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INTRODUCTION TO THE STUDY

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In today’s competitive and dynamic world, with every business

providing the same kind of product and services, only that firm which
comes up with an innovative idea can hope to survive in the long run,
by attracting and luring customer.

Insurance sure is an upcoming sector but with the privatization of the

same, selling insurance products has become tough due to competition
angle attached to it.

INSURANCE IN INDIA

The insurance sector in India has become a full circle from being open
competitive market to nationalization and back to a liberalized market
again. Tracing the development in the Indian insurance sector reveals
the 360-degree turn witnessed over a period of almost two centuries.

The insurance sector opened up to private competition on December 7,

1999 with the introduction of the insurance regulatory and
development authority.

With the opening of insurance sector multinational entered the Indian

market through partnership with eminent Indian business houses.
What was the quite business is becoming one of the hottest businesses
today.

INSURANCE SECTOR REFORMS

Some of the key recommendations included:

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1. Structure

 Government stake in the insurance companies to be brought

down to 50%

 Government should take over the holding if GIC and its

subsidiaries so that these subsidiaries can act as independent
corporation

 All the insurance companies should be given greater freedom to

operate

2. Competition

 Private companies with a minimum paid up capital of Rs.1bn

should be allowed to enter the industry

 No company should deal in both life and general insurance

through a single entity.

 Foreign companies may be allowed to enter the industry in

collaboration with the domestic companies

3. Regulatory body

 The insurance act should be changed

 An insurance regulatory body should be set up

 Controller of insurance (currently a part from the Finance

Ministry)
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COMPANY PROFILE

INTRODUCTION TO ICICI PRUDENTIAL

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ICICI BANK (PRE-MERGER)

ICICI BANK was originally promoted in 1994 By ICICI limited, an Indian

financial institution, and was its wholly owned subsidiary. ICICI was
formed in 1995 at the initiative of the World Bank, the government of
Indian and representatives of the Indian industry. The principal
objective was to create a development financial institution for
providing medium-term and long- term project financing to Indian
businesses. In the 1990’s ICICI transformed its business from a
development financing institutions offering only project finance to a
diversified financial services group offering a wide variety of product
and services, both directly and through a number of subsidiaries and
affiliates like ICICI bank.

PRUDENTIAL PLC

-Started operation in 1848 and is now one of the largest life insurance
companies in world.

-presence in UK, Europe, US and throughout Asia.

- Insurance and investment funds under management exceed

Rs.110000 cr.

- Solid reputation built over 150 years.

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

companies in Indian.

- A truly global brand.

PRUDENTIAL ASIA
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Prudential Corporation Asia has 24 operation countries, namely: china,

Hong Kong, India, Indonesia, Japan, Korea, Malaysia, and Thailand.

-bank of china international for mandatory provident fund business in

Hong Kong;

-CITIC group for life business in china;

-ICICI bank for life and mutual funds business in India.

Prudential Corporation Asia is Europe’s leading in Asia in term of

market coverage and number of five market positions.

ICICI PRUDENTIAL

It is one of the largest financial investments in India.

Broad spectrum of financial solution for corporate and retail customer.

Assets in excess of Rs. 1, 00,000 cr.

Better than sovereign rating.

It is first Indian company to be listed on New York stock exchange.

It is trusted by millions of Indians over the years.

Shares in market

76%-ICICI

24%-Prudential

ABOUT ICICI PRUDENTIAL

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THE COMPANY

ICICI Prudential Life Insurance Company is a joint venture between ICICI

bank, a premium financial powerhouse and prudential plc; a leading
international financial services group headquarters in United Kingdom.
ICICI prudential was amongst the first private sector insurance
companies in December 2000 after receiving approval from insurance
regulatory development authority (IRDA).

ICICI prudential equity base stands at Rs.675 crores with ICICI bank and
prudential plc holding 74% and 26% stake respectively. In year ended
march 31, 2004, the company had issued over 430,000 policies, for a
total sum assured of over Rs.8, 000 crore and premium income in
excess of Rs.980 crores. Today the company is the 1 private life
insurance in the country.

Regulatory body-IRDA controls the company ICICI prudential with all its
operations, so that the general public also faith in the company.
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PRODUCT PROFILE

ICICI PRUDENTIAL
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PRODUCTS OFFER

Basically three kinds of products were on offer.

-Life time- this offer customer the flexibility and control to customize
the policy to meet the changing needs at different life stages. Each
offer 4 fund option? Preserver, protector, balancer and maximiser.

-Invest Shield life - it is the market linked plan that provide capital
guarantee on the invested premium and declared bonus interest.

-Invest shield cash- it is a market linked plan that provide capital

guarantee on the invested premium and declared bonus interest along
with flexible liquidity options.

The life time policy has edge over the other two policies as it offer a
customer to pay premium for three years after which the customer
might not pay any further premium but still can get investment return
according to the market share, thereby giving a capital guarantee to
the customer. Whereas in the other two product/policies a customer
have to pay premium at least for a period of ten years.

PRODUCTS

Insurance solutions for individuals

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ICICI prudential life insurance offers a range of innovative, customer-

centric products to meet the needs of the customer at every life stage.
Its 27 product can enhanced with up to 6 riders, create a customized
solution for each policyholder.

SAVING SOLUTIONS

-Secure plus

-cash plus

-save and protect

-cash bank

-lifetime & lifetime2

-life link 2

-premium life

-invest shield life

-invest shield cash

-invest shield gold

PROTECTION SOLUTIONS-Life guard –which offers life cover at very low

cost. It is available in 3 options? Level term assurance, level term
assurance with return of premium and single premium.

RETIREMENT SOLUTION

-Forever life is a retirement product targeted at individuals in at their

thirties.
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-secure plus pension is a flexible pension plan that allows one to select
between 3 levels of cover.

MARKET- LINKED RETIREMENT PRODUCTS

-Lifetime pension2is a single premium market-linked pension plans.

-life link pension2 is a single premium market linked pension plan.

-invest shield pension is a single regular premium pension plan with a

capital guarantee on the investible premium and declared bonuses.

FLEXIBLE RIDER OPTIONS

ICICI Prudential life offers flexible riders, which can be added to the
basic policy at a marginal cost, depending on the specific needs of the
customer.

-accident & disability benefits

-accident benefits

-critical illness benefits

-major surgical assistance benefits

-income benefits

-waiver benefits

MAJOR INSURANCE PLAYERS (INDIA)

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 AVIVA LIFE INSURANCE: Aviva life insurance Company India

pvt.ltd. Is a joint venture between of UK and dabur, one of India’s
leading producers of venture traditional healthcare Products.

 BAJAJ ALLIANZ: Bajaj Allianz is a joint venture between Allianz AG

one of the world’s largest insurance companies, and Bajaj auto,
one of the biggest 2 and 3 wheeler manufacturers in the world.

 BIRLA SUN LIFE INSURANCE: Birla sun life insurance Company

limited is a joint venture between Aditya Birla group and sun life
financial of Canada. Birla group is an Indian multinational
conglomerate with presence in India.

 HDFC STANDARD LIFE INSURANCE: HDFC standard life insurance

co.ltd.is a joint venture between HDFC ltd and India’s largest
housing finance institution and standard life assurance company,
Europe’s largest mutual life company.

 ING VYSYA: ING VYSYA Life insurance ltd is joint venture between
vysya bank and ING group of Holland, the world’s 4th largest
financial services group, with presence across 50 countries, and a
heritage of over 150 years.
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 KOTAK MAHINDERA: kotak Mahindra old mutual life insurance is a

joint venture between kotak Mahindra bank and old mutual plc.
Kotak Mahindra is one the India’s leading financial institutions and
offers a range of financial services such as commercial banking,
stock broking, mutual funds, life insurance and investment
banking.

 LIC: Life insurance Corporation of India (LIC) is an autonomous

body authorized to run the life insurance business in India with its
head office at Mumbai. It has been established by an act of the
parliament and started functioning from 1.9.1956.

 MAX NEW YORK LIFE INSURANCE: Max New York life insurance
Company limited is a joint venture between max India limited, a
multi-business corporate, New York life international, a global
expert in life insurance.
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WHAT IS INVESTMENT?

Investment is an economic activity in which every person is engaged in

one form or another. Investment is the process of sacrificing something
now for the prospect of gaining something later. There are three
dimensions to an investment –time, today’s sacrifice and prospective
gain. Investment is an economic activity which involves creation of
assets or exchange of assets with profit motive. It is the employment of
funds with the purpose of earning additional income or growth in
value. The person making investment has to part with his funds and a
claim on future money for a return. This return is an award for
abstaining from present consumption for parting with the money for
taking the risk.

DEFINATIONS

 “Sacrifice of certain present value for some uncertain future

value”

-SHARPE/ALEXANDER

 “Purchase of a financial asset that produces a yield that is

proportional to the risk assumed over some future investment
period”

-F.AMLING

OBJECTIVES OF INVESTMENT IN SECURITIES

 Income

 Capital appreciation
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 Forms of return

 Safety and security of funds

 Risk

 Liquidity

 Tax consideration

CLASSIFICATION OF INVESTMENT

1. Physical investment

2. Financial investment

3. Marketable and non-marketable investment

4. Transferable and non-transferable investment

5. Others

 Issuing authority

 Denomination

 Term to maturity

 Tax treatment

 Income payment

MODES OF INVESTMENT

1. Direct investment alternatives

 Fixed principal investment

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 Variable principal investment

 Non security investment

2. Indirect investment alternatives

 Pension funds

 Provident funds

 Insurance

 Unit trust of India

 Investment companies

3. Transferable financial securities

 Equity shares

 Preference share

 Debenture

 Saving certificate

 Money market securities

 Government securities

4. Mutual Funds

5. Real assets

6. Gold, silver and precious objects

7. Financial derivatives
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8. Non- transferable financial securities

 Deposits

 Tax –sheltered saving schemes

-employee provident fund scheme

-public provident fund scheme

-national saving scheme

-national saving certificate

-life insurance

FEATURES OF AN IDEAL INVESTMENT PROGRAMME

 Safety

 Liquidity

 Regularity of income

 Tangibility

 Legality

 Tax benefits

 Concealability
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OBJECTIVES

OBJECTIVES OF THE STUDY

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The objectives of the study are as follows:

1. To make study of insurance sector.

2. To have knowledge about the strategies adopted by ICICI prudential.

3. To know about the various investment policies of ICICI.

4. To know about the level of customer satisfaction.

5. To know about the factors contributing to satisfaction and

dissatisfaction of customer.
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RESEARCH METHODOLOGY

RESEARCH METHODOLOGY
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TITLE OF THE STUDY:

The title of the study is “ANALYSIS OF CUSTOMER ATTITUDE,

PREFERENCE AND SATISFACTION TOWARD THE INVESTMENT IN ICICI
PRUDENTIAL CO.LTD.”

RESEARCH DESIGN:

A research design is simply a plan for study in collection and analysis

the data.

The report is exploratory and descriptive in nature.

This report is going to describe various investment schemes provided

by ICICI PRUDENTIAL CO. LTD. hence it is a descriptive in nature
but it suggests some important points to improve the services of the
ICICI so it is exploratory in nature also.

DATA COLLECTION:

For the purpose of project data is very much required which works as a
food for process which will ultimately give output in the form of
information. So before mentioning the source of data for the project I
would like to mention that what type of data I have collected for the
purpose of project and what it is exactly.
During preparation of the project report many different kinds of data
were required which includes both primary and secondary sources.
SOURCES OF DATA COLLECTION:
PRIMARY DATA:-
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Primary data is basically the live data which I collected

-Questionnaire
SECONDARY DATA:
Secondary data is already published data. It is the data which is
funded or collected by someone else before and presently used by
further research work. Secondary data for the base of the project, I
collect the data from:-
-internet
-magazines
-journals
SAMPLE SIZE:

The sample size selected from universe to constitute my study is 80.

SAMPLE UNIT:

Study is conducted by the survey of self employed persons and business

men.
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DATA ANALYSIS

1. YOUR NET FAMILY INCOME FROM ALL SOURCES?

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INCOME GROUP NO OF PEOPLE

BELOW 20000 10
20000-30000 20
30000-40000 30
ABOVE 40000 20

INTERPRETATION: From the taken data most of the people belong to

30000-40000 per month.

2. ARE YOU INSURED, IF YES THEN?

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INSURANCE COMPANIES NO. OF PERSON

ICICI PRUDENTIAL 25
HDFC SLIC 10
BIRLA SUN LIFE 10
LIC 35

INTERPRETATION: After LIC ,people get insurance in ICICI Prudential.

3.ARE YOU SATISFIED WITH THE SERVICES OF YOUR INSURANCE

COMPANY?
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RESPONSE NO OF REPONDENT
YES 52
NO 28

INTERPRETATION: Most of the people are satisfied with the services of

their insurance company.

4. DO YOU KNOW ABOUT ICICI PRUDENTIAL?

RESPONSES NO OF RESPONDENT
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YES 62
NO 18

INTERPRETATION: There are 62 respondent who are aware about the

policies of ICICI prudentail.

5.HOW MUCH AMOUNT YOU INVEST IN INSURANCE PLAN?

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INVESTED AMOUNT NO OF PEOPLE

BELOW 20000 10
20000-40000 14
40000-60000 18
ABOVE 60000 38

INTERPRETATION: people invest large amount in insurance to earn

more profits.

6.WHERE DO YOU PREFER TO INVEST?

INVESTMENT PREFERENCES NO .OF PEOPLE

BONDS 12
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MUTUAL FUNDS 12
GOLD 14
SHARES 18
INSURANCE 24

INTERPRETATION: People mostly invest in insurance then they prefer

to invest in shares. There is less no. of people who invest in bonds.

7. YOUR INSURANCE PLAN PROVIDES YOU WHICH BENEFIT?

BENEFITS NO .OF PEOPLE

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HEALTH COVER 12
TAX BENEFITS 18
INTEREST 20
SECURITY 15
FIXED RETURN 15

INTERPRETATION: People invest money as they want to earn return

from the investment. Tax benefit is also one of the reasons for
investment.

8. FOR HOW MUCH TIME YOU WOULD LIKE TO INVEST YOUR MONEY?

TIME PERIOD NO. OF PEOPLE

LESS THAN 1 YEAR 8
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1-2 YEARS 8
2-3 YEARS 10
ABOVE 3 YEARS 54

INTERPRETATION: People invest in long term policies as it give more

benefits and interest to them.

9.ARE YOU SATISFIED FROM THE RETURN ON YOUR INVESTMENT?

SATISFACTION LEVEL NO. OF PEOPLE

VERY GOOD 28
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GOOD 22
AVERAGE 22
POOR 8

INTERPRETATION: Respondent are satisfied with the return from the

money invested by them and they get insured themselves.

10. WHICH ARE THE FOLLOWING FACTORS DO YOU THINK AFFECT THE
INVESTMENT THE MOST?

FACTORS NO.OF RESPONDENT

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RETIREMENT 24
TAX BENEFITS 12
CHILDREN FUTURE 18
PROFITS 26

INTERPRETATION: Profits and retirement are the factor which mostly

affect the investment ,child future also affect the investment.

11.IN FUTURE DO YOU LIKE TO INVEST IN ICICI PRUDENTIAL CO.?

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FUTURE INVESTMENT NO. OF PEOPLE

YES 44
NO 36

INTERPRETATION: Respondent would like to invest in ICICI Prudential in

future.

12.HOW MUCH PREMIUM YOU PAY YEARLY FOR INVESTMENT?

PREMIUM NO. OF RESPONDENT

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BELOW5000 26
5000-10000 24
10000-15000 20
15000-20000 10

INTERPRETATION: People mostly like to pay below 10000 as premium

on their investment which shows that they are mostly middle class
people.

13. WHICH INSURANCE PLAN YOU WANT TO TAKE?

PLANS NO.OF RESPONDENT

CHILDREN EDUCATION 18
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MARRIAGE PLAN 12
LIFE INSURANCE PLAN 26
RETIREMENT PLAN 24

INTERPRETATION: There are mostly people who take insurance plan

and then they take retirement plan.

14. WHAT ARE THE FACTORS THAT MAY DISSATISFY YOU?

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FACTORS NO. OF RESPONDENT

RETURN 28
PERIOD OF INVESTMENT 15
PREMIUM ON INVESTMENT 15
SECURITY 12

INTERPRETATION: people invest to earn return but this is the factor

which dissatify them.

15. DO YOU FEEL SAFE BY INVESTING IN ICICI PRUDENTIAL CO.?

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SAFTY NO.OF RESPONDENT

YES 41
NO 39

INTERPRETATION: There are 41 respondent who feel safty whereas

there are 39 who feel unsafe while investing their money in ICICI
Prudential.
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FINDINGS

FINDINGS
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A questionnaire survey was conducted of different people who had

purchased such policies ,to determine their satisfaction level regarding
the policies,customer’s previous experience with the companies and if
they are interested to give the company more business by furthur
investing more policies.

Certain points can be drawn form this survey-

-Different people in the society have different income group.

-According to the people ,there are different reasons for which thry
invest their money in buying any insurance policy or plan.

-Many private companies have entered into the insurance sector

promising to maximise benefits.

-Majority of people who have invested in insurance companies are

satisfied with their company’s services.

-The first preference of people in buying any insurance plan is of to

have a life insurance policy.

-Mostly everyone in the society are aware of ICICI Prudential.

-LIC, in insurance sector still has sold highest number of policies, but
other than LIC there are other private companies like ICICI Prudential
,HDFC SLIC , Aviva etc are having good business.

-people start buying insurance polices,earlier the number was too small
but now its increasing.

- People satify from the return on the investment and they are
interested in investing ICICI Prudential in future.
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-Other than insurance policies, companies are providing customers with

other plans for investing like-health cover,child education plans,pension
plans, etc.

This survey concluded that india is also having a rise in insurance

sector ,as people are showing interest toward investing money in
insurance companies.
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SUGGESTIONS

SUGGESTIONS
1. Company should increase its advertisement.

2. Company should setup more dealers in different areas.

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3. Direct Door to door interview.

4. Spreading, expanding the need & awareness of insurance among the

people through different means of communication viz...Sms, television
etc.

5. The company should focus on their investment and profitabity.

6. The company should increase their policy holders.

7. The company should introduce the new investment plans and for
upcoming customers.

8. The policies and plans should be flexible in nature.

9. The company should also focus on the weaker section and come up
with new plans.
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LIMITATIONS

LIMITATIONS OF THE PROJECT

By working on this project I gained a lot of knowledge over the
insurance sector in India. But there is a certain no. of problems which I
faced while working on this project.

These problems can be illustrated as limitation of the study which are

as follow:-
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-Reliability on the primary sources of data.

- Most of the contents collected were difficult to understand because it

was new for me to work in the field.

- It was tricky and time consuming to understand the mysteries of

marketing.

-Response of customer could be biased.

CONCLUSION
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CONCLUSION
After working on this project it’s my immense pleasure to say that it has
been most beneficial to me as it gave a lot of knowledge about the
insurance sector. This study was understood to know and examine the
various investment opportunities and the investment preference of the
people. In this both primary as well as secondary data has been
collected through internet and the primary data has been collected
through questionnaire. Data analysis is done and I found that people
prefer to invest in safe securities.

On the whole, every possible caution and care has been taken to
collect data; there were also some limiting factors.
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BIBLIOGRAPHY
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BIBLIOGRAPHY
Books and authors
-RESEARCH METHODOLOGY by “C R Kothari”.
-MARKETING RESEARCH by “S L GUPTA”.

WEBSITES
www.religare.in

www.investopedia.com

www.moneycontrol.com
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www.investmentlive.com

www.google.com

www.icicibank.com

NEWSPAPERS AND MAGAZINES:

-INSURANCE CHRONICAL BY ICICI (WEEKLY JOURNALS.

-ECONOMICS TIMES

-BUSINESS WORLD

ANNEXURE
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QUESTIONNNAIRE
SHIFALI student of MBA 2nd year (4th semester) doing project on the topic,
“Analysis of customer attitude, preference and satisfaction towards investment in
ICICI prudential life insurance co.ltd”.
NAME:

AGE:

SEX: 1. MALE 2. FEMALE

1. Your Net family income from all sources?

o Below20,000
o 20,000-30,000
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o 30,000-40,000
o 40,000 and above
2. Are you insured, if yes then?
o LIC PRU.

o HDFC SLIC

o BIRLA SUN LIFE

o LIC

3. Are you satisfied with the services of your Insurance Co?

o YES

o NO

4. Do you know about ICICI PRUDENTIAL CO?

o YES

o NO

5. How much amount you invest in insurance plans?

o Below 20,000

o 20,000-40,000

o 40,000-60,000

o 60,000 and above

6. Where do you prefer to invest?

o Bonds

o Shares

o Mutual funds
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o Gold

o Insurance

7. Your insurance plan provides you which benefit?

o Health cover

o Tax benefits

o Interest

o Security

o Fixed return

8. For how much time you would like to invest your money?

o Less than 1 year

o 1- 2years

o 2-3 years

o 3 years and above

9. Are you satisfied from the return on your investment?

o Very good

o Good

o Average

o Poor

10. Which of the following factor do you think affects investment the most?

o Retirement

o Tax benefit
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o Children future

o Profits

11. In future do you like to invest in ICICI PRUDENTIAL CO.?

o YES

o NO

12. How much premium you pay yearly for your investment?
o Below 5000

o 5000-15000

o 15000-25000

o 25000 and above

13. Which insurance plan you want to take?

o Children education plan

o Marriage plan

o Life insurance plan

o Retirement

14. What are the factors that may dissatisfy you?

o Return
o Period of investment
o Premium on investment
o Security
15. Do you feel safe by investing in ICICI PRUDENTIAL CO.LTD?
o YES
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o NO