CHAPTER-1

PROFILE OF THE COMPANY

INTRODUCTION
A) INSURANCE IN INDIA: The insurance sector in India has come a full circle from being an open competitive market to nationalization and back to a liberalized market again. Tracing the developments in the Indian insurance sector reveals the 360-degree turn witnessed over a period of almost two centuries. With largest number of life insurance policies in force in the world, Insurance happens to be a mega opportunity in India. It is a business growing at the rate of 15-20 percent annually and presently is of the order of Rs 450 Billion. Together with banking services, it adds about 7 per cent to the countrys GDP. Gross premium collection is nearly 2 per cent of GDP and funds available with LIC for investments are 8 per cent of GDP. Yet, nearly 80 per cent of Indian population is without life insurance cover while health insurance and non-life insurance continues to be below international standards. In addition, this part of the population is subject to weak social security and pension systems with hardly any old age income security. This is an indicator that growth potential for the insurance sector is immense. A well-developed and evolved insurance sector is necessary for economic development as it provides long-term funds for infrastructure development and at the same time strengthens the risk taking ability. It has estimated that, over the next ten years India would require investments of the order of one trillion US dollar. The Insurance sector,

to some extent, can enable investments in infrastructure development to sustain economic growth of the country. B) HISTORICAL PERSPECTIVE ABOUT LIFE INSURANCE IN INDIA: The history of life insurance in India dates back to 1818 when it was considered as a means to provide for English Widows. Interestingly in those days, a higher premium was charged for Indian lives than the non-Indian lives, as Indian lives were considered more risky for coverage. The Bombay Mutual Life Insurance Society started its business in 1870. It was the first company to charge same premium for both Indian and non-Indian lives. The Oriental Assurance Company established in 1880. The General insurance business in India, on the other hand, can trace its roots to the Triton (Tital) Insurance Company Limited, the first general insurance company established in the year 1850 in Calcutta by the British. Until the end of nineteenth century, insurance business was almost entirely in the hands of overseas companies. C) Important milestones in the life insurance business in India: 1912: The Indian Life Assurance Companies Act enacted as the first statute to regulate the life insurance business. 1928: The Indian Insurance Companies Act enacted to enable the government to collect statistical information about both life and non-life insurance businesses. 1938: Earlier legislation consolidated and amended to by the Insurance Act with the objective of protecting the interests of the insuring public.

1956: 245 Indian, foreign insurers and provident societies were took over by Central government and nationalized. LIC formed by an Act of Parliament- LIC Act 1956- with a capital contribution of Rs. 5 crores from the Government of India.

NEED FOR INSURANCE

Superior to an ordinary savings plan as it provides full protection against risk of death. Encourages and forces compulsory savings unlike other saving instruments, wherein the saved money can be easily withdrawn. Provides loan to tie over a temporary difficult phase and is also acceptable as security for a commercial loan. Offers tax relief to policyholders. Hedges risk against uncertainty. For a policy taken under the MWP Act 1874, (Married Women's Property Act), a trust is created for wife and children as beneficiaries. Based on the concept of sharing of losses, the society will benefit as catastrophic losses are spread globally.

NEED FOR LIFE INSURANCE

Life brings with it many surprises, some pleasant and some not so and a Life Insurance Plan ensures that you are better prepared to face uncertainties. In a number of ways: A) Protection: You need life insurance to be there and protect the people you love, making sure that your family has a means to look after itself after you are gone. That is a good reason. 4

Supposing you are suffered by an injury that keeps you away from earning? Would you like to be a financial burden on your family, already losing out on your salary? With a life insurance policy, you are protected. Your family is protected.

B) Retirement: Life insurance makes sure that have regular income after retire and also helps to maintain standard of living. It can ensure that your post-retirement years will be spent in peace and comfort. C) Savings and Investments: Insurance is a means to Save and Invest. The periodic premiums are like Savings and you are assured of a lump sum amount on maturity. A policy can come in really handy at the time of your childs education or marriage! Besides, it can be used as supplemental retirement income. D) Tax Benefits: Life insurance is one of the best tax saving options today. Tax can be saved twice on a life insurance policy-once when you pay your premiums and once when you receive maturity benefits. Money saved is money earned.

INTRODUCTION TO ICICI GROUP

ICICI BANK ICICI Bank is Indias second-largest bank with total assets of about Rs.112.024 crore and a network of about 450 branches and offices and about 1750 ATMs. ICICI Bank offers a wide range of banking products and financial services to corporate and retail customer 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 Banks 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). ICICI Bank was originally promoted in 1994 by ICICI Limited, an Indian financial institution, and was its wholly owned subsidiary. ICICIs shareholding in ICICI Bank was reduced to 46% through a public offering of shares in India in fiscal 1998, an equity offering in the form of ADRs listed on the NYSE in fiscal 2000, ICICI Banks acquisition of Bank of Mathura Limited in an all-stock amalgamation in fiscal 2001, and secondary market sales by ICICI to institutional investors in fiscal 2001 and fiscal 2002. ICICI was formed in 1955 at the initiative of the World Bank, the Government of India and representatives of Indian industry. The principal objective was to create a development financial institution for providing medium term and long term project financing to Indian businesses. In the 1990s, ICICI transformed its business from a development financial institution offering only project finance to a diversified financial

services group offering a wide variety of products and services, both directly and through a number of subsidiaries and affiliates like ICICI Bank, In 1999, ICICI become the first Indian company and the first bank or financial institution from non-Japan Asia to be listed on the NYSE. After consideration of various corporate structuring alternatives in the context of the emerging competitive scenario in the Indian banking industry, and the move towards universal banking, the management of ICICI and ICICI Bank formed the view that the merger of ICICI with ICICI Bank would be the optimal strategic alternative for both entities, and would create the optimal legal structure for the ICICI groups universal banking strategy. The merger would enhance value for ICICI shareholders through the merged entitys access to low-cost deposits, greater opportunities for earning fee-based income and the ability to participate in the payment system and provide transactionbanking services. The merger would enhance value for ICICI Bank shareholders through a large capital base and scale of operations, seamless access to ICICIs strong corporate relationships built up over five decades, entry into new business segments, higher market share in various business segments, Particularly fee-based services, and access to the vast talent pool of ICICI Bank approved the merger of ICICI and two of its wholly-owned retail finance subsidiaries, ICICI Personal Financial Services Limited and ICICI Capital Services Limited, With ICICI Bank. Shareholders of ICICI and ICICI BANK approved the merger in January 2002, by the High Court of Gujarat at Jalandhar in March 2002, and by the High Court of Judicature at Mumbai and the Reserve Bank of India in April 2002. Consequent to the merger, the ICICI groups financing and banking operations, both wholesale and retail, have been

integrated in a single entity. ICICI Bank is the only Indian company to be rated above the country rating by the international rating agency moody s and the only Indian company to be awarded an investment grade international credit rating. The Bank enjoys the highest AAA (or equivalent) rating from all Leading Indian rating agencies.

Prudential P.L.C.
Established in 1848, today prudential plc is a leading international financial services company with some 16 million customers, policyholders and unit holders and some 20,000 employees worldwide. 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 Groups UK and European fund manager, responsible for managing over of 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 millions policies and contracts in force. 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 UKs 9

Largest life insurance company with a vast network of 22 life and mutual fund operations in twelve countries China, Hong Kong, India, Indonesia, Japan, Korea, Malaysia, the Philippines, Singapore, Taiwan, Thailand and Vietnam. Since 1923, Prudential has championed customer-centric products and services, supported by over 60,000 staff and agents across the region. Prudential plcs strong mix of business around the world positions us well to benefit form the growth in customer demand for asset accumulation and income in retirement. Our international reach and diversity of earnings by geographic region and product will continue to give us significant advantage. Our commitment to the shareholders who own Prudential is to maximize the value over time of their investment. We do this by investing for the long term to develop and bring out the best in our people and our businesses to produce superior products and services, our international peer group in terms of total shareholder returns. At Prudential our aim is lasting relationships with our customers and policyholders, through products and services that offer value for money and security. We also seek to enhance our Companys reputation, built over 150 years, for integrity and for acting responsibly within society.

ICICI Prudential Life Insurance: 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

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the first private sector insurance companies to begin operations in December 2000 after receiving approval from insurance Regulatory Development Authority (IRDA). ICICI Prudential s equity base stands at Rs.6.75 billion with ICICI Bank and Prudential plc holding 74% and 26% stake respectively. In the year ended March 31,2004 the company had issued over 430,000 policies, for a total sum assured of over Rs 8,000 crore and premium income in excess of Rs.980 crore. The company has a network of about 30,000 advisors; as well as 12 banc assurance tie-ups. Today the company is the number one private life insurer in the country.

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ICICI PRUDENTIALS PRODUCTS

Insurance solution for individuals.. ICICI Prudential Life Insurance offers a range of innovative, customer-centric products that meet the needs of customers at every life stage. Its 17 products cab is enhanced with up to 6 riders, to create a customized solution for each policyholder.

Savings Solutions.. Secure Plus is a transparent and feature-packed savings plan that offers 3 levels of protection. Cash Plus is a transparent, feature-packed savings plan that offers 3 levels of protection as well as liquidity options

Protection Solutions.

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LifeGuard is a protection plan, which offers life cover at very low cost. It is available in 3 coupons level term assurance, level term assurance with return or premium and single premium.

Child Solutions. Smart kid child plans provide guaranteed educational benefits to a child along with life insurance cover for the parent who purchases the policy. The policy is designed to provide money at important milestones in the childs life. SmartKid child planed are also available with in unit-linked form both single premium and regular premium. Market-linked Solutions LifeLink is a single premium Market Linked Insurance Plan, which combines life insurance cover with the opportunity to stay, invested in the stock marketIt offers 3 investment options Growth Plan, Income plan and Balance plan.

Retirement Solutions

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Forever Life is a retirement products targeted at individual in there thirties. Secure Plus Pension is a flexible pension plan that allows one to select between 3 levels of cover.

Group Insurance Solutions ICICI Prudential also offers Group Insurance Solutions for companies seeking to enhance benefits to their employees.

Group Gratuity Plan ICICI Prus group gratuity plan helps employers fund their statutory gratuity obligation in a scientific manner. The plan can also customize to structure schemes that can provide benefits beyond the statutory obligations. Group Superannuation Plan .. Employees have the option of choosing from various annuity options or opting for partial commutation of the annuity at the time of retirement.

Group Term Plan

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ICICI Prus flexible group term solution helps provides affordable cover to members of group. The cover could be uniform or based on designation/rank or a multiple of salary. The benefit under the policy is paid to the beneficiary nominated by the member on his/her death. Accident & 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 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. Accident benefit: This rider option pays the sum assured the rider on death due to accidents. Critical Illness Benefit: protects the insured against financial loss in the event of 9 specified critical illnesses. Benefits are payable to the insured for medical prior to death. Major Surgical Assistance Benefits: provides financial support in the event of medical emergencies, ensuring that benefits are payable to the life assured for medical expenses Incurred for surgical procedures. Cove is offered against 43 different surgical procedures.

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AWARDS AND RECOGNITIONS:

A) AWARDS:

ICICI Prudential Life was awarded the Life Insurance Company of the Year at the 12th Asia Insurance Industry Award 2008.

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ICICI Prudential Life won the Award for Brand Excellence in the Banking and Financial services category at the Asia Brand Congress 2008.

Ms. 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.

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

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Ms. Shikha Sharma, MD & CEO, ICICI Prudential Life Insurance was awarded the Outstanding Businesswoman of the Year at CNBC TV18's India Business Leader Awards 2007.

ICICI Prudential Lifes, retirement solutions campaign for the year 2006-07 was awarded the Bronze Effy trophy in the services category. It also won the Brand Equity Bravery Award 2007, instituted by Ad club. B) RECOGNITIONS: A) ICICI Prudential Life was recognized as the most trusted brand amongst private life insurers in the Economic Times-Most Trusted Brand survey 2008. B) IMM Award for Excellence. Institute of Marketing & Management. C) Organization with Innovative HR Practices. Indira Group of Institutes. D) Organization with Innovative HR Practices. Asia-Pacific H R Congress Awards for HR Excellence.

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RESEARCH DESIGN & METHODOLOGY

Objectives To know what are the priorities of people of city for making investment in Insurance. To know what are the perception of the consumer about ICICI Prudential Life Insurance Co. To know the standing of the ICICI Prudential Life Insurance Co. in Delhi.

Data Source: The data is collected from both primary as well as secondary source. Consumers was asked to fill questionnaires to arrive at the information. Various secondary sources of data as magazines, journal, Internet etc. were be explored. Sampling Area: The sampling areas of this research is Delhi.

Sampling method: The convenient sampling method was used for this research and the respondents were those who have already taken life insurance policy. Sample Size: The size of this research is 50 respondents.

Research Instrument: The research instruments which was used for collecting the data is questionnaire.

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Method of contact: The method of contact would be personal and direct as this will help to qualify the customers issues while filling up the questionnaire and also helps them if they do not have the knowledge about any insurance plan of the company.

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CHAPTER-2

SWOT ANALYSIS OF THE COMPANY

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SWOT ANALYSIS

Strengths Flexible Products Partners having experience in different markets of the world. Synergy with existing operations Expertise in the field of insurance Professional management Good Customer service Create a brand name

Weakness Low capital base Yet to build strong distribution network Cannot tap rural market

Opportunities 22

 Untapped market Banks ready to tie up for as a readymade distribution network for a small fee.

Threats Large distribution network of LIC Decades of experience and brand name of LIC 5% service tax on investments.

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CHAPTER-3 FUNCTIONAL ANALYSIS OF THE COMPANY

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HUMAN RESOURCE DEPARTMENT

ICICI Prudential is having two types of employees direct and indirect. They are recruited from employment exchanges. Except PF there is no other fringe benefit for temporary employees. There are different types of fringe benefit for permanent employees. HR Department is working under leadership. Working period is from 10 am to 5 pm. Working days are f r o m M o n d a y t o S a t u r d a y . Production department, Quality control department works for 24 hrs. So there are three shifts per day. These shifts are from 6.30 am to 2.30 pm, 2.30 pm to 10.30 pm, and 10.30 pm to 6.30 am. The important functions performed by the department are Induction and Orientation Training Performance Appraisal Promotion Recruitment

Recruitment

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Temporary recruitment is done through employment exchanges. The company has both permanent and temporary employees. The duration of temporary employees is 180 days. For permanent recruitment they first give notification in minimum three newspaper. From the approved application, candidates are selected for written tests. Those who passes the written test are called for interview. Permanent recruitment is done by the head office.

Training
Training is given to the permanent employees, both off the job and on the j o b t r a i n i n g i s g i v e n . H R d e p a r t m e n t i s i n c h a r g e o f p r o v i d i n g t r a i n i n g t o t h e permanent employee.

Promotion
Promotion are of two types i.e. seniority based promotion and performance based promotion. Middle level employees are promoted on the basis of their seniority and top level employees are promoted on the basis of performance.

MARKETING AND SALES DEPARTMENT

A product is anything that can be offered to satisfy a need or want. S o , a social and managerial process by which individuals and groups obtain what they need and want through creating, offering and exchanging products of value with others that is called marketing. Marketing starts with human needs, wants, demands and human satisfaction. People satisfy their needs and wants with products. Actually, selling is preoccupied with the sellers need to convert his product into cash, but marketing is the idea of satisfying the needs of the 26

customer by means of the product and the whole cluster of things associated with creating, delivering and finally consuming it. Marketing concept has constructed mainly on four pillars:

MARKETING RESEARCH
Marketing Research is the systematic method of gathering, recording, objective, search and analyzing of valid and reliable information relating to the marketing of goods. Several factors are contributed to the growth of marketing research. The shift from rural to urban areas has widened the scope for the scope for the marketing of various types of goods and services in the urban areas.

FINANCE AND ACCOUNTS DEPARTMENT

An organization communicates its financial information to the users through financial statements and reports. Financial statements contain summarized information of the organizations financial affair organized systematically. T h e s e s t a t e m e n t s comprise the income statements or profit and loss account and the position statement or the balance sheet. To give a full view of the financial affairs of the undertaking it is also necessary to include a statement of retained earnings, a statement of changes in the financial position and a few schedules such as schedule of fixed assets and schedule of debtors. QUALITY CONTROL DEPARTMENT As the name suggests this department takes care of the quality of insurance policies offered by the company. This department plays an important role in the company. Quality control department sees that every insurance which has been sold should not be based on fake promises and should meet the requirement of customers. 27

IT AND SYSTEMS DEPARTMENT IT and Systems department of ICICI prudential life insurance is responsible for all the work related to information technology. In this company every department use different software. Each department is connected through this software and according to their requirement every department take information from that software. If there is any problem with the systems, software or networking then system department staff is called.

CHAPTER-4 LESSONS LEARNT

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MY EXPERIENCE IN ICICI PRUDENTIAL

My summer internship started in flying colors as Mr. C. Senthil Vel, AFSM and Mr. S.K.M. Rajesh Kumar (Sales Manager) of ICICI Prudential Life Insurance, Madurai who gave an excellent presentation about their organization and about Life insurance market in India. My summer internship structure for 2 months was developed by Mr.C.Senthil Vel as per his plan, he wanted to give us practical exposure of Life Insurance Industry. As per his plan he told me to join with F.S.C team. From the 1st day itself, I went to calls with the team. In the beginning days, I felt difficult in explain the policies but later on, I managed to explain about the policies. Many of the customers asked me Is it an insurance firm? as soon as I said that I am calling from ICICI PRUDENTIAL I cannot tell them anything rather than yes sir as soon as tell yes they said that I am not interested. Some people will hear the whole story and will say that I am little busy with my work and call me later or tomorrow. Many people were asking why I should take life policies. I answered that to overcome risk sir their next question was what risk? I cannot tell them that if u die it will be financial support to your family sir.

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A) STEPS FOLLOWED IN TELEMARKETING OF POLICIES: Firstly, I would make a call to the customer. I request the customer to share a few minutes with me to know about the insurance plans available. Depending on the age of the customer I inform him about the various plans that would suit him. If he has any children I also explain him about the child plans available. I clearly explain him about the Tax benefits which he will receive. I also explain about the short term and the long term plans. If he is interested I tell him that I would like to have an appointment with him at any convenient place to give more detailed information about the plans. This is my personal experience in ICICI prudential life insurance.

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FINDINGS
80% of the respondents have bought a life insurance policy from ICICI Prudential Life Insurance Company Ltd. ICICI Prudentials Life Time, Retirement Solutions and Smart Kid are the most preferred policies among all types of policies of the company. 63% of the respondents have a High level of satisfaction for the policy service and all of the respondents are satisfied with the existing features of their life insurance policy. Life Risk cover is the main criterion for buying a Life Insurance policy followed by benefit of income tax rebate. Majority of the respondents have implicit faith in Private Life Insurance companies as they believe they are trustworthy. 90% of the policy holders opined that the prices of policies of Private Life Insurance companies are affordable. The most important guidance/service expected from a Life Insurance advisor is the thorough and detailed explanation of policy features.

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 All the respondents (100%) are aware of ICICI Prudential their main source of awareness being Life Insurance advisors and advertisements. 90% of the respondents who hold ICICI Prudentials Life Insurance policy would prefer to go in for another policy only from ICICI Prudential. The most important reasons for this are brand name, wide varieties of policies to choose from and good servicing of policies.

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