Brand Image of Icici Prudential Insurance

A PROJECT REPORT

ON

- A STUDY ON PERCEPTION OF INVESTORS TOWARDS THE INSURANCE PRODUCTS WITH SPECIAL REFRENCE TO ICICI PRUDENTIAL LIFE INSURANCE .

IN PARTIAL FULFILLEMENT OF

MASTER OF BUSINESS ADMINISTRATION

SUBMITTED BY

ANUPAM KUMAR

DR. D. Y. PATIL UNIVERSITY GLOBAL BUSINESS SCHOOL & RESEARCH CENTER PUNE 411033 *2008- 10*

GLOBAL BUSINESS SCHOOL & RESEARCH CENTRE

Dr. D.Y. Patil University Tathawade, Pune.

FINAL REPORT

ON

Submitted by -

ANUPAM KUMAR

Under guidance of –

MR. GYAN RANJAN

(UNIT MANAGER)

ACKNOWLEDGEMENT

Endeavor in the field of training is purely team work. A successful project is a fruitful culmination of efforts by many people some directly involved some others who quietly encourage and extend support from the background. a project is not complete if one fails to acknowledge all those instrumental in the successful completion of the project.

I would like to begin profound gratitude to MR. K.S.ANANDRAM DIRECTOR of the MBA department, department of management studies, and GLOBAL BUSINESS SCHOOL & RESEARCH CENTRE ,PUNE for all the help rendered by him in order to complete the project work and for his guidance and inspiring me in every move I made during the course of work.

I am also thankfully to my company project guide prf. TARIKA. for her very kind and patient guidance I have received throughout the project work.

I owe an indebted gratitude to my external guide Mr. GYAN RANJAN, Unit Manager, ICICI Prudential Life Insurance , Residency branch Patna for allowing me to do this project work in their company.

I also extend my gratitude to my parents, colleagues and friends for their moral support and their encouragement, which motivated towards successful completion of the project work.

CHAPTER - 1

1.1 GENERAL INTRODUCTION

Life is a roller coaster ride and is full of twists and turns. You cannot take anything for granted in life. Insurance policies are a safeguard against the uncertainties of life. Insurance is system by which the losses suffered by a few are spread over many, exposed to similar risks. Insurance is a protection against financial loss arising on the happening of an unexpected event. Insurance policy helps in not only mitigating risks but also provides a financial cushion against adverse financial burdens suffered. Insurance policies cover the risk of life as well as other assets and valuables such as home, automobiles, jewelry et al. On the basis of the risk they cover, insurance policies can be classified into two categories: -

1. LIFE INSURANCE POLICY 2. GENERAL INSURANCE POLICY
Life insurance is a guarantee that your family will receive financial support, even in your absence. Put simply, life insurance provides your family with a sum of money should something happen to you. It thus permanently protects your family from financial crises. In addition to serving as a protective cover, life insurance 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.

Need for Life Insurance
Today, there is no shortage of investment options for a person to choose from. Modern day investments include gold, property, fixed income instruments, mutual funds and of course, life insurance. Given the plethora of choices, it becomes imperative to make the right choice when investing your hard-earned money. Life insurance is a unique investment that helps you to meet your dual needs - saving for life's important goals, and protecting your assets.
INSURANCE SECTOR IN INDIA
The insurance sector is one of the most promising sectors in India. The market size went up to US$ 47.89 billion in 2007, from US$ 21.71 billion in 2000, increasing at the rate of 120 per cent. Between 2000 and 2007, overall premiums sustained an average growth rate of 11.96 per cent. This was one of the most steady growth patterns witnessed amongst emerging economies in Asian as well as global markets. Increasing from just one company a decade ago, there are 22 life insurers in the country presently. In fact, according to Insurance Regulatory & Development Authority (IRDA), the number of registered general insurers has gone up to 21. As a major portion of the business comes from urban markets, the next step for these firms would be to tap semi-urban and rural markets.
Further, the country's insurance sector is likely to grow 17 per cent in the current financial year if the economy continues to expand at the pace as it did in the September quarter of 2008. India’s economy grew at 7.6 per cent in the July-September period."If GDP grows 7.6 per cent, premiums would grow 17 per cent, according to Mr J Hari Narayan, IRDA Chairman. Life insurers, which constitute the bulk of the Indian insurance market, grew their business by 23.3 per cent to US$ 18.94 billion in 2007-08, while general insurers posted growth of about 14 per cent in premium income to US$ 6.07 billion, according to IRDA data. Higher per capita income, domestic savings and availability of more instruments for parking surplus funds have facilitated growth in the activities of financial services.
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Growth of private insurance companies
SBI Life Insurance is planning to raise the number of branches to 250 branches this financial year. Further, ICICI Prudential Life Insurance has stated that in the last two years, the company had expanded the distribution network by increasing the number of branches to over 2,090 from 177. Aegon Religare Life Insurance, in its first year of operations is actively scaling up to open 51 branches, of which 48 are already operational across 39 cities. Max New York Life Insurance is planning to increase the number of branches to at least 250 every year going forward. This will expand Max New York Life’s distribution network from 311 offices in June-end 2008 to almost 900 agency offices and 700 rural offices by FY 2012.
A report - 'Insurance Sector Futuristic Growth'—released in August 2008, by ASSOCHAM revealed that bolstered by intense marketing strategies, private insurance players have rapidly increased their market share. The share of state-owned insurance companies like General Insurance Corporation (GIC), Life Insurance Corporation (LIC) and others is about 70 per cent currently. It is estimated that its growth rate could even exceed 140 per cent. State-owned insurance companies are now coming out with variations and new policies now that IRDA has given approval for launch of new products. Private insurance companies however, have a larger number of policies on offer, with more competitive premium amounts and maturity periods. The private sector insurance players have now also made inroads into the rural markets which, till recently, were dominated by the state-owned companies.
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Children's products such as ICICI Prudential Life's 'SmartKid', Birla Sun Life's 'Children's Dream Plan', or HDFC Standard 'Life's Young Star Plus', are on a consistent growth path. According to industry estimates, currently, 20–30 per cent of business of many companies comes from children-specific insurance policies alone.
A Price water house Coopers report, 'Healthcare in India: Emerging market report 2007' stated that valued currently at US$ 34 billion, the Indian healthcare sector is likely to grow to around US$ 40 billion by 2012. The health insurance sector which is offered by both life and general insurers is growing currently at 50 per cent and is being promoted by the IRDA. Health insurance is expected to grow to US$ 5.75 billion by 2010, according to a study by the New Delhi-based PHD Chamber of Commerce and Industry.
Only a miniscule 10 per cent of the Indian population has some kind of health insurance, therefore there is a huge potential market for health insurance. A joint report by McKinsey and CII has estimated the number of potential insurable lives at around 315 million. In 2006–07, the rapidly burgeoning Indian health insurance business grew 40 per cent to touch US$ 812 million. In some states, the government is partnering with the private sector to offer coverage at low costs.
Life Insurance Corporation (LIC) has now entered the health insurance market and has mobilised premium income of US$ 21.23 million in the last two months of 2007–08. Birla Sun Life on January 7, 2008 also announced its plans to enter into the US$ 40.75 billion health insurance business with the launch of two plans nationally. ICICI Prudential Life on January 5, 2008 launched Health Saver, to help consumers meet their current healthcare expenses and also invest for future healthcare expenses.
The current focus on health insurance business will also further boost the third party administrator (TPA) business. A third party administrator in an entity that processes insurance claims for the general insurers that issuing health and medical insurance covers. TPAs offer the much needed in-between services to the customers and insurance companies by managing the claims. By 2012, the Indian TPA industry is likely to grow to US$ 3.18 billion in size. With approximately 30 players, the present size of the TPA sector is around US$ 934 million and is growing at 40 per cent. Further, IRDA has constituted a committee in January 2009 to evaluate the performance of the third-party administrators (TPAs) in health servic

1.2 OBJECTIVES OF THE STUDY

1. To analyze the potential of Life Insurance in Investment Industry. 2. To get better understanding of various Life Insurance Product. 3. To compare the performance of various Life Insurance Companies. 4. To evaluate various need of customers for Life Insurance and their purchase behavior 5. To know the level of brand awareness of ICICI Prudential among the consumers.

CHAPTER - 2
2.1 ORIGIN AND GROWTH OF ICICI PRUDENTIAL LIFE INSURANCE
The Company:

ICICI Prudential Life Insurance Company is a joint venture between ICICI Bank, a premier financial powerhouse, and Prudential plc, a leading international financial services group headquartered in the United Kingdom. ICICI Prudential was amongst the first private sector insurance companies to begin operations in December 2000 after receiving approval from Insurance Regulatory Development Authority (IRDA). ICICI Prudential Life's capital stands at Rs. 4,780 crores (as of January 31, 2008) with ICICI Bank and Prudential plc holding 74% and 26% stake respectively. For the period April 1, 2008 to December 31, 2008, the company has posted a growth of 28%, garnering total received premium (new business + renewal) of Rs. 9,918 crores as against Rs. 7,758 crores during the corresponding period in FY2008 and has underwritten over 9 million policies since inception. The company has assets held over Rs. 28,500 crores as on January 31, 2009. ICICI Prudential Life is also the only private life insurer in India to receive a National Insurer Financial Strength rating of AAA (Ind) from Fitch ratings. The AAA (Ind) rating is the highest rating, and is a clear assurance of ICICI Prudential's ability to meet its obligations to customers at the time of maturity or claims. For the past eight years, ICICI Prudential Life has retained its leadership position in the life insurance industry with a wide range of flexible products that meet the needs of the Indian customer at every step in life

COMPETITORS:-

The public sector L.I.C is the main leading competitor to ICICI insurance . LIC covers 75%of insurance throughout India.

OTHER COMPETITORS

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|COMPANY |MARKET CAPITAL |
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|BAJAJ ALLIANZ |78.30% |
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|ING GROUP |71.50% |
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|AMERICAN INTERNATIONAL |110.10% |
|GROUP.INC | |
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|BAHARATHI AXA |68.30% |

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|Prudential Plc: |
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|Established in London in 1848, Prudential plc, through its businesses in the UK, Europe, US, Asia and the Middle East, provides retail |
|financial services products and services to more than 21 million customers, policyholder and unit holders and manages over £256 billion of|
|funds worldwide (as of June 30, 2008). In Asia, Prudential is the leading Europe-based life insurer with life operations in China, Hong |
|Kong, India, Indonesia, Japan, Korea, Malaysia, the Philippines, Singapore, Taiwan, Thailand, and Vietnam. Prudential is one of the largest|
|asset management companies in terms of overall assets sourced in Asia ex-japan, with £34.3 billion funds under management (as of June 30, |
|2008) and operations in ten markets including China, Hong Kong, India, Japan, Korea, Malaysia, Singapore, Taiwan, Vietnam and United Arab |
|Emirates. |
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|Promoters |
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|The Industrial Credit and Investment Corporation of India Limited (ICICI) incorporated at the initiative of the World Bank, The Central Government |
|of India and representatives of Indian Industry, with the objective of creating a developmental financial institution for providing medium – term |
|project financing to Indian businesses and Industries. |
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|Following the market oriented economic policy reforms in the 1991s, ICICI moved away from its traditional role into a new era of liberalized |
|regulation and intense competition. A series of initiatives were championed to keep up with keen competition in India’s financial service sector, |
|and access to international capital markets was crucial to the success of the new mandate. |
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|ICICI Bank is India’s second-largest bank with total assets of about Rs. 2,513.89 bn (US$ 56.3 bn) at March 31, 2006 and profit after tax of Rs. |
|25.40 bn (US$ 569 mn) for the year ended March 31, 2006 and ICICI Bank has a network of about 614 branches and extension counters and over 2,200 |
|ATMs It offers a wide range of banking products and financial services to corporate and retail customers through a variety of delivery channels and |
|through its specialized subsidiaries and affiliates in the areas of investment banking, life and non-life insurance, venture capital, asset |
|management and information technology.. ICICI Bank’s equity shares are listed in India on stock exchanges at Chennai, Delhi, Kolkata and Vadodara, |
|the Stock Exchange, Mumbai and the National Stock Exchange of India Limited and its American Depositary Receipts (ADRs) are listed on the New York |
|Stock Exchange (NYSE). |
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|Established in London in 1848, Prudential plc, through its businesses in the UK and Europe, the US and Asia, provides retail financial services |
|products and services to more than 16 million customers, policyholder and unit holders worldwide. As of June 30, 2004, the company had over US$300 |
|billion in funds under management. Prudential has brought to market an integrated range of financial services products that now includes life |
|assurance, pensions, mutual funds, banking, investment management and general insurance. In Asia, Prudential is the leading European life insurance |
|company with a vast network of 24 life and mutual fund operations in twelve countries - China, Hong Kong, India, Indonesia, Japan, Korea, Malaysia, |
|the Philippines, Singapore, Taiwan, Thailand and Vietnam. |
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|SOME FACTS ABOUT PRUDENTIAL: |
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|In 1912 the great TITANIC ship sunk into the Atlantic Ocean. Fortunately that ship and travelers were Insured by Prudential. This disaster claims |
|were settled by Prudential within a week after the tragedy. |
|The 1983 Cricket World Cup was sponsored by Prudential. This was called as Prudential Cup, and India won this world cup successfully under the |
|Captainship of Mr. Kapildev. |
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|Nature of business carried |
|ICICI Prudential has retained its position as the No. 1 private life insurer in the country, with a wide range of flexible products that meet the |
|needs of the Indian customer at every step in life. |
|INSURANCE BUSINESS |
|Insurance business is divided into four classes: |
|Life Insurance. |
|Fire insurance |
|Marine Insurance and |
|Miscellaneous Insurance. |
|Life Insurers carries life insurance business; |
|ICICI prudential is the No. 1 private life insurer |
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|VISION, MISSION, QUALITY POLICIES |
|Our vision: “To make ICICI Prudential the dominant Life and Pensions player built on trust by world-class people and service.” |
|The company is hoping to achieve this 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. |
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|The success of the company will be founded in its unflinching commitment to 5 core values: |
|OWNERSHIP |
|“If it is to be, it is up to me” |
|Take responsibilities and see tasks through to completion |
|Own mistakes, learn from failures. |
|Pursue goals relentlessly, never give up. |
|Be a team player, take ownership for team performance |
|2.INTEGRITY |
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|“Be honest and fair in what you say and do” |
|Practice what you preach. |
|Stand up honestly and fearlessly for what is right. |
|Act in a consistent and equitable manner. |
|Think and act for long-term impact |
|Do not compromise the future to pay the present. |
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|3. CUSTOMER FIRST |
|“Own the customer, deliver the promise” |
|Keep the customer interest in the center in all decision |
|Promise what you can, deliver it to finish. |
|Proactively seek voice of the customer and act on it. |
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|4. PASSION |
|Boundless energy and enthusiasm |
|Exhibt ‘Winning Instinct’. |
|Demonstrate speed and urgency for achieving results. |
|Challenge the status quo and do things differently. |
|Nurture and motivate the team members to reach full potential. |
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|5 BOUNDARYLESS |
|Never say, “It is not my Job” |
|Offer help and support across functions to ensure the business success. |
|Seek and share the ideas freely. |
|Recognized respect internal customers. |
|Understand and value the contributions from the colleagues. |
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|Each of the values describes what the company stands for, the qualities of their people and the way they work. |
|They do believe that they are on the threshold of an exciting new opportunity, where they can play a significant role in redefining and reshaping |
|the sector. Given the quality of their parentage and the commitment of their team, there are no limits to their growth. |
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|2.2 PRESENT STATUS OF THE ORGANIZATION |
|ICICI Prudential Life Insurance Company is a joint venture between ICICI Bank and Prudential plc. It was one of the first players to commence |
|operations when the insurance industry was opened to the private sector in 2000. For the nine month period ended December 31, 2008, the company |
|garnered Rs. 9,918 cores of total premiums and has underwritten over 9 million policies since inception. The company has a network of 2,099 offices |
|and 272,920 advisors. For the past eight years, ICICI Prudential has maintained its leading position amongst life insurers in the country, with a |
|wide range of flexible products that meet the needs of the Indian customer at everywhere. |
|ICICI Prudential Life launches a new service to reach out to its policyholders in resolving their claims |
|ICICI Prudential Life launched an innovative claim intimation service via SMS for its policyholders, today. ICLAIM is a first-of-its kind service in|
|the industry that provides consumers the option to reach out for assistance from the company officials while making a claim. All the customer needs |
|to do is to type: ICLAIM and send it to 56767 to receive quick assistance from the company towards making a claim. |
|The SMS service provides assistance and prompt resolution on claims to policyholders whenever a claim situation arises. All the customer needs to do|
|is send an sms to the company with his policy number to receive a quick call back from the company?s certified claims expert towards guiding them on|
|complete documentation and process that needs to be followed enabling hassle-free and quick settlement of their claims. |
|.Through this service customers can also get information on their claim status on real time basis and can avail these services at no extra cost. |
|ICLAIM will not just help customers in hassle-free settlement of claims but will also enable fast and speedy resolution of claims through guidance |
|on complete documentation required in processing the claim |
|Products |
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|SMARTKID NEW UNIT-LINKED |
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|As a responsible parent, you would not like to compromise your child’s career, regardless of rising costs of education. You need an investment plan |
|that is designed to provide money at key education milestones and take care of your loved ones even if you are not around. |
|With this objective in mind, ICICI prudential life insurance now present Smartkid New Unit-Linked Regular Premium Policy. With this policy, you can |
|invest your money in unit-linked funds which allow you to withdraw money to meet expense at key education milestones of your child, the life |
|insurance cover offered under this policy ensures that your loved ones stay financially secure in your absence. |
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|Key benefit of Smartkid New Unit-linked Regular Premium Policy |
|Lump sum payment of sum assured plus company contributes future premium in the unfortunate event of death of parent (Life assured). |
|With income benefit rider, the child would receive an annual allowance every year till maturity, in the unfortunate event of the death of parent. |
|Withdrawal facility to provide money at key educational milestones of your child. |
|Potentially higher returns over the long-term by investing in unit-linked funds. |
|Cover continuance option to ensure continuance of life insurance cover, if you wish to stop paying premiums. |
|Avail tax benefit on premiums paid and benefits received under the income tax Act, 1961. |
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|Benefit |
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|Death Benefit |
|Maturity Benefit |
|Choice of Investment Funds |
|Switching Option |
|Settlement Option |
|Money at Key Education Stages |
|Increase/ Decrease your sum Assured |
|Cover Continuance Option |
|Additional Protection with Rider |
|Income Benefit Rider (IBR) |
|Accidental Death and Disability Benefit Rider (ADBR) |
|Waiver of Premium Rider (WOPR) |
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|Policy at-a-glance |
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|Minimum / Maximum entry Age (Parent). |
|20-60 years |
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|Minimum / Maximum entry Age (Child). |
|0-15 years |
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|Maximum Age at Maturity (Parent) |
|75 years |
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|Minimum / Maximum Term |
|18-25 years |
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|Premium payment Frequency |
|Yearly, Half-yearly, Monthly |
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|Minimum premium |
|Rs. 12000 Per annum |
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|Minimum sum assured |
|Annual premium x term/2 subject to a Minimum of Rs. 1,00,000 |
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|Tax Benefit |
|Premium paid for the policy will be eligible for tax benefit under section 80c. Any benefit amount received under this policy will be eligible for |
|the tax benefit under section 10(10D) |
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|Can I surrender my policy? |
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|Completed policy years for which premium are paid |
|Surrender value as a % of fund value |
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|Less than one year |
|0 % |
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|One year |
|25 % |
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|Two year |
|40 % |
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|3 policy year |
|96 % |
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|4 policy year |
|98 % |
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|5 policy year & above |
|100 % |
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|What are the charges under the policy? |
|Premium allocation charge |
|Annual premium (Rs.) |
|% of premium |
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|Year 1 |
|Year 2-5 |
|Year |
|Year |
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|12000-19999 |
|20 % |
|5 % |
|2 % |
|1 % |
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|20000-49999 |
|19 % |
|5 % |
|2 % |
|1 % |
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|50000 and above |
|18 % |
|5 % |
|2 % |
|1 % |
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|Switching charge |
|4 free switches allowed every policy year. Subsequent switches will be charged at Rs. 100 per switch. |
|Policy administration charge |
|There would be a fixed policy administration charge of Rs. 60 per month. |
|Mortality charge and pay or waiver benefit charge |
|Age (yrs.) |
|20 |
|30 |
|40 |
|50 |
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|Rs. |
|1.33 |
|1.46 |
|2.48 |
|5.91 |
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|Funds management charge |
|Fund |
|Flexi growth |
|Maxi miser II |
|Flexi Balanced II |
|Balancer II |
|Protector II |
|Preserver |
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|charge |
|1.50% p.a. |
|1.50% p.a. |
|1.00% p.a. |
|1.00% p.a. |
|0.75% p.a. |
|0.75% p.a. |
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|HEALTHCARE |
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|Today, when you are young and healthy, planning for a |
|Contingency is not always a priority but the cost of treating |
|Even the smallest of ailments is on the rise. You realize it only when you or your loved ones has to undergo some medical emergency and you are |
|faced with the challenge of organizing funds to meet the hospitalization related expenses. Hence a medical emergency comes not only with emotional |
|turmoil but also with a huge expense attached to it. |
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|During such an unexpected situation, your only concern should be that the best doctors and medical facilities are available and cost should not be a|
|constraint so that you can take care of things without compromise but to ensure that best in class treatment is provided, the key to that is to be |
|financially prepared for it. To help you manage this unexpected emergency, ICICI Prudential, India's No. 1 private life insurer presents Hospital |
|Care - a comprehensive insurance policy that has: |
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|Key benefits of hospital care |
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|Facility of cashless hospitalization in more than 3000 network hospitals. |
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|Benefit amount will be paid in addition to payment received by you from other medical insurance plans. |
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|You will receive lump-sum benefit amount, irrespective of the actual |
|Billing. |
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|Long term guaranteed coverage up to 20 years. |
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|Tax benefits on premium paid up to Rs.15,000 under Section 80D. |
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|Coverage under the policy |
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|daily hospitalization cash benefits(DHCB) |
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|Intensive care unit(ICU)benefits |
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|recuperating benefit |
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|Surgery benefit |
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|Benefits amount at a glance; |
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|Benefits amount at a glance |
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|Benefits |
|Plan (A)Rs |
|Plan(B)Rs |
|Plan(C)Rs |
|Plan(D)Rs |
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|.daily hospitalization cash benefits(DHCB)per day |
|1000 |
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|2000 |
|3000 |
|4000 |
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|Intensive care unit(icu)benefits per day |
|500 |
|1000 |
|1500 |
|2000 |
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|recuperating benefit |
|3000 |
|6000 |
|9000 |
|12000 |
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|Surgery benefit |
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|Surgery grade 1 |
|15000 |
|30000 |
|45000 |
|60000 |
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|Surgery grade 2 |
|50000 |
|100000 |
|150000 |
|2000000 |
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|Surgery grade 3 |
|75000 |
|150000 |
|225000 |
|3000000 |
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|Surgery grade 4 |
|100000 |
|200000 |
|300000 |
|400000 |
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|6. High benefit limits |
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|Benefit limits |
|400000 |
|800000 |
|1200000 |
|1600000 |
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|[Surgical benefit] |
|[300000] |
|[600000] |
|[900000] |
|[1200000] |
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|Policy term limit |
|2000000 |
|4000000 |
|6000000 |
|8000000 |
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|Advantages of hospital care |
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|Payout in additional to other plans |
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|Cashless hospitalization |
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|Multiple clims |
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|Transparent coverage norms |
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|Hospital care at a glance |
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|Min/max age of entry |
|1 year-60 year |
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|Min/max policy term |
|10year-20 year |
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|Maximum cover ceasing age |
|80 year |
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|Yearly premium(male/female) |
|Age |
|Plan A |
|Plan B |
|Plan C |
|Plan D |
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|20 |
|3827 |
|6586 |
|9344 |
|12104 |
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|30 |
|4243 |
|7419 |
|10594 |
|13769 |
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|40 |
|5431 |
|9791 |
|14150 |
|18510 |
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|50 |
|7725 |
|14369 |
|21011 |
|27654 |
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|Maturity/death benefit |
|No maturity/no death |
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|Life Stage Pension |
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|Retirement time is the time to live dream, dream that you have been putting off as you never had the time for them. But your retirement dream has a |
|cost attached to it. We call this retirement number. |
|To help you achieve your retirement number ICICI PRUDENTIAL presents to you, Life Stage Pension. |
|One of the most distinguishing features of this policy is that it has no premium allocation charge for regular premiums which means 100% of your |
|money is invested. What’s more, the policy provides you with a unique lifecycle-based strategy that continuously re-distributes your money across |
|various asset classes based on your life stage and risk tolerance, eventually providing you with a customized retirement solution. Invest today to |
|attain your retirement number and fulfill your dreams. |
|Key benefits of life stage pension |
|Option to choose unique and personalize life cycle based portfolio strategy to create ideal balance between equity and debt. |
|This plan invest 100% OF your money in the portfolio of your choose. |
|Opportunity to earn potentially higher returns by investing in Ulip funds. |
|Flexibility to choose your retirement age. |
|Get regular income post retirement. |
|Receive tax free commutation up to 1/3 of the accumulated value on wasting date. |
|Avail tax benefits from premiums paid u/s 80CCC. |
|Benefits during the accumulation phase |
|Chose of two unique portfolio strategies |
|Life cycle based portfolio strategies |
|Age based portfolio management |
|Quietly rebalancing |
|Capital preservation on wasting |
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|Fixed portfolio strategy |
|Switch between the funds in the fixed portfolio strategy |
|Change in portfolio strategy |
|Top up |
|Flexible retirement date. |
|Debt benefits |
|Cover continuance option. |
|Benefits during the annuity phase |
|Choose from among five different ways of receiving your pension. |
|Choose your pension provider. |
|Commutation of pension fund. |
|Charges under the policy |
|Premium allocation charge |
|Fund management charge |
|Policy administration charge |
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|Life Time Gold |
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|As an individual who desires the best from life, you would undoubtedly want to plan your finances such that you can achieve all your goals- a car, |
|beautiful home and of course, the comfort and contentment of your family. |
|Invest in ICICI PRUDENTIAL’S Life Time Gold Policy-a regular premium unit-linked policy, which offers potentially higher returns with flexible |
|investment option to help you achieve your goals. In addition, Life Time Gold also provides the protective benefit of an insurance cover, which |
|keeps your family secure, always. |
|Key benefit of Life Time Gold |
|Potentially higher returns over the long term by investing in unit-linked funds. |
|Additional allocation of units at regular intervals to boost your investment. |
|Option to withdraw your money systematically over a period of 5 years on maturity of the policy. |
|In case of an unfortunate event of death, your family will receive sum assured or fund value, “whichever is higher”. |
|Cover continuance option available, which ensures continuance of life insurance cover, even if you wish to stop paying premiums. |
|Tax benefit on premiums paid and benefit received under the policy, as per the prevailing income tax laws. |
|Benefit |
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|Choice of the investment funds |
|Switching option |
|Additional allocation of unit |
|Partial withdrawal benefit |
|Maturity benefit |
|Settlement options |
|Death benefit |
|Cover continuance option |
|Additional protection with rider |
|Income Benefit Rider (IBR) |
|Accidental Death and Disability Benefit Rider (ADBR) |
|Waiver of Premium Rider (WOPR) |
|Can I surrender my policy? |
|Complete policy years for which premium are paid |
|Surrender value as a % of Fund value |
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|Less than one year |
|0 % |
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|One year but less than 2 year |
|25 % |
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|Two years but less than 3 years |
|40 % |
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|3 years |
|98 % |
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|4 years |
|99 % |
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|5 years |
|100 % |
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|Life Time Gold at-a-glance |
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|Minimum/maximum Entry Age |
|0-65 years |
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|Minimum/maximum Maturity Age |
|19-75 years |
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|Minimum/maximum Policy Term |
|10-75 years |
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|Minimum premium |
|Rs. 20000 per annum (yearly) |
|Rs.24000 per annum (Half yearly, monthly) |
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|Minimum Sum Assured |
|Annual premium x term/2, subject to a minimum of Rs. 1,00,000. |
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|Tax Benefit |
|Premium paid toward the policy critical illness benefit rider will be eligible for tax benefit under sec 80C and 80D. |
|Any amount received under the policy will be eligible for tax benefit under section10 (10)D. |
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|What are the charges under the policy? |
|Premium Allocation charge |
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|Annual premium (Rs.) |
|% of premium |
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|Year 1 |
|Year 2 |
|Year 3 |
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|20000-49999 |
|20 % |
|7.5 % |
|4 % |
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|50000-4,99,999 |
|18 % |
|7.5 % |
|4 % |
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|5,00,000-9,99,999 |
|15 % |
|7.5 % |
|4 % |
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|10,00,000 & above |
|10 % |
|7.5 % |
|4 % |
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|Switch charge |
|Mortality charge |
|Fund Management charge (FMC) |
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BOARD OF DIRECTORES:

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
Ms.Chanda Kochhar, Director
Mr.Barry Stowe, Director
Mr.AdrianO’ Connor, Director
Prof.Marti G. Subrahmanyam, Director
Mr.Mahesh Prasad Modi, Director
Ms.Rama Bijapurkar, Director
Mr.KekiDadiseth, Director
Mr vaidyanathan, ManagingDirector
Mr.N.S.Kannan, ExecutiveDirector
Mr. Bhargav Dasgupta, Executive Director
MANAGEMENT TEAM:-
The ICICI Prudential Life Insurance Company Limited Management team comprises reputed people from the finance industry both from India and abroad.
Ms.vaidhyanathan, ManagingDirector&CEO
Mr.N.S.Kannan, ExecutiveDirector
Mr.Bhargav Dasgupta, ExecutiveDirector
Ms. Anita Pai, Executive Vice President – Customer Service & Technology
Dr.Avijit Chatterjee, AppointedActuary
Mr. Puneet Nanda, Executive Vice President & Chief Investment Officer
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area of operation:-

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ICICI Prudential has one of the largest distribution networks amongst private life insurers in India with a network of over 83,000 advisors, and having commenced operations in 207 cities and towns in India, stretching from Bhuj in the west to Guwahati in the east, and Jammu in the north to Trivandrum in the south. Some are Ahmedabad, Bangalore, Baroda, Bhopal, Bhubaneswar, Chandigarh, Chennai, Coimbatore, Cochin, Guntur, Hyderabad, Indore, Jaipur, Jallandar, Jodhpur, Kanpur, Kochi, Kottayam, Lucknow, Ludhiana, Madhurai, Mangalore, Meerut, Mumbai, Nagpur, Nasik, Noida, New Delhi, Pune, Vadodhara, Vapi etc.

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The company has 9 bancassurance partners, having tie-ups with ICICI Bank, Bank of India, Federal Bank, South Indian Bank, Lord Krishna Bank, and some co-operative banks; as well as over 200 corporate agents and brokers. It has also tied up with NGOs, MFIs and corporates for the distribution of rural policies

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The company has its Registered Office and Head office at Mumbai.

ICICI Prudential Life Insurance Company Ltd.

ICICI Pru Life Towers, 1089 Appasaheb Marathe Marg,

Prabhadevi, Mumbai 400025

Fax us at: [phone].

ownership pattern
ICICI Prudential's equity base stands at Rs. 11.85 billion with ICICI Bank and Prudential plc holding 74% and 26% stake respectively[pic]

Competitors

ICICI Prudential faces tough competition from L.I.C, which is one of the oldest insurance company and also from other Private insurers like Bajaj Aliance, HDFC Standard , Tata A.I.G., etc

L.I.C It is a oldest insurance company the market leader with 48-49% market shares and it enjoys all the benefits of government as it comes under public sector

And in private ICICI Prudential is the market leader but now faces competition with Bajaj Aliance & HDFC Standard other are TATA A.I.G, Birla Sunlife,SBI Life, Max new york life, Aviva, and Kotak Mahindra.

ANALYSIS OF MARKET SHARE

|Company Names |Market Share |
|LIC |48.1% |
|ICICI Prudential |13.7% |
|Allianz Bajaj |10.3% |
|SBI Life |6.2% |
|HDFC Standard |4.1% |
|Birla Sunlife |3.4% |
|Reliance Life |3.4% |
|Max New York |2.4% |
|OM Kotak |1.9% |
|AVIVA |1.8% |
|Tata AIG |1.5% |
|MetLife |1.4% |
|ING Vysya |1.2% |
|Shriram Life |0.3% |
|Bharti Axa Life |0.2% |
|Others |0.1% |

Here is the market share of various Life Insurance Companies in India at the end of FY2008.

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The top 6 life insurance companies in India control 85% of the market-share while the remaining dozen are still struggling to setup their operations. LIC and ICICI Prudential Life Insurance Company Ltd. is the best when it comes to settlement of claims.

ICICI Prudential Life Insurance Company Ltd. Is the first life insurer in India to receive a National Insurer Financial Strength rating of AAA from Fitch ratings.

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Awards & Recognitions :

Confederation of Indian Industry (CII) - Western Region recently awarded ICICI Prudential Life a 'Commendation for Strong Commitment to HR Excellence 2008' at the CII HR Summit 2008.

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ICICI Prudential Life Insurance was awarded with the coveted 'ICAI Award for Excellence in Financial Reporting' by the Institute of Chartered Accountants of India (ICAI) for the financial year ended March 31, 2008.

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ICICI Prudential Life was awarded the Life Insurance Company of the Year at the12th Asia Insurance Industry Awards 2008.

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ICICI Prudential Life was awarded with two Bronze Effie's in the sevices catgeory for its Corporate campaign and Retirement Number campaign

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ICICI Prudential Life won the Award for Brand Excellence.

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Shikha Sharma, MD & CEO, ICICI Prudential Life Insurance Co. Ltd. was adjudged the Businesswoman of the year at The Economic Times Awards for Corporate Excellence, 2007-08.

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Prudential Life won the UK Trade & Investment India Business Awards 2008 in the Business Partnership Award-Large Company category.

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ICICI Prudential Life won the ICICI Group Marketing Excellence Award 2008 in three key categories for its marketing initiatives.

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Prudential Life was awarded the INDY’s Award for Excellence in Mass Communication in the category of Most Creative Advertisement-Television

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India's Most Customer Responsive Insurance Company . Avaya Global Connect - Economic Times. Customer Responsiveness Awards, 2007.

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Best Life Insurer 2003. Outlook Money Awards 2003 & 2004.

future growth and prospectus

Future for ICICI prudential is very bright and how it is doing today will make it the No.1 player in insurance . It will go beyond L.I.C in future

Insurance opportunities

The Company has great opportunities in the growing Insurance Market of India. They are

➢ Only 23% of Insurable Population is insured. ➢ Low Insurance penetration. Premium at 2.2% of total G.D.P. ➢ Rapidly growing economy (G.D.P. grew at rate of 8.2% in 2003-04). ➢ Private sector gaining momentum. Fiscal 2005 private sector market share was 23.2% (Fiscal 2004-12.4%). ➢ Pensions Opportunities. ➢ Insurance Landscape: 13 Private sector companies and 1 public sector Company.
Mckinsey 7-S framework model for Company Analysis

The 7-s framework of Mckinsey is based Management (VBM) model that describes how one can holistically and effectively organize a company. Together seven factors determine the way in which a corporation operates. The model indicates the major aspects in the company and the way in which they are co-ordinated

The Seven S Framework first appeared in "The Art Of Japanese Management" by Richard Pascale and Anthony Athos in 1981. They had been looking at how Japanese industry had been so successful, at around the same time that Tom Peters and Robert Waterman were exploring what made a company excellent. The Seven S model was born at a meeting of the four authors in 1978. It went on to appear in "In Search of Excellence" by Peters and Waterman, and was taken up as a basic tool by the global management consultancy McKinsey: it's sometimes known as the McKinsey 7S model.

CHAPTER – 3

STUDENT WORK PROFILE (ROLE & RESPONSIBILITES)

INTRODUCTION
The executive training is a Training given to MBA students to know about the corporate world and to nourish their skills. It is management training for the development of students and to show their skills and ability in corporate world. This executive training is for the period of 2ND SEMESTER where students get corporate exposure and gain experience in the field chosen by them. The Training I have chosen in the field of Insurance where I can learn and get chance to nourish my skills. In India Insurance Market is Untapped and Advisor can gain Knowledge and Experience. And advisor can give knowledge to others of why to insure oneself against unfortunate event happening in future.
OBJECTIVES
• The paramount motive of this job training is the application of all the theoretical concepts learnt so far in courseware of MBA. • To acquire corporate exposure and learn corporate culture. • To speak to the existing clients as well as new investors. • To meet personally new customer and explain the product according to their needs, suggest a better plan, fill the application and collect photocopy of their documents, for opening the insurance policy. • To collect the feedback regarding ICICI PRUDENTIAL services from the same. • To conduct a survey tosses the industry awareness among the people in Bangalore.
• To nourish my skills and to gain experience

TASK
The Task which is given to us is to collect as many as references we can from family, friends and by field work and to generate more leads by tele-calling and to convert few who are interested into quality prospects. And to generate business to the company. TARGET
The Target assigned by the company for the Training is Rs 60000 of premium for 2ND SEMESTER. Roles and Responsibilities

• My task involves being in team as well as dealing the corporate. • Collecting the customer’s data. • With data base provided by the company, I have to telecall customer and explain regarding products and their benefits and fixing the appointment with customer. • And closing the deal with customer. STRATEGY - ADAPTED TO ACHIEVE TARGET The Strategy adapted is to give knowledge to the people and we can say that they are securing their own life and even their loved ones life. And few strategies are depending upon the products provided by the company. Those families are taken into consideration who wants to secure their future and their child or children future. As the company provides best solution for their future after retirement where there is no income for them and for the hurdles in child’s future with regard to their education expenses or any other expenses.

ACHIEVEMENT
The target achieved till now is of Rs 24,000 Premium. In which Rs 12,000 is achieved by Smart Kid Unit Linked Plan and remaining Rs12,000 is achieved by Life Time pension Plan. More reference was generated by Tele-calling and by field work.
ACTION PLAN FOR REMAINING WEEKS
The plan for next remaining weeks is to collect as many as references and just follow the leads and convert them into prospects.
To gain knowledge about the market and to learn something about other industries. DESCRIPTION OF LIVE EXPERIENCE

After joining as life advisor in March 2009 I had a meeting with our sales manager Mr. AMARESH.B in that meeting he assigned different tasks for me. In this my job profile has to meet my friends and relatives and explain about the product, because from them we can get business easily, and from their reference we can generate more policies. Earlier stages it was difficult me to get policies, after closing one policy with my manager then it was easy for me to communicate with clients.
My achievement in the company, which is evaluated excellent by my manager in the following areas. • Contacts • Communication • Behavior • Personality • Reaching targets before the dates.

CONCULSION
The Executive Training is all about knowing the corporate world and to gain experiences in the field chosen. And to perform the task to generate more contacts which will help us to be in fruitful relation and to achieve targets which show our potential and our dedication towards our work.

CHAPTER - 4

The title of the present research

4.1 STATEMENT OF THE PROBLEM

4.2 STATEMENT OF RESEARCH OBJECTIVES

4.3. RESEARCH DESIGN AND METHODOLOGY

4.4 ANALYSIS OF DATA

4.5 SUMMARY OF FINDINGS

The title of the present research

“A study on perception of investors towards the insurance products with special reference to ICICI Prudential Life Insurance.”

4.1 STATEMENT OF THE PROBLEM

ICICI Prudential Life Insurance which was one of the largest development banks, has ventured in too many areas of finance in fact it has become a universal banking brand, ICICI Prudential Life Insurance is one of the world’s leading insurance company has joined hand with icici bank to offer insurance products. Though private insurance companies are in the infancy stage, the impact on the insurance market is tangible. The marketing strategies of these private operators have forced LIC to change its gears. The market is more aware and realistic about investment and returns from insurance products. Insurance business is more transparent as compared to the past. In this background this study tries to analyze the investor’s behavior towards insurance products in general and ICICI Prudential in particular.

4.2 STATEMENT OF RESEARCH OBJECTIVES

• To analyze the extent to which customer are satisfied with ICICI Prudential Life Insurance Company’s products. • To know why customer chooses ICICI Prudential Life Insurance Company’s Product. • To find out whether the customers has increased after the introduction of new products. • To increase people knowledge about insurance and it’s important and benefits.

NEED AND IMPORTANCE OF THE STUDY

Since the opening up insurance market to private operations, India is considered one of the hottest place with the majority of market being untapped through there are restriction for foreign operators many research. Research is the systematic, objective and exhaustive search for and study of facts relevant to the problem.

Research design means the framework of the study that leads to the collection and analysis of the data. It is conceptual structure with in which research is conducted. It facilitates smooth sailing of various research operations to make the research as effective as possible.

The study was conducted as an exploratory sampling survey method to collect primary and secondary data.

4.3. RESEARCH DESIGN AND METHODOLOGY

Research Design:

Research Design that is followed in this report is cluster sampling. Cluster sampling was the most appropriate because the total area of interest was whole Bangalore which was a big one. The sample was taken and divided into a number of small non-overlapping areas & then these smaller area are randomly selected with ultimate sample consisting of all units in these small area. From whole Bangalore 10 potential area were selected and from this area 40 samples are picked randomly from these area. Thus the total sample of 40 was taken and analyzed.

PRIMARY SOURCE OF DATA

A well structured questionnaire was personally administrated to the selected sample to collect the primary data.’

SECONDARY SOURCE OF DATA

Secondary data are those which have already been collected by some other person for their purpose and published. Secondary data are usually in the shape of finished products.Two types of secondary data were collected for perception of project work.

Internal Data: - It was generated from company’s brochures, manuals and annual report.

External data: - It is on the other hand was generated from magazines, research books and internet.

SAMPLING TECHNIQUES

A sample is a representative part of the population. In sampling technique, information is collected only from a representative part of the universe and the conclusions are drawn on that basis for the entire universe. A random sampling technique was used to collect data from respondents. A random sample is a sample selected from a population in such a way that every number of the population has an equal chance of being selected and selection of any individual does not influence the selection of any other. The selection purely depends on chance. So while conducting the survey 40 respondents were selected at random.

SAMPLE SIZE

Sample size denotes the number of elements selected for the study. For the present study, 40 respondents were selected at random. All the 40 respondents were the customers of one or another insurance company. Out of these 40 respondents 15 were specifically ICICI Prudential Life Insurance customers.

SAMPLE DESCRIPTION

The respondents of this dissertation was 40 Life Insurance Policy holders of different insurance companies in general, out of which respondents were the policy holders of ICICI Prudential Life Insurance in particular as the dissertation was focused on the consumer Perception towards the insurance product with special reference to ICICI PRUDETIAL.

Life Insurance. Questionnaire was used for survey and was answered by the customers of different life insurance company.

INSTRUMENTATION TECHNIQUES

To know the response, the researcher used questionnaire method. It has been designed as a primary research instrument. Questionnaires were distributed to respondents and they were asked to answer the questions given in the questionnaire.

The questionnaire was used as an instrumentation technique, because it is an important method of data collection. The success of the questionnaire method in collecting the information depends largely on proper drafting. So in the present study questions were arranged and interconnected logically.

Further, coding and analysis was done for each questions response to reach in to finding, suggestions and finally conclusions about the topic.

ACTUAL COLLECTION OF DATA

Personal interview method was apply to collect the actual data for the research study, the interaction with the respondents before filling questionnaire have made them more friendly and free to give the information. Apart from the interview method following tools has been used for actual data collection.

INTERNET & MAGAZINES

Company related and topic related web sites also provided significant contribution in data collection.

Magazines devoted solely to insurance news, such as Asia Insurance News, insurance chronicle-monthly insurance digest and other marketing magazines.

4.4 ANALYSIS OF DATA

1. The monthly income of the respondents

TABLE NO. 1

|PARTICULAR |FREQUENCY |PERCENTAGE |
|Less than Rs. 10000 |6 |15 |
|10000-20000 |20 |50 |
|20000-30000 |10 |20 |
|30000-40000 |4 |10 |
|More than 40000 |2 |5 |
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Interpretation:

15 percent of the 40 respondents have a monthly income of less than Rs. 10,000. 50 percent of the respondents have a monthly income of 10,000 – 20,000 while 20 percent of the respondents fall in the range of 20,000 – 30,000. 10 percent of the respondents have a monthly income of 30,000 – 40,000 while 5 percent of the respondents have a monthly income of more than 40, 000.

Inference:

We see that half of all respondents earn between Rs. 10,000 -20,000. This shows that they belong to the middle-class society

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2. The monthly savings of respondents

TABLE NO. 2

|PARTICULAR |FREQUENCY |PERCENTAGE |
|Less than 2000 |2 |5 |
|Rs.2000-4000 |4 |10 |
|Rs.4000-6000 |4 |10 |
|Rs.6000-8000 |10 |25 |
|More than Rs 8000 |20 |50 |
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Interpretation:

50 percent of the respondents have a monthly savings of more than 8,000 which is followed by25 percent of the respondents have a monthly savings of 6,000 – 8,000 while5 percent of the 40 respondents have a monthly savings of less than 2,000 and10 percent of the respondents have a monthly savings of 2,000 – 4,000 while10 percent of the respondents have a monthly savings of 4,000 – 6,000.

Inference:

According to this table we see that half of all respondents save more than 8000. This shows that their saving tendency is very high and there are very good opportunity for insurance sector.

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3. The purpose of savings of the respondents

TABLE NO. 3

|PARTICULAR |FREQUENCY |PERCENTAGE |
|Medical exp. |4 |10 |
|Durable |2 |5 |
|For future |16 |40 |
|House |2 |5 |
|Education |12 |30 |
|Marriage |4 |10 |
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Interpretation:

10 percent of the 40 respondents have monthly savings for the purpose of medical expenses. 05 percent of the 40 respondents save to buy durables while 40 percent for the purpose to secure future. Another 05 percent save to buy house or site while 30 percent make savings for the purpose of education. Finally 10 percent of the respondents make savings for some other purpose like marriage, entrepreneurship etc.

Inference:

Many people save for the purpose of a safe future followed by education for children. Thus security of life and the child’s future play important roles in saving.

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4. The investment preference of the respondents:

TABLE NO. 4

|Particular |Frequency |Percentage |
|Bank deposit |6 |15 |
|Insurance |4 |10 |
|Shares |14 |35 |
|Real estate |6 |15 |
|Other |10 |25 |

Interpretation:

35% respondents prefer to invest in shares followed by 25% in others (gold and mutual fund), 15% in bank deposits and another 15% in real estate. 10% invests in insurance.

Inference:

This shows that many people still continue investing in shares although the market is very volatile now. There is less preference for bank deposits due to the low interest rates and real estate due to the high cost in Bangalore city.

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5. The respondents who are actively planning their investment taking care of tax implications.

TABLE NO. 5

|Particular |Frequency |Percentage |
|Yes |32 |80 |
|No |8 |20 |
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Interpretation:

80 percent of the 40 respondents actively plan their investment taking care of the tax implications while only 20 percent of the respondents do not plan for that.

Inference:

This table shows that many people invest in insurance for tax benefits while a minority invests for other purposes.

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6. The level of information of respondent regarding insurance products

TABLE NO. 6

|PARTICULAR |Frequency |Percentage |
|Good |12 |30 |
|Moderate |24 |60 |
|Poor |4 |10 |
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Interpretation:

30 percent of the 40 respondents have a good level of knowledge and information regarding insurance product. 60 percent of the respondents have an average level of knowledge and information while 10 percent respondents have a poor knowledge regarding insurance product. that are 4 in number

Inference:

We can see that there are many numbers of people who do not have complete knowledge about the different kind of insurance product.

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7. The company’s preferred for taking life insurance policies by the respondents.

TABLE NO. 7

|PARTICULAR |FREQUENCY |PERCENTAGE |
|ICICI PRUDENTIAL |12 |30 |
|LIC |20 |50 |
|BAJAJ ALLIANCE |2 |05 |
|BIRLA SUNLIFE |00 |00 |
|OTHER |06 |15 |

Interpretation:

30 percent of 40 respondents are the holders of life insurance policies of ICICI Pru. 50 percent of respondents are the holders of life insurance policies of LIC while 05 percent of respondents are the holders of life insurance policies of BAJAJ Alliance. and 15 percent of respondents are the holders of life insurance policies of other companies, which include MAX NEW YORK, HDFC etc.

Inference:

We can see that LIC is still market leader and has occupied half of the market share which is followed by ICICI PRUDENTIAL which is coming with a great potential. This shows that ICICI is the market leader after LIC.

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8. The policies preferred by the respondents.

TABLE NO. 8

|PARTICULAR |FREQUENCY |PERCENTAGE |
|ULIP |20 |50 |
|MONEY BACK |6 |15 |
|HELTH PLAN |8 |20 |
|TERM POLICY |6 |15 |
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Interpretation:

50 percent of the respondents prefer ULIP policy. 15 percent of the respondents prefer money back. While 20 percent of the respondents prefer HEALTH PLAN and15 percent of the respondents prefer term policies.

Inference:

ULIP is more popular among costumers compare to other plan. The reason behind this is ULIP provide flexible investment facilities and high return on investment.

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9. How much insurance premium is paid monthly by the respondents.

TABLE NO. 9

|PARTICULAR |FREQUENCY |PERCETAGE |
|LESS THAN 1000 |00 |00 |
|1000-2000 |18 |45 |
|2000-3000 |18 |45 |
|3000-4000 |4 |10 |
|MORE THAN 4000 |4 |10 |

Interpretation:

45 percent of the40 respondents pay a monthly premium of 1,000 – 2,000.and also same number of respondents pay monthly premium of 2,000 – 3,000 while 10 percent of the respondents pay a monthly premium of 3,000 – 4,000 while 10 percent of the respondents pay a monthly premium of more than 4,000.

Inference:

According to this table we can inferred that most of the people like to pay Rs 1000-3000 as premium because even though their saving rate is bit high they would be investing in other resources like jewellery and mutual funds. And thus they cannot manage to pay for insurance more than this.

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10. Do you think that policy holder’s cannot enjoy the policy benefit?

TABLE NO. 10

|PARTICULAR |FREQUENCY |PERCETAGE |
|NO |12 |30 |
|YES |18 |70 |

Interpretation:

30 percent of the 40 respondents think insurance policy benefits cannot be enjoyed by them and is good for surviving relatives while 70 percent of the respondents are aware that the policy holder has multiple benefits.

Inference:

We see that most of the policy holder knows about that they can enjoy policy benefit but there are number of people believe that they cannot enjoy the policy benefit.

4.5 SUMMARY OF FINDINGS

1. LIC is the clear market leader across all age groups and income levels. ICICI PRUDENTIAL Life Insurance can excuse itself that people in the age of more than 55 years category could not use its policies because ICICI PRUDENTIAL Life Insurance was not around when these people made their life insurance choices. But what is disturbing is that the young age group (25 years – 35 years) also prefers the government run LIC..

2. Since over half of all respondents earn between Rs. 10,000 -20,000, we find that most people cannot afford policies that require huge savings.

3. Most people save for the purpose of a safe future followed by education for children. Thus security of life and the child’s future play important roles in saving. Many people still continue investing in shares although the market is very volatile now. There is less preference for bank deposits due to the low interest rates and real estate due to the high cost in Bangalore city.

4. We see that half of all respondents save more than 8000. This shows that their saving tendency is very high and there are very good opportunity for insurance sector.

5. There are many people who know how insurance help them in tax saving while only few people do not know tax implication of insurance and invest for other purposes.

6. We can see that there are many number of people who do not have proper knowledge about the different kind of insurance product.

7. ULIP is more popular among costumers compare to other plan. The reason behind this is ULIP provide flexible investment facilities and high return on investment.

CHAPTER -5
5.1SUMMARY OF LEARNING EXPERIENCE 5.2 RECOMMENDATION AND SUGGESTIONS

5.1SUMMARY OF LEARNING EXPERIENCE
A relatively permanent change in the behavior that occurs as a result of reinforced practice is known as learning experience. It was great experiences working with the organization. I have got to know about the insurance sector. As LIC is the market leader it’s very difficult for other private companies to capture the market. Top managements negligence is the hindrance of group insurance. The working environment was very supportive .The most particular thing I learn from company is given below.

1. About the company 2. Insurance industry 3. Strategic plan of other companies. 4. IRDA guidelines. 5. How insurance works and save our money and help in the development of the country and companies. 6. Marketing tactics to sale the product. 7. Consumer behavior about the product

I am sure the company will be benefited from my findings and I sincerely hope it uses my recommendation and suggestion enlisted.
The company has a bright future to look forward and will be a trailblazer in its own right. SOME FACT ABOUT LIFE INSURANCE

➢ If we see data than we come to know that in India only 40million people are insured.

➢ Per capita premium in India is only Rs 455 as compare to 1.41 lakh in USA and 1.41lakh in Japan.

➢ Indian insurance industry is slate to touch $25 billion by 2010 assuming 7% of GDP growth.

➢ Lake of a comprehensive social security system and escalating cost of administering pension system in the country.

5.2RECOMMENDATION AND SUGGESTIONS

1. LIC is the clear market leader across all age groups and income levels. ICICI PRUDENTIAL Life Insurance can excuse itself that people in the age of more than 55 years category could not use its policies because ICICI PRUDENTIAL Life Insurance was not around when these people made their life insurance choices. But what is disturbing is that the young age group (25 years – 35 years) also prefers the government run LIC. So ICICI PRUDENTIAL should plan such a way that they can attract all young customer through product innovation

2. Since over half of all respondents earn between Rs. 10,000 -20,000, we find that most people cannot afford policies that require huge savings. So company should think about low premium policy by that they can tap middle class society which forms the biggest chunk in the Indian market.

3. Most people save for the purpose of a safe future followed by education for children. Thus security of life and the child’s future play important roles in saving. So company should come with new plan which help in child education and also in health saving.

4. Many people still continue investing in shares although the market is very volatile now. There is less preference for bank deposits due to the low interest rates and real estate due to the high cost in Bangalore city. So company should think about low premium policy by that they can tap middle class and huge society of this city.

5. We see that half of all respondents save more than Rs. 8000. This shows that their saving tendency is very high and there are very good opportunity for insurance sector. So that the company should plan for this and they should also plan to beat the competitor by creating awareness about the brand.

6. This table shows that many people know that how insurance help them in tax saving while only few people do not know tax implication of insurance. Thus the company should invest in creating awareness among the consumers very clearly about tax implication

7. We can see that there are many numbers of people who do not have proper knowledge about the different kind of insurance product. So company should create the attractive advertisements and consumer-connect initiatives for this for increase the awareness of people about insurance.

8. ULIP is more popular among costumers compare to other plan. The reason behind this is ULIP provide flexible investment facilities and high return on investment. so company should come with more ULIP PLAN with variation

9. We can infer that most of the people like to pay Rs 1000-3000 as premium because their saving rate is bit high and also they belongs to middle class society. So company should plan for low premium policy by which they can increase the no. of policy

BASED ICICI PRU POLICY HOLDER

➢ We see that most of the ICICI PRU policy holders have good level of information about the product of ICICI Prudential life insurance. But there are few no. of customers those have very less knowledge about the ICICI product, than ICICI PRU can train their agents in order to make customer aware about product.

➢ We can see that most of the time ICICI financial advisor contact the policy holder after taking the policy but still few of respondent said that they didn’t.

This is the major disadvantage of ICICI Prudential Company should tell to advisor to meet their costumer at least once in every six month which make costumer happy and also wins the brand loyalty for the costumer.

➢ We can see most of respondents prefer Life Time Gold because of low tax charge and high return of interest. Company should come with more that kind of product to attract more costumer.

➢ We see that many respondents rated well to services of ICICI Prudential but still some respondent are saying that It is an average service provider .company should think about this and work on this and improve their services to win customer loyalty.

➢ ICICI can focus more on providing share market policies that give the policy holder returns based on the performance of shares

CONCLUSION

Since the opening up of the insurance sector in 1998, 22 private insurers are in the fray. Each one trying to garner more market share than the other. Among all the players ICICI Prudential Life Insurance with the advantage of being the earliest to operate in the liberalized insurance market concerned 115000,000 policies as on March 2009.

Yet the survey has exposed how ICICI Prudential Life Insurance is far behind LIC. ICICI Prudential Life Insurance must also be alert of private insurance companies like Birla Sun life, Metlife, ING Vysya….HDFC.

Company had to suffer also from rumors about the ICICI BANK. because of that rumors customers get scare about other brand also in this case prudential had to suffer because of ICICI BANK but now situation is in control Company has overcome from difficult situation and growing day by day.

Company should do the celebrity endorsement to make aware to people about the brand and create awareness about the insurance sector which help company to grow.

In short I would like to say that the very act of the concerned management at ICICI Prudential Life Insurance in giving me the job of critically examining consumer perception towards financial products of the company is a steep in their continual mission of making all round improvement as a means of progress.

ANNEXURE AND APPENDICES

Questionnaire

I am pleased introduce myself Ritesh Kumar Rai 2nd semester MBA (MKU) student studying in Presidency Business School. As my project titled is “A study on perception of investors towards insurance products with special reference to ICICI Prudential Life Insurance”. I request you to spare your precious time and check this questionnaire. Feedback will be of immense benefit to me in successful completion of this project.

“A study on perception of investors towards insurance products with special reference to ICICI Prudential Life Insurance.”

Questionnaire

➢ Name ................................................................................

➢ Age …………………………………………………………

➢ Gender Male Female

➢ Marital Status Married Unmarried

➢ Address ………………………………………………………...

………………………………………………………...

➢ Telephone No. ………………………………………………………...

➢ E-mail ID ………………………………………………………...

➢ Qualification Graduate Post Graduate

Others

➢ Occupation Employed Retired

Business Others

1. Monthly Income 10,000 – 20,000 20,000 – 30,000

30,000 – 40,000 More than 40,000

2. Approximate monthly savings

Less than 2,000 2,000 – 4,000

4,000 – 6,000 6,000 – 8,000

More than 8,000

3. Purpose of savings Medical expenses To buy durables

To secure future To buy house

Education Others

4. Where do you invest your savings

Bank deposit Insurance

Share Debentures Real Estate

Others

5. Do you actively plan your investment taking care of tax implication?

Yes No

6. What is your level of information on insurance products?

Good Moderate

Poor

7. Which company insurance policies do you find attractive?

ICICI Prudential Life Insurance

LIC Birla Sunlife

BAJAJ Alliance Others

8. Do you think that insurance policies really do help the policy holder’s family after his death?

Yes No

9. Do you feel that the policy holders of the policy do not get a chance to enjoy the policy benefit?

Yes No

10. Do you believe that having an insurance policy is necessary for everyone?

Yes No

11. Do you trust private insurance companies?

Yes No

13. Do you trust international insurance companies?

Yes No

15. Please mention the policy you would be interested to take

Money back ULIP

HEALTH SAVER Others

16. Approximately how much would you be comfortable to pay towards the insurance premium monthly?

Less than 1,000 1,000 – 2,000

2,000 – 3,000 3,000 – 4,000

More than 4,000

17. What purpose would you take the policy for?

Tax purpose Future security

Children’s education others

18. Who would pay the premium?

Self Employer

Spouse Others

19. Whose life would you want to insure?

Parents Children

Self Spouse

Moderate

…………………………………………………….

…………………………………………………….

Bibliography

1. WEBSITES

➢ www.google.com

➢ www.wikipedia.com

➢ www.iciciprulife.com

2. BOOKS AND MAGAZINE

➢ Business world magazine

➢ INSURANCE CHRONICLE

➢ IRDA TRANING BOOK

3. ICICI PRUDENTIAL DOCUMENTS AND JOURNALS

-----------------------
ICICI BANK

Commercial Bank.

India’s first Internet Bank

47% Holding Listed on NYSE and Indian Stock Exchanges

ICICI VENTURE

Venture Capital Leading Private Equity Investor in India with focus on IT and Health Care 100% Holding.

ICICI SECURITIES

Invest Bank

One of the Key players in the Indian Capital Markets

100% Holding.

ICICI PRUDENTIAL MUTUAL FUND

Mutual Fund Company

Joint Venture between Prudential Plc of U.K.

ICICI WEB TRADE

On-line Brokerage

100% Holding of

ICICI Limited.

ICICI LIMITED

(Parent Company)

Financial Services Company

Listed on NYSE (IC) and

Indian Stock Exchanges.

ICICI INFOTECH

Technology Arm

Transaction Processing

Software Development

92% Holding.

ICICI CAPITAL

Distribution and Servicing of Retail Liability Products

100% Holding.

ICICI PFS

Marketing and Distribution of Retail.

Liability Products

100%Holding

ICICI PRUDENTIAL LIFE INSURANCE COMPANY A 74% AND 26% VENTURES BETWEEN ICICI AND PRUDENTIAL PLC OF U.K.

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