Comparative Study of Marketing Field in (Icici)

8/9/2019 Comparative Study of Marketing Field in (Icici)

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SUMMER TRAINING PROJECT REPORT

ON

COMPARATIVE STUDY OF MARKETING FIELDIN (ICICI)

Submitted for the partial fulfillment of the requirement

For the award of degree

Of

MASTER OF BUSINESS ADMINISTRATIONDegree programme of U.P. Technical University, Lucknow

(2008-2010)

SUBMITTED BY

MRIGESH KUMAR ARYA

M.B.A. 3rd Sem

Roll No: - 0827170051

Submitted To

Bharat Institute Of Technology

Partapur By Pass Road, Meerut

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(Approved by AICTE, Recognised by u.p.Govt. & Affiliated to U.P. Technical

University, Lucknow)

BYE-PASS ROAD, PARTAPUR, MEERUT -250103

Phone : off . (0121) 6531892, 6533991, 3263721, Fax : 0121-2967001

E-mail : [email protected] , website : www.bitmeerut.edu.in

TO WHOME IT MAY CONCERN

This is to certify that Mr. /Ms. MRIGESH KUMAR ARYA is a bonafide

Student of MBA third semester in our institute. He/She has submitted this project

report titled COMPARATIVE STUDY OF MARKETING FIELD IN

(ICICI)to fulfill the requirement of UPTU.

Teacher Guide Prof R.C.Shard

(Director Management)(MISS SARIKA SOM)

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mailto:[email protected]:[email protected]


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CONTENTS

INDEX PAGE NO.

1. DECLARATION

2. ACKNOWLEDGEMENT

3. PREFACE

4. EXECUTIVE SUMMARY

5. LEARNING OF PROJECT

6. COMPANY PROFILE

7. OBJECTIVE OF STUDY

8. RESEARCH METHODOLOGY

9. DATA ANALYSIS & INTERPRETATIONS

10. FINDING & SUGGESTION

11. LIMITATION

12. CONCLUSION

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13. BIBLIOGRAPHY

14. ANNEXURE

DECLARATION

I, MRIGESH KUMAR ARYA, student ofBHARAT INSTITUTE OF TECHNOLOGY

MEERUT hereby declare that project on COMPARATIVE STUDY OF MARKETING

FIELD IN (ICICI)has been completed by me on the basis of my summer training at

during 10th June to 25th July, 2009 under the guidance of MS. SARITA SINGH as

part of the course curriculum for the partial fulfillment of the Master of Business

Administration course for the academic session 2008-10. I further declare that the

contents of the report are authentic and specific references have been quoted along

with the secondary data for better cross check and verification. The primary survey

had been done in DELHI as a part of the project and the results of the survey can

not be transferred or copied without prior approval. It is also declared that this work is

original and has not been published or presented earlier.

DATE-MRIGESH KUMAR ARYA.

PLACE-MBA- 3rd, SEM.

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ROLL NO. - 0827170051

ACKNOWLEDGEMENT

It gives me immense pleasure to introduce my project work entitled

COMPARATIVE STUDY OF MARKETING FIELD IN ICICI,, Prudential Life

Insurance Company Ltd. New Delhi. I sincerely thank my esteemed guide Mrs.

SARITA SINGH (Sr. AGENCY MANAGER) for his valuable guidance and co-

operation rendered to me through out the project report. It would not have been

possible for me to complete this project without. there meticulous guidance and

suggestions. I give my thanks to MS. SARIKA SOM (PROJECT GUIDE) and

DR. D. K. MAHESWARI (H.O.D, MANAGEMENT) for their valuable contribution,

co-operation and guidance from time to time for completion of this project.

Last but not the least I would like to thank my parents, friends, Colleagues and

the staff of ICICI Prudential Life Insurance Company Ltd. New Delhi, who directly or

indirectly help me during the course of project without which project would have

been a Herculean task.

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PREFACE

Marketing is indeed an ancient art. It has been practices in one form or other

since time immemorial. Its imminence as a management discipline, however is

of relatively recent origin. But, during the later held of the 20th century a great

deal of importance . in face today most management thinkers and practitioners

the world over regard making as the most important of all management

functions in any business activity. My purpose of undergoing MBA in BIT,

Meerut is to become apart and parcel of marketing management where as

the cause in the institute provides us with conceptual knowledge field training

as a part of the curriculum, helps us gave in valuable practical experiment in

real organization setting. This project report aims at providing real picture of

the market position of ICICI Prudential Life Insurance in the organized insurance

market, along with awareness level, prescription pattern and indication wise

study of ICICI Prudential life Insurance company limited.

MRIGESH KUMAR ARYA

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M.B.A. 3rd SEM

ROLL NO.- 0827170051

EXECUTIVE SUMMARY

The following topic, COMPARATIVE STUDY OF MARKETING FIELD IN (ICICI),

related to Comparative analysis of insurance sector and market survey with special

reference to ICICI prudential life insurance.

A well-developed and evolved insurance sector is needed for economic development

as it provides long term funds for infrastructure development and the same time

strengthens the risk taking ability.

Life insurance is also now being regarded as a versatile financial planning tool in

India. India being a country having a huge population of around one billion people with

only 22% of the insurable population in India possessing life insurance the country has

a vast potential which has been left untapped till now.

Therefore what this has led to is the flooding of the life insurance market with a

number of private players which in collaboration with recognized foreign companies

promise to deliver the best of services at the least price. But will these companies be

able to survive in the future is the question we have tried to answer.

This report is an effort made by us to study the Indian insurance market. This report

sheds light on the impact and the prospects of private life insurance companies in

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India, which mainly has been measured through the responses we got in our

questionnaires.

The aspects covered in this project are meaning of life insurance and why we need

them, history of insurance in India (pre and post liberalization), types of life insurance

polices, their meanings & benefits and a checklist while buying right life insurance

policy. In this finding we have undertaken five major private life insurance companies

in India i.e., HDFC, ICICI, AVIVA, BIRLA SUNLIFE & MAX NEWYORK LIFE. Under

this we have written a brief about these companies, their insurance policies and its

comparative analysis. Based on the market survey and in-depth interview a statistical

analysis of the prospects of private life insurance companies in India is done and

represented in the form of statistical diagram.

Thus by going through this report one will get to know about the private life insurance

companies in India and their future prospects.

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LEARNING OF PROJECT

I learnt how the insurance company works,

What are the channels of distribution and elements in distribution network of

the company,

What are eligibility criteria to become a financial advisor.

I studied what are the factors & components in life insurance sector like as

ICICI Prudential, RELIANCE insurance, AVIVA insurance, BIRLA SUN LIFE,

HDFC insurance.

I studied overall working of Insurance companies.

I came to know about channels of distribution network used by Insurance

companies.

I studied the policies and process of appointing financial advisor for ICICI

Prudential Life Insurance Company.

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COMPANY PROFILE

INSURANCE

In this age of uncertainties nothing can be called as safe, a small accident can end

our life business home vehicle therefore it is necessary to insure the things including

our life so that if incident occurs the loss can be reimbursed .insurance is a promised

given by one to another where by the promissory undertakes to pay a sum of money

to the promise on the happening of the event insured against.

Types of insurance :-

1. Term life insurance.

2. Car insurance.

3. Health insurance.

4. Long term care insurance.

5. Burial insurance.

6. Business insurance.

7. Home owners insurance.

8. Group health insurance.

9. Disability insurance

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10. Whole life insurance.

11. Home improvement insurance.

12. Others: motorcycle, boat, flood insurance etc.

LIFE INSURANCE:

Life insurance is promise to perform in future when the obligation is met i.e. the

insured event takes place ,the money ,whose presence can be felt replaces the

promise his helps the insured person or in case of his death his dependences will get

the assured amount of money with which they can obtain the necessities of life.

Marketing approach to life insurance:-

Life insurance is a personalize service oriented industry, therefore providing the

service that should match the needs and wants of the customer should be a basic

objective of life insurance company. The marketing approach in relation to life

insurance involves following four steps.

1. Research to determine customers insecurity.

2. Designing new policies or innovate old ones.

3. Market services to the customer for whom they where researched and

designed at profit.

4. In doing so satisfy the customers needs.

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14

Identify the customers

future needs

Forecasting and

research on future

market needs for

insuranceDevelop appropriate

insurance plans


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MARKETING APPROACH TO LIFE INSURANCE

HISTORY OF ICICI

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Identify the customers

future needs

Forecasting and

research on future

market needs for

insuranceDevelop appropriate

insurance plans

Determine the premium

for each plan developed

Personal selling

through agents;

Advertising

Opening of

branches,

appointing agents

and development

officers

Policy servicing


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1955: The Industrial Credit and Investment Corporation of India Limited (ICICI)

incorporated at the initiative of the World Bank, the Government of India and

representatives of Indian industry, with the objective of creating a development

financial institution for providing medium-term and long-term project financing to

Indian businesses. Mr.A.Ramaswami Mudaliar elected as the first Chairman of ICICI

Limited.

ICICI emerges as the major source of foreign currency loans to Indian industry.

Besides funding from the World Bank and other multi-lateral agencies, ICICI also

among the first Indian companies to raise funds from International markets.

1956: ICICI declared its first Dividend at 3.5%.

1958: Mr.G.L.Mehta was appointed the 2nd Chairman of ICICI Ltd.

1960: ICICI building at 163, Back bay Reclamation was inaugurated.

1961: The first West German loan of DM 5 million from Kredianstalt was obtained by

ICICI.

1967: ICICI made its first debenture issue for Rs.6 crore, which was oversubscribed.

1972: Second entity in India to set-up merchant banking services.

1977: ICICI sponsors the formation of Housing Development Finance Corporation

Managed its first equity public issue.

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1978: Mr. James Raj appointed as the fourth Chairman of ICICI.

1979: Mr.Siddharth Mehta appointed as the fifth Chairman of ICICI.

1982: Becomes the first ever-Indian borrower to raise European Currency Units.

1984: Mr. S. Nadkarni appointed as the sixth Chairman of ICICI.

1985: Mr.N.Vaghul appointed as the seventh Chairman and Managing Director of

ICICI.

1986: ICICI first Indian Institution to receive ADB Loans. First public issue by an

Indian entity in the Swiss Capital Markets. ICICI along with UTI sets up Credit Rating

Information Services of India Limited, (CRISIL) Indias first professional credit rating

agency. ICICI promotes Shipping Credit and Investment Company of India Limited.

(SCICI).

1987:ICICI signed a loan agreement for Sterling Pound 10 million with Commonwealth

Development Corporation (CDC), the first loan by CDC for financing projects in India.

1988: ICICI promotes TDICI - Indias first venture capital company.

1993: ICICI sets-up ICICI Securities and Finance Company Limited in joint venture

with J. P. Morgan.

1994: ICICI sets up ICICI Bank.

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1996: ICICI becomes the first company in the Indian financial sector to raise GDR.

Mr.K.V.Kamath appointed the Managing Director and CEO of ICICI Ltd.

1997: ICICI was the first intermediary to move away from single prime rate to three-

tier prime rates structure and introduced yield-curve based pricing. The name The

Industrial Credit and Investment Corporation of India Limited was changed to ICICI

Limited.

1998: Introduced the new logo symbolizing a common corporate identity for the ICICI

Group.

1999: ICICI launches retail finance - car loans, house loans and loans for consumer

durables. ICICI becomes the first Indian Company to list on the NYSE through an

issue of American Depositary Shares.

2000: ICICI Bank becomes the first commercial bank from India to list its stock on

NYSE. ICICI Bank announces merger with Bank of Madura.

2001: The Boards of ICICI Ltd and ICICI Bank approved the merger of ICICI with

ICICI Bank.

2002: Moodys assign higher than sovereign rating to ICICI.

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PRUDENTIAL PLC.

It 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.

Started operations in 1848 and is now one of the largest life insurance

companies in the world.

Presence in UK, Europe, US and through out Asia.

Insurance and investment funds under management exceed rs.11, 00,000

crores.

Solid reputation built over 150 years.

Already established as one of the biggest private sector mutual fund companies

in India (prudential ICICI AMC).

India is one of three countries in Asia where prudential is the leading private insurer

the other two being Vietnam and Indonesia. It is the second largest insurer in Malaysia

and third largest in Singapore.

It helps people to enhance and protect their own and their dependants financial well

being by providing them with appropriate savings and protection products. It has

strong positions in three of the largest and most attractive markets in the world, where

rising global wealth and changing demographics are fuelling demand for long-term

savings.

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Their strategy is to build sustainable, profitable businesses in each of these markets,

and thereby maximize returns to our shareholders over time. In the UK Prudential is a

leading life and pensions provider with around seven million customers. M&G was

acquired by Prudential in 1999 and is the Group's UK and European fund manager,

responsible for managing over 111 billion of funds (as at December 2003). Launched

by Prudential in 1998, Egg is an innovative financial services company, with over

three million customers, with nearly six per cent of UK credit card balances.

In Asia, Prudential is the leading European life insurer with 23 life and fund

management operations in 12 countries serving some five million customers.

In the US, Prudential owns Jackson National Life, a leading life insurance company,

and has more than 1.5 million policies and contracts in force.

Sir David Clementi Chairman, Prudential Plc.

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VISION: -

To make ICICI Prudential the dominant life and pensions player built on trust by world-

class people and service.

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.

Boundary less.

Ownership.

Passion.

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ACHIEVEMENTS: -

The no.1 private life insurance company with :

Maximum number of policies sold.

Largest premium income.

Largest agency force.

Biggest pension player

ABOUT ICICI

ICICI bank is Indias second largest bank with an asset base of Rs. 2513.89 billion

As on march 31, 2006.ICICI bank provides a broad spectrum of financial services to

indices and companies. This includes mortgages, car and personal loans, credit and

debit cards, corporate and agricultural finance the bank services a growing customer

base for more than 17 million customers through multi-channel network which

includes over 620 branches and extension counters, 2200 ATMs, call centers and the

retail customers through a Varity of delivery channels through its specialized

subsidiaries and affiliates in areas of investment banking, life and non-life Insurance,

venture capital, asset management and information Technology, ICICI banks equity

shares are listed on stock exchange of Chennai, Delhi, Kolkata and Vadodara , The

Stock Exchange and The National Stock Exchange of India Ltd. and American

Depositary Receipts (ADRs) are listed on The New York Stock Exchange (NYSE).

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ABOUT PRUDENTIAL PLC

Prudential PLC was established in London in 1948, Prudential PLC, through its

businesses in the UK and Europe, the US and Asia, provides retail financial services

to more than 16 million customers, policyholders and unit holders worldwide. As of

Dec. 31, 2005, the company has over US $ 400 billion in fund management.

Prudential has brought to market an integrated range of finance services products that

now includes life assurance, pensions, mutual funds, banking, investment

management and general insurance. In Asia, Prudential is leading European life

Insurance Company with a vast network of 23 life and mutual fund operations in

twelve countries

1. China.

2. Hong Kong

3. India.

4. Japan.

5. Korea

6. Malaysia.

7. Philippines.

8. Singapore.

9. Taiwan.

10. Indonesia

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11. U.K.

JOINT VENTURE ICICI PRUDENTIAL

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 U.K. ICICI prudential was amongst the first

private sector insurance companies to begin operations in Dec. 2000 after receiving

approval from Insurance Regulatory Development Authority (IRDA).

ICICI Prudentials capital base stands at Rs. 1335 Crores with ICICI Bank and

Prudential PLC holding 74% and 26% stake respectively. For the year ended March

31, 2006, the company garnered Rs. 2,412crore of weighted new boniness premiums

and wrote 837,963 policies. The sum assured in force at over Rs. 56,000 crore.

ICICI Prudential is also the only private Life Insurer in India to receive a national

Insurer Financial Strength rating of AAA (Ind.) from Fitch rating. The AAA rating ids

the highest rating, and is a clear assurance of ICICI Prudentials ability to meet its

obligations to customers at the time of maturity or claims.

For the past five year, ICICI Prudential has retained its position as the No. 1 private

Life Insurer in India, with a wide range of flexible products that meet the needs of the

Indian customer at every step in life. ICICI Prudential has one of the largest

distribution networks amongst private Life Insurers in India with network of over

83,000 advisors, and having commenced operations in 207 cities and towns in India,

stretching from Bhuj in west to Guwahati in The east, Jammu in the North to

Trivanprum in the south.

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ICICI Prudential was registered on Nov. 24, 2000. with registration No. 105.

Board of Directors

The ICICI Prudential Life Insurance Company Limited Board comprises reputed

people from financial industry both from India and abroad.

Mr. K.V. Kamath, Chairman

Mr. Mark Norbom

Mrs. Lalita D. Gupte

Mrs. Kalana Morparia

Mrs. Chanda Kochhar

Mr. H T Hong

Mr. M.P. Modi

Mr. R Narayanan

Mr. Keki Dadiseth

Ms.Shikha Sharma, M.D.

Mr.N.S. Kannan, Executive Director

Management Team

Ms.Shikha Sharma, M.D. & CEO

Mr.N.S. Kannan, Executive Director

Mr. N.S. Kannan, Executive Director

Mr. V Rajagopalan, Chief- Actuary

Mr. Sandeep Batra, Chief Financial Officer & company Secretary

Ms. Anita Pai, Chief - Customer Service and Technology

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Mr.Puneet Nanda, Chief - Investments

ICICI Prudential introduces capital-linked ULIPs

2 June 2005

Mumbai: ICICI Prudential Life Insurance Company has introduced a range of unit-

linked products with capital protection combined with market-linked profits. Christened

Invest Shield, these plans are ideal for people who are keen to buy a unit-linked life

insurance plan, but ultimately purchase a traditional policy, as they are apprehensive

about the risks the markets present.

"Our research has shown us that for most people, life insurance is the ultimate

protection tool it is amongst the safest financial instruments one can have," says

Shikha Sharma, managing director and CEO, ICICI Prudential Life Insurance.

"Certainly, protection through insurance is a necessary part for sound financial

planning, and with the introduction of ULIPs we find that many people are keen to see

their money grow. However, they are wary that a market investment could erode their

principal. Based on this insight, we launched InvestShield, a unit-linked plan that will

help people not only secure the future of their families, but protect them from the dips

in the market as well".

These unit-linked capital guarantee insurance plans come in four variations:

Invest Shield Life gives the customer the value of the policy at the end of the

term.

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Invest Shield Cash, which gives customers liquidity benefits during the policy

term and the policy value at the end.

Invest Shield Gold, a policy for those want a limited premium-paying term, but

want the protection and savings benefits over a longer tenure.

Invest Shield Pension, a retirement solution.

The plans are structured so that the invested premius are invested in a market-linked

unit fund to provide potentially higher returns over a long period. A maximum 30 per

cent of the fund (in case of Life, Gold and Pension) is invested in equities and the

balance is invested in debts or bonds. While the market-linked unit-fund offers the

opportunity to get the upside of the markets, the risk on investments due to the

downsides in the market, is protected by a guarantee, which keeps increasing every

year.

Other features of the InvestShield plans include:

Extended life cover :

Apart from the insurance cover during the term of the plan, InvestShield Life also

offers an additional insurance protection of 50 per cent of the sum assured for 10

years after the maturity of the plan.

Guaranteed Additions of up to Rs.13, 500, which is paid in lump sum on death or

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maturity (the higher the premium and term of the plan, the higher will be the amount of

guaranteed additions).

ICICI Pru Life Links capital base by Rs100 crore :

11 February 2005

Mumbai: ICICI Prudential Life Insurance Company has increased its capital base by

Rs100 crore, taking its total paid-up equity capital to Rs925 cr. This is the eleventh

equity hike since the company was incorporated in December 2000. The two partners,

ICICI Bank and Prudential plc, have been issued 10 crore equity shares of Rs10 each,

in their existing proportions of 74:26 respectively.

22 September 2004

Mumbai: ICICI Prudential Life Insurance (IPLI), a joint venture between ICICI Bank

and Prudential plc, has become the first private life insurer to cross the one million

policies milestone. The corresponding sum assured stands The authorized capital of

the company stands at Rs1,200 crore. ICICI Prudential claims to have the highest

capital base amongst all life insurers in the country.

The company grew nearly 127 per cent in April-December 2004 over the same period

last year, to notch up a new business received premium of over Rs860 crore. ICICI

Prudential's total market share amongst private life insurers stood at 31 per cent, and

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its share in the retail business was 35 per cent. Its total market share for the same

period is 9.2 per cent.

ICICI Prudential Life Insurance Company is a joint venture between ICICI Bank and

Prudential plc.

ICICI Prudential Life Insurance crosses one million-policies milestone:

at about Rs22,500 crore and the new business premium income is Rs1,700 crore.

Speaking at the occasion, K V Kamath, chairman IPLI said, "The life insurance sector

has seen tremendous growth in the last few years, fuelled by product and service

innovation. It has also created several opportunities for employment and generated

long-term savings to fund development of the economy in the future.

We see pensions as a high-growth segment for the industry. We are pleased with the

progress made by ICICI Prudential thus far, and remain committed to the sector."

Dan Bardin, managing director, South Asia & Greater China, Prudential Corporation

Asia, said, "India is a very important part of Prudential`s Asian strategy, and the

success of ICICI Prudential is testament to the faith we have in the talent available

and growth potential of this country. With its reputation for quality and strong track

record of innovation, I am sure we can continue to expect more impressive

achievements from ICICI Prudential Life Insurance."

The company's CAGR has been 148 per cent over the past three financial years. To

commemorate the one million-policy milestone, ICICI Prudential has launched a

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programme called 'dil se', under which the company gifted 10 LifeLink insurance

policies to underprivileged children, each with a value of Rs20, 000.

The company will altogether gift 50 such policies, totaling a symbolic Rs1 million, to

underprivileged children in Mumbai, Delhi, Kolkata, Chennai and Bangalore.

According to Shikha Sharma, managing director and CEO, ICICI Prudential Life, said,

"Our complete focus on the customer right from day one has enabled us to touch this

landmark in less than four years of operations. It was a leap of faith that our early

customers took when they decided to place their trust in ICICI Prudential in early

2001. I am happy to say that today; we have over a million such customers, each of

them a testament to the progress made by not only the company, but life insurance as

a whole."

ICICI Prudential extends range of unit-linked products :

17 August 2004

Mumbai: Spurred by the excellent response to its unit-linked products, ICICI

Prudential Life Insurance, India's leading private life insurance company, has

launched two new products Lifetime II and Premier Life. While Lifetime II is a more

cost-efficient but less flexible form of the company's earlier flagship offering, Premier

Life is a limited premium paying policy.

"Based on our customer interactions, we realized that there was a need for a variety of

products that would offer slightly varied premium payment options and flexibilities.

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Premier Life, for instance, offers stability and protection for a long time to individuals,

even while they pay premium for a short period.

Such flexibilities and options make it an ideal product for people who might otherwise

have an irregular income - be it artists, professionals, businessmen or sportspersons,"

said Shikha Sharma, CEO and MD, ICICI Prudential Life Insurance.

The company's funds under management stand at Rs1,800 crore, with the funds

under its unit-linked products crossing the Rs1,000-crore level. Of the Rs1,000-crore

funds under ULIPs, nearly half is invested in income funds, 31 per cent in balanced

funds, 19 per cent in growth funds and a small portion in short-term debt.

Premier Life allows policyholders to choose between premium-payment terms of

three, five, seven and ten years, and offers cover to the life assured up to the age of

75 years.

One of the unique features of the product is that it allows the policyholder to decrease

the premium contribution at any time, subject to a minimum of Rs 60,000 p.a. and also

offers guaranteed financial benefits in the form of bonus units at specific intervals.

Quarter 1 results :

ICICI Prudential witnessed yet another period of triple-digit growth in the quarter

ended April-June 2004 (Q1FY05). Its new business premium income grew to Rs242

crore, an increase of 244 per cent over the corresponding period last year (Q1FY04).

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Over 1,00,000 new policies were added in that same period and sum assured grew

more than 250 per cent to nearly Rs20,000 crores.

The company also witnessed a huge growth in its group business, adding Rs30 crore

through group gratuity, superannuation and term policies. The company's combined

market share stands at 34 per cent among private players.

ICICI Pru to infuse Rs 50 crore :

5 December 2003,

Chennai: In line with the capital adequacy and solvency norms issued by the

Insurance Regulatory and Development Authority (IRDA), ICICI Prudential Life

Insurance has decided to increase its equity base by Rs 50 crore to Rs 575 crore this

fiscal. The company retains nearly 95 per cent of the risk in its books.

Based on the industry trend, the company has seen good sales of its unit-linked

savings and investment, child and retirement policies. The quarter (July-September

2003) saw these products contributing Rs 86.5 crore-premium income. On the

distribution side, ICICI Prudential Life has 60 branches in 44 cities and 26,000 agents.

For the first six months, the company booked a premium income of Rs 184 crore.

Rs 70-crore income for ICIC Prudential : -

26 July 2003,

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Mumbai: Private life insurer ICICI Prudential has earned a new business premium

income of Rs 70 crore during the first quarter of this fiscal. The company issued over

50,000 policies.

The total premium income, including renewal business stands at Rs 100 crore for the

period under review. The first quarter also saw the company expanding its reach to 29

locations and adding 500 more frontline staff.

ICICI Pru Life crosses Rs 500 crore-premium income mark : -

10 April 2003,

Mumbai: ICICI Prudential Life Insurance has crossed the Rs 500-crore premium

income mark on 31 March 2003, having issued nearly 3,50,000 policies, for a sum

assured of Rs 8,700 crore, since its inception. The last fiscal had seen significant

growth for ICICI Prudential across all segments, with 2,46,827 policies issued in the

period April 2002-March 2003, and Rs 348 crore premium from new business in the

same period, a 200-per cent growth over the previous fiscal (April 2001-March 2002).

The company had also met all its rural and social sector obligations. The growth been

driven by pensions and unit-linked products. It has garnered 23 per cent of pensions

premium among all players for the period April 2002-February 2003 and 34 percent in

February 2003 alone.

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PRODUCT LINE:-

ICICI Prudential is currently having a wide range of products which could meet the

existing demand of the customer this products are the various plans which are flexible

in nature which can be enhanced with up to 6 riders to provide a customized to each

policy holder.

SAVING & WEALTH CREATION SOLUTIONS:-

Cash plus is a transparent, feature-packed saving plan that offers 3 levels of

protection as well as liquidity options.

SavenProtect is a traditional endowment savings plan that offers life insurance

along with adequate returns.

Cash Bak is an anticipated endowment policy ideal for meeting milestone

expenses like a childs marriage, expenses for childs higher education or

purchase of an asset. It is available for terms of 15 and 20 years.

Lifetime Super & lifetime plus are unit linked plans that offers customers the

flexibility control to customize the policy to meet the changing needs at different

life stages. Each offer 4 fund functions: Preserver, Protector, Balancer and

Maxi miser.

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Life link Super is a single premium unit linked insurance plan which combines

life insurance cover with opportunity to stay invested in the stock market.

Premier Life Gold is a limited premium paying plan specially structured for long-

term wealth creation.

Invest Shield Life new is a unit linked plan that provides premium guarantee on

the investment premiums and ensures that the customer receives only the

benefits of fund appreciation without any of the risk of depreciation.

Invest Shield Casbak is a unit linked plan that provides premium guarantee on

the investment premiums along with flexible liquidity operations.

PROTECTION SOLUCTIONS:-

Lifeguard is a protection plan, which offers life insurance covers at very low cost.

Itis available in 3 options: Level term assurance, Level term assurance with

return of premium an single premium.

Home Assure is a mortgage reducing term assurance plan designed specially to

help customers cover home loans in a single and cost effective manner.

CHILD PLANS:-

Educational insurance under the Smart Kid brand provides guaranteed

educational benefits to a child along with life insurance cover for parent who

purchases the policy. The designed to provide money at important millstones in

the childs life. Smart Kid plans are also available in Unit-linked form, both

single premium and regular premium.

RETIREMENT SOLUTION:-

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Forever life is a traditional retirement product that offers guaranteed returns for

the first 4 years and then declares bonuses annually.

Life Super Pension is a single premium unit linked pension plan.

HEALTH SOLUTION:-

Health Assure and Health Assure Plan : Health assure is regular premium plan

which provide long term cover against 6 critical illnesses by providing

policyholder with financial assistance, Irrespective of the actual medical

expenses. Health Assure Plus offers the added advantages of equivalent Life

Insurance Cover.

Cancer Care: is a regular premium plan that pays cash benefits on diagnosis

as well as at different stages in the treatment of various cancer conditions.

GROUP INSURANCE SOLUCTIONS:-

ICICI Prudential also offers Group Insurance Solution for the companies seeking to

enhance benefits to their employees.

Group Gratuity Plan: ICICI Prus group gratuity plan helps employers fund

their statutory gratuity obligation in scientific manner. The plan can also be

customized to structure schemes that can provide benefits beyond the statutory

obligations.

Group Superannuation Plan : ICICI Pru offers both defined contribution (DC)

defined benefits (DB) Superannuation schemes to optimize returns for the

members of the trust and rationalize the cost .members have the potion of

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choosing from various annuity options or opting for a partial commutation of

the annuity at the time of retirement.

Group Immediate Annuities: in addition to the annuities offered to existing

superannuation customers, we offer immediate annuities to superannuation

funds not managed by us.

Group Term plan: ICICI prus flexible group term solution helps provide

affordable cover members of a group .the cover could be uniform or based on

designation/rank or a multiple of salary. The benefit under policy is paid to the

beneficiary nominated by the member on his/her death.

FLEXIBLE RIDER OPTIONS :-

ICICI pru life offers flexible riders, which can be added to the basic policy at a

marginal cost, depending on the specific needs of the customer.

Accident of disability benefit; if death occurs as the result of an accident

during the term of the policy, the beneficiary receives an additional amount

equal to the rider sum assured under the policy .if the death occurs while

traveling in an authorized mass transport vehicle. The beneficiary will be

entitled to twice the sum assured as additional benefit.

Critical illness benefit: protects the insured against financial loss in the event

of 9specified critical illnesses, benefits are payable to the insured for medical

expenses prior to death.

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Income Benefit: This rider pays the 10 % of the sum assured to the nominee

every year, till maturity. In the event of the death the life assured. It is available

on smart kid and cash plus

Waiver of premium: in case of total and permanent disability due to an

accident, the future premiums continue to be paid by the company till the time

of maturity.

This rider is available with life time super, life time super pension and cash plus.

(Source: - Finance Community CACLUBINDIA.COM)

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Market Shares of Insurance Companies in India

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VISION:-

To make ICICI pru the dominant life and pension layer built on trust by world class

people and service.

This we hope to achieve by;

1. Understanding the needs of the customer and offering them superior products

and services.

2. Leveraging technology to service the customer quickly, efficiently and

conveniently.

3. Developing and implementing superior risk management and investment

strategies to offer sustainable and stable returns to policyholders.

4. Providing and enabling environment to faster growth and learning for our

employees.

5. Building transparency in all our dealings.

VALUES:-

The success of the company is to be achieved in its unflinching commitment to 5 core

values.

1. Integrity.

2. Customer first.

3. Boundary less.

4. Ownership.

5. Passion.

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Each of the above values described what the company stands for, the qualities of our

people and the way we work.

We aim at unlimited growth coupled with higher quality of customer satisfaction by

providing the quality products and services.

ACHIVEMENTS:-

1. The New Delhi branch office stood 8 th, in terms of its business achievements,

amongst 103 branches of ICICI prudential.

2. Record Created 05 06;

Total income till date: 5000cr.

Total Business; 2410cr.

New Business; 1584cr.

Commission paid; 284cr.

Plans issued; 6lac.

Total plans issued: 1.4million.

Only in march; 97000.

No of service transaction: 14lac.

Communication sends out: 65lac.

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ORGANIZATIONAL STRUCTURE OF A BRANCH OFFICE

42

TerritoryManager

Assistant Sales

Manager

SeniorAgencyManager

Channel Development

Manager

Agency Manager

Manager

Unit Manager

AssistantUnit

Manager

Manager


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INTRODUCTION

Life Insurance Corporation Of India till few years ago used to enjoy a complete

monopoly in the life insurance sector of the country. Because of the monopoly it used

to offer the consumers its products at unjustifiable rates and the services were also

not up to the mark.

But because of the changes which were and are being brought about in the Insurance

Act the life insurance sector has seen the emergence of many private players. With

the emergence of these private players the Life Insurance Corporation Of India is

facing a stiff competition from them not only in terms of price but also in terms of the

services provided.

The big question which arises is that will the old horse be able to survive the

competition or will the new players emerge victorious. How will these players

differentiate their products? Will these private players be able to survive in the future

or is it just a temporary phase of flooding of the Indian life insurance market with

products in quantity and not in quality? What are the prospects of these private

players in the insurance market in future and how much impact they have created on

Indian consumer?

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TYPES OF INSURANCE POLICIES

Though there are a lot of policies available in the market under different names and by

different companies, the policies can broadly be classified into the following

categories:

Term Insurance Policy

Whole Life Policy

Money Back Policy

Endowment Policy

Pension Plans Or Annuities

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TERM INSURANCE POLICY

Term insurance provides life insurance coverage for a specific period of time.

Presently one year, five year, ten year, and fifteen year, are the periods one

can buy term life insurance policy. If the insured person dies during the period

the insurance is in force, the insurance company pays off the face value of the

policy. If the insured lives longer than the term of the policy, the policy is no

longer in effect and nothing is paid.

Term insurance is the least expensive form of life insurance. It is commonly

used when the insured needs temporary protection or cant afford the

premiums for the other forms of life insurance. The other reason an insured

may want term insurance is to purchase life insurance and invest the difference

between the term policy and cash value policy elsewhere.

Term insurance comes in several forms. There is renewable & non

renewable. Non renewable means that on the expiry of your policy you must

go under another physical test and filling out another questionnaire. On the

other hand, with renewable policy you dont need to undergo these formalities

again and you automatically re qualify to continue your policy.

Then there is convertible & non convertible policy. Convertible policy is the

one which can be converted into a permanent policy,

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whereas non convertible is the one which cannot be converted into a permanent

policy or in other words the policy cannot be converted to any other form of life

insurance policy.

WHOLE LIFE POLICY

The whole life policy provides insurance coverage for the entire life of the insured

regardless of how many years the insurance is paid. Premiums may be paid

throughout the insureds entire life or for a portion of his life. Additionally, the premium

can be paid in one lump sum when the policy is taken out. This is referred to as a

single premium whole life policy.

When the premium is paid through out the life it is known as straight life policy, but

when the premium is paid for a specified period of time it is known as limited life

policy.

The premiums are higher for Whole life insurance as opposed to term insurance. The

reason for this is that the policy has investment features as well as death benefits. The

cash value portion of the whole life insurance belongs to the insured. One can take it

out in the form of policy loans or can cash the policy in. Another advantage of whole

life insurance is that the premiums are fixed, i.e. regardless of your age, you pay the

same amount for the coverage each year.

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Universal Life Insurance Policy

Universal life insurance is a variation of Whole Life. The difference is that with

Universal Life the insurance part of the policy is separated from the

investment portion of the policy. The cash value portion of the policy is treated

as an accumulation fund and investment income is credited to the

accumulation fund.

MONEY BACK POLICY

Money back policies provide for periodic payments of partial survival benefits during

the term of the policy, as long as the policy holder is alive.

An important feature of this type of policies is that in the event of the death at nay time

within the policy term, the death claim comprises the full sum assured, without

deduction of nay of any of the survival benefit amounts, which may have already been

paid as money back components. Similarly the bonus is also calculated on the entire

sum assured.

ENDOWMENT POLICY

An endowment policy covers the risk for a specified period, at the end of which the

sum assured is paid back to the policy holder, along with the bonus accumulated

during the term of the policy. This feature of payment of endowment to the policy

holder when the policys term is complete is responsible for the popularity of

endowment policies.

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The amount received on maturity can either be utilized either to buy an annuity policy

to generate a monthly pension for the rest of the life, or put it into any other suitable

investment of our choice. This is one important benefit which the endowment policy

offers over a whole life insurance policy.

Overall, endowment policies are the most suitable of all insurance plans for covering

the risks to a family breadwinners life. Not only do these policies provide financial risk

cover for the family, were the policy holder to die prematurely but the insurance

amount is also repaid once this risk is over. The endowment amount can then be used

for meeting major expenditures such as childrens education and marriage, etc.

Alternately, the endowment sum is available for a suitable investment geared to

providing an income for the remainder of ones own life. These type of plans are

particularly suitable to those who other than having a risk cover are also interested in

a savings component simultaneously.

PENSION PLAN OR ANNUITIES

An annuity is an investment that we make, either in a single lump sum or through

installments paid over a certain number of years, in return for which we receive a

specific sum every year, every half year or every month, either for whole life or a

fixed number of years.

After the death of an annuitant, or after the fixed annuity period expires for annuity

payments, the invested annuity fund is refunded, perhaps along with a small addition,

calculated at that time.

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Annuities differ from all the other form of life insurance in one fundamental way an

annuity does not provide any life insurance cover but, instead offers a guaranteed

income either for life or a certain period.

Typically annuities are bought to generate income during ones retired life, which is

why they are also called pension plans. Annuity premiums and payments are fixed

with reference to the duration of human life.

EVOLUATION OF LIFE INSURANCE

Basically the insurance was started by the Greeks and Romans, were in case of a

death of a member the cost of burial was contributed by the other members of the

community. This was an early concept of Insurance.

In seventeenth century, Tontine Annuity system came into existence where as

associations of individuals were formed without any consideration of age. A fund was

created in which each member contributed equal sum of money this fund was

invested and at the end of each year the obtained interest was equally divided among

the survived. The person who survived to the last received the interest as well as the

principle amount.

The first insurance company was formed in 1759 in Philidelphi, North America. Since

then over the past three centuries numbers of insurance companies are formed. And

today insurance is the fastest growing industry in the service sector because people

have accepted insurance as a protection coupled with investment.

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INSURANCE IN INDIA

In India the insurance business started in the beginning of the 19 th century.

Marine insurance was the earliest form of insurance that was transacted in India.

Marine insurance was followed fire insurance. Many foreign companies established

their branches in India, looking at the business prospects. In 1907, the India

mercantile insurance company was established as the first company of India origin.

The nationalization of insurance business was a major milestone in the development

of insurance in India.

Life insurance business was nationalized in 1956 by taking over 245 private insurance

businesses. The General Insurance Corporation (GIC) was established in 1972 by

taking over the business of 107 insurers.

OTHER COMPETITORS IN LIFE INSURANCE:-

1. Bajaj Allianz life insurance company Ltd.

2. Birla sunlife insurance Co. Ltd

3. HDFC standard life insurance Co, Ltd.

4. ING Vysya life insurance Co. pvt. Ltd

5. life insurance corporation of India

6. MAX New York life insurance co Ltd

7. MET life India insurance co pvt Ltd

8. OM Kotak Mahindra Life insurance Ltd.

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9. SBI life insurance co Ltd,

10.TATA AIG life insurance co. Ltd

11.AMP sunmar life insurance Ltd

12.AVIVA life insurance co .India Pvt .Ltd

13. Sahara India life insurance co. Ltd

Market Share of the Competitors:-

On the basis of first year premium of life insurance for year ended March 2008.

(PROVISIONAL)

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IRDA

52

. Sr.No

Insurer Market share based on

Premium Policy

1 TATA AIG 1.18 0.87

2OM KOTAK MAHINDROM KOTAK MAHINDRA 1.48 0.24

3 BIRLA SUNLINE 2.45 0.76

4 MAX NEW YORK 0.89 0.83

5 ING VYSTA 1.11 0.42

6 HDFC STANDERD 1.92 0.79

7 MET LIFE 0.22 0.18

8 BAJAJ ALLIANZ 3.39 1.10

9 ICICI PRUDENTIAL 6.25 2.34

10 SBI 1.91 0.49

11 AVIVA 0.79 0.32

12 AMP SANMAR 0.36 0.13

13 AHARA LIFE 0.01 0.04

14 LIC 78.07 91.50

GRAND TOTAL 100.0 100.0


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IRDA refers to Insurance Regulatory Development Authority. It is formed to regulate

and develop the insurance sector. It keeps check on the activities of the various Life

Insurance companies. All these companies are bound to follow the rules and

regulation laid down by IRDA.

MISSION:

To protect the interests of the policy holders, to regulate to promote and ensure

orderly growth of the insurance industry and for matters connected there with or

incidental there to.

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OBJECTIVE OF THE STUDY

The Objective of the study was to get an understanding of the life insurance segment

of the insurance industry. The Scope of the study involves

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Comparison between ICICI pru and other insurance companies in the Indian

market.

Measuring the impact of the private life insurance companies in the Indian

market and on Indian consumers.

Figure out the prospects of the private players in the Life insurance market.

Familiarizing oneself with various products available and the additional features

or the riders attached to them.

Analyzing the schemes offered by the private sector players.

Comparison of the private Life Insurance Companies products.

To approach the people for becoming a financial advisor

To study about the potential customer in the market.

To hire the new financial advisor for the company so that the business of

the company should grow faster.

To study about the marketing strategy of company.

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RESEARCH METHODOLOGY

We have conducted our research taking into consideration only 4 private players

existing in the market namely HDFC STANDARD LIFE INSURANCE, ICICI

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PRUDENTIAL LIFE INSURANCE, AVIVA LIFE INSURANCE, BIRLA SUN LIFE

INSURANCE and On the basis of their performance we have drawn conclusions for

the whole sector.

The information for the project of finance on life insurance industry has been collected

from both primary as well as secondary sources.

In case of primary sources the information was retrieved directly from the concerned

people and the authorities. We have conducted our research mainly with the help of

the invaluable inputs provided by the consumers of products of the private players in

the form of a questionnaire drafted by us. The questionnaire method was used as it is

more versatile than any other method and further a questionnaire is pre planned and

thus less time is wasted since a planned set of questions are available. We have

taken a sample size of 200 people. Our analysis is completely based on the

responses given to us by the respondents and the result for the same has been

presented in the form of pie charts and graphs.

While there was some information, which could not be obtained through

questionnaires, for that purpose we resort to personal interviews. A total of six In

depth interviews were also taken of the agents and managers of these private players.

Since secondary data are information published by others and the companies they

were easily available and not much effort was required in obtaining the information.

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SOURCES OF DATA

PRIMARY SOURCES

Questionnaires.

In depth interviews with the agents and managers of private life insurance

companies.

SECONDARY SOURCES

Newspapers.

Magazines.

Internet sites.

DATA COLLECTION

PRIMARY DATA

The primary data are those data which are collected afresh and for the first time and

happen to be original in character. The primary data to be collected for the study are-

By Structured Questionnaire (Customer)

SECONDARY DATA

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Secondary data are those data which have already been collected by someone else

and which already had been passed through the statically process. The secondary

data to be collected for the study are-

> Publication of the company

> Periodical of the company

> By Internet Websites

RESEARCH INSTRUMENT

STRUCTURED QUESTIONNAIRE:

A Questionnaire consist of a number of questions printed or typed n a definite order

on a form or set of forms. It is the set of questions presented to the retailers for their

answers. When the questions have only two alternatives or of multiple choice, then it

is known as closed-end questionnaire, which is hence used the given study.

TIME SCOPE : 45 DAYS

SCOPE OF THE PROJECT:

The scope of project was all about recruiting the financial advisors for the company

on commission basis. I was suppose to generate the leads then meet those people,

telling them the concept of financial advisor and convincing them to join the company

and finally get the undertaking forms filled and thus closing the leads.

RANDOM SAMPLING:

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In random sampling methods, the sample units are selected at random. Random

sampling follows a precisely specified system where there is no scope for biased

selection of sample units take place by sheer chance of being selected.

SAMPLE PLAN:

This is called for three decisions:-

1. Sample unit:- who is to be surveyed?

The target population that is defined.

ICICI Prudential was surveyed in this project.

2. Sample size: - the refers to the number of items 200 that is to be selected from the

universe to constitute a sample-

3. Sample Procedure: - How the respondent be chosen.

CENSUS SURVEY: - Data is collected from each and every unit in the population;

it is termed as census survey.

To overall census population of questionnaire survey hence proper sampling design

is done so that particular sample represents that census.

UNIVERSE:- Universe sampling accounts for no. of sample size upon which project

data has been collected here to gather that data my sample size was 200 which is

universe sample size.

DATA COLLECTION INSTRUMENTS:

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1. Questionnaires

2. Personal Interviews.

PERSONAL INTERVIEWS:

Personal interview is mostly commonly used method of data collection. Two purposive

communications between interviewer (researcher) and the respondent (subject) aimed

at obtaining and recording information pertinent to the subject matter of study. The

interviewer resents oral, verbal and written stimuli and receives oral resonances.

Interview may be used as the main method of data collection, or may be used as a

supplement to observation experiments or other technique.

People are more willing to speak rather than write. It also provides an opportunity to

note the body language of the respondent this is called as Personal Interview.

FIELD WORK:

I visited various places like Connaught place, Nirala Bazar, Osmanpura, Jyoti Nagar,

etc. an meet the shop keepers, housewives, student etc. I gave them information

about the concept. I got the questionnaire forms filled the people. People who were

interested in becoming financial advisor were supposed to fill the form and pay Rs.

1,000/- as their training fees. My job was getting these people motivating them and

gets them to my unit manager.

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PROBLEMS IN DATA COLLECTION:

1. People hesitated in giving personal information.

2. People dont listen and pay attention to the things they are not interested in .

3. People dont like to fill the questionnaire because of the mind set against the

surveys.

INSURANCE COMPANIES & THEIR POLICY SCHEME

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RELIANCE LIFE INSURANCE

Reliance Life Insurance Company Limited is a part of Reliance Capital Ltd. of the

Reliance - Anil Dhirubhai Ambani Group. Reliance Capital is one of Indias leading

private sector financial services companies, and ranks among the top 3 private sector

financial services and banking companies, in terms of net worth. Reliance Capital has

interests in asset management and mutual funds, stock broking, life and general

insurance, proprietary investments, private equity and other activities in financial

services.

Reliance Capital Limited (RCL) is a Non-Banking Financial Company (NBFC)

registered with the Reserve Bank of India under section 45-IA of the Reserve Bank of

India Act, 1934.

Reliance Capital sees immense potential in the rapidly growing financial services

sector in India and aims to become a dominant player in this industry and offer fully

integrated financial services.

Reliance Life Insurance is another step forward for Reliance Capital Limited to offer

need based Life Insurance solutions to individuals and Corporates.

RELIANCE AUTOMATIC INVESTMENT PLAN

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The Key benefits of Reliance Automatic Investment Plan are as follows:

A smart plan which adapts to your changing risk profile with increasing age

Option to lower the average cost of units through systematic transfer of your

funds

Flexibility to switch between funds and plans

Options for additional Insurance cover available through riders

Key Features Reliance Automatic Investment Plan

Two plan options to choose from Ready-made and Tailor-made

Life Stage asset allocation to ensure automatic change in investment patterns,

under the Ready-made Plan option

Freedom to decide your own fund mix based on your risk profile under the

Tailor-made Plan

Regular, limited, single premium paying options

Unmatched flexibility through our Exchange Option

Liquidity in the form of partial withdrawal

Option to avail of Accidental Death Benefit, Accidental Total, Premium

Disability and Term Insurance riders

Reliance Automatic Investment Plan at a glance

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Basic Plan Minimum Maximum

Age at Entry 30 days 65 years last birthday

Age at Maturity 18 years last birthday 80 years last birthday

Premium Paying

Term

5 years 30 years

Min Sum

Assured

Regular / Limited Premium: Annualised Premium for 5 years or

Annualised Premium for half of the policy term, whichever higher

Single Premium 125% of the single premium amount

Max Sum

Assured

No Limit

HDFC STANDARD LIFE INSURANCE

HDFC Standard Life Insurance HDFC Standard Life Insurance Company is a joint

venture between India's largest housing finance provider, HDFC and Europe's largest

mutual life assurance company - The Standard Life Assurance Company (U. K).

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HDFC Standard Life Insurance Company Limited is the First Private Sector Life

Insurance Company to be granted a license.

FOREIGN PARTNER:

Standard Life, UK

Standard Life, UK, founded in 1825, has been at the forefront of the UK insurance

industry for 175 years by combining sound financial judgment with integrity and

reliability. It is the Largest Mutual Life company in Europe and has total assets of Rs.

5,50,000 crore.

It is one of the very few insurance companies in the world to have received 'AAA'

rating from two of the leading international credit rating agencies, Moody's and

Standard & Poor's. Standard Life was recently voted 'Company of the Decade' in U.K.

by the Independent Brokers called IFAs.

Incorporation of HDFC Standard Life Insurance Company Limited:

The company was incorporated on 14th August 2000 under the name of HDFC

Standard Life Insurance Company Limited.

Their ambition since October 1995, was to be the first private company to re-enter the

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life insurance market in India. On the 23rd of October 2000, this ambition was realized

when HDFC Standard Life was the only life company to be granted a certificate of

registration.

HDFC are the main shareholders in HDFC Standard Life, with 81.4%, while Standard

Life owns 18.6%. Given Standard Life's existing investment in the HDFC Group, this is

the maximum investment allowed under current regulations.

HDFC and Standard Life have a long and close relationship built upon shared values

and trust. The ambition of HDFC Standard Life is to mirror the success of the parent

companies and be the yardstick by which all other insurance company's in India are

measured.

1. Endowment Assurance Plan

This plan is a with profits saving plan and is well suited for saving money for your long

term financial goals. This plan also helps provide for the needs of your family in your

absence by paying out a lump sum in the event of your unfortunate death during the

term of the policy.

2. Money Back Plan

This plan helps you plan for future anticipated expenses by paying periodic cash lump

sums to you at regular intervals. This plan also helps provide for the needs of your

family in your absence by paying them the basic sum assured plus any bonus

additions in the event of your unfortunate death during the term of the policy.

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3. Single Premium Whole of Life Plan

Single Premium Whole Of Life Insurance Plan is well suited to meet your long term

investment needs. This participating (with profits) plan offers you the following

benefits:

A sound investment

Flexibility of term

Surrender value

In case of unfortunate death

No medical requirements

4. Term Assurance Plan

If you have a family that you care for, you should consider what would happen in case

of your unfortunate death. The emotional void cannot be filled, but financial insecurity

can be avoided. By taking this affordable life insurance plan, you can provide for the

well-being of your family in case of your unfortunate death. This plan comes to you at

a minimal cost and is well-suited for the value-conscious customer.

5. Loan Cover Term Assurance

If you are taking a loan to buy a house for your family, this plan can help you ensure

that life's uncertainties do not affect their shelter. It is an affordable plan that has been

designed to help your family repay the outstanding loan in case of your unfortunate

death.

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6. Personal Pension Plans

This participating (with profits) plan is basically a savings contract, which is designed

to provide an income for life from retirement. It does this by providing a notional lump

sum on retirement, comprising of sum assured plus any attaching bonus. Subject to

the prevailing regulations, part of this lump sum can be taken in form of cash and the

rest converted to an annuity at the rate then offered by HDFC Standard Life.

Alternatively, if it is permitted by the prevailing regulations, the notional lump sum can

be used to buy an annuity with any other insurance company

AVIVA LIFE INSURANCE

THE COMPANY

Aviva Life Insurance is a joint venture between Dabur and Aviva. Aviva Plc is UK's

largest insurance group. Today, with 25 million customers in over 50 countries and

assets under management in excess of US $300 billion AVIVA life insurance is the

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oldest company in the world and is a pioneer in its own field. It is the 3 rd largest Life

insurance company in the global. It has its root in U.K where it is the largest insurer.

Most lives in U.K are covered by AVIVA. The asset of AVIVA is over $300 billion. It

has got 25 million customers worldwide and reaping the benefit of the product. Around

64,000 people are working for AVIVA worldwide. It has 40 major partnerships with

leading banks across the globe.

In India it has tied up with well know and admired company DABUR. The joint venture

is form to cater the growing need of life insurance.

Founded in 1884, Dabur is one of India's oldest and largest groups of companies with

annual sales of Rs. 1,200 crores. It is the country's leading producer of traditional

healthcare products.

Together they have been looking after generations of customers, over hundreds of

years, and are committed to ensuring that we enjoy the very best financial health.

Aviva Life Insurance aims for superior long-term investment performance and has the

financial and management strength to deliver. Along with millions of customers

worldwide we can feel certain of our choice, whether we invest for the future or

provide against the unexpected.

PRODUCTS AND SERVICES

At Aviva Life Insurance, insurance plans are created keeping in mind the changing

needs of you and your family. Our individual life insurance plans are designed to

provide you with flexible options that meet both protection and savings needs.

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LIFE LONG

Life Long is a flexible whole life plan designed to suit your individual requirements, no

matter which life stage you are in and change as your needs change during your

entire life. For younger families, maximum protection can be provided at moderate

cost but as the need for protection in future reduces, the sum insured under the policy

may be reduced, thus increasing the savings content.

LIFESAVER

Life Saver is a flexible endowment plan designed to meet your specific long-term

savings needs such as education and wedding costs, with the added reassurance of

life cover to meet those costs should something untoward happen before the policy

matures.

LIFEBOND

Life Bond is a single premium savings plan designed by Aviva to provide you the

maximum benefit of investment return and the security of the investment to match

your medium term savings needs.

CORPORATE LIFE

Corporate Life is a product designed primarily for the corporate sector to provide life

cover to their employees. The product can also be targeted at other suitable groups.

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This is a group term insurance product, which provides cover against risk of death.

The Corporate is the master policyholder. It is a yearly renewable product. Additional

covers against accidental death and permanent total disability are also available, if

opted for by the master policyholder.

EASY LIFE PLUS

Easy Life Plus is designed to be a simple regular savings plan with the benefit of life

protection. By choosing an appropriate premium level and term, you can match the

maturity date of the policy to a specific savings need such as childrens education,

wedding, etc. Easy Life Plus is specially designed for members of select groups such

as Bank Customers, Employer-Employee, or any other similar recognized group.

CREDIT PLUS

Credit Plus is a product specially designed for Micro Finance Institutions who provide

loans to individuals in the rural and social sectors and who would also like to provide

some financial security to the families of these individuals (members).This is a yearly

renewable group term insurance scheme which provides death cover on group basis.

PENSION PLUS

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Pension Plus is a tax efficient personal pension plan that is designed to help you earn

a regular income even after you stop working. Through this plan, you build a fund till

you retire which provides you financial security on retirement.

SECURE LIFE

Secure Life is an ideal life insurance plan that helps you protect your familys future.

Depending on your requirements, whether it be for your childs education or marriage,

loan repayments, etc., Secure Life ensures that your familys needs are met should

something unfortunate happen to you. What is more, the entire premium that you pay

during the policy term is returned to you on survival, at maturity.

BIRLA SUN LIFE INSURANCE

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The Aditya Birla Group consists of companies based at transnational locations,

comprising of some of the best-known companies in India. The group companies have

attained a leading position in a range of key core sector areas and rank among the

countrys largest, most profitable and fastest growing companies. At the Aditya Birla

Group, growth with excellence is a way of life. With a turnover of over Rs 280 billion

(US $6.01 billion), and fixed assets worth Rs 265 billion (US $5.7 billion), the group is

India's leading business house. The Group's employs around 72,000 people and has

700,000 share holders spread across 40 companies situated around the globe.

Sun Life Financial is a leading international financial services organization. With a

history that dates back to 1871, Sun Life Financial has evolved from a single mutual

life insurance to one of the most highly rated insurance and wealth management

institutions in the world. Sun Life Financial knows its value lies in more than assets

and history. It also lies in the culture of integrity and the pursuit of excellence that have

marked all of the organizations endeavors. Today, the Sun Life Financial Group of

companies and partners are represented globally in Canada, the United States, the

Philippines, Japan, Indonesia, India and Bermuda.

Birla Sun Life Insurance is the coming together of the Aditya Birla group and Sun Life

Financial of Canada to enter the Indian insurance sector.

INSURANCE PRODUCTS

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YOUNG SCHOLAR

Birla Sun Life Insurance, have specially designed the YOUNG SCHOLAR PACKAGE

for children aged 8 and below. Birla Sun Life's Young Scholar package not only

insures the parent, but also ensures the dream of your child becomes a reality.

Savings... Easily achievable Guaranteed 6% Returns

FLEXI LIFE LINE WHOLE LIFE PLAN

Flexi Life Line Whole Life Plan is an investment in the future which ensures that your

hard earned money gives you higher returns as well as security to your loved ones.

Unique Features:

Choice of Investment Options.

Automatic Premium Payment.

Free Look Period.

Access your funds during the duration of the plan.

Favorable premiums for Female Clients.

BIRLA SUN LIFE TERM PLAN

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This low cost plan is for those who would like to buy an insurance cover at a low cost.

The premium of this plan is low and offers high life coverage. This plan takes care of

the policyholder's financial commitment to his family if anything unfortunate happens

to him.

Eligibility:

The minimum eligibility age is 18 and maximum is 55 years.

Duration of the plan:

The duration of the plan can be 5,10,15,20 or 25 years. (The maximum age at

maturity is 70 i.e., a person aged 55 can buy a maximum benefit period of 15 years).

Premium Payment:

Premiums can be paid annually, semi annually or quarterly throughout the duration of

the plan or by a one time single premium. In case of non-payment of premiums on due

dates, a grace period of 30 days is given after which the policy will lapse.

Free plan Trial

This option called Free Look Period begins from the date of dispatch of policy

document. Under this trial the customer is allowed to review his decision for 14 days.

If the policyholder wishes to cancel his plan within this period, full refund of the

premium amount paid is offered.

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Description Birla Sun Life Term PlanEligibility 18 - 55 years

Minimum Face Amount

(Sum Assured)

Rs 2,50,000 in case of single premium and Rs 2 ,00,000

in case of annual premium for a person fulfilling the

eligibility criteriaDuration of the plan As per the policy terms - 5,10,15,20 or 25 yearsPremium Paying Period Single pay, or over the duration of the planPremium Payment

Frequency

Annually, semi-annually, quarterly, monthly or One-time

payment

Free Look PeriodReview your decision for 14 days from the date of

dispatch of the policy document.Amount due to nominee in

event of death of the life

insured

Face Amount ( Sum Assured)

Amount due on survival upto

maturityNil

Surrender Value Nil

RidersAccidental Death & Dismemberment and Critical Illness

riders but only at the time of purchase of policy

Tax Benefits As per Sec. 88 and Sec.10(10D) of the Income Tax Act

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DATA ANALYSIS AND INTERPRETATION

It may be noted that the pie charts and bar diagrams have been drawn on the basis of

the total number of questionnaires filled i.e. 200 and on the basis of the number of

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responses we have received for each question. The interpretation for the same has

been done in percentage form.

1. Thinking of insurance, what comes to your mind?

INSURANCE MEANS

50%

30%

20% LIC

SECURITY

TAX SAVING

Majority of the population(50%), when they think of insurance it means LIC where as

20% & 30% of the population think it as tax saving and security respectively. Thus it

can be seen that LIC is well based in the minds of the people

2. out of the following, you have an insurance policy of (put tick mark)

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LIC [ ] AVIVA [ ] NEW YORK MAXLIFE [ ] ICICI [ ]

BIRLA SUNLIFE [ ] HDFC [ ]

Others, specify

INSURANCE POLICY PEOPLE HAVE

40

94

20

7

18

0

1020

30

40

50

COMPANIES

No.OFPEOPLE

LIC

AVIVA

NEW YORK MAXLIFE

ICICI

BIRLA SUNLIFE

HDFC

Major part of the population has their insurance policy in LIC. And the private players

are only able to get few policies done after the insurance sector was privatized of

which, ICICI & HDFC have the majority of it.

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3. What type of policy do you have?

TYPES OF POLICIES PEOPLE HAVE

20 20

1214

28

0

5

10

15

20

25

30

POLICIES

No.OFPEOPLE

ENDOWMENT

WHOLE LIFE

MONEY BACK

SINGLE PREMIUM

TERM POLICY

Most of the people have term policies; endowment and whole life are on the same

platform. Money back and single premium are less desirable by the people.

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4. What do you look for, while opting for a Life Insurance Company?

PEOPLE LOOK FOR WHILE OPTING FORLIFE INSURANCE COMPANY

24%

33%9%

34% RETURN ONINVESTMENT

GOODWILL

ADDITIONAL

BENEFITS

SECURITY

When people opt for a Life Insurance Company, most of them look for security of their

money, goodwill of the company and return on their investment. Not many of them

look for additional benefits.

5. What do you look for, while opting for a Life Insurance policy?

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PEOPLE LOOK FOR WHILE OPTING FOR

LIFE INSURANCE POLICY

22%

24%

23%

31%TAX SAVING

INCOME

SECURITY

OLD AGE

BENEFITS

SAVINGS

In India most of people take insurance policy because it gives them tax benefits. It

plays a major role. Others such as income security, savings and old age benefits go

behind it.

6. Do you think insurance is superior to other forms of savings?

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INSURANCE SUPERIOR TO OTHER

FORM OF SAVINGS

84%

16%

YES

NO

Majority of the population believe that insurance is superior to other form of savings. It

provides tax benefits which are not provided in other forms of savings and to the more

it provides security for the future.

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7. Is price an important consideration while opting for an insurance

policy?

PRICE IS AN IMPORTANT CONSIDERATION

74%

26%

YES

NO

Most of the people when they opt for an insurance policy, price is an important

consideration for them. However, about 26% of the population do not consider price

as an important consideration while opting for an insurance policy.

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8. At any point of policy period, have you ever claimed your policy?

PEOPLE CLAIMED THEIR POLICIES

DURING THE POLICY PERIOD

24%

76%

YES

NO

Though only 24% of the population has claimed their policy during their policy period,

but they are not satisfied because the process has lots of hassles and time taking.

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9. Have you ever insured with LIC?

PEOPLE INSURED WITH LIC

92%

8%

YES

NO

The result for this question proved the fact that majority of the insured people in INDIA

has their faith in LIC. Around 92% of the surveyed population has insured with LIC.

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10. Any particular reason for opting ?

About 60% of the population does not have any reason for opting out of LIC. Howev

Comparative Study of Marketing Field in (Icici)

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