REPORT ON AGENCY SELECTION & INVESTMENT BEHAVIOR OF GOVERNMENT EMPLOYEE S

AT ICICI PRUDENTIAL LIFE INSURANCE COMPANY LTD., RAJKOT

A PROJECT REPORT SUBMITTED IN PARTIAL FULFILLMENT OF SUMMER TRANING OF M.B.A. DEGREE.

BY

MANIAR NISHIT P. ROLL NO .

3041

Acknowledgement
It is a matter of great pleasure for me, to get this opportunity of expressing my deep and sincere sense of gratitude to my reserved and learned professor of M.B.A department Shri M.N.Khandelwala, Shri Neeraj Amarnani whose inspiration and guidance gave me sufficient strength t finish the Industrial Awareness Training. On occasion for submitting the Industrial Awareness Training it is with profound feelings of gratitude, I place on record my extreme indebtness to Shri Pankaj Agrawal (A.S.M.) and Shri Abhay Raj (Branch Manager) ICICI Prudential Life Insurance Company Ltd, Rajkot for permitting me to undergo training as a part of my study in M.B.A. after 1st year. I shall fail in my duty if I do not express my sincere feelings of thanks and gratitude to Shri Amit Doshi, under whom I undergo my training His punctuality, discipline, hard working nature and sincerity will inspire me, whenever I go. My sincere thanks also goes to all the member of the company for giving me information and clarifying my doubts, obligatory.
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Last but not the least, I extend my thanks to all who shared with me at any stage.
-MANIAR NISHIT P.

Preface
As a part of our syllabus of after 1st year in M.B.A. we have to go through eight weeks of Summer Training in any reputed Industry. During this period we have to observe/critically analyse our own live experience about the culture, the procedure and people at work. We have to understand basic interrelationship between sales and Marketing function, Human management department, Finance department and different service functions for integration of an organization. We have to prepare a Report based on our own exposures and experiences during training and give update and relevant information regarding making of a Marketing strategy and changes in product applied in industry. For this, I select ICICI PRUDENTIAL LIFE INSURANCE COMPANY LTD. branch at Rajkot, which is selling life insurance policy. The subject of Marketing is the creation of new better idea and improving the existing ones. A new and better marketing strategy is one, which give more strength to business. From the study of existing ideas, a new idea is to be conceived. For the successful implementation of the marketing strategy into an actual reality. Taking this in consideration, I select the subject of my Project Work as A study of Agency selection process in ICICI Prudental Life Insurance Co. Ltd. Rajkot
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Branch & Investment Behavior study of Government employees in Rajkot

-

MANIAR NISHT P .

The oldest theory given by Darwin has always proved its existence. It is not the most strongest of the species which survives and nor the most intelligent of them, but it is one who is most responsive to change At last the Indian Government have realized this for the insurance sector resulting in its liberalization. The History of insurance goes back to the 12th century. It was used as a tool for protection against financial loss to the seafarers involved in foreign trade. Form then the insurance industry has undergone several changes. The changes in needs and risks involved in human life and possessions have given a new look to the insurance industry India has witnessed its insurance industry taking a full turn, Privatization to Nationalizations and back to Privatization. The Indian Life Insurance sector, which was dominated by private players, was nationalized in 1956 and The Life Insurance Corporation of India was formed. The Nonlife insurance business was nationalized in 1972 under the aegis of General Insurance Corporation, under which four subsidiaries were established. And now the government intends to give both the LIC and the GIC some real competition by privatizing the insurance sector. As the doors are being opened, Insurers worldwide are spreading wings to have a bite in the vast Indian Insurance pie.
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Executive Summary

India has an amorphous middle-class of about 300 million people who can afford to buy life, health, and disability and pension plan products. Out of this, only 20% have insurance -and that too covers only 25% of their needs and financial capacity. The remaining 80% have no insurance cover. The life insurance market of India, therefore, is practically untapped. With the liberalization and entry of foreign players in the field, the already existing players - LIC and GIC are going to face a tough competition. One of the factors in favor of LIC and GIC is that they have a very good network to tap the rural and market. But still they will have to bring changes in their policies to stand the fierce competition. So the state owned insurance companies are feeling the warming up of competition as private players are queuing up to capture some portion of the accounts. ICICI Prudential Life Insurance Co. Ltd., give high competition to national player in insurance industry company capture 8% out of 100%. And in private insurance sector ICICI Prudential is No. 1 company with 40% share. Company has flexible product, which is suitable for any person. Company gives market link product, which give high return with some risk. People who wants high return company give with low risk. All type of product for all age of person. For achieve 1st rank in insurance industry company recruit best advisor. Because they are main strength of the company. By this advisor, a force company can reach at every part of the country. Company has 30,000 advisors in all part of the country. Company looking for different segment for recruit best advisor, which can give good business for company
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like Jewelers, Share-Broker, Businessman and Marketing Executive etc.. These are the segments, in which company looking for recruit businessman. For knowing awareness about Section 88, Section 80ccc (i) and investment behavior in Central Government employee doing a research. And went to Custom Department, Telephone Department and other department. Here sample size is 130, in this sample all employees are in different income tax slab. In 21st century, in a competition era ICICI Prudential Company wants to be No.1 in Insurance industry. And therefore looking best advisor and also doing survey to check awareness in people.

CONTENT
PART 1: INTRODUCTION
CONTENT 1: 3 WHY OF PROJECT CONTENT 2: INTRODUCTION OF INSURANCE CONTENT 3: ABOUT COMPANY 02 05 16

PART 2: AGENCY RECRUITMENT

CONTENT 1: AGENCY RECRUITMENT PROCESS 28 CONTENT 2: WORKING SEGMENT 29 CONTENT 3: RESULTS 32

PART 3: INVESTMENT BEHAVIOR STUDY

CONTENT 1: OBJECTIVE CONTENT 2: GRAPHS & CALCULATIONS 34 36
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 CONTENT 3: INFERENCES

47 48

ANNEXURE CONCLUSION
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BIBLIOGRAPHY

51

PART 1
8

INTRODUCTION

3 WHY OF PROJECT
Why we have e!e"#e$ #he !%&e %' ()a'"e e"#*)+
Life insurance sector acts as the backbone of any economy. This sector pools large fun s from masse an then in!ests in the infrastructure pro"ects as sell as other long#term pro"ects$ %hich pro uce a regular income flo% in coming years. Tra itionally$ life insurance %as "ust taken to the sector ne% customi&e pro ucts ha!e been intro uce . 'ence$ no% if you %ant to sell life insurance pro uct to anyone you ha!e to analy&e his(her life stage$ risk preference$ priorities an then suggest the appropriate pro uct to that in!estor. This %oul nee a great eal of financial planning kno%le ge$ as %ell as the kno%le ge about the current financial market thus you can compare the other financial pro uct to the insurance pro uct an then con!ince your client about the insurance pro uct. )lso insurance companies has to manage their in!estment in such a %ay that the principle amount shoul not ero e$ an in!estor shoul get the assure returns those the company has promise . This %oul in!ol!e a great eal of kno%le ge about the portfolio management of the in!estments an he ging the risk. Thus this %oul gi!e us a great e*posure to financial markets as %ell as the intricacies of ifferent financial institutions$ ho% they %ork an %hat ifficulties they face.

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Why we have e!e"#e$ ICICI P)($e'#%a!+

-.-.- /ru ential is first number among the pri!ate life insurance players. There is a !ast potential in the -n ian market hence$ the company is e*pan ing its operations in ifferent regions of -n ia. )s %ell as not only the company stan s at first number but it treats its employees like no +. .ompany gi!es many re%ar s 0 recognition to their employees an a !isors for their performances. The culture of -.-.- /ru ential is like an 'in u 1n i!i e 2amily. )s %e look at the current performance of -.-.- /ru ential$ it brings in our min the %or s of 3obert 2rost ,#he w**$ a)e !*ve!y

$a)- a'$ $ee./ a'$ 0%!e #* 1* 2e&*)e I !ee.34

'ence %e firmly belie!e that %e coul not get better e*posure to life insurance sector$ if %e %oul not ha!e "oine the -.-./ru ential. ) line4

We cover you at every step of life

++

Why we have e!e"#e$ Ra5-*# "%#y+

5hen you go in any o%n to%n of any metro city in 16 you %ill fin a huge number of financial institutions are establishe o!er there. The same thing is here in 3a"kot$ 9 out of +2 pri!ate life insurance companies ha!e their branches in 3a"kot. 6mall 6cale -n ustries are gro%ing like anything in 3a"kot an it is sai to be the hub of -n ia for the iesel engines an it7s spare parts. This %oul attract many financial institutions to tape this !irgin market. 3a"kot is one of the most e*pensi!e cities in 8u"arat9 hence the eni&ens of 3a"kot ha!e a goo purchasing po%er. Thus %e belie!e that %e %oul get a goo e*posure regar ing the in!estment pattern of any mi le class family. 3a"kot :ranch of -.-.- /ru ential is fastest gro%ing branch in 'imalayan region. 5hich has complete its first year of operation on 9th ;une 2,,4. 5ith premium collection of 3s. 2.5 crore an in present <uarter it has alrea y collecte premium of 3s. +.,5 crore. 5ith its a !isor force of 33,.

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INTRODUCTION OF IN6URANCE
F('$a0e'#a! *& I' ()a'"e
-n life e!ery human being#you an %e inclu e is e*pose to an element of risk$ commonly efine as the possibility of loss. These broa ly relate to t%o spheres#our li!es an our material possessions. 2urther$ e!ery loss has t%o implications4 financial an non#financial. 2or instance %hen a person ies$ the family suffers a grie!ous emotional loss$ %hich can perhaps ne!er be compensate . :ut the family also suffers another significant loss#financial loss9 particularly person %ho ies %as an earning member or e!en potentially earning member. There are then concerns about the financial stability of the epen ents. 6imilarly$ %hen a factory is gutte in a fire$ in a ition to the loss of property$ there are other consi erations4 the effort to rebuil the factory$ the future of %orkers an the fate of suppliers an consumer attache to the business. -n both instances$ little can be one about non#financial losses. :ut financial losses can#an must#be a resse an using risk management tool an that is -nsurance.

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Wha# % I' ()a'"e+

=-nsurance is a financial ser!ice for collecting the sa!ing of the public an pro!i ing them %ith a risk co!erage.> Thus in insurance$ The 3isk The insure The insurer

8eneral efinition4 -n the %or s of ;ohn ?agee$ Insurance is a plan by which large number of people associate an transfer to the shoul ers of all ris!s that attach to in i"i uals#$ 2un amental efinition4 -n the %or s of @.6. 'ansell$ Insurance is accumulate contributions of all parties participating in the scheme#$ .ontractual efinition4 -n the %or s of "ustice Tin all$ Insurance is a contract in which a sum of money is pai to the assure as consi eration of insurer%s incurring the ris! of paying a large sum upon a gi"en contingency#$

Why $* y*( 'ee$ I' ()a'"e "*ve)+

-nsurance %ill help pro!i e protection to in!estors from certain or uncertain risks. .ertain risk inclu es e!ents like eath$ retirement$ pension$ e ucation$ marriage$ etc. 1ncertain risk inclu es e!ents like theft ) human life is also an income#generating asset. This asset also can be lost through une*pecte ly early eath or ma e non#functional through sickness an isability cause by acci ent. )cci ent may or may not happen. @eath %ill happen$ but the timing is uncertain. -f it happens aroun the time of retirement$ %hen it coul be e*pecte that the income %ill normally cease or the person coul ha!e ma e some other arrangement to meet the continuing nee s. :ut if it happens much earlier %hen the alternati!e arrangements are not in place$ insurance is necessary to help those epen ent on income.

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 -n case of a human being$ he may ha!e ma e arrangements for his nee after his retirement. These %oul ha!e been ma e on the basis of some e*pectations like he may li!e for another +5 years or that his chil ren %ill look after him. -f any of these e*pectations %oul become ina e<uate an there coul be ifficulties. Li!ing too long can be as much a problem as ying too young. These are risks$ %hich nee to be safeguar against thorough insurance.

Ca#e1*)%e O& I' ()a'"e

The follo%ing are ma"or categories of -nsurance -nsurance Life An o%ment 'ealth ?e ical 8eneral

5hole Life ?utual fun return )n risk co!erage /artially

/ension()nnuity contracts %ith profit or 5ithout profit for fi*e amounts on maturity

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H% #*)y *& I' ()a'"e 6e"#*)

-nsurance La% ha its genesis in Lon on. -n the early Lon on .offeehouses %ere centers not only of commerce an literature but of ebate an intellectual e*ercise as %ell. They also ha a political influence that mo!e the reigning king .harles -- to attempt unsuccessfully their suppression. )mong such se!enteen Bcentury Lon on coffee houses %as one calle Lloy 7s .offee house o%ne by A %ar Lloy an situate in To%er 6treet. The coffee house an the a !antage of being near to ri!er Thames thus attracting the patronages of men intereste an connecte %ith marine acti!ities. -n the se!enteenth century there %ere no corporate entities engage in insurance acti!ities. The practice pre!alent %as that in i!i uals %rote their names belo% some clauses to guarantee commercial !entures on personal basis$ Lloy 7s .offee house %as thus the fa!orite !enue for such guarantors %ho came to be calle 1n er%rites to con uct business informally o!er cups of coffee. 5ith passage of time Lloy 7s .offee house become recogni&e as a place for people %anting insurance co!er to fine the un er%riters. A %ar Lloy encourage the business by pro!i ing the customers in the coffee house %ith pen$ ink$ paper an shipping information obtaine fro the %aterfront. The insurance acti!ities in the coffee house culminate in the formation of .orporation of Lloy 7s un er the )ct of +87+. The name %as immortali&e although A %ar Lloy 7s passe a%ay in the year +7+3. Lloy 7s ?arine -nsurance policy originally a opte in the year +779 is still commonly use as stan ar form %ith suitable a itional clauses to suit mo ern re<uirements. Lloy s may thus be rightly kno%n as the creators of insurance concept. ?arine insurance la% %as thus the first form of insurance$ other forms of insurance e!ol!e gra ually %ith ynamic re<uirements of the society. :ritish statutes inspire the statutes in -n ia. -n Anglan ?arine a specific statute regulates insurance %hile other forms of
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insurance are co!ere by general legislation. -n -n ia the marine -nsurance )ct +963 base on the Anglish ?arine -nsurance )ct$ +9,6 is the legislation ealing only %ith aspect of ?arine -nsurance policies. The pro!isions of the -nsurance )ct +938 regulate the other !ariations of insurance policies. )ll insurance policies ha!e to be in agreement %ith the pro!isions of la% if contracts. ) policy of insurance co ifies a contract bet%een the insurer an the insure hence all principles of la% of contract ha!e to be follo%e . The legislation ealing specifically %ith contracts bet%een t%o or more is the -n ian .ontract )ct$ +872.

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7RIEF HI6TORY OF 8IFE IN6URANCE 6ECTOR IN INDIA

The early e!elopments of life insurance %ere closely linke %ith that of marine insurance. The first insurers of life %ere the marine insurance un er%riters %ho starte issuing life insurance policies on the life of master an cre% of the ship$ an the merchants. The early insurance contracts took the nature of policies for a short perio only. The un er%riters issue annuities an pension for a fi*e perio or for life to pro!i e relief to %i o%s on the eath of their husban s. The first life insurance policy %as issue on +8 th ;une +583$ on the life of 5illiam 8ibbons for a perio of +2 months. -t %as in the eighteenth century$ societies began to be forme for issuing life insurance policies. )mong such societies the )micable 6ociety C+7,5D$ The A<uitable Life )ssurance 6ociety C+762D$ the 5est ?inister 6ociety C+792D %as the important societies. The premium rates %ere !arie in !ie% of reputation an the health con ition of the insure . The :ritish companies starte life insurance business in -n ia$ by issuing policies e*clusi!ely on the li!es of Auropean sol iers an ci!ilians. They sometimes issue policies on the li!es of -n ian7s by charging e*tra. @ifferent insurance companies like :ombay -nsurance .ompany LT@. C+793D an Eriental Life )ssurance .ompany C+8+8D %as forme to issue life assurance policies in -n ia. 8ra ually$ the first -n ian .ompany name as :ombay ?utual Life -nsurance 6ociety Lt . %as forme in @ec. +87,. @uring the perio from +87, to +9,,$ a large number of -n ian companies %ere forme un er the -n ian .ompanies )ct$ +866. The business %as confine to fe% communities an occupations only. @uring the perio from +9,, to +9+2$ the insurance business attracte attention among mi le class people. )s a result$ 8o!ernment of -n ia passe the -nsurance )ct on the mo el of :ritish )ssurance )ct. @uring the perio from +9+2#+93,$ the insurance business %itnesse a set back. )fter se!eral changes ha!e been ma e for the perio from +93, to +938$ the 8o!ernment of -n ia passe -nsurance )ct$ +938. The act still applies to all kin s of insurance business by instituting necessary amen ments from time to time.
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:y +956$ +54 -n ian insurers$ +6 foreign insurers an 75 pro!i ent societies %ere carrying on life insurance business in -n ia. )t that time life insurance business %as concentrate in urban areas an confine to the higher strata of the society. ;anuary +956 the management of life insurance business of 245 -n ian an foreign insurers an pro!i ent societies %ere taken o!er by the central 8o!ernment %ith a capital contribution of 3s.5, mn$ an than nationali&e on +st 6eptember +956 in the /arliament an Life -nsurance .orporation CL-.D. The -n ian insurance market %as restricte sector. Enly t%o go!ernment giants namely L-. 0 8-. rule it till it %as set open to the pri!ate players. The Farasimha 3ao go!ernment unleashe liberal changes in -n ia7s rigi economic sector. The 3ao go!ernment appointe a .ommittee of 3eforms in the -nsurance sector in )pril +993 un er the chairmanship of 3.F. ?alhotra. The insurance 3egulatory )uthority %as set up. )fter o!er fi!e years -nsurance 3egulatory 0 @e!elopment )uthority C-3@)D )ct$ +999 coul be passe by the /arliament @uring Fo!ember +999. -3@) open its %in o% for )pplication for gi!ing ne% licenses to the prospecti!e players on +6th )ugust$ 2,,,.

+9

The follo%ing players ha!e applie an some ha!e got licenses an e!en starte operations in -n ia.

I'$%a' Pa)#'e)
'@2. 3eliance 6un aram

F*)e%1' Pa)#'e)

6.e"%a!%9a#%*' P)e e'# 6#a#(

-n operation Eperation to begin shortly -n operation

6tan ar life Life 1G Fo /artner Fon#life

3oyal 0 6un Fon#life )lliance ?a* -n ia Fe% Hork Life -n operation Life :a"a" )uto )llian& Fon#life an Life )pplie for licence Gotak El ?utual Life 6tarte ?ahin ra south operation -.-./ru ential$ Life -n Eperation 1G -.-.Lombar Fon#Life )pplie for licence -22.E Tokiyo ?arin$ Fon#life 3ecei!e ;apan Licence Tata group )-8$ 16) Life$ Fon#life -n operation ) itya :irla 6un life Life -n operation 8roup 6:.ar if france Life 3ecei!e licence Iysya :ank -F8 Life 3ecei!e licence @abur .8F1$ 1G Life To apply 'ero 8roup J Kurich Life$ Fon#life To apply. /un"ab

2,

NEED FOR PRI:ATI;ATION OF IN6URANCE 6ECTOR

Liberali&ation an reforms ha!e the potential to change the comple*ion of an in ustry. The -n ian insurance is no e*ception. -n bi to make it more effecti!e$ the go!ernment has opene up insurance sector for pri!ate players. Let us see rationale for opening up an insurance sector in -n ia. U'#a..e$ P*#e'#%a! Life -nsurance4 -n ia has an amorphous mi le# class of about 3,, million people %ho can affor to buy life$ health$ an isability an pension plan pro ucts. Eut of this only 2,L ha!e insurance #an that too co!ers only 25L of their nee s an financial capacity. The remaining 8,L ha!e no insurance co!er. The life insurance market of -n ia$ therefore$ is practically untappe . The lo% le!el of penetration of life insurance in -n ia compare to other e!elope nations can be "u ge by a comparison of per capita life premium. C*('#)y ;apan 1G 16) -n ia 8%&e P)e0%(0 Pe) Ca.%#a U6 < %' 1==> 3$8+7 +$28, 964 4

.learly$ there is consi erable scope to raise per capita life premium if the market is effecti!ely tappe . 5ith an insurable population of 3,, million$ per capita life premium can be raise to a le!el of 16 M 2,, # M3,, an hence the market can e*pan by 5, to 75 times o!er the e*isting si&e through the e*tensi!e an efficient reach to this untappe area by pri!ate players. The insurance business in -n ia is pegge at M6.6 billion %hereas in ustry lea ers feel pri!ati&ation %oul open up as much as M26 billion.

2+

 G)*w%'1 Nee$ F*) %' ()a'"e: -n -n ia$ insurance is tra itionally consi ere as an instrument of sa!ings. The potential of insurance pro ucts as riskB compensators has al%ays been un eremphasi&e . )ccor ing to fin ing of an L-. sur!ey as many as 4,L of insurance buyers consi er insurance pro ucts a!enue for compulsory sa!ings. Enly 26L see insurance as ol age pension %hile "ust about +8L consi er insurance a pro!ision for risk an uncertainties. This tren is in for a change soon. Fo% customers prefer more options. They %ant not "ust basic insurance pro ucts but in!estment base insurance pro ucts$ pension pro ucts an health care pro ucts as %ell. 2actors such as increasing life e*pectancy$ isintegration of the tra itional "oint family system an rising cost of health care are boun to make market clamour for !ariety of insurance pro ucts %ith nee base features. Life e*pectancy$ %hich %as "ust 32 years uring fifties mo!e up to an a!erage of 6+ years uring +996#97. The result4 a long retire life. Faturally$ there is an increasing nee for pension insurance pro ucts. /rere<uisites 2or Antering into insurance )ny pri!ate player %ants to enter insurance sector has to comply %ith the follo%ing re<uirement %ithout %hich it %ill not be consi ere eligible for obtaining license. M%'%0(0 "a.%#a )e?(%)e0e'# 4 The pri!ate sector is allo%e to enter insurance in ustry. The minimum pai #up capital for ne% entrants is mentione belo%. ?inimum pai #up capital for life an non#life insurance companies of 3s + billion ?inimum pai up capital for reinsurance companies is 3s 2 billion. 6ha)e H*!$%'1: The promotersN hol ing in pri!ate insurance company shoul not e*cee 4,L an shoul $ at no time$ be less than 26L of the total pai #up capital.
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 Fo person other than the promoters shoul be allo%e to hol more than +L of the e<uity. E'#)y *& F*)e%1' P!aye) : -f an %hen entry of foreign insurance companies is permitte $ they ha!e to enter the market by %ay of "oint !enture %ith -n ian partners. E?(%#y Pa)#%"%.a#%*' &*) J*%'# :e'#()e: -t is propose that in the pri!ate insurance "oint !enture$ the -n ian promoter %ill come to hol 74 per cent stake in the !enture initially$ lea!ing the foreign partner %ith 26 per cent. -t is also propose that the -n ian promoter %ill ha!e to man atory lo%er its stake in the pri!ate insurance firm from the initial 74 per cent to 26 per cent in a perio of ten years. M%'%0(0 R()a! 7( %'e : Fe% entrants in life insurance shoul be re<uire to transact a certain minimum business in rural areas. -t shoul be ensure that such insurers o not a!oi %riting small policies. 6imilarly$ ne% general insurers shoul also %rite a certain minimum rural non#tra itional business. Those %ho fail to comply %ith these stipulations shoul be sub"ect to a penal assessment by the -nsurance 3egulatory )uthority. Re?(%)e0e'# &*) F%'a'"%a! I' #%#(#%*' The 3:- has stipulate that a minimum of +5L of .apital ) e<uacy 3atio for 2- to enter in insurance sector. The F/) shoul not be more than 5L of the total out stan ing an a !ances of the institutions.

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A7OUT COMPANY
-.-.- /ru ential Life -nsurance .ompany is a "oint !enture bet%een -.-.- :ank$ a premier financial po%erhouse an /ru ential plc$ a lea ing international financial ser!ices group hea <uartere in the 1nite Ging om. -.-./ru ential %as amongst the first pri!ate sector insurance companies to begin operations in @ecember 2,,, after recei!ing appro!al from -nsurance 3egulatory @e!elopment )uthority C-3@)D. -.-.- /ru ential e<uity base stan s at 3s. 6.75 billion %ith -.-.- :ank an /ru ential plc hol ing 74L an 26L stake respecti!ely. -n the year en e ?arch 3+$ 2,,4$ the company ha issue o!er 43,$,,, policies$ for a total sum assure of o!er 3s 8$,,, crore an premium income in e*cess of 3s. 98, crore. The company has a net%ork of about 3,$,,, a !isors9 as %ell as +2 bancassurance tie#ups. To ay the company is the O+ pri!ate life insurer in the country.

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ICICI 7a'INDU6TRIA8 CREDIT IN:E6TMENT CORPORATION OF INDIA

-.-.- :ank is -n ia7s secon largest bank %ith an asset base of 3s. +,68+2 crore. -.-.- :ank pro!i es a broa spectrum of financial ser!ices to in i!i uals an companies. This inclu es mortgages$ car an personal loans$ cre it an ebit car s$ corporate an agricultural finance. The :ank ser!ices a gro%ing customer base of more than 7 million customer accounts an 5 million bon hol ers accounts through a multi#channel access net%ork. This inclu es about 45, branches an e*tension counters$ +675 )T?s$ call centers an -nternet banking C%%%.icicibank.comD. -.-.- :ank poste a net profit of 3s.+$2,6 crore for the year en e ?arch 3+$ 2,,3. -.-.- :ank is the only -n ian company to be rate abo!e the country rating by the international rating agency ?oo yNs an the only -n ian company to be a%ar e an in!estment gra e international cre it rating. The :ank en"oys the highest ))) Cor e<ui!alentD rating from all lea ing -n ian rating agencies.

P)($e'#%a! .!"
Astablishe in +848$ /ru ential plc is a lea ing international financial ser!ices company in the 1G$ %ith aroun 16M25, billion fun s un er management$ an more than +6 million customers %orl %i e. /ru ential has brought to market an integrate range of financial ser!ices pro ucts that no% inclu es life assurance$ pensions$ mutual fun s$ banking$ in!estment management an general insurance. -n )sia$ /ru ential is 1GNs largest life insurance company %ith a !ast net%ork of 22 life an mutual fun operations in t%el!e countries # .hina$ 'ong Gong$ -n ia$ -n onesia$ ;apan$ Gorea$ ?alaysia$ the /hilippines$ 6ingapore$ Tai%an$ Thailan an Iietnam. 6ince +923$ /ru ential has champione customer#centric pro ucts an ser!ices$ supporte by o!er 6,$,,, staff an agents across the region.

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Iision4
To make -.-.- /ru ential the ominant Life an /ensions player built on trust by %orl #class people an ser!ice. This %e hope to achie!e by4 1n erstan ing the nee s of customers an offering them superior pro ucts an ser!ice Le!eraging technology to ser!ice customers <uickly$ efficiently an con!eniently @e!eloping an implementing superior risk management an in!estment strategies to offer sustainable an stable returns to our policyhol ers /ro!i ing an enabling en!ironment to foster gro%th an learning for our employees )n abo!e all$ buil ing transparency in all our ealings.

26

The success of the company %ill be foun e in its unflinching commitment to 5 core !alues ## -ntegrity$ .ustomer 2irst$ :oun ary less$ E%nership an /assion. Aach of the !alues escribe %hat the company stan s for$ the <ualities of our people an the %e %ork. 5e o belie!e that %e are on the threshol of an e*citing ne% opportunity$ %here %e can play a significant role in re efining an reshaping the sector. 8i!en the <uality of our parentage an the commitment of our team$ there are no limits to our gro%th.
-.-.- an /ru ential came together in +993 to form /ru ential -.-.- )sset ?anagement .ompany$ %hich has to ay emerge as one of the lea ing mutual fun s in -n ia. The t%o companies bring together t%o of the strongest financial ser!ice bran s in )sia$ kno%n for their professionalism$ e*cellent <uality of ser!ice an long term commitment to HE1. 3i ing on the success of this relationship$ the t%o companies "oine han s once more in 2,,,$ to form -.-.- /ru ential Life -nsurance$ %ith a commitment to pro!i e lea ing# e ge life insurance solutions.

-.-.- /ru ential Life -nsurance .ompany$ -n ia7s lea ing pri!ate life insurer$ has increase its capital base by 3s 5, crore$ taking its total pai #up e<uity capital to 3s 675 crore. This is the ninth e<uity hike since the company %as incorporate in @ecember 2,,,. The
27

t%o partners$ -.-.- :ank an /ru ential plc$ contribute capital in their e*isting proportions$ 74426 respecti!ely. The authori&e capital of the company stan s at 3s +2,, crore. The a itional capital %ill be use to meet capital a e<uacy norms as stipulate by the regulator$ to fun the high up#front e*penses typical to a life insurance business$ an e*pansion such as opening ne% branches. N-.-.- /ru ential has gro%n e*ponentially o!er the past 3 years$ making its mark in a number of segments such as retirement solutions$ chil plans an market#linke plans. The success of the business thus far$ has reaffirme the commitment of both the partners # -.-.- :ank an /ru ential plc # to%ar s achie!ing the company7s !ision of being a lea er in life insurance business in -n ia$N sai ?s 6hikha 6harma$ ?anaging @irector$ -.-./ru ential Life -nsurance .ompany. -n the life insurance business$ a number of e*penses are incurre up#front$ but the re!enue$ in the form of premia$ flo%s o!er a +,#+5 year time frame. :ecause of this$ a life insurer must regularly infuse capital uring the first 5#7 years$ in or er to support gro%th in the business. Typically$ the more business a company %rites$ the greater the capital re<uirements. -.-.- /ru ential is the lea ing pri!ate sector life insurer in -n ia. -n @ecember 2,,3$ it crosse the 3s +,,, crore total premium mark$ the first pri!ate life insurer to o so. -t has o!er 55,$,,, policies an a sum assure in e*cess of 3s +3$,,, crore. -n line %ith its strategy to e*pan istribution$ the company has gro%n to 54 locations to ay$ the most recent branches being opene in )llahaba $ :hatin a an Gota.

28

Wha# I H(0a' 8%&e+

I' ()a'"e 6*!(#%*' &*) I'$%v%$(a!
-.-.- /ru ential Life -nsurance offers a range of inno!ati!e$ customer#centric pro ucts that meet the nee s of customers at e!ery life stage. -ts +7 pro ucts can be enhance %ith up to 6 ri ers$ to create a customi&e solution for each policyhol er.

6av%'1 6*!(#%*' # 6e"()e P!( is a transparent an feature#packe sa!ings plan

that offers 3 le!els of protection. & Ca h P!( is a transparent$ feature#packe sa!ings plan that offers 3 le!els of protection as %ell as li<ui ity options.

# 6ave ' P)*#e"# is a tra itional en o%ment sa!ings plan that

offers life protection along %ith a e<uate returns. # Ca h 7a- is an anticipate en o%ment policy i eal for meeting milestone e*penses like a chil 7s marriage$ e*penses for a chil 7s higher e ucation or purchase of an asset.

P)*#e"#%*' 6*!(#%*' 8%&e1(a)$ is a protection plan$ %hich offers life co!ers at !ery
lo% cost. -t is a!ailable in 3 options # le!el term assurance$ le!el term assurance %ith return of premium an single premium.

Ch%!$ 6*!(#%*' 60a)# @%$ chil plans pro!i e guarantee e ucational benefits to
a chil along %ith life insurance co!er for the parent %ho purchases the policy. The policy is esigne to pro!i e money at important milestones in the chil 7s life. 6mart Gi chil plan are also a!ailable %ith in unit#linke form # both single premium an regular premium.

Ma)-e#A!%'-e$ 6*!(#%*'
# 8%&e8%'- II is a single premium ?arket Linke -nsurance /lan
29

that combines life insurance co!er %ith the opportunity to stay in!este in the stock market. # 8%&eT%0e II offers customers the fle*ibility an control to customi&e the policy to meet the changing nee s at ifferent life stages. -t offers 3 in!estment options # 8ro%th /lan$ -ncome /lan an :alance /lan.

Re#%)e0e'# 6*!(#%*' A 2ore!erLife is a retirement pro their thirties3

uct targete at in i!i uals in

# 6e"()eP!( Pe' %*' is a fle*ible pension plan that allo%s one to select bet%een 3 le!els of co!er.

Ma)-e#A!%'-e$ )e#%)e0e'# .)*$("#

# 8%&eT%0e Pe' %*' II is a regular premium market#linke
pension plan

# 8%&e8%'- Pe' %*' II is a single premium market#linke

pension plan. -.-.- /ru ential also launche BB6a!aa0 ;%'$a1%BBC a social sector group insurance policy targete at the economically un erpri!ilege sections of the society.

G)*(. I' ()a'"e 6*!(#%*'

-.-.- /ru ential also offers 8roup -nsurance 6olutions for companies seeking to enhance benefits to their employees.

G)*(. G)a#(%#y P!a': -.-.- /ruNNs group gratuity plan helps

employers fun their statutory gratuity obligation in a scientific manner. The plan can also be customi&e to structure schemes that can pro!i e benefits beyon the statutory obligations.

G)*(. 6(.e)a''(a#%*' P!a': -.-.- /ru offers a fle*ible

efine contribution superannuation scheme to pro!i e a retirement kitty for each member of the group. Amployees ha!e the
3,

option of choosing from !arious annuity options or opting for a partial commutation of the annuity at the time of retirement. G)*(. Te)0 P!a': -.-.- /ruNs fle*ible group term solution helps pro!i e affor able co!er to members of a group. The co!er coul be uniform or base on esignation(rank or a multiple of salary. The benefit un er the policy is pai to the beneficiary nominate by the member on his(her eath.

F!eD%2!e R%$e) O.#%*'

-.-.- /ru Life offers fle*ible ri ers$ %hich can be a e to the basic policy at a marginal cost$ epen ing on the specific nee s of the customer.
+.

A""%$e'# E $% a2%!%#y 2e'e&%#: -f eath occurs as the

result of an acci ent uring the term of the policy$ the beneficiary recei!es an a itional amount e<ual to the sum assure un er the policy. -f the eath occurs %hile tra!eling in an authori&e mass transport !ehicle$ the beneficiary %ill be entitle to t%ice the sum assure as a itional benefit.

2.

A""%$e'# 2e'e&%#: This ri er option pays the sum assure

un er the ri er on eath ue to acci ent.

3.

C)%#%"a! I!!'e

7e'e&%#: protects the insure against

financial loss in the e!ent of 9 specifie critical illnesses. :enefits are payable to the insure for me ical e*penses prior to eath.
4.

Ma5*) 6()1%"a! A % #a'"e 7e'e&%#: pro!i es financial

support in the e!ent of me ical emergencies$ ensuring that benefits are payable to the life assure for me ical e*penses incurre for surgical proce ures. .o!er is offere against 43 ifferent surgical proce ures.

5. I'"*0e 7e'e&%#: This ri er pays the +,L of the sum assure to the nominee e!ery year$ till maturity$ in the e!ent of the eath of the life assure . -t is a!ailable on 6mart Gi $ 6ecure /lus an .ash /lus.
3+

6. Wa%ve) *& P)e0%(0: -n case of total an permanent isability ue to an acci ent$ the premiums are %ai!e till maturity. This ri er is a!ailable %ith 6ecure /lus an .ash /lus.

32

6WOT ANA8Y6I6
6#)e'1#h

2le*ible pro ucts /artners ha!ing e*perience in ifferent markets of the %orl 6ynergy %ith their e*isting operations A*pertise in the fiel of insurance /rofessional management 8oo .ustomer ser!ice .reate a bran name

Wea-'e
Lo% capital base Het to buil strong istribution net%ork .annot tap rural market

O..*)#('%#y
1ntappe market :anks rea y to tie up for as a rea yma e

istribution net%ork

for a small fee.

Th)ea#
Large istribution net%ork of L-. @eca es of e*perience an bran name of L-. 5L ser!ice ta* on in!estments

33

PARTA2 AGENCY
RECRUITMEN T

34

A1e'"y Re")(%#0e'#
2or insurance in ustry irect marketing is a main marketing tool for business. -.-.- /ru ential also try to make best a !isor force for the business. -n -n ia there is 3,$,,,#a !isor force in company. .ompany al%ays %orks for recruit best a !isor. -n this force :usinessmen$ ?arketing A*ecuti!e$ ..).$ Ta* .onsultant$ ;e%elers$ 'ouse%i!es$ 6tu ent$ @ealer etc.. 6ome of them %ork full time or others part#time. 5ho ha!e a high net %orth or net%ork$ %illing to %ork sincerely can "oin the company as an a !isor. .ompany al%ays looking for those people %ho %ants to %ork sincerely an recruit them.

35

RECRUITMENT PROCE66
/erson must +2th pass or +,J3 year @iploma course. This is a minimum eligible criterion. Then there is a hun re hour training$ %hich is compulsory by -nsurance 3egulatory an @e!elopment )uthority C-.3.@.).D. )fter training there is an e*amination %hich is taken by -.3.@.). $ %hich is compulsory. )fter passing this e*am person get license an person can o business. 'e(6he can o business any part of the country.

Fa"%!%#y .)*v%$e 2y #he "*0.a'y

There is a +,,L management support to an a !isor. ) !isor can o unlimite phone calls$ other peripherals like Pero* machine$ fa*$ computer$ an printer. .ompany oes not put any restriction for using these peripherals. .ompany gi!e broachers$ pamphlets an other material free of cost. -n starting time of a !isor 1nit ?anager go %ith them an help to get business an gi!e practical kno%le ge of marketing. )ny time 1nit ?anager al%ays rea y to help their a !isor. 2or any a !isor appointment 1nit ?anager rea y to go %ith them if any a !isor feel uncomfortable in call. .ompany also pro!i es career opportunity to a !isor by gi!ing permanent "ob in a company as a 1nit ?anager. 2or this a !isor fulfill some criteria by continuous performance. )lso there is an e!ery month 0 e!ery <uarter contest for a !isor get gift like %atch$ gol $ car etc. )lso contest like ?illion @ollar 3oun table a !isor can go for a foreign trip by collect +million premium in a year. .ompany pro!i es all e*pense. )n also trip in ifferent place of -n ia. )lso pro!i e club membership.

36

W*)-%'1 6e10e'#
)ny person can %ork as an a !isor. There is number of segments %hich gi!e better a !isor. 6egment in %hich - %ork are ;e%elers @ealer of ?obile an sim car ..). 0 Ta* .onsultant L.-... 0 /ost office agent ?arketing A*ecuti!e .yber .afQ )ccountants 6hare :roker :usinessman

HOW TO APPROACH
)ppointments 3eferences ?ailing .ol .all

OTHER ACTI:ITY
?e ical camp at ;ogger7s park. 6eminar at 8.-.@... C?eto aD. .amp at 8o!ernment Ruarters.

37

8IMITATION
..).$ 6hare :roker an :usinessman ha!e a problem in training. L.-... 0 /ost Effice agents are not intereste in pri!ate company. ?ost of the people still o not put trust upon pri!ate company.

38

FINDING6
6till there is untouche market of 6hare :roker an ;e%elers. -n this segment there is lot of potential. :ecause they ha!e high in i!i ual net %orth an net%ork.

39

RE6U8T6
- ha!e contacte 23, )n get appointment of +,5 3ecruite 3 'ot 2

4,

PART 3
I've #0e'# 7ehav%*) 6#($y O& Ce'#)a! G*ve)'0e'# E0.!*yee F I' Ra5-*# C%#y.

4+

O25e"#%ve
# To check the a%areness of 6ection 88 of -ncome Ta* )ct among .entral 8o!ernment Amployees. # To stu y the le!el of priority gi!en to ta* benefits %hile in!esting by 8o!ernment Amployees. # To check the a%areness of 6ection 8,...C-D of -ncome Ta* )ct among 8o!ernment Amployees.

42

Me#h*$*!*1y *& 6#($y

3esearch metho ology use ?etho use is /rimary @ata. here is =6ur!ey>. @ata .ollection

43

Pe)"e'#a1e *& .e) *' %' $%&&e)e'# I'"*0e TaD 6!a2

TaD 6!a2 Fo. of persons out of +3, O& 1GH I8e1e'$ 1J 54 O& 2GH I8e1e'$ 2J 57 O& 3GH I8e1e'$ 3J +9

2 52%

1 48%

Awareness of Section 80ccc

1 2

P)%*)%#%e *& I've #0e'#

44

Total S+3,
H%1h Re#()' I1J +6 TaD 7e'e&%# I2J 68 Ch%!$)e' E$("a#%*' I3J +7 Wea!#h C)ea#%*' I>J +7 Re#%)e0e'# P!a''%'1 I5J ++

5 9% 4 13%

1 12%

3 13%

2 53%

Investment Priorities
1 2 3 4 5

45

I'&e)e'"e:
?ost of the 8o!ernment employees$ 53L of total +3, employees inter!ie%e $ gi!e priority to Ta* :enefits %hile in!esting. -t is because of the fact that 8o!t. is gi!ing Ta* benefits un er 6ec.88 an 6ec.8,... C-D 0 6ec.8,L. 6o 8o!t. employees7 are achie!ing t%in ob"ecti!e of sa!ing$ in!estment as %ell as ta* sa!ing. )lso employees are gi!ing importance to .hil ren7s e ucation(other e*penses in!estment$ the same %ay as they o to %ealth creation. C:oth +3 L eachD Amployees in!esting for high returns C+2 L employeesD are ne*t to them. Least persons are thinking of retirement planning C9 L of employeesD.

46

Awa)e'e
Total S +3, Awa)e I1J +,2 N*# Awa)e I2J 28

*& 6e"#%*' KK

2 22%

1 78%

Awareness of Section 88
1 2

I'&e)e'"e :
6e!enty eight percent of the sample is a%are about 6ec88 of -ncome Ta* )ct. This is because of the fact that this section gi!es ta* rebate an subse<uent ta* sa!ing.

47

The I've #0e'#

T*#a! L 13G 8e #ha' R 32GCGGG 46 7e#wee' R 32GCGGG E R 35GCGGG 32 A2*ve R 3 5GCGGG 22

3 22%

1 46%

2 32%

Investment for Tax Planning

1 2 3

48

I'&e)e'"e :
)bout 46 percent of go!t. employees are in!esting belo% 3s.2,$,,,. This is because - ha!e inter!ie%e all the ta* slab go!t. employees$ so that a fair representation of the in!estment beha!ior is seen. Thirty T%o percent of the employees are in!esting bet%een 3s.2,$,,, an 3s.5,$,,,. Eut of +3,$ 22L of employees in!est 3s.5,$,,, 0 abo!e.

49

Awa)e'e
Total S +3, Awa)e N*# I1J Awa)e I2J 62 68

*& 6e"#%*' KGCCCI%J

2 52%

1 48%

Awareness of Section 80ccc

1 2

5,

I'&e)e'"e :
Amployees %ho are a%are about 6ec.8,... CiD are 48L an %ho are not a%are are 52L. This gi!es the har fact the almost half of the employees are not a%are about this important section of -ncome Ta*. This section states that 3s.+,$,,, that is pai for life insurance premium per year are fully e uctible from ta*able income. 6o go!t. employees are not only paying ta* but also not a!ailing the opportunity of their retirement planning gi!en by 8o!ernment.

5+

Hy.*#he % :
N(!! Hy.*#he % HG 4
The proportion in the population gi!ing priority to Ta* :enefits %hile in!esting is in epen ent of -ncome Ta* slab rates.

A!#e)'a#e Hy.*#he % H1:

The proportion in the population gi!ing priority to Ta* :enefits %hile in!esting is not in epen ent of -ncome Ta* slab rates.

52

6#a#% #%"a! Te # A..!%e$

)s the ata - ha!e collecte is of Fominal type an the case is of one sample$ the statistical test applicable for hypothesis testing is .hi#s<uare Ene 6ample Test.

6%1'%&%"a'"e 8eve!:
S ,.,5

The Ca!"(!a#%*':
TaD 6!a2 Ra#e G%v%'1 .)%*)%#y #* TaD 2e'e&%# wh%!e %'ve #%'1 IOJ 27 3, +2 69 N(02e) Pe)"e'# IN*3 ED.e"#e$ %'#e)v%ewe$ I'#e)v%ewe$M13GJ F)e?(e'"%e IPe)"e'# N O=J IEJ

+, L 2, L 3, L Total

54 57 +9 +3,

,.4+5 ,.438 ,.+46 +

28 3, +, 68

53

De1)ee *& F)ee$*04

.f. S k B + 5here$ kS The number of categories. 'ere kS3$ therefore .f. S 3 B + S2 $3&3 L 2

Ch%A6?(a)e Ca!"(!a#%*' :

2 L - IL1 IO% E%J2ME%

2 S C27#28D2(28 J C3,#3,D2(3, J C+2#+,D2(+, S ,.,357 J , J ,.4 S ,.4357

C)%#%"a! Te # :a!(e:
2rom the .ritical Ialues of the .hi#6<uare @istribution table$ %ith egree of free om e<ual to t%o an confi ence le!el e<ual to ,.,5$ the critical "alue is '#((# :ut the calculate .hi#s<uare !alue is ,.4357$ %hich is less than the .ritical Ialue$ so Full 'ypothesis is not re"ecte 0 )lternate hypothesis is re"ecte .

54

I'&e)e'"e:
?ost of the 8o!ernment Amployees take into account ta* benefits %hile in!esting. This is seen across the category of -ncome Ta* slabs. Aach an e!ery go!ernment employees first in!est for re ucing an if possible for &ero ta* in the instruments that gi!e ta* benefit. The instruments of in!estment an sa!ing like //2(8/2$ Life insurance$ an Fational 6a!ings .ertificates etc. are hea!ily in!estment mostly by go!ernment employees because of the sai reason.

55

A''eD()e
P(e #%*''a%)e
@ate. TTTTTT

Pe) *'a! I'&*)0a#%*'

Fame4 3esi ence ) ress4 ?4 Ergani&ation4 34 E4

+. -n %hich of the follo%ing ta* bracket oes your income fallU V W +,L V W 2,L V W 3,L 2. 5hat are your priorities %hile in!estingU CaD 'igh 3eturns V W CbD Ta* :enefits V W CcD .hil ren7s e ucation V W C D 5ealth creation V W CeD 3etirement planning V W 3. 'a!e you a!aile fully benefits offere by 6ec. 88 of -.T. )ctU V W Hes V W Fo 4. -n a year appro*imately ho% much o you in!est for ta* planningU V W X2,$,,, V W :et%een 2,$,,, 0 5,$,,, V W 5,$,,, 0 )bo!e

5. 5hat in!estment options are you using for ta* planningU V W //2(8/2 V W :on s V W F6. V W /ost Effice 6a!ings V W Life -nsurance V W 1T-#1L-/
56

6. 5hat factors o you consi er for meeting your long(short term Cabo!eD plansU V W 6afety V W 'igh returns V W Li<ui ity V W Ta* 2ree -ncome V W 3egular income 7. )part from ta* planning %here o you in!est to meet your long(short term plansU V W ?utual 2un V W A<uities V W Life -nsurance V W /ostal -n!estment .ertificates CGI/D V W :ank fi*e @eposits V W /ost office schemes 8. )re you a%are about 6ec. 8,ccc CiD of -T )ctU V W Hes V W Fo 9. 5oul you like to kno% more about in!estment 0 ta* planning pro ucts offere by -.-.- /ru entialU V W Hes V W Fo

57

Conclusion
After coming out of cool and mild climates of College and University, it was the period for me to serve huge Industrial Management and Organization. Over here I faced lot of hardship in work and as the saying is one learns from good and bad experience sooner or latter, this was true for me. Also the fear of industries was ransacked from my mind and I got the experience of working effectively by the background of this training. During my training, I came to know the way one must deal with people, how to communicate in more efficient manner so that we may reach our target in more efficient and easy manner. After completing training the extract of the achievements is presented in the report. I realized the essence of Industrial training when I met people who were employed as fresher without previous industrial exposure. For present day M.B.A. of India, the need of the hour is field exposure with theoretical knowledge. This is essential to make them valuable in the liberalized and Global Market of India.

58

BIBLIOGRAPHY
Donald R. Cooper, Pamela S. Schindler. Business Research Methods. (New York: Tata McGraw Hill, 2003), 531-537.
We2 %#e %%%.in iainfoline.com %%%.google.com %%%.bimaonline.com %%%.lic#in ia.com %%%.gic#in ia.com %%%. han.com %%%.%allet%atch.com

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