FINANCE Project 4th Sem

INSTITUTE OF BUSINESS MANAGEMENT & RESEARCH
IBMR House, # 44, 6th Cross, Wilson Garden, Hosur Main Road,
.
Bangalore 560 027. INDIA.
“HOW TO WORK IN BANCASSURANCE MODULE”
At
ICICI PRUDENTIAL LIFE INSURANCE
By
ARCHANA EKKA
520842164
A Training & Project Report submitted in partial fulfillment of the

requirements of Internship Training of Master of Business Administration of
Sikkim Manipal University
July 2010
1
UNIVERSITY CENTRE CERTIFICATE
This is to certify that the Training & Project Report entitled
Submitted in partial fulfillment of the requirements for the Internship Training

of MASTERS OF BUSINESS ADMINISTRATION of Sikkim Manipal
University of Health, Medical & Technological sciences
ARCHANA EKKA
520842164
Has worked under my supervision and guidance and that no part of this
report has been submitted for the award of any other degree, Diploma,
Fellowship or other similar titles or prizes and that the work has not been
published in any journal or Magazine.
Attested Certified
Mrs. Pushpa Shetty Mr.VIKRAM KUNTAR

Director Faculty Guide
2
EXAMINERS’ CERTIFICATE
The Training & Project Report of
ARCHANA EKKA
520842164
TITLE
Is approved and is acceptable in quality and form
Internal Examiner External Examiner
3
ORGANIZATIONAL GUIDE’S CERTIFICATE
The Training & Project Report of
ARCHANA EKKA
520842164
TITLE
Is approved and is acceptable in quality and form.
Internship Organizational Research Guide

Mr.Sankalp Shrivastava
Sales Manager
4
STUDENT’S DECLARATION
I hereby declare that the Training & Project Report titled
Submitted in partial fulfillment of the requirements for the Internship Training

of Masters of Business Administration of Sikkim –Manipal University, India, is
my original work and not submitted for the award of any other degree,
diploma, fellowship, or any other similar title or prizes.
Signature of the Student
Place: ARCHANA EKKA
Date: 520842164
5
ACKNOWLEDGMENTS
I express my sincere gratitude to the management of ICICI PRUDENTIAL

COMPANY Pvt. Ltd, for providing me material to prepare my project on their
esteem organization.
I would like to thanks Mrs.Pushpa Shetty (Director) who has been a constant
source of inspiration and my special thanks to Mr. Vikram Kuntar (project
guide from the institute) for his extensive guidance, cooperation and support.
Finally, I wish to express my gratitude to all those who have in one way or
other helped me in the successful completion of my project report.
The Project was completed successfully with the valuable cooperation of

company’s personnel.
Signature of the Student
Place: ARCHANA EKKA
Date: 520842164
6
TABLE OF CONTENTS
Serial Particulars Page no.

No.
1. Acknowledgement 6
2. Certificate
3. Executive Summary 9
4. Chapter-1
5. Introduction of bancassurance 15
6. Insurance 27
7 Functions 33
8 Benefits to the individual 36
9 Industry profile 39
10 Promoters 43
11 Stages in policy insurance 46
12 Product/service profile 48
13 Chapter-2
14 Internship training experience 56
15 Reasons for selecting an insurance 56
Sector for research
16 Objectives 57
17 Targets and tasks 57
18 Strategies 58
19 Achievements 59
20 Limitations 60
21 Learning 60
22 Chapters-3
23 Project overview 61
24 Research problem 66
25 Research objectives 67
26 Research design 68
27 Methodology 68
28 Sources to data collection 69
29 Data analysis 71
30 Findings 84
31 Swot analysis 85
32 Conclusion & suggestion 86
33 Annexure 89
34 Bibliography 93
7
EXECUTIVE SUMMARY
INTRODUCTION TO BANCASSURANCE
‘BANCASSURANCE’ as term itself tells us what does it means. It’s

a combination of the term ‘Bank’ and ‘Insurance’. It means that
insurance have started selling there product through banks. It’s a
new concept to Indian market but it is very widely used in western
and developed countries. It is profitable both to Banks and
Insurance companies and has a very bright future to be the most
8
develop and efficient means of distribution of Insurance product in
very near future.
Insurance company can sell both life and non-life policies through
banks. The share of premium collected by banks is increasing in a
decent manner from the time it was introduce to the Indian market.
In India Bancassurance in guide by Insurance Regulatory and
Development Authority Act (IRDA), 1999 and Reserve Bank of
India. All banks and insurance company have to meet particular
requirement to get into Bancassurance business.
Bancassurance is defined as ‘Selling Insurance products

through banks’. The word is a combination of two words ‘Banc’
and ‘assurance’ signifying that both banking and insurance
products and service are provided by one common corporate entity
or by banking company with collaboration with any particular
Insurance company. In concrete terms bancassurance, which is
also known as Allfinanz - describes a package of financial services
that can fulfill both banking and insurance needs at the same time
ICICI Prudential Life Insurance Company Limited
ICICI Prudential Life Insurance Company Limited was incorporated

on July 20, 2000. The authorized capital of the company is
Rs.2300 Million and the paid up capital is Rs. 1500 Million. The
Company is a joint venture of ICICI (74%) and Prudential plc UK
(26%).
9
The Company was granted Certificate of Registration for carrying
out Life Insurance business, by the Insurance Regulatory and
Development Authority on November 24, 2000. It commenced
commercial operations on December 19, 2000, becoming one of
the first few private sector players to enter the liberalized arena.
Aim of the Company
Their vision is to make ICICI Prudential Life Insurance Company

the dominant new insurer in the life insurance industry. This they
hope to achieve through their commitment to excellence, focus on
service, speed and innovation, and leveraging our technological
expertise.
The success of the organization will be founded on its strong focus
on values and clarity of purpose. These include:
• Understanding the needs of customers and offering them
superior products and service
• Leveraging technology to serve customers quickly,
efficiently, & conveniently.
• Developing & implementing superior risk management &
investment strategies to offer sustainable & stable returns to
the policy holders.
• Building long lasting relationships with their partners
• Providing an enabling environment to foster growth and
learning for their employees.
Research Methodology
10
This chapter deals with the research methodology adopted by the
researcher. The researcher has conducted the study using both
the primary & secondary data.
The researcher started the research work with the help of
secondary data from various books & magazines. When the
researcher collected a fair amount of idea about the type of study
that has been conducted & how he should go with it. Then he
moved on to the primary sources of data collection.
The main source here were the interviews scheduled comprising
of structured & semi-structured questions. When the interview
schedule was administered some unstructured questions were
asked & noted down.
The researcher went in for purposive & convenient sampling. The
universe of the study is India & the locale of the study being
Gwalior. The sample size was chosen on the basis of insurance
companies operating in Gwalior.
Sampling Technique Used:
This research has used convenience sampling technique.
Selection of Sample Size:
For the survey, a sample size of 50 has been taken into

consideration.
Sources of Data Collection:
Research will be based on two sources:
11
1. Primary data
2. Secondary data
Statistical Tools Used
The main statistical tools used for the collection and analyses of
data in this project are:
• Questionnaire
• Pie Charts
• Bar Diagrams
Limitation
1. Time constraint.
2. Knowledge constraint.
3. Reluctance of respondents to provide information.
SWOT ANALYSIS
STRENGTH
ICICI Prudential Life Insurance Company Limited is right now the
market leader in Private Insurer segment.
WEAKNESS
The company right now has lesser number of agents (i.e. financial
advisors) than LIC of India which affects their sales in comparison
to LIC of India.
OPPURTUNITY:
12
ICICI Prudential Life Insurance Company Limited can give LIC of
INDIA agents an opportunity to join ICICI Prudential Life Insurance
Company Limited as ICICI Prudential has got more incentive
packages & servicing quality better than LIC of INDIA. Doing this
they can reduce their cost of training and can exploit their
experience.
THREAT:
Other big brand names like BIRLAS, TATA, HDFC, SBI, and
AVIVA. etc.
Conclusion and Suggestions
CONCLUSION
• There are very tough competition among the private

insurance companies on the level of new trend of advertising
to lull a major part of Customers.
• ICICI is not left behind in the present race of advertisement.
• The entry of more Pvt. players in the Insurance Sector have
expanded the product segment to meet the different level of
the requirement of the customers. It has brought about
greater choice to the customers.
• ICICI has vast market and very firm grip on its traditional
customers and monopoly of life insurance products..
Suggestions
13
• There is a need for better promotion for the investment
products & services. The bank should advertise its products
through television because it will reach to the masses.
• More returns should be provided on Insurance plans.
• As the bank provides the Insurance facility to its customers.
It should provide this facility by tie up with the other
Insurance organizations as well. The main reason is that,
the entire customers do not want Insurance of only one
company. They should have choice while selecting a
suitable Insurance plans. This will definitely add to the
goodwill & profit for the bank.
CHAPTER-1
INTRODUCTION
‘BANCASSURANCE’ as term itself tells us what does it means. It’s

a combination of the term ‘Bank’ and ‘Insurance’. It means that
insurance have started selling there product through banks. It’s a
14
new concept to Indian market but it is very widely used in western
and developed countries. It is profitable both to Banks and
Insurance companies and has a very bright future to be the most
develop and efficient means of distribution of Insurance product in
very near future.
Insurance company can sell both life and non-life policies through
banks. The share of premium collected by banks is increasing in a
decent manner from the time it was introduce to the Indian market.
In India Bancassurance in guide by Insurance Regulatory and
Development Authority Act (IRDA), 1999 and Reserve Bank of
India. All banks and insurance company have to meet particular
requirement to get into Bancassurance business.
It is predicted by experts that in future 90% of share of premium

will come from Bancassurance business only. Currently there are
more and more banking and Insurance Company and venturing
into Bancassurance business for better business prospect in
future.
The banking business is also generating more profit by more

premium collected by them and they also receive commission like
normal insurance agent which increase there profits and better
reputation for the banks as there service base also increase and
are able to provide more service to customers and even more
customer are attracted toward bank.
It is even profitable for Insurance Company as they receive more

and more sales and higher customer base for the company. And
15
they have to directly deal with an organization which reduce there
pressure to deal with each customer face to face. In all
Bancassurance has proved to be boom in whole Banking and
Insurance arena.

Insurance company. In concrete terms bancassurance, which is
also known as Allfinanz - describes a package of financial services
that can fulfill both banking and insurance needs at the same time.
Financial Services
Banking Insurance
Bancassurance
Bancassurance
The usage of the word picked up as banking and insurance

companies merged together and banks sought to provide
insurance, in the market which has been liberalized recently.
16
But it is a controversial issue as many experts feels that this ides
gives banking sector too great a control over financial market in
that country. Therefore it has also been restricted in many
countries too.
But, still which countries have permitted Bancassurance in their

market has seen a tremendous boom in that sector. The share of
premium collected by them has increased in constant and decent
manner. This success coincided with a favorable taxation for life
insurance products, as well as with the consumers' growing needs,
in terms of middle and long term savings, which is due to an
inadequacy of the pension schemes in India.
The links between bank and insurance takes place through various
ways (distribution agreements, joint ventures, creation of a
company new company) which gives rise to a complete upheaval
concerning marketing strategies and the setting up of insurance
products' distribution. More and better insurance starts coming in
market.
This stream of market has just been opened very recently for the
Indian market and there is lot of development left to be done by the
government and regulatory authority. But this has proven to be a
boom for the Insurance and Banking companies together and both
the different sector of the industry has shown better result and
improvement in their own field due coming of the whole new
concept of BANCASSURANCE.
Bancassurance in its simplest form is the distribution of insurance

products through a bank’s distribution channels. It is the provision
17
of insurance and banking products and service through a common
distribution channel or through a common base.
Banks, with their geographical spreading penetration in terms of

customer’s reach of all segments, have emerged as viable source
for the distribution of insurance products. It takes various forms in
various countries depending upon the demography and economic
and legislative climate of that country. This concept gained
importance in the growing global insurance industry and its search
for new channels of distribution.
However, the evolution of bancassurance as a concept and its
practical implementation in various parts of the world, have thrown
up a number of opportunities and challenges.
The concept of bancassurance was evolved in Europe. Europe

leads the world in Bancassurance market penetration of banks
assurance in new life business in Europe which ranges between
30% in United Kingdom to nearly 70% in France. However, hardly
20% of all United States banks were selling insurance against 70%
to 90% in many Western European countries. In Spain, Belgium,
Germany and France more than 50% of all new life premiums is
generated by banks assurance. In Asia, Singapore, Taiwan and
Hong Kong have surged ahead in Bancassurance then that with
India and China taking tentative step forward towards it. In Middle
East, only Saudi Arabia has made some feeble attempts that even
failed to really take off or make any change in the system.
The motives behind bancassurance also vary. For Banks, it is n

means of product diversification and source of additional fee
18
income. Insurance companies see bancassurance as a tool for
increasing their market penetration and premium turnover. The
customer sees bancassurance as a bonanza in terms of reduced
price, high quality products and delivery at the doorsteps.
With the liberalization of the insurance sector and competition

tougher than ever before, companies are increasingly trying to
come out with better innovations to stay that one-step ahead.
Progress has definitely been made as can be seen by the number

of advanced products flooding the market today - products with
attractive premiums, unitized products, unit-linked products and
innovative riders. But a hitherto untapped field is the one involving
the distribution of these insurance products.
Currently, insurance agents are still the main vehicles through

which insurance products are sold. But in a huge country like India,
one can never be too sure about the levels of penetration of a
product. It therefore makes sense to look at well-balanced,
alternative channels of distribution.
Nationalized insurers are already well established and have an

extensive reach and presence. New players may find it expensive
and time consuming to bring up a distribution network to such
standards. Yet, if they want to make the most of India's large
population base and reach out to a worthwhile number of
customers, making use of other distribution avenues becomes a
must. Alternate channels will help to bring down the costs of
distribution and thus benefit the customers
19
What is bank assurance?
Bancassurance is the distribution of insurance products through a

bank's distribution channels. It is a service that can fulfill both
banking and insurance needs at the same time. Bancassurance as
a concept first began in India when the insurance industry opened
up to private participation in December 1999. There are basically
four models of bancassurance:
• Distribution alliance between the insurance company and the

bank.
• Joint venture between the two companies.
• Mergers between a bank and insurer.
• Bank builds or buys own insurance products.
Most of the bancassurance operations fall in the first model.
How does it help?
• Every insurance company has a wants to grow quickly to

reduce painful start-up expense overruns. Banks with their
huge networks and large customer bases give insurers an
opportunity to do this efficiently.
• It gives the companies an opportunity to tap the rural sectors.
Selling insurance through traditional methods in these
sectors falls very expensive. A tie up with a bank with an
appropriate customer base can give an insurer a cheap
access to these areas.
• Banassurance enables to have a huge pool of skilled
professionals.
20
• The margins of the banks in their core lending business are
declining sharply. Opportunities like banassurance augment
their income.
• Banassurance enables to develop a sales culture within the
bank. It helps to change the traditional mindset of banking
companies.
Though a relatively new concept, banassurance has been a

phenomenal success in most of the cases. Currently banks are not
just lending organizations but are emerging as more diverse
financial institutions. The distribution of insurance products through
banks has been beneficial to both insurance and banking
companies as well as the customers
Why should banks enter insurance?
There are several reasons why banks should seriously consider

Bancassurance, the most important of which is increased return on
assets (ROA). One of the best ways to increase ROA, assuming a
constant asset base, is through fee income. Banks that build fee
income can cover more of their operating expenses, and one way
to build fee income is through the sale of insurance products.
Banks that effectively cross-sell financial products can leverage
their distribution and processing capabilities for profitable operating
expense ratios.
By leveraging their strengths and finding ways to overcome their

weaknesses, banks could change the face of insurance
distribution. Sale of personal line insurance products through
21
banks meets an important set of consumer needs. Most large retail
banks engender a great deal of trust in broad segments of
consumers, which they can leverage in selling them personal line
insurance products. In addition, a bank’s branch network allows
the face to face contact that is so important in the sale of personal
insurance.
Another advantage banks have over traditional insurance

distributors is the lower cost per sales lead made possible by their
sizable, loyal customer base. Banks also enjoy significant brand
awareness within their geographic regions, again providing for a
lower per-lead cost when advertising through print, radio and/or
television. Banks that make the most of these advantages are able
to penetrate their customer base and markets for above-average
market share.
Other bank strengths are their marketing and processing

capabilities. Banks have extensive experience in marketing to both
existing customers (for retention and cross selling) and non-
customers (for acquisition and awareness). They also have access
to multiple communications channels, such as statement inserts,
direct mail, ATMs, telemarketing, etc. Banks' proficiency in using
technology has resulted in improvements in transaction processing
and customer service.
By successfully mining their customer databases, leveraging their

reputation and 'distribution systems’ (branch, phone, and mail) to
make appointments, and utilizing 'sales techniques’ and products
tailored to the middle market, European banks have more than
doubled the conversion rates of insurance leads into sales and
22
have increased sales productivity to a ratio which is more than
enough to make Bancassurance a highly profitable proposition.
The Legal Requirements

RBI guideline for banks entering into insurance sector provides
three options for banks. They are:
• Joint ventures will be allowed for financially strong banks

wishing to undertake insurance business with risk
participation;
• For banks which are not eligible for this joint-venture option,
an investment option of up to 10% of the net worth of the
bank or Rs.50 crores, whichever is lower, is available;
• Finally, any commercial bank will be allowed to undertake
insurance business as agent of insurance companies. This
will be on a fee basis with no-risk participation.
The Insurance Regulatory and Development Authority (IRDA)

guidelines for the bancassurance are:
• Each bank that sells insurance must have a chief insurance

executive to handle all the insurance activities.
• All the people involved in selling should under-go mandatory
training at an institute accredited by IRDA and pass the
examination conducted by the authority.
23
• Commercial banks, including cooperative banks and regional
rural banks, may become corporate agents for one insurance
company.
• Banks cannot become insurance brokers.
Will bancassurance click?
Bancassurance, the much talked about channel of insurance

distribution through banks that originated in France and which has
been a success story in Europe is yet to take off here. A number of
insurers have already tied up with banks and some banks have
already flagged off bancassurance through soft launches of select
risk products. While reams have been written about the numerous
benefits of bancassurance considering the wide scale availability
of risk products it will enable, rules and regulations regarding the
same are yet to fall in place.
Fee based income:
For banks, bancassurance would mean a major gain. Since

interest rates have been falling and profit on offtake of credit has
been low all banks have been able to do is sustain themselves but
not profit much. Enter bancassurance and fee based income
through hawking of risk products would be guaranteed.
Unique strategies:
Before taking the plunge, banks as also insurers need to work hard
on chalking out strategies to sell risk products through this channel
24
especially in an emerging market as ours. Through tie-ups some
insurers plan to buy shelf space in banks and sell insurance to
those who volunteer to purchase them. But unless banks set up a
trained task force that will focus on hard-selling risk products,
making much headway is difficult especially with a financial
product that is not so easily bought over the counter.
Identifying Target audience:
Besides, identifying the target audience is yet another important

aspect. Banks have a large depositor base of corporate as well as
retail clients they can tap. Talking of retail clients the lower end
and middle-income group customers constitute a major chunk who
have over a period of time built a good rapport with the bank staff
and thus hold big potential for bancassurance.
Reduced costs:
While products such as retirement planning will involve an

elaborately worked out plan with the help of a financial advisor,
simple products such as an accident cover in other words pure risk
products will be sold through this channel enabling savings on
solicitation costs of these products. So will insurers pass on a part
of the gains on cost saving (saving on agent training etc) to
customers? At present insurers are non-committal on this one.
Also there are no immediate plans to redesign products to suit the
bancassurance channel but banks are gung-ho about cross-selling
products.
25
Legal issues:
Conversely, the Insurance Regulatory Development Authority

(IRDA) has adopted a cautious approach before Bancassurance is
flagged off. While on the one hand it is an economical proposition
to sell risk products through the numerous bank branches spread
across the country the fact that claim settlement disputes take an
unusually long time in our country is one of the causes for worry. In
such a situation will banks be in a position to fight for the cause of
their clients is a major concern? Besides regulatory authorities for
both - banks and insurance companies are different. Moreover,
banks may have to part with confidential information about their
clients. Now where should banks draw a line?
Insurance
Insurance may be described as to protect the economic value of

asset. It can be said to be a system of spreading the losses of an
individual over a group of individuals.
Since it is an intangible product, Insurance Industry is a
service industry. Insurance Industry do not produce any goods but
sell the promise. A promise to take care of the customers or their
dependents in case they suffer a loss due to some peril during the
term of policy.
What is insurance:
26
Mankind is exposed to many serious perils such as property losses
from fire and windstorm and personal losses from disability and
premature death. Although it is impossible for an individual to
foretell or completely prevent their occurrence but it is possible to
provide against their financial effect the loss of property and
earnings.
From the point of view of the individual the life Insurance may be
defined as a contract whereby for a Consideration amount called
the premium, one party (the insurer) agrees to pay to the other
(the insured) or a beneficiary a particular amount upon the
occurrence of death or any other agreed event.
 Insurance is the method of spreading and transfer of risks
 Losses of few unfortunate are shared by and spread over to

many exposed to the same risk.
 Assets created by the owner in expectation of future needs

have a value.
 Losses of assets for any reason deprive the owner of the

expected benefits.
 It acts as a form of a safeguard against misfortunes.
 From the point of view of community life insurance may be

defined as a social device to make accumulations to meet
uncertain losses resulting from premature death or disability.
27
Characteristics of Insurance
Sharing of Risks
Insurance is a co-operative device to share the burden of
risk, which may fall on happening of some unforeseen
events, such as the death of head of the family, or on
happening of marine perils or loss of by fire.
Co-operative Device
Insurance is a co-operative form of distributing a certain
risk over a group of persons who are exposed to it
(Ghosh & Agarwal). A large number of persons share the
losses arising from a particular risk.
Evaluation of Risk
For the purpose of ascertaining the insurance premium,
the volume of risk is evaluated, which forms the basis of
insurance contract.
Payment of happening of specified event

On happening of specified event, the insurance company
is bound to make payment to the insured. Happening of
the specified event is certain in life insurance, but in the
case of fire, marine or accidental insurance, it is not
necessary. In such cases, the insurer is not liable for
payment of indemnity.
Amount of payment
28
The amount of payment in indemnity insurance depends
on the nature of losses occurred, subject to a maximum
of the sum insured. In life insurance, however, a fixed
amount is paid on the happening of some uncertain event
or on the maturity of the policy.
Large number of insured persons

The success of insurance business depends on the large
number of persons insured against similar risk. This will
enable the insurer to spread the losses of risk among
large number of persons, thus keeping the premium rate
at the minimum.
Insurance is not a gambling

Insurance is not a gambling. Gambling is illegal, which
gives gain to one party & loss to the other. Insurance is
a valid contract to indemnity against losses. Moreover,
insurable interest is present in insurance contracts & it
has the element of investment also.
Insurance is not charity

Charity pays without consideration but in the case of
insurance, premium is paid by the insured to the insurer
in consideration of future payment.
Protection against risks
29
Insurance provides protection against risks involved in
life, materials & property. It is a device to avoid or
reduce risks.
Spreading of risk
Insurance is a plan, which spread the risks & losses of
few people among a large number of people. John
Magee writes, “Insurance is a plan by which large number
of people associates themselves & transfer to the
shoulders of all, risks attached to individuals.”
Transfer of risk
Insurance is a plan in which the insured transfers his risk
on the insurer. This may be the reason that Mayerson
observes, that insurance is a device to transfer some
economic losses to the insurer, and otherwise such
losses would have been borne by the insured themselves.
Ascertaining of losses
By taking a life insurance policy, one can ascertain his
future losses in terms of money. This is done by the
insurer to determining the rate of premium, which is
calculated on the basis of maximum risks.
A contract
Insurance is a legal contract between the insurer &
insured under which the insurer promises to compensate
the insured financially within the scope of insurance
30
policy, & the insured promises to pay a fixed rate of
premium to the insurer.
Based upon certain principle

Insurance is a contract based upon certain fundamental
principles of insurance, which includes utmost good faith,
insurable interest, contribution, indemnity, causa proxima,
subrogation, etc., which are the basis for successful
operation of insurance plan.
Utmost Good Faith
Insurance is a contract based on good faith between the
parties. Therefore, both the parties are bound to disclose
the important facts affecting to the contract before each
other. Utmost good faith is one of the important
principles of insurance.
To conclude, insurance is a device for the transfer of

risks from the insured to the insurers, who agree to it for
a consideration (known as premium), & promises that the
specified extent of loss suffered by the insured shall be
compensated. It is a legal contract of a technical nature.
Purpose and need of insurance :
31
As said earlier that the making is exposed to many serious perils
which risk the security of their belongings. The risk here means
that there is a possibility of occurrence of loss or damage to the
property, it may happen or may not happen. Insurance is relevant
only in the contingency of uncertainty. If there is no uncertainly
about the occurrence of the loss it can’t be insured against:
 Assets are likely to be destroyed or made non-functional due

to perils like firefloods, breakdowns, lightning and
earthquake.
 Damage to assets caused by any perils is the risk that assets

are exposed to.
 Insurance become relevant only if there is uncertainly of

occurrence of event leading to loss.
 No uncertainty No insurance.
 We can say that the human life value is an ongoing

generating asset, which can be lost on early death or
disability caused by accidents.
 Insurance doesn’t protect the assets but only compensates

the economic or financial loss.
 Basically insurance covers tangible assets but the concept

can be extended to intangible also.
FUNCTIONS OF INSURANCE
32
The functions of Insurance can be bifurcated into two
parts:
1. Primary functions
2. Secondary functions
The primary functions of insurance include the following:

Provide Protection - The primary function of insurance is to provide
protection against future risk, accidents and uncertainty. Insurance
cannot check the happening of the risk, but can certainly provide
for the losses of risk. Insurance is actually a protection against
economic loss, by sharing the risk with others.
Collective bearing of risk - Insurance is a device to share the

financial loss of few among many others. Insurance is a mean by
which few losses are shared among larger number of people.
Assessment of risk - Insurance determines the probable volume of

risk by evaluating various factors that give rise to risk. Risk is the
basis for determining the premium rate also
Provide Certainty - Insurance is a device, which helps to change

from uncertainty to certainty. Insurance is device whereby the
uncertain risks may be made more certain.
The secondary functions of insurance include the following:
Prevention of Losses - Insurance cautions individuals and
33
businessmen to adopt suitable device to prevent unfortunate
consequences of risk by observing safety instructions; installation
of automatic sparkler or alarm systems, etc. Prevention of losses
causes lesser payment to the assured by the insurer and this will
encourage for more savings by way of premium. Reduced rate of
premiums stimulate for more business and better protection to the
insured.
Small capital to cover larger risks - Insurance relieves the

businessmen from security investments, by paying small amount
of premium against larger risks and uncertainty.
Contributes towards the development of larger industries -

Insurance provides development opportunity to those larger
industries having more risks in their setting up. Even the financial
institutions may be prepared to give credit to sick industrial units
which have insured their assets including plant and machinery.
Life Insurance
Life insurance is a contract where the person requiring and

insurance pays a consideration / premium to maintain a policy and
the insurer promises to pay a sum assured or a guaranteed
amount on the happening of an eventuality. If no eventuality
occurs then the insured may be eligible for some bonus also.
Why life insurance :
34
1. Protection of the interest of the family member.
2. Provision for education and marriage of the children.
3. Post retirement income for self and dependents
4. Special needs for medical expenses.
5. Provision for health /illness.
6. Provision for housing.
7. Provision for income tax rebate.
Benefits of Insurance
Insurance not only serves the ends of individuals or of special
groups of individuals but also is advantageous to the society as a
whole.
Benefits To The Individual
 Superior to any other saving plans:
Unlike any other saving plan, a life insurance policy affords full
protection against risk of death. In the event of death of a policy
holder, the insurance company makes available the full sum
35
assured to the near and dear of policy holder. In comparison, any
other saving plan would amount the total saving accumulated till
date. If the death occurs prematurely, such saving can be much
lesser than sum assured. Evidently, the potential financial loss of
the family of the policy holder is sizable.
 Encourages and forces thrift:
A saving deposit can easily be withdrawn. The payment of Life

insurance premiums, however, is considered sacrosanct and is
viewed with the same seriousness as the payment of interest on a
mortgage. Thus, a life insurance policy in effect brings about
compulsory saving.
 Easy Settlement And Protection Against Creditors:
A life insurance policy is the only financial instrument , the

proceeds of which can be protected against the claims of a creditor
of the assured by affecting a valid assignment of the policy.
 Administering the legacy for beneficiaries :
Speculative or otherwise, expenses can quickly cause the

proceeds to be squandered. Several policies have foreseen this
possibility and provide for payment over a period of years or in a
combination of installments and lump sum amounts.
 Ready marketing and suitability for quick borrowing :
36
A life insurance policy can, after a certain period (generally Three
years), is surrendered for a cash value. The policy is also
acceptable as a security for commercial loans, for example, a
student loan.
 Disability benefits :
Death is not only hazard that is insured; many policies may include
disability benefits. Typically, these provide for waiver of future
premiums and payment of monthly installment periods.
 Accidental death benefits :
Many policies can also provide for an extra sum to be paid

(typically equal to the sum assured) if death occurs as a result of
accident.
 Tax relief :
Under the Indian income tax act, the following tax relief is available
1. 20% of premium can be deducted from total income tax

liability.
2. 100% of the premium paid is deductible from your total

taxable income.
When these benefits are factored in, it is found that most Policies
offer returns that are comparable /or even better than other saving
37
modes such as PPF, NSC etc. moreover, the cost of insurance is a
very negligible.
 Benefits to business :
Insurance results in business continuation and welfare of

employees. Uncertainty of business losses is reduced by
insurance.
 Benefits of society :
The welfare of the society is protected. Insurance results in

economic growth of the country and reduction in inflation.
INDUSTRY PROFILE
ICICI Prudential Life Insurance Company Limited was

incorporated on July 20, 2000. The authorized capital of the
company is Rs.2300 Million and the paid up capital is Rs. 1500
Million. The Company is a joint venture of ICICI (74%) and
Prudential plc UK (26%).
38
The Company was granted Certificate of Registration for carrying
out Life Insurance business, by the Insurance Regulatory and
Development Authority on November 24, 2000. It commenced
commercial operations on December 19, 2000, becoming one of
the first few private sector players to enter the liberalized arena.
The Company is now operational in Mumbai, New Delhi, Pune,

Chennai, Kolkata, Bangalore, Chandigarh, Ahmedabad,
Hyderabad, Lucknow, Nasik, Jaipur, Cochin, Meerut,
Mangalore and Ludhiana.
Till March 31,2002 the Company has issued 100,000 polices

translating into a Premium Income of around Rs. 1,200 Million and
a sum assured of over Rs.15,000 Million.The Company recognizes
that the driving force for gaining sustainable competitive advantage
in this business is superior customer experience and investment
behind the brand. The Company aims to achieve this by striving to
provide world class service levels through constant innovation in
products, distribution channels and technology based delivery. The
Company has already taken significant steps to achieve this goal.
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.
With an annual growth rate of 15-20% and the largest number of

life insurance policies in force, the potential of the Indian insurance
industry is huge. Total value of the Indian insurance market (2004-
39
05) is estimated at Rs. 450 billion (US$10 billion). According to
government sources, the insurance and banking services'
contribution to the country's gross domestic product (GDP) is 7%
out of which the gross premium collection forms a significant part.
The funds available with the state-owned Life Insurance
Corporation (LIC) for investments are 8% of GDP.
Till date, only 20% of the total insurable population
of India is covered under various life insurance schemes, the
penetration rates of health and other non-life insurances in India is
also well below the international level. These facts indicate the of
immense growth potential of the insurance sector.
The year 1999 saw a revolution in the Indian
insurance sector, as major structural changes took place with the
ending of government monopoly and the passage of the Insurance
Regulatory and Development Authority (IRDA) Bill, lifting all entry
restrictions for private players and allowing foreign players to enter
the market with some limits on direct foreign ownership.
The life insurance industry in India grew by an
impressive 36%, with premium income from new business at Rs.
253.43 billion during the fiscal year 2004-2005, braving stiff
competition from private insurers. This report "Indian Insurance
Industry: New Avenues for Growth 2012", finds that the market
share of the state behemoth, LIC, has clocked 21.87% growth in
business at Rs.197.86 billion by selling 2.4 billion new policies in
2004-05. But this was still not enough to arrest the fall in its market
share, as private players grew by 129% to mop up Rs. 55.57 billion
in 2004-05 from Rs. 24.29 billion in 2003-04.
Though the total volume of LIC's business
40
increased in the last fiscal year (2004-2005) compared to the
previous one, its market share came down from 87.04 to 78.07%.
The 14 private insurers increased their market share from about
13% to about 22% in a year's time. The figures for the first two
months of the fiscal year 2005-06 also speak of the growing share
of the private insurers. The share of LIC for this period has further
come down to 75 percent, while the private players have grabbed
over 24 percent.
Vision
To make ICICI Prudential the dominant Life and Pensions player
built on trust by world-class people and service.
This we hope to achieve by:
• Understanding the needs of customers and offering them

superior products and service
• Leveraging technology to service customers quickly,
efficiently and conveniently
• Developing and implementing superior risk management
and investment strategies to offer sustainable and stable
returns to our policyholders
• Providing an enabling environment to foster growth and
learning for our employees
• And above all, building transparency in all our dealings.
The success of the company will be founded in its unflinching

commitment to 5 core values -- Integrity, Customer First,
41
Boundaryless, Ownership and Passion. Each of the values
describe what the company stands for, the qualities of our people
and the way we work.
We do believe that we are on the threshold of an exciting new
opportunity, where we can play a significant role in redefining and
reshaping the sector. Given the quality of our parentage and the
commitment of our team, there are no limits to our growth.
Mission
ICICI Prudential Target Returns Fund (There is no guarantee
or assurance of returns) is specially designed with the objective of
providing investors with trigger options to pre-set their investment
objectives by allowing them to re-balance the investment to pre-
selected debt funds, once their investment objectives are met. The
fund utilizes fundamental analysis for individual security selection
with a view to invest in equities of companies that are highly liquid
with large market capitalization.
PROMOTERS
ICICI Bank
ICICI Bank (NYSE:IBN) is India''s second largest bank and

largest private sector bank with over 50 years of financial
experience and with assets of Rs. 1812.27 billion as on 30th June,
2005. ICICI Bank offers a wide range of banking products and
financial services to corporate and retail customers through a
42
variety of delivery channels and through its specialised
subsidiaries and affiliates in the areas of investment banking, life
and non-life insurance, venture capital and asset management.
ICICI Bank is a leading player in the retail banking market and has
over 13 million retail customer accounts. The Bank has a network
of over 570 branches and extension counters, and 2,000 ATMs.
Prudential plc
Established in London in 1848, Prudential plc, through its

businesses in the UK and Europe, the US and Asia, provides retail
financial services products and services to more than 16 million
customers, policyholder and unit holders worldwide. As of June 30,
2004, the company had over US$300 billion in funds under
management. Prudential has brought to market an integrated
range of financial services products that now includes life
assurance, pensions, mutual funds, banking, investment
management and general insurance. In Asia, Prudential is the
leading European life insurance company with a vast network of 24
life and mutual fund operations in twelve countries - China, Hong
Kong, India, Indonesia, Japan, Korea, Malaysia, the Philippines,
Singapore, Taiwan, Thailand and Vietnam.
MANAGEMENT
Board of Directors
The ICICI Prudential Life Insurance Company Limited Board
43
comprises reputed people from the finance industry both from
India and abroad.
Ms Chanda D. Kochar (Chairperson )
Mr NS Kannan , Director
Mr K Ramkumar ,Director
Mr Barry Stowe ,Director
Management Team
Ms. Shikha Sharma, Managing Director & CEO

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 Operations
Mr. Puneet Nanda, Chief – Investments
Brand Values
Market Research reveals that the values people associate with

ICICI Prudential are, indeed, those that the company hopes to
project: lifelong protection and value for money. The core value is
protecting your loved ones, throughout life’s ups and downs. It is a
powerful proposition; one, which ICICI Prudential, is taking into the
market place.
44
Achievements
Beginning operations in December 2000, ICICI Prudential’s

success has been meteoric, becoming the number one private life
insurer within months of launch. Today, it has one of the largest
distribution networks amongst private life insurers in India, with
branches in 54 cities. The total number of policies issued stands at
more than 780,000 with a total sum assured in excess of Rs.160
billion.
ICICI Prudential closed the financial year ended march 31, 2004
with a total received premium income of Rs. 9.9 billion; up 135%
last years total premium income of Rs.4.20 billion. New business
premium income shows a 106% growth at Rs. 7.5 billion, driven
mainly by the company’s range of unique unit-linked policies and
pension plans. The company’s retail market share amongst private
companies stood at 36%, making it clear leader in the segment. To
add to its achievements, in the year 2003/04 it was adjudged Most
Trusted Private Life Insurer (Economic Times ‘Most Trusted Brand
Survey’ by ACNeilsen ORG-MARG). It was also conferred the
‘Outlook Money-Best Life Insurer’ award for the second year
running. The company is also proud to have won Silver at EFFIES
2003 for its ‘Retire from work, not life’ campaign. Notably, ICICI
Prudential was also short-listed to the final round for its ‘Sindoor
campaign in EFFIES 2002.
In Keeping with its belief that a happy customer is the best

endorsement, ICICI Prudential has embraced the ‘SIX SIGMA’
45
approach to quality, an exercise that begins and ends with the
customer from capturing his voice to measuring and responding to
his experiences. This initiative is currently helping the company
improve processes, turnaround times and customer satisfaction
levels. Another Novel introduction is the ICICI Prudential Lifestyle
Rewards Club, India’s first rewards programme for Life Advisors; it
allows ICICI Prudential Advisors to redeem points for items
ranging from kitchenware to gold, white goods, and even
international holidays.
Stages in Policy Issuance
1) Proposal
A Proposal Stage is the First stage before the policy is issued at

COPS. At this stage, the application form is received by COPS, but
it is pending for issuance due to further clarifications required from
the customer.
2) Login
A proposal which is complete i.e., duly filled with all necessary

documents attached to it & accepted by the Branch ops, is called a
Login
3) Reject
An Application gets rejected at the Branch Ops level due to

necessary details not filled in the form or necessary documents not
46
submitted is a Reject. It is then sent back to the Advisor for
completion.
4) Issuance
Issuance means a policy that is issued to the Customer by Central

Ops.
5) Decline Status
When a customer refuses to take a policy post login but before

Issuance is called a Decline
6) Cancellation
When the cheque given by the customer bounces, it amounts to

cancellation of the policy.
7) Lapse
A policy for which the Customer fails to pay subsequent premiums

is a Lapsed Policy.
8) Free look
Post issuance of the policy, the policyholder has the option to turn
down the policy within 15 days from the date of issuance. This
period of 15 days is called Free look Period.
9) Surrender:
When a customer wants to discontinue with the policy.
47
PRODUCT/SERVICES PROFILE
ICICI Prudential’s ultimate promise is financial security. A strong

brand certainly boosts sale, but without customer-friendly,
innovative products, even the best brand would not last long.
ICICI Prudential’s product range has been developed on the

understanding that different people have their own sets of needs at
various stages of their lives. It has thus built a flexible portfolio of
products that can be customized to cater to varying needs of
people at each stage, and thus ensure protection in every step of
life. The company’s philosophy has been to help customers
understand their financial needs and work closely with them to
customize a product that would meet. Advisors can offer a
complete range of products –Savings plans, Child plans, Market-
linked plans, Protection plans, and Retirement plans – and tailor a
flexible solution to meet customers’ changing needs at every stage
of life. In fact, ICICI Prudential was the first to un-bundle product
benefits, pioneering the concept of ‘riders’ and soon after introduce
comprehensive market-linked and retirement plans.
ICICI Prudential has launched a handful of products that are

analyzed below:
ICICI Prudential's life insurance products may be loosely

categorized under three forms: pure life insurance products without
an investment angle to them; a product that is a mix of a
cumulative investment scheme and an insurance product; and,
finally, standard products such as money-back and endowment
policies.
48
Single Premium Bond: The Single Premium Bond is the name of
a policy that combines the features of an investment in a
cumulative deposit scheme with that of an insurance product.
Policy-holders are required to pay a one-time premium based on a

target sum assured. At maturity, the policy-holder gets the sum
assured and guaranteed additions that work out to a compound
return of 4.5 per cent the sum assured.
The insurance part of the package comes in the form of death

benefits that are paid in the case of the demise of the policy-
holder. The size of the death benefit is linked to the number of
years left for the policy to expire. On maturity date, the maturity
value is also paid in addition to the death benefits that would have
been paid earlier.
Life Guard policies: The company offers two pure life insurance
products that have an umbrella name, Life Guard. One of them
involves a one-time premium for which there are no maturity
benefits. The other requires regular premium payments that are
returned at the end of the policy. Life Guard offers absolutely no
investment-related return and is suitable for individuals looking for
an unadulterated insurance package.
Insurance Solutions 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 products can be enhanced with up to 5 riders,
to create a customized solution for each policyholder.
49
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.
• Save ‘n’ Protect is a traditional endowment savings plan

that offers life protection along with adequate returns
• CashBak is an anticipated endowment policy ideal for

meeting milestone expenses like a child’s marriage,
expenses for a child’s higher education or purchase of an
asset.
• LifeTime and LifeTime II offer customers the flexibility and

control to customize the policy to meet the changing needs
at different life stages. Each offer 4 fund options –Preserver,
Protector, Balancer and Maximiser.
• LifeLink Super is a single premium Unit Linked Insurance

Plan which combines life insurance cover with the
opportunity to stay invested in the stock market.
• Premier Life is a limited premium paying plan that offers

customers life insurance cover till age of 75.
• InvestShield Life is a Unit Linked plan that provides capital

guarantee on the invested premiums and declared bonus
interest.
• InvestShield Cash is a Unit Linked plan that provides capital

guarantee on the invested premiums and declares bonus
interest along with flexible liquidity options.
50
• InvestShield Gold is a Unit Linked plan that provides capital
guarantee on the invested premiums and declares bonus
interest along with limited premium payment terms.
Protection Solutions
• LifeGuard is a protection plan, which offers life cover at very

low cost. It is available in 3 options –level term assurance
with return of premium and single premium.
• HomeAssure is a mortgage reducing term assurance plan

designed specifically to help customers cover their home
loans in a simple and cost-effective manner.
Child Plans
• SmartKid education 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 child’s life.
SmartKid plans are also available in unit-linked form – both
single premium and regular premium.
Retirement Solutions
• ForeverLife is a retirement product targeted at individuals in

their thirties.
51
• SecurePlus Pension is a flexible pension plan that allows
one to select between 3 levels of cover.
• Market-linked retirement products
• LifeTime Pension II is a regular premium market-linked
pension plan.
• LifeLink Pension II is single premium market linked pension
plan.
• InvestShield Pension is a regular premium pension plan
with a capital guarantee on the investible premium and
declared bonuses
• Golden Years: is a limited premium paying retirement
solution that offers tax benefits up to Rs 100,000 u/s 80C,
with flexibility in both the accumulation and payout stages.
Health Solutions
• Health Assure and Health Assure Plus: Health Assure

is a regular premium plan which provides long term cover
against 6 critical illnesses by providing policy holder with
financial assistance, irrespective of the actual medical
expenses. Health Assure Plus offers the added advantage
of an equivalent life insurance cover
• Cancer Care: is a regular premium plan that pays cash
benefit on the diagnosis as well as at different stages in
the treatment of various cancer conditions.
Group Insurance Solutions
52
ICICI Prudential also offers Group Insurance Solutions for
companies seeking to enhance benefits to their employees.
ICICI Pru Group Gratuity Plan: ICICI Pru’s group gratuity plan
helps employers fund their statutory gratuity obligation in a
scientific manner. The plan can also be customized to structure
schemes that can provide benefits beyond the statutory
obligations.
ICICI Pru Group Superannuation Plan: ICICI Pru offers a

flexible defined contribution superannuation scheme to provide
a retirement kitty for each member of the group. Employees
have the option of choosing from various annuity options or
opting for a partial commutation of the annuity at the time of
retirement.
ICICI Pru Group Term Plan: ICICI Pru’s flexible group term
solution helps provide affordable cover to members of a 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.
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.
1. Accident and disability benefit: If death occurs as the
result of an accident during the term of the policy, the
53
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.
2. Accident Benefit: This rider option pays the sum assured
under the rider on death due to accident.

3. 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 expenses
prior to death
4. Income Benefit: This rider pays the 10% of the sum
assured to the nominee every year, till maturity, in the

event of the death of the life assured. It is available in
SmartKid, SecurePlus, and CashPlus.
5. Waiver of Premium: In case of total and permanent
disability due to an accident, the premiums are waived till

maturity. This rider is available with SecurePlus and
CashPlus.
54
Chapter-2
Internship training experience
REASONS FOR SELECTING AN INSURANCE SECTOR FOR

RESEARCH
Life Insurance Sector acts as a backbone of any economy. This

sector polls large funds from masses and then invests in the
infrastructure projects as well as other long term projects, which
will generate a regular income flow in the coming years.
Traditionally life insurance was taken just as a security product but
now it is gaining importance as an investment product. Hence, now
55
if you want to sell life insurance product to anyone, you have to
analyze his/her life stage, risk preference, priorities and then
suggest the appropriate product to that investor.
The insurance sector needs a great deal of financial planning,

knowledge, as well as knowledge about other financial products
and their current markets so that we can compare those products
with the insurance product and convince the client. Insurance
companies also have to manage their investment in such a way
that the principal amount should not erode, and the investor should
get assured returns which the company has promised. This
involves a great deal of knowledge about portfolio management
and hedging of risk. Thus this would give us great exposure to
financial markets as well as the intricacies of different financial
institutions, how they work and what difficulties they face.
OBJECTIVES
The main objective of doing this project is to study the

corporate culture and creating awareness among the
customer about investment plans and financial products of
icici prudential at icici bank. During this student internship
program period I have to achieve something which is
helpful to the development of myself and some value
addition to the company. Generating business to the
company is the main objective. It gives me good exposure
of myself and creating good impression.
56
1. The main objective of this study is to know the
Customers perceptions about investments and

financial products.
2. Generating good business to the company by
promoting and selling the products of ICICI
Prudential.
3. To know the ideas of customers about investments
and financial products and Services.
4. To get the knowledge about different loan products
of ICICI Bank.
5. Creating awareness of ICICI prudential products in
the minds of Walk-in customers in the bank.
6. Fixing the appointments with the customers.
7. Visiting the customers and closing the deal.
TARGETS/ TASKS
I have to approach the customer with in the bank and out side of
the
bank also to promoting the products and services of ICICI. If he
gets the information about the product I have to take his mobile
number and appointment. After getting the leads I have to submit
to the financial consultants. With the guidance of financial
consultants I have to generate the business.
STRATEGIES
57
Followed strategies to achieve my Targets
Direct marketing
My internship training is promoting the financial products and

services of ICICI. By adopting this strategy I can understand the
ideas of customers and their investment habits. If I know the ideas
I can create better idea of our products. Direct approach creates
great awareness about the product and we can easily clarify the
doubts of customers.
Tele-marketing
This is the one of the strategy I am following to promote the

product.
If once I got the phone number of the customer I can easily grab
the
Customer. Through Tele marketing I can convince the customer.
Relationship marketing
It is also one of the best marketing strategies. Direct approach is

only
belongs one customer. Through relationship marketing we can
pinch the product to many persons. If one customer got good faith
on us. Then he will promote the products to his friends and
colleagues. It is also one of the best strategies I am following.
58
.
ACHIEVEMENTS
I promoted ICICI Prudential financial products and services during

my internship period. I have showing them as follows
Serial no. Week wise performance

1st week Training class, for different financial
products of ICICI
nd
2 week Training class on documents
3rd week 5 leads
4th week 5 leads
LIMITATIONS
1. The survey was confined to only certain parts of city, which

Included walk-in customers of ICICI Bank and outsiders.
2. I don’t have sufficient knowledge to close all the deals.
3. getting the prospective customers are very time consuming.
4. Time to explain the customer about the product inside branch is
Less.
59
5. Time Period of my OJT is one of the Limitations.
LEARNINGS
Learning’s in the internship training

1. Product knowledge of ICICI financial products and services
2. The way to improve my communication skills.
3. The way to convince the customers.
4. The way to behave people in corporate world.
5. The way to adopt new strategies to attract customers.
6. The way to convince the people who do not trust private
Organizations.
7. How people invest their money in different investment schemes.
CHAPTER-3
PROJECT OVERVIEW
“HOW TO WORK IN BANCASSURANCE
MODULE”
60
‘BANCASSURANCE’ as term itself tells us what does it
means. It’s a combination of the term ‘Bank’ and ‘Insurance’.
It means that insurance have started selling there product
through banks. It’s a new concept to Indian market but it is
very widely used in western and developed countries. It is
profitable both to Banks and Insurance companies and has a
very bright future to be the most develop and efficient means
of distribution of Insurance product in very near future.
Insurance company can sell both life and non-life policies

through banks. The share of premium collected by banks is
increasing in a decent manner from the time it was introduce
to the Indian market. In India Bancassurance in guide by
Insurance Regulatory and Development Authority Act
(IRDA), 1999 and Reserve Bank of India. All banks and
insurance company have to meet particular requirement to
get into Bancassurance business.
It is predicted by experts that in future 90% of share of

premium will come from Bancassurance business only.
Currently there are more and more banking and Insurance
Company and venturing into Bancassurance business for
better business prospect in future.
The banking business is also generating more profit by more

premium collected by them and they also receive
commission like normal insurance agent which increase
there profits and better reputation for the banks as there
service base also increase and are able to provide more
61
service to customers and even more customer are attracted
toward bank.
It is even profitable for Insurance Company as they receive

more and more sales and higher customer base for the
company. And they have to directly deal with an organization
which reduce there pressure to deal with each customer face
to face.
In all Bancassurance has proved to be boom in whole

Banking and Insurance arena.

Insurance company.
The links between bank and insurance takes place through

various ways (distribution agreements, joint ventures,
creation of a company new company) which gives rise to a
complete upheaval concerning marketing strategies and the
setting up of insurance products' distribution. More and
better insurance starts coming in market.
This stream of market has just been opened very recently for
the Indian market and there is lot of development left to be
62
done by the government and regulatory authority. But this
has proven to be a boom for the Insurance and Banking
companies together and both the different sector of the
industry has shown better result and improvement in their
own field due coming of the whole new concept of
BANCASSURANCE.
Bancassurance in its simplest form is the distribution of

insurance products through a bank’s distribution channels. It
is the provision of insurance and banking products and
service through a common distribution channel or through a
common base.
Bancassurance in its simplest form is the distribution of

insurance products through a bank’s distribution channels. It
is the provision of insurance and banking products and
service through a common distribution channel or through a
common base.
Objective of the Study
Management as a profession can’t be taught merely in the four

walls of classrooms. Only theoretical knowledge is not sufficient
to build competitive managers. Practical knowledge of the
business environment is equally important.
In today business world, insurance sector is running towards its

booming stage. This industry still has many things to come up to,
63
so many changes and opportunities will be given by insurance
industry. So I choose insurance industry for my training session
in M.B.A.
I choose ICICI Prudential Life Insurance is one of those private

insurance players who entered the market before few years and
made its own place among all its competitors.
This report is shows insurance sector & how insurance is most

important part of life. And understand insurance definitions,
different providers of life insurance and comparisons. It also
shows ICICI Prudential Life Insurance’s Products.
As a Trainee ICICI Prudential Life Insurance give me very
practical knowledge about life insurance and how to working in
organization, How manage work, how to maintain relations with
top level management as well as colleges and bottom level
management. So, this experience will helpful in future. I am
pleased by taken training at India’s one of the best insurance
company.
REASONS FOR SELECTING AN INSURANCE SECTOR FOR

RESEARCH
Life Insurance Sector acts as a backbone of any economy. This

sector polls large funds from masses and then invests in the
64
infrastructure projects as well as other long term projects, which
will generate a regular income flow in the coming years.
Traditionally life insurance was taken just as a security product but
now it is gaining importance as an investment product. Hence, now
if you want to sell life insurance product to anyone, you have to
analyze his/her life stage, risk preference, priorities and then
suggest the appropriate product to that investor.
The insurance sector needs a great deal of financial planning,

knowledge, as well as knowledge about other financial products
and their current markets so that we can compare those products
with the insurance product and convince the client. Insurance
companies also have to manage their investment in such a way
that the principal amount should not erode, and the investor should
get assured returns which the company has promised. This
involves a great deal of knowledge about portfolio management
and hedging of risk. Thus this would give us great exposure to
financial markets as well as the intricacies of different financial
institutions, how they work and what difficulties they face.
RESEARCH PROBLEM
The first and foremost step happens to be that of selecting and

properly defined research problem.
RESEARCH PROBLEM refers to some difficulty which a

researcher experiences in the context of either a theoretical or
practical situation and wants to obtain a solution for the
same.
65
A Research problem is one which requires a researcher to find out
the best solution for the given problem that is to find out by which
course of action the objective can be attained optimally in the
context of a given environment.
Thus zest for the work is must. The subject or the problem
selected must involve the researcher and must have an upper
most place in his mind so that he/she may undertake all pains
needed for the study.
I have selected the research problem in ICICI Prudential Life

Insurance is as follows:
 To know the Investment Pattern of the ICICI Prudential life

insurance.
 To know the Investor’s approach towards the return given by

ICICI Prudential Life Insurance.
So, above two are very important research problem that I want to
study and get the solution of it.
RESEARCH OBJECTIVES
66
“The word objective means purpose behind doing anything.”
Every research study has its own specific research objective.

Without objective no one is doing any work. To do anything there
is a purpose behind it.
Here in ICICI Prudential my research objectives are as follows
 To know Investment Pattern of ICICI Prudential Life

Insurance company.
 To know the Investor’s approach towards the return provided

by the ICICI Prudential Life Insurance.
 To know the Satisfaction of the investors towards the return

offered by the ICICI Prudential Life Insurance.
Here above are the very important research objective that I want to
study and carry out the optimum solution for it.
Research Design:
The research design of this project is exploratory. Though each

research study has its own specific purpose but the research
design of this project on ICICI is exploratory in nature as the
objective is the development of the hypothesis rather than their
testing.
67
METHODOLOGY
Every project work is based on certain methodology, which is a

way to systematically solve the problem or attain its objectives. It is
a very important guideline and lead to completion of any project
work through observation, data collection and data analysis.
According to Clifford Woody,
“Research Methodology comprises of defining & redefining

problems, collecting, organizing &evaluating data, making
deductions &researching to conclusions.”
Accordingly, the methodology used in the project is as follows: -
Defining the objectives of the study
Framing of questionnaire keeping objectives in mind (considering

the objectives)
Feedback from the employees
Analysis of feedback
Conclusion, findings and suggestions.
Sampling Technique Used:
68
This research has used convenience sampling technique.
1) Convenience sampling technique: Convenience sampling is

used in exploratory research where the researcher is interested in
getting an inexpensive approximation of the truth. As the name
implies, the sample is selected because they are convenient
Selection of Sample Size:
For the survey, a sample size of 50 has been taken into

consideration.
Sources of Data Collection:
Research will be based on two sources:
1. Primary data
2. Secondary data
1) PRIMARY DATA:
Questionnaire: Primary data was collected by preparing

questionnaire for customers. The questionnaire was filled through
telephonic research.
2) SECONDARY DATA:
69
Secondary data will consist of different literatures like books which
are published, articles, internet , the company manuals and
websites of company- www.iciciprulife.com.
In order to reach relevant conclusion, research work needed to be

designed in a proper way.
This research methodology also includes:-
• Familiarization with the concept of insurance and its various

terms.
• Thorough study of the information collected.
• Conclusions based on findings.
Statistical Tools Used
The main statistical tools used for the collection and analyses of
data in this project are:
• Questionnaire
• Pie Charts
• Bar Diagrams
Limitations of study
70
Due to the following unavoidable and uncontrollable factors the
factors,the result might not be accurate. Some of the problems
faced while conducting the survey are as follows:-
• Time and cost constraints were also there.

• Chances of some biasness could not be eliminated.
• A Samples size of fifty has been use due to time limitations.
• A majority of respondents show lack of cooperation and are
biased towards their own opinions.
Data Analysis & Findings
Q1. Are you currently insured?
Particulars No. of Respondents Percentage
Yes 31 62%
No 19 38%
Total 50 100%
71
No. of Respondents
19
Yes
No
31
ANALYSIS:
From the survey it was found that amongst 50 respondents
a) 62% of the respondents are already insured.

b) 38% of the respondents are not insured.
Q2. Are you satisfied with your current insurer?
Yes 41 82%
No 9 18%
Total 50 100%
72
No. of Respondents
Yes
No
41
ANALYSIS:
a) 82% of the respondents are satisfied.

b) 18% of the respondents are not satisfied.
Q3. Which one is your favored insurance company?
LIC 24 48%
ICICI 7 14%
HDFC 5 10%
Birla Sun Life 4 8%
Bajaj Allianz 4 8%
Others 6 12%
Total 50 100%
73
0.6
0.5
0.4
Share in %
0.3
0.2
0.1
0
LIC ICICI HDFC Birla Sun Bajaj Others
Allianz
ANALYSIS: Insurance companies
a) 48% of the respondents likes LIC.

b) 14% of the respondents likes ICICI.
c) 10% of the respondents likes HDFC.
d) 8% of the respondents likes Birla Sun Life.
e) 8% of the respondents likes Bajaj Allianz.
f) 12% of the respondents likes other companies
Q4. Are you interested in the products offered by ICICI

Prudential ?
74
Yes 30 60%
No 12 24%
Can’t Say 8 16%
Total 50 100%
No. of Respondents
Yes
No
12 Can't Say
30
ANALYSIS:
a) 60% of the respondents are attracted towards ICICI products.

b) 24% of the respondents are not attracted towards ICICI
products.
c) 16% of the respondents Can’t Say about it.
Q5. What is your main concern while taking an insurance

policy ?
Particulars No. of Percentage
75
Respondents
Tax Benefit 20 40%
Security 16 32%
Investments/Savings 14 28%
Total 50 100%
25
No. of Respondents
20
15
Series1
10 20
16 14
5
0
s
fit
ng
rit
ne
cu
i
av
Be
Se
t/S
x
Ta
en
m
st
ve
In
ANALYSIS:
a) 40% of the respondents are concerned about Tax Benefit.

b) 32% of the respondents are concerned about their Security.
c) 28% of the respondents are concerned about
Investment/Savings.
76
Q6. Does this policy satisfy your financial needs?
(Please rate on the scale of 1 to 5 with 1 being
least satisfied)
Rating No. of Respondents Percentage
1 9 18%
2 9 18%
3 8 16%
4 10 20%
5 14 28%
Total 50 100%
1
2
5
1
2
3
4
3
5
ANALYSIS:
a) 18% of the respondents are Highly unsatisfied.
77
b) 18% of the respondents are Unsatisfied.
c) 16% of the respondents are Moderate.
d) 20% of the respondents are Satisfied.
e) 28% of the respondents are Highly satisfied.
Q7. Please express your opinion for the premiums

paid for the above policy?
Very High 14 28%

High 11 22%
Moderate 13 26%
Low 8 16%
Very Low 4 8%
Total 50 100%
No. of Respondents
4
14
8 Very High
High
Moderate
Low
Very Low
13
11
ANALYSIS:
78
a) 28% of the respondents think that Premium is Very High.
b) 22% of the respondents think that Premium is High.
c) 23% of the respondents think that Premium is Moderate.
d) 15% of the respondents think that Premium is Low.
e) 12% of the respondents think that Premium is Very Low
Q8. How do you come to know about this policy?
Advertisements 10 20%
Friends and 12 24%
Relatives
Direct Selling 21 42%
Agents
Others 7 14%
Total 50 100%
79
ANALYSIS:
a) 20% of the respondents know about it from Advertisements.

b) 24% of the respondents know about it from Friends and
Relatives.
c) 42% of the respondents know about it from Direct Selling
Agents.
d) 14% of the respondents know about it from Other Sources.
Q9. Are you satisfied with the incentives (tax benefits

or Bonuses) associated with your policy?
Rating No. of Respondents Percentage
Highly satisfied 9 18%

Satisfied 12 24%
Moderate 10 20%
Unsatisfied 11 22%
Highly 8 16%
Unsatisfied
Total 50 100%
80
No. of Respondents
8 9
Highly Satisfied
Satisfied
Moderate
11
12 Unsatisfied
Highly Unsatisfied
10
ANALYSIS:
a) 18% of the respondents are Highly Satisfied.

b) 24% of the respondents are Satisfied.
c) 20% of the respondents are Moderate.
d) 22% of the respondents are Unsatisfied.
e) 16% of the respondents are Highly Unsatisfied.
81
Q10. According to you, in what areas should the insurance
companies work upon?
Easy 14 28%
Procedures
Fewer premiums 10 20%
More Returns 9 18%
Transparency 17 34%
Total 50 100%
18
16
14
No. of Respondents
12
10
17 Series1
8
14
6
10 9
4
2
0
Easy Returns Fewer More Returns Transperancy
premiums
ANALYSIS:
a) 28% of the respondents want Easy procedures.

b) 20% of the respondents want Fewer premiums.
c) 18% of the respondents want More returns.
82
d) 34% of the respondents want Transparency.
Q11. Do You think that services have improved after

allowing private players in insurance sector ?
Yes 40 80%
No 10 20%
Total 50 100%
20%
Yes
No
80%
ANALYSIS:
a) 80% of the respondents think that services have improved.

b)20% of the respondents think that services have not
improved.
83
FINDINGS
According to my survey the noteworthy points are:
• Most of the people buy life insurance as just a tax benefit tool
or as a life cover while only a few of the respondent take it as
a saving option.The reason for this is lack of knowledge of
insurance benefits among the people.
• A Majority of the respondent buy insurance products
because of the need reason while rest of the respondents
buy for the brand purpose.
• A Majority of the people come to know about the policies
from the Direct Selling Agents.
• A Majority of the people are satisfied by the incentives
associated with their policies.
• Most of the respondents are satisfied by the services offered
by there insurance company while some says that they are
not satisfied by the services.
• Most of the respondents want more Transparency from the
side of the company.
SCOPE OF STUDY
Scope of study means the study whichever is carried out where it

will helpful in future.
84
In the same way Investment Pattern of ICICI Prudential Life
Insurance Company is helpful in the following ways
 It will be helpful to the company to know where it is

lacking behind.
 The study will helpful to know the investor’s satisfaction

towards return provided by ICICI Prudential Life Insurance
Company.
 On the basis of the study company can take the corrective

actions.
SWOT ANALYSIS
STRENGTH
ICICI Prudential Life Insurance Company Limited is right now the
market leader in Private Insurer segment.
WEAKNESS
The company right now has lesser number of agents (i.e. financial
advisors) than LIC of India which affects their sales in comparison
to LIC of India.
85
OPPORTUNITY
ICICI Prudential Life Insurance Company Limited can give LIC of
INDIA agents an opportunity to join ICICI Prudential Life Insurance
Company Limited as ICICI Prudential has got more incentive
packages & servicing quality better than LIC of INDIA. Doing this
they can reduce their cost of training and can exploit their
experience.
THREAT
Other big brand names like BIRLAS, TATA, HDFC, SBI, and
AVIVA. etc.
Conclusion and Suggestions
CONCLUSION
After overhauling the all situation that boosted a number of Pvt.

Companies associated with multinational in the Insurance Sector
to give befitting competition to the established behemoth ICICI in
private sector, we come at the conclusion that
• There are very tough competition among the private

insurance companies on the level of new trend of advertising
to lull a major part of Customers.
• ICICI is not left behind in the present race of advertisement.
86
• The entry of more Pvt. Players in the Insurance Sector has
expanded the product segment to meet the different level of
the requirement of the customers. It has brought about
greater choice to the customers.
• ICICI has vast market and very firm grip on its traditional
customers and monopoly of life insurance products.
IRDA, is also playing very comprehensive role by regulating norms

mandating to private players in this sector, that increases the
confidence level of the customers to the private players.
Suggestions
The study has provided with the useful data from the respondents.
There has a lot to be recommended. Following are the
recommendations:
• There is a need for better promotion for the investment

products & services. The bank should advertise its products
through television because it will reach to the masses.
• More returns should be provided on Insurance plans.
• As the bank provides the Insurance facility to its customers.
It should provide this facility by tie up with the other
Insurance organizations as well. The main reason is that,
the entire customers do not want Insurance of only one
87
company. They should have choice while selecting a
suitable Insurance plans. This will definitely add to the
goodwill & profit for the bank.
88
ANNEXURE
QUESTIONNAIRE
Name - _____________
Age - _____________
Occupation - _____________
Q1. Are you currently insured?

- Yes
- No
If yes, please give the details of company, plan, premium etc.
Q2. Are you satisfied with your current insurer ?
- Yes
- No
Q3. Which is your favoured insurance company ?

- LIC
- ICICI
- HDFC
- Birla sun life
- Bajaj Allianz
- Others
89
Q4 Are you interested in the products offered by ICICI Prudential ?
- Yes
- No
- Cant say
Q5. What is your main concern while taking an insurance policy ?
- Tax benefit
- Security
- Investment/Savings
Q.6 Does this policy satisfy your financial needs? (Please

rate on the scale of 1 to 10 with 1 being least
satisfied)
Q.7 Please express your opinion for the premiums paid for
the above policy?
-Very high [ ]
-High [ ]
-Moderate [ ]
90
-Low []
-Very Low [ ]
Q.8 How do you come to know about this policy? (Please

tick).
-Advertisements [ ]
-Friends and relatives [ ]
-Direct selling agents [ ].
- Others (please specify) _____________________.
Q.9 Are there any incentives (tax benefits or Bonuses)

associated with this policy? (Please give appropriate details
about it).
- ____________________________________________
____________________________________________
__________________________________
10. Are you satisfied with the incentives associated with your
policy?
-Highly satisfied [ ].
-Satisfied [ ]
-Moderate [ ]
-Unsatisfied [ ]
-Highly Unsatisfied [ ].
91
Q11. According to you, in what areas should the insurance
companies work upon?
- Less complicated procedures

- Fewer premiums
- More returns
- Transparency
Q12. Do You think that services have improved after allowing

private players in insurance sector ?
- Yes
- No
Your comments on ICICI Prudential
_____________________________________________________
_____________
92
BIBLIOGRAPHY
• Marketing Management by Philip Kotler, Pearson Education

2nd ed.
• IRDA Journal
• ICICI Prudential Company magazines
• Newspaper and Business magazines
WEBSITES
• www.iciciprulife.com
• www.google.co.in/indian insurance industry
• www.irdaindia.org
93
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INSTITUTE OF BUSINESS MANAGEMENT & RESEARCH

“HOW TO WORK IN BANCASSURANCE MODULE”

ICICI PRUDENTIAL LIFE INSURANCE

A Training & Project Report submitted in partial fulfillment of the

This is to certify that the Training & Project Report entitled

“HOW TO WORK IN BANCASSURANCE MODULE”

Submitted in partial fulfillment of the requirements for the Internship Training

Mrs. Pushpa Shetty Mr.VIKRAM KUNTAR

The Training & Project Report of

“HOW TO WORK IN BANCASSURANCE MODULE”

Is approved and is acceptable in quality and form

Internal Examiner External Examiner

The Training & Project Report of

“HOW TO WORK IN BANCASSURANCE MODULE”

Is approved and is acceptable in quality and form.

Internship Organizational Research Guide

I hereby declare that the Training & Project Report titled

“HOW TO WORK IN BANCASSURANCE MODULE”

Submitted in partial fulfillment of the requirements for the Internship Training

Signature of the Student

Place: ARCHANA EKKA

I express my sincere gratitude to the management of ICICI PRUDENTIAL

The Project was completed successfully with the valuable cooperation of

Signature of the Student

Place: ARCHANA EKKA

Serial Particulars Page no.

‘BANCASSURANCE’ as term itself tells us what does it means. It’s

Bancassurance is defined as ‘Selling Insurance products

ICICI Prudential Life Insurance Company Limited

ICICI Prudential Life Insurance Company Limited was incorporated

Aim of the Company

Their vision is to make ICICI Prudential Life Insurance Company

Sampling Technique Used:

This research has used convenience sampling technique.

Selection of Sample Size:

For the survey, a sample size of 50 has been taken into

Sources of Data Collection:

Research will be based on two sources:

Statistical Tools Used

3. Reluctance of respondents to provide information.

Conclusion and Suggestions

• There are very tough competition among the private

‘BANCASSURANCE’ as term itself tells us what does it means. It’s

It is predicted by experts that in future 90% of share of premium

The banking business is also generating more profit by more

It is even profitable for Insurance Company as they receive more

Bancassurance is defined as ‘Selling Insurance products

The usage of the word picked up as banking and insurance

But, still which countries have permitted Bancassurance in their

Bancassurance in its simplest form is the distribution of insurance

Banks, with their geographical spreading penetration in terms of

The concept of bancassurance was evolved in Europe. Europe

The motives behind bancassurance also vary. For Banks, it is n

With the liberalization of the insurance sector and competition

Progress has definitely been made as can be seen by the number

Currently, insurance agents are still the main vehicles through

Nationalized insurers are already well established and have an

Bancassurance is the distribution of insurance products through a

• Distribution alliance between the insurance company and the

Most of the bancassurance operations fall in the first model.

How does it help?

• Every insurance company has a wants to grow quickly to

Though a relatively new concept, banassurance has been a

Why should banks enter insurance?