the relationship between effectiveness of the strategies and

profitability.

3. To obtain an insight of how public relations helps in a insurance

company.

Assumptions
1. The time frame of all marketing strategies and Public Relations procedures

is fairly long and they are not implemented for short term selling only.

2. It is taken into consideration that there exists a positive correlation

between the various strategies and policies of the company.

3. ICICI Prudential Ltd. is a renound name in the insurance sector. At times it

is the name or the goodwill that sells rather than the actual product

features.

Hypothesis taken up
1. The marketing strategies and public relations practices of ICICI Prudential Ltd.

have a direct bearing with the perception of the products or service in a

consumer’s mind.

2. Both marketing strategies and public relation practices have highest influence

on profitability in comparison to other aspects and factors.

Research framework
The study involved an analysis of the marketing strategies and public relations
practices of a leading newspaper daily. As the thesis project tried to establish a
relationship between the marketing strategies, PR practices and their consequences
in terms of profitability, the framework for the research was chosen to be
EXPLORATORY in nature.

Exploratory research is that part of the overall market research, which is used to
discover something new. Normally in any case there can be a number of
opportunities or possible problems and it is impractical to study each of them.
Exploratory research in such a case is very useful to find out the most likely
alternatives. These alternatives are then turned into hypothesis.

Hypotheses are tentative and logical answers to questions that serve as guides for
most research projects.

The various means of going about or executing exploratory research are

 Survey of knowledgeable persons.
 Survey of knowledgeable persons
 Case study

This thesis report is largely based on Survey of knowledgeable persons and Survey
of knowledgeable persons. The case study method could not be applied to a very
great extent due to the intricacies involved and hence its role was limited.
 Methods used under this study

1. SURVEY OF KNOWLEDGEABLE PERSON

This pertains to the collection of data from a primary source. People in an

organization are strategically placed at different levels in the hierarchy. All
persons who have any association, whatsoever, with marketing of a product
are reliable sources of information. These people may be either executives of
the company or related with the product but not on the company rolls.

DEPTH INTERVIEW

A larger part of the information was collected using this method. Although
there was a proper formal questionnaire for a few top officials, the interview
with executives of the company was a more flexible one. This helped in
obtaining facts and data that would not have been obtained otherwise.

However the success of this technique depends majorly on:

 Selection of the executive
 His knowledge
 His liberties and constraints pertaining to his position in the
organizational hierarchy.

PRIMARY DATA

Lucky enough to be a part of ICICI PRUDENTIAL, myself it was easy to meet a lot
of
number of employees of the organization from various departments.
To name a few
Name Designation Department
Mr. Deepak Chahan Senior FSC Insurance
Mr. Rishi Sharama FSC Insurance
Mr. Gunjan FSC Insurance
Mr. Varun Garg Officer Insurance

2. SEARCH OF SECONDARY DATA

Probably the quickest and the most economical way of finding possible
hypothesis to take advantage of others work and utilize earlier efforts.
Secondary data gives one a n already built platform to work on. A large
volume of basic research is reported in professional and trade journals and
these sources are maintained in public libraries, newspapers, company
libraries, and government documents. Specifically speaking, this method is
most convenient for students and is also the most economical. Constraints of
cost time and also overall research tools and resources make this method
most dependable.

While doing this project on ICICI Prudential Ltd. the secondary data was collected
from:
1. INTERNET

 www.google.com
 www.icicipru.com
 www.bimaonline.com
 www.yahoo.com
 www.indiamart.com

2. MAGAZINES & NEWSPAPERS

 BUSINESS TODAY
 NETWORK MAGAZINE
 INDIA TODAY
 TIMES OF INDIA
 HINDUSTAN TIMES
 STATESMEN
 RESULTS AND FINDINGS

1. life insurance corporation control 76 % of Insurance market in JABALPUR

and nearby regions where as ICICI is fastly emerging and its stake is 18 %
with arrival of new insurance companies like HDFC,Bajaj Allianz ,Birla sun life
etc ,The market would be realigned .

2. Maximum policies are brought by the age group of 35-40 followed by 25-30

AGE GROUP STAKE

35-40 .28
25-30 .18
20-25 .16
30-35 .12
40-45 .10
45-50 .10
50(ABOVE .06

3. The role of channel of in information in insurance has a significant part to

play.The public perception in long term investment giving low returns need to
be changed as per my studies the maximum reach in the market is through
advisors /insurance agents which almost has 50% reach stake .The second
most reachable channel of information is Friends and relatives which
contributes 26 TV/Media holds 16% and brokers investment agent has 8%
stake in the channel through which information about insurance about
 insurance is disseminated.

4. The customers preferences amongst attributes of service and credibility is

slightly more towards credibility as 56% persons has placed there first
preference at credibility where as rest 44% preferred services over
credibility.

5. The customer preferences amongst the four attributes of investment in

insurance viz Investment ,saving for future ,risk cover & tax saving is as
below

Order First preference Second Third preference Fourth

preference preference
RISK COVER SAVING FOR INVESTMENT INVESTMENT
1 FUTURE
TAX SAVING RISK COVER TAX SAVING TAX SAVING
2
SAVING FOR TAX SAVING SAVING FOR RISK COVER
3 FUTURE FUTURE
INVESTMENT INVESTMENT RISK COVER SAVING FOR
4 FUTURE

6. Results drawn on the basis of likert scale rating method gave

Following conclusions :-

(1) As far as service is concerned ICICI Prudential is the best service provider
closely followed by LIC.The excellent customer perception about service of
ICICI prudential is due of ICICI Bank,which has been the best service provider
among private banks in India.
(2) In terms of accessibility LIC is No. one followed by ICICI Prudential life I
nsurance company ,The accessibility of LIC can be attributed to the vast
network of its agents operating in life insurance services in the country. ICICI
Prudential swiftly gaining ground due of enhanced network of distribution
(branches ) and insurance agent/advisor.Company has 58 branches and a
advisor force of 30,000 persons.

(3) The credibility of LIC is far better than all other insurance companies
operating in India. The reason behind the high credibility of LIC is due of its
being a public sector undertaking apart it is the oldest life insurance company
operating since 1955 in India.
 CUSTOMER PREFERENCES OF
FOLLOWING ATTRIBUTES IN BUYING
LIFE
/GENERAL INSURANCE

(a) Investment
(b) Saving for future
(c) Risk cover
(d) Tax saving
 PREFERENCES

ATTRIBUTES FIRST SECOND THIRD FOURTH TOTAL

INVESTMENT 72 84 216 228 600

SAVING FOR FUTURE 156 240 120 84 600
RISK COVER 204 180 96 120 600

TAX SAVING 168 96 168 168 600

TOTAL 600 600 600 600 G.T=2400
CHART OF CUSTOMER PREFERENCES
OF FOLLWING ATTRIBUTES

(a) investment
(b) saving for future
(c) risk cover
(d) tax saving
RESULTS :- CUSTOMER PERCEPTION

Results drawn on the basis of likert scale rating method

gave following conclusions :-

(1) As far as service is concerned ICICI Prudential is the best service provider
closely followed by LIC.The excellent customer perception about service of
ICICI prudential is due of ICICI Bank,which has been the best service provider
among private banks in India.

(2) In terms of accessibility LIC is No. one followed by ICICI Prudential life
insurance company ,The accessibility of LIC can be attributed to the vast
network of its agents operating in life insurance services in the country. ICICI
Prudential swiftly gaining ground due of enhanced network of distribution
(branches ) and insurance agent/advisor.Company has 58 branches and a
advisor force of 30,000 persons.

(2) The credibility of LIC is far better than all other insurance companies
operating in India. The reason behind the high credibility of LIC is due of its
being a public sector undertaking apart it is the oldest life insurance company
operating since 1955 in India.
 MARKET SHARE OF DIFFERENT
INSURANCE COMPANIES IN JABALPUR
AND NEAR BY REGION :-

SIZE OF UNIVERSE –13,00,000

SAMPLE SIZE –600

COMPANIES PROFILE SAMPLE BELONGING TO

LIFE INSURANCE CO. PUBLIC SECTOR 456

ICICI PRUDENTIAL PRIVATE SECTOR 108
BAJAJ ALLIANZ PRIVATE SECTOR 24
BIRLA SUN LIFE PRIVATE SECTOR 12
CHART FOR CUSTOMER PREFERENCE
AMONGST FOLLOWING ATTRIBUTES

(a) SERVICE -264

(b) CREDIBILITY-336

SAMPLE SIZE 600 RESPONDANTS

CONCLUSION
 CONCLUSIONS
The study, which I conducted on the analysis of marketing, public relations of ICICI

Prudential Ltd., has been a great experience.

As the objective was to examine the marketing and public relations departments of

the leading Insurance Companies, the entire report has been an effort to do just that.

The insight obtained has been helpful in understanding what happens in the industry.

The Indian Insurance Industry which for long had been dominated by LIC is now

coming of age, with the entry of new Insurance Companies entering the market and

relaxed regulations providing a conducive environment for launching new products

and services.

Due to intense competition a wide range of services at the disposal of the customer,

these Insurance Companies are now rethinking their Marketing and PR policies so

as to increase their market shares. Let us go in details of the various departments of

marketing and advertising and PR.

MARKETING
It has been found that there exists a direct relationship between the marketing and

sales and profitability of business. It is thus agreeable that marketing is a magical

portion, mix it with anything, and it can sell that thing. Proper and carefully devised

marketing strategies go a long way in establishing a brand name like in the case of

ICICI Prudential Ltd. The Company due to its wide range of tailor made products and

services, very competitive rates, fast processing of transactions, good well furnished

branches and highly specialized and friendly staff, has carved out a niche for itself in

the customers minds.

Moreover, through frequent advertising and press releases about new products

being launched and performance of old products, the Company maintains top of the

mind awareness in the minds of customers.

PUBLIC RELATIONS
Public Relations play a major role in maintaining a customer base for the company.

Agreed that it is through marketing strategies that a company establishes a clientele,

but in the end it is through Public relations that this clientele is maintained over time.

A Public Relations person resolves queries of customers, society and government

etc and thus help in promoting the goodwill of the company.

Strengths of ICICI prudential :-
 Strong infrastructure.

 Backing from financial institution.

 ICICI prudential life insurance company is a joint venture between ICICI bank

& prudential plc and it is no. 1 in private insurance company in India.

 ICICI bank has 74% stake in company and prudential has 26% stake in ICICI

prudential life insurance.

 Easy accessibility due to strong distribution network consisting of branches

and bancassurance.

 Providing smart services all over the country.

 Availability if various product line (choices for customer)

 More stress on marketing campaign and sales promotion activities to

enhances the swales.

 Trained and customer oriented staff.

 Maximum returns through various MMF fund investment plan.

 Proving a customer oriented investment option for persons

a) Risk oriented high profitable returns - Maximiser

b) Moderate risk and steady returns. – Balancer

c) Low risk assured returns – Protector

 Liquidity and flexibility of investment.

 Better customer care services in comparison to other life insurance

companies.

 More relaxation on paying of premiums.

 Minimum penalty and boundations on paying of premium.

RECOMMENDATIO
N
 RECOMMENDATIONS

The rapid increase in competition and the never ending launches of new products

and services describe the insurance sector of today.

This transformation has been because in order to attract a share of the financial

market and to increase it over time, the companies are coming out with strategies

that are novel in nature. Tailor made schemes for niche segments of the society are

an attempt in this direction.

However this is not the end of road. They should strive for introducing new products

and services and at the same time updating the old ones.

Giving recommendation to a bank like ICICI Prudential Ltd. is like showing diya to a

sun. Still, I would like to recommend that ICICI Prudential Ltd. should consider

improvising on its performance.

 Problem posed by bouncing of cheques (difficulty in cheque clearance).

 Stringent terms and condition of insurance policies.

 Insurance is product of solicitation.

 Unavailability of ICIC Prudential branches in small cities, towns and rural

area.

 High amount of base premium.

 Fear of policy lapse on not paying premium on right time.

 Lack of faith amongst low income group customers.

 Unit linked plans do not assure fixed returns.

 Entry of global and national players in to life insurance sector poses danger of

greater competition and realignment of life insurance market.

BIBLIOGRAPHY
 Bibliography

 PHILIP KOTLER “MARKETING MGMT”

 C.R.KOTHARI “RESEARCH METHODOLOGY”

 KASHWATHAPPA “HUMAN RESOURES MGMT”

 STEPHEN ROBINS “ORGANIZATIONAL BEHAVIOUR”

 HAWKINS “MARKETING RESEARCH”

 CUSTOMER BEHAVIOUR

 ICICI PRUDENTIAL PRODUCT MODULE

 WWW.ICICIPRULIFE.COM

 WWW.BIMAONLINE.COM

 WWW.GOOGLE.COM
 Questionnaire
1. Name ____________________________

2. Age Group (Tick appropriate One)

20-25 25-30 3 0-35 35-40 40-45
45-50 50(Above)

3. Sex
Male Female

4. Education Qualification _____________________________

5. Do You Know About Life Insurance/General Insurance

(Y/N) If Yes _____________________________

6. Do You Have any Life Insurance Policy (If Yes , Mention It) ?

7. Before Buying A Insurance Policy How Much Important

Do You Attach To The Following Attributes On The
Scale Of 4 ? (4 For Most Preferable One &1 For Least)

(A) Investment (B) Saving For Future

(c) Risk Cover (D) Tax Saving

8. From Where Did You Come To Know About Insurance?

(A) T.V / Media (B) Friends /Relatives

(C) Insurance Agents/Advisor (D) Investment
Agent/Brokers

9. Annual Gross Income ?

(A) <100000 (B) 100000 To 200000

(C) 200000 To 500000 (D) >500000
10. As A Customer You Believe Which Carries More Value?(Tick One)

(A) Service (B) Credibility

11. Rate The Following Companies On The Basis Of Following Attributes? ?

Fine –3 Good –2 Average –1

Attributes ICICI PRU Lic Bajaj-Allianz Birla Sun Life

Service

Accessibility

Credibility

12. Address Phone No.

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