History ICICI Bank (Industrial Credit and Investment Corporation of India Bank) was originally promoted in 1994 by ICICI

Limited, an Indian financial institution, and was its wholly owned subsidiary. ICICI's shareholding in ICICI Bank was reduced to 46% through a public offering of shares in India in fiscal 1998, an equity offering in the form of ADRs listed onYSE in fiscal 2000, ICICI Bank's acquisition of Bank of Madura Limited in an all-stock amalgamation in fiscal 2001, and secondary market sales by ICICI to institutional investors in fiscal 2001 and fiscal 2002. ICICI was formed in 1955 at the initiative of the World Bank, the Government of India and representatives of Indian industry. The principal objective was to create a development financial institution for providing medium-term and long-term project financing to Indian businesses. In the 1990s, ICICI transformed its business from a development financial institution offering only project finance to a diversified financial services group offering a wide variety of products and services, both directly and through a number of subsidiaries and affiliates like ICICI Bank. In 1999, ICICI become the first Indian company and the first bank or financial institution from non-Japan Asia to be listed on the NYSE. After consideration of various corporate structuring alternatives in the context of the emerging competitive scenario in the Indian banking industry, and the move towards universal banking, the managements of ICICI and ICICI Bank formed the view that the merger of ICICI with ICICI Bank would be the optimal strategic alternative for both entities, and would create the optimal legal structure for the ICICI group's universal banking strategy. The merger would enhance value for ICICI shareholders through the merged entity's access to low-cost deposits, greater opportunities for earning fee-based income and the ability to participate in the payments system and provide transaction-banking services. The merger would enhance value for ICICI Bank shareholders through a large capital base and scale of operations, seamless access to ICICI's strong corporate relationships built up over five decades, entry into new business segments, higher market share in various business segments, particularly fee-based services, and access to the vast talent pool of ICICI and its subsidiaries. In 2000, ICICI Bank became the first Indian bank to list on the New York Stock Exchange with its 5-million American depository shares issue generating a demand book 13 times its size at 2

billion. In October 2001, the Boards of Directors of ICICI and ICICI Bank approved the merger of ICICI and two of its wholly owned retail finance subsidiaries, ICICI Personal Financial Services Limited and ICICI Capital Services Limited, with ICICI Bank. The merger was approved by shareholders of ICICI and ICICI Bank in January 2002, by the High Court of Gujarat at Ahmedabad in March 2002, and by the High Court of Judicature at Mumbai and the Reserve Bank of India in April 2002. Consequent to the merger, the ICICI group's financing and banking operations, both wholesale and retail, have been integrated in a single entity. In 2008, when customers rushed to ATM's and branches in some locations because of rumors regarding financial strength of ICICI Bank; Reserve Bank of India clarified the financial position of ICICI Bank in a statement dated 30 September,2008 RBI statement on ICICI Bank Financial Position. ICICI Bank has had the internet platform since 1994. Cash operator, Money to India and Money to World, Partnership with Financial Inclusion Network and Operations to reach rural masses, are covered in the article Leader in Innovation Point wise History Of ICICI bank * 1955 The Industrial Credit and Investment Corporation of India Limited (ICICI) was incorporated at the initiative of World Bank, the Government of India and representatives of Indian industry, with the objective of creating a development financial institution for providing medium-term and long-term project financing to Indian businesses. * 1994 ICICI established Banking Corporation as a banking subsidiary.formerly Industrial Credit and Investment Corporation of India. Later, ICICI Banking Corporation was renamed as 'ICICI Bank Limited'. ICICI founded a separate legal entity, ICICI Bank, to undertake normal banking operations - taking deposits, credit cards, car loans etc. * 2001 ICICI acquired Bank of Madura (est. 1943). Bank of Madura was a Chettiar bank, and had acquired Chettinad Mercantile Bank (est. 1933) and Illanji Bank (established 1904) in the 1960s. * 2002 The Boards of Directors of ICICI and ICICI Bank approved the reverse merger of ICICI, ICICI Personal Financial Services Limited and ICICI Capital Services Limited, into ICICI Bank. After receiving all necessary regulatory approvals, ICICI integrated the group's financing and banking operations, both wholesale and retail, into a single entity. Also in 2002, ICICI Bank bought the Shimla and Darjeeling branches that Standard Chartered Bank had inherited when it acquired Grindlays Bank. ICICI started its international expansion by opening representative offices in New York and London.

* 2003 ICICI opened subsidiaries in Canada and the United Kingdom (UK), and in the UK it established an alliance with Lloyds TSB. It also opened an Offshore Banking Unit (OBU) in Singapore and representative offices in Dubai and Shanghai. * 2004 ICICI opens a rep office in Bangladesh to tap the extensive trade between that country, India and South Africa. * 2005 ICICI acquired Investitsionno-Kreditny Bank (IKB), a Russia bank with about US$4mn in assets, head office in Balabanovo in the Kaluga region, and with a branch in Moscow. ICICI renamed the bank ICICI Bank Eurasia. Also, ICICI established a branch in Dubai International Financial Centre and in Hong Kong. * 2006 ICICI Bank UK opened a branch in Antwerp, in Belgium. ICICI opened representative offices in Bangkok, Jakarta, and Kuala Lumpur. * 2007 ICICI amalgamated Sangli Bank, which was headquartered in Sangli, in Maharashtra State, and which had 158 branches in Maharashtra and another 31 in Karnataka State. Sangli Bank had been founded in 1916 and was particularly strong in rural areas. ICICI also received permission from the government of Qatar to open a branch in Doha. ICICI Bank Eurasia opened a second branch, this time in St. Petersburg. * 2008 The US Federal Reserve permitted ICICI to convert its representative office in New York into a branch. ICICI also established a branch in Frankfurt.

Corporate Governance

Vision To be the leading provider of financial services in India and a major global bank. Mission We will leverage our people, technology, speed and financial capital to:


be the banker of first choice for our customers by delivering high quality, world-class products and services. expand the frontiers of our business globally. play a proactive role in the full realisation of Indias potential. maintain a healthy financial profile and diversify our earnings across businesses and geographies. maintain high standards of governance and ethics. contribute positively to the various countries and markets in which we operate.

  

  

create value for our stakeholders. Group Anti Money Laundering Policy The ICICI Group AML Policy establishes the standards of AML compliance and is applicable to all activities. Code of Conduct ICICI Bank has formulated a Code of Business Conduct and Ethics for its directors and employees.

Creation of market infrastructure in India ICICI Bank (the erstwhile ICICI Ltd.) is claimed to have played a pioneering role, either independently or jointly with others in the creation of world class market infrastructure in the country. It has set up different institutions that now cater to the requirements of the industry and a rapidly growing economy. Some of these institutions include the following:


National Stock Exchange NSE

National Stock Exchange (NSE) - NSE was promoted by Indias leading financial institutions (including the erstwhile ICICI Ltd.) in 1992 on behalf of the Government of India with the objective of establishing a nation-wide trading facility for equities, debt instruments and hybrids, by ensuring equal access to investors all over the country through an appropriate communication network.


Credit Rating Information Services of India Limited CRISIL

In 1987, the erstwhile ICICI Ltd. along with UTI set up CRISIL as India's first professional credit rating agency. CRISIL offers a comprehensive range of integrated products and service offerings which include credit ratings, capital market information, industry analysis and detailed reports. It also offers expert advice to investors, issuers and policy makers and enables them to take informed investment decisions and develop workable solutions in the pursuit of their business goals and investments.


National Commodities & Derivatives Exchange Limited NCDEX

NCDEX is a professionally managed on-line multi commodity exchange, set up in 2003, by ICICI Bank Ltd, LIC, NABARD, NSE, Canara Bank, CRISIL, Goldman Sachs, Indian Farmers Fertiliser Cooperative Limited (IFFCO) and Punjab National Bank.


Financial Innovation Network & Operations Pvt Ltd. FINO

ICICI Bank has facilitated setting up of FINO CROSS LINK TO CASE STUDY in 2006, as a company that would provide technology solutions and services to reach the underserved and underbanked population of the country. Using cutting edge technologies like smart cards, biometrics and a basket of support services, FINO enables financial institutions to conceptualise, develop and operationalise projects to support sector initiatives in microfinance and livelihoods. The company has also been developing financial services delivery systems to enable FIs to lower transactions costs, increase their outreach and bring more transparency to their business.

Entrepreneurship Development Institute of India (EDII)

EDII, an autonomous body and not-for-profit society, was set up in 1983, by the erstwhile apex financial institutions like IDBI, ICICI, IFCI and SBI with the support of the Govt. of Gujarat as a national resource organisation committed to entrepreneurship development, education, training and research.


Technical Consultancy Organisations (TCOs)

Over the past three decades, various TCOs have been set up in India by the key national level financial institutions in association with state level institutions and banks. There are 18 state level TCOs, of which 9 have been lead sponsored by IDBI, 5 by IFCI, 3 by ICICI Bank and one by the Govt. of Karnataka. TCOs provide services to organisations which include project conceptualisation, credit syndication, documentation of project reports, management consultancy, asset valuation and CDM consultancy. The TCOs lead sponsored by ICICI Bank are Industrial & Technical Consultancy Organisation of Tamil Nadu Ltd. (ITCOT), Maharashtra Industrial & Technical Consultancy Organisation (MITCON) and Gujarat Industrial and Technical Consultancy Organisation Ltd. (GITCO). ICICI Bank also holds minority stakes in fourteen other TCOs


Foreman Training Institute (FTI)

The erstwhile ICICI Ltd helped in setting up of FTI in Bangalore as a training institution for training supervisory and entry-level management cadres.


North Eastern Development Finance Corporation Ltd. NEDFI

NEDFI was promoted by national level financial institutions like the erstwhile ICICI Ltd in 1995 at Guwahati, Assam for the development of industries, infrastructure, animal husbandry, agrihorticulture plantation, medicinal plants, sericulture, aquaculture, poultry and dairy in the North Eastern states of India. NEDFI is the premier financial and development institution for the North East region.


Asset Reconstruction Company India Limited ARCIL

Following the enactment of the Securitisation Act in 2002, ICICI Bank together with other institutions, set up ARCIL in 2003, to create a facilitative environment for the resolution of distressed debt in India. ARCIL was established to acquire non performing assets (NPAs) from financial institutions and banks with a view to enhance the management of these assets and help

in the maximisation of recovery. This would relieve institutions and banks from the burden of pursuing NPAs, and allow them to focus on core banking activities.Arcil historical background


Credit Information Bureau of India Limited CIBIL

ICICI Bank has also helped in setting up CIBIL,Indias first national credit bureau in 2000. CIBIL provides a repository of information (which contains the credit history of commercial and consumer borrowers) to its members in the form of credit information reports. The members of CIBIL include banks, financial institutions, state financial corporations, non-banking financial companies, housing finance companies and credit card companies.

Corporate Social Responsibility programmes for Elementary Education Read to Lead Phase I Read to Lead is an initiative of ICICI Bank to facilitate access to elementary education for underprivileged children in the age group of 3-14 years including girls and tribal children from the remote rural areas. The Read to Lead initiative supports partner NGOs to design and implement programs that mobilise parent and community involvement in education, strengthen schools and enable children to enter and complete formal elementary education. Read to Lead has reached out to 100,000 children across 14 states of Andhra Pradesh, Bihar, Delhi, Gujarat, Haryana, Jharkhand, Karnataka, Maharashtra, Orissa, Rajasthan, Tamil Nadu, Tripura, Uttar Pradesh and West Bengal.Elementary education Read to Lead Phase I is focused on:
 

Bridge courses to support dropout children to re-enrol in formal education Remedial coaching to potential dropout children to ensure their continuation in formal schooling Educational kits that include uniforms, books, stationery, woollen clothes etc. Inclusive and special education for children with special needs, such as mentally challenged and physically disabled children Health and nutritional support for children Community initiatives for sensitisation on importance of education, including parent groups, school enrolment drives, workshops and seminars, and publications

 

 

Holistic development of children through instruction in arts and crafts, street plays, and life skills education Read to Lead Phase II


In Phase II of the Read to Lead programme, ICICI Bank has supported the establishment of 63 libraries that will reach out to approximately 7,200 children in the rural areas of Jagdalpur block of Bastar district in Chhattisgarh. The programme includes building libraries, sourcing books and conducting various interactive activities to make the library a dynamic centre for learning.

Go Green initiative "Each one for a better Earth" It is an organisation wide initiative that moves beyond moving people,processes and customers to cost effective automated channels to build awareness and consciousness of our environment,our nation and our society.ICICI Bank Go green Objective ICICI Banks Green initiatives range from Green offerings/ incentives, Green engagement to Green communication with their customers. Green Products & Services Instabanking It is the platform that brings together all alternate channels under one umbrella and gives customers the option of banking through Internet banking, i-Mobile banking, IVR Banking. This reduces the carbon footprint of the customers by ensuring they do not have to resort to physical statements or travel to their branches Vehicle Finance As an initiative towards more environment friendly way of life, Auto loans offers 50% waiver on processing fee on car models which uses alternate mode of energy. The models identified for the purpose are, Maruti's LPG version of Maruti 800, Omni and Versa, Hyundai's Santro Eco, Civic Hybrid of Honda, Reva electric cars, Tata Indica CNG and Mahindra Logan CNG versions. Power Go Green Contest ICICI Bank invited ideas for Going Green from employees through the Power Go Green contest. The contest received an overwhelming response with participation through over 540 ideas. The ideas were evaluated and selected for implementation by a panel from the Organisation Excellence Group on parameters of effectiveness and efficiency like Novelty, Ease of Implementation, Impact, Scalability and Cost efficiency. Carbon Footprint Calculator It takes region,user input of the distance traveled in a particular medium of transport daily,electricity consumed per month,LPG cylinder/piped natural gas used per month and calculates the net carbon footprint to create awareness and sensitize people about the environment.It also shows the world's and India's average carbon footprintCarbon Footprint Calculator

Domestic Subsidiaries
      

ICICI Lombard ICICI Prudential Life Insurance Company Limited ICICI Securities Limited ICICI Prudential Asset Management Company Limited ICICI Venture ICICI Home Finance ICICI direct.com

International Subsidiaries
  

ICICI Bank UK PLC ICICI Bank Canada ICICI Bank Eurasia LLC

Acquisition


2005 - Investitsionno-Kreditny Bank (IKB), a Russian bank

National Stock Exchange Corporate announcements dated 19 May,2005 ICICI Bank Ltd.corporate announcements ICICI Bank Ltd has informed the Exchange that the Bank has acquired the entire paid-up capital of Investitsionno-Kreditny Bank (IKB), a Russian Bank with its registered office in Balabanovo in the Kaluga region and a branch in Moscow.
 

2007 - Sangli Bank, Maharashtra State ; RBI sanction for amalgamation 2010 - Bank of Rajasthan ; RBI sanction for amalgamation

Awards


Ms. Chanda Kochhar, Managing Director & CEO, received the Global Leadership Award for her contribution to the US India commercial relationship. Ms. Chanda Kochhar, Managing Director & CEO, was named as one of the two best Indian CEOs in an annual poll conducted by Finance Asia magazine. ICICI Bank is the only Indian brand to figure in the BrandZ Top 100 Most Valuable Global Brands Report 2011, second year in a row.

Controversy

ICICI Bank has been in focus in recent years because of alleged harassment of customers by its recovery agents. Listed below are some of the related news links:


ICICI Bank drives customer to suicide - Four men including an employee of ICICI Bank booked under sections 452, 306, 506 (II) and 34 of IPC for abetting suicide. According to the suicide note they advised him, "If you cannot repay the bank loan, sell off your wife, your kids, yourself, sell everything at your home. Even then if you cannot not pay back the due amount, then it's better if you commit suicide." India biggest private bank has compensated the life by money ICICI Bank on huge car recovery scam in Goa - ICICI Bank invest in car-jackers to recover loans in Goa. A half an hour investigative report on CNN-IBN's 30 Minutes. The under cover report was executed by CNN-IBN's Special Investigations Team from Mumbai, led by Ruksh Chatterji Family of Y. Yadaiah alleged that he was beaten to death by ICICI Banks recovery agents, for failing to pay the dues. Four persons were arrested in this case. In another case of a suicide it is alleged that goondas sent by ICICI Bank abused Himanshu and his wife in front of the entire residential colony before taking away his vehicle. Feeling frustrated and insulted, he reportedly committed suicide. C.L.N Murthy, a scientist with the Hyderabad-based Indian Institute of Chemical Technology, was allegedly tortured by recovery agents of ICICI Bank after he defaulted on his loan.They humiliated me no end. They ripped my shirt, shaved my moustache, cut my hair and gave electric shocks on my chest and even spat on my face" adds Murthy.

Introduction to Insurance Insurance is a cover used for protecting oneself from the risk of a financial loss. It is a means of protection of the economic value of assets. It is a method of spreading over a large number of persons, a possible financial loss, which cannot be borne by an individual. The occurrences which cause any damage to the assets are called Perils. The damage that these perils may cause to the assets is called risk that the asset is exposed to. The concept of risk is integral to the concept of insurance. The risk means, that there is a probability of loss to an asset. Whether the loss will actually occur is not certain. It is the uncertainty that gives rise to the risk. If there is no risk, there is no need for insurance. It is important to understand that risk is a part of any persons life and that it increases as a person increases in age, responsibility and wealth. Insurance is risk coverage against financial losses and should not be taken as an investment instrument. Some assets have a value because of their income-generating capacity. Some assets may not generate an income but they have a value because of certain needs, which they fulfill. Loss of any asset could result in the loss of income or loss in value of asset. When the assets performs as expected , the owner could manage his affairs easily and his income or value is not lost. However when the asset is lost, damaged or destroyed or made non-functional, the owner will suffer losses because his income will be reduced or lost. Insurance is a mechanism through which assets are protected against the risk of damage or destruction. Thus, the owners of the assets can cope with the economic consequences of such events. Human being is considered as an income generating asset. There are mainly two parties involved in this the insurer and the insured. The insurer is the insurance company in this the insurer and the insured. The insurer is the insurance who will provide the cover to the insured against any financial losses. The insured may be an individual person or a group of people like an employer, members of a society, etc. A policy is the contract between the insurer and the insured, which states the risks covered, the exclusions, if any, and the benefits reimbursed on the happening of an event like death, illness etc. The policy is paid through what is called a premium, which is a set amount that must be paid by the insured on a monthly, semi-annual or annual basis. On the happening of an event like death, disability, fire, etc, for which the insured is covered, the benefit amount stated in the policy contract can be claimed by the insured.

Classification of Insurance There are mainly two broad classes of Insurance Life and Non Life. y Life insurance products include Term Life policies, which give a pure risk coverage of only the death benefit, whereas endowment or money back policies have a risk as well as savings component i.e. death as well as maturity benefit. Also coming under the life insurance umbrella are the Unit Linked Policies in which there is a risk component and a savings component, which is invested in equity, debt or gilt funds, depending on the insurance company.

Non Life insurance products include property or casualty, health insurance or house, fire, marine insurance etc. This insurance class deals with all the non-life aspects of an insured like his/her house, health, land, office, cargo, etc which might bring financial loss.

Life Insurance Process Flow

The simplest life insurance business cycle looks like this:

y

y y

The client approaches the insurer through an agent with a proposal containing his personal details, income details, medical history, products ( the product describes the features provided by the insurer like maturity bonus, claims allowed etc. These features vary from product to product), sum assured (the amount for which the client is covered), term (number of years for which the client is to be covered) and premium amount (installment amount to be paid by the client to the insurer). The agent who brings this proposal is termed as a base/servicing agent for the proposal. The proposal will go through various stages of approval and risk evaluation by the Central Processing Centre of the Insurance Company. Upon final approval, a legal agreement, termed as policy, between the insurer and the client is prepared whereby the insurer covers the client for the sum assured. The client is also entitled for some additional benefits, if any, depending on the features of the product taken in the policy. The base agent gets a commission for the policy. The client pays a premium at regular intervals. These subsequent premiums are termed as renewal premiums. The base agent gets a commission on the renewal premium also. The client may come back with some alterations to the policy viz. increase/decrease in sum assured, increase/decrease of the term of policy etc. The insurer will make the relevant changes to the policy and will issue endorsements stating the alterations made and their effect on the policy. During the term of the policy, the client can submit claims. The insurer makes payment against the claim after verification. Depending on the type of claim the policy is either terminated or is kept in force. At the end of the term of the policy, the client gets the sum assured as part of the maturity benefit under life insurance policies. In addition to this the client will get the maturity bonus and any other benefits depending on the product feature.

Board of Directors Board Members Mr. K. V. Kamath, Chairman .................................................... Mr. Sridar Iyengar .................................................... Mr. Homi R. Khusrokhan .................................................... Dr. Anup K. Pujari ................................................. Mr. M.S. Ramachandran .................................................. Dr. Tushaar Shah .................................................. Mr. V. Sridar

Ms. Chanda Kochhar, Managing Director & CEO ......................................................... Mr. N. S. Kannan, Executive Director & CFO ......................................................... Mr. K. Ramkumar, Executive Director ......................................................... Mr. Rajiv Sabharwal, Executive Director

Awards-2011

ICICI Bank Ms. Chanda Kochhar, Managing Director & CEO, received the Global Leadership Award for her contribution to the US India commercial relationship Ms. Chanda Kochhar, Managing Director & CEO, was named as one of the two best Indian CEOs in an annual poll conducted by Finance Asia magazine. ICICI Bank is the only Indian brand to figure in the BrandZ Top 100 Most Valuable Global Brands Report 2011, second year in a row. ICICI Bank ranked 5th in the list of "57 Indian Companies", and 288 th in World Rankings in Forbes Global 2000 list Ms. Chanda Kochhar Managing Director & CEO, was conferred with the Transformational Business Leader of the Year , by All India Management Association (AIMA) Ms. Chanda Kochhar, Managing Director & CEO, was ranked 17th in Fortune's 25 Most Powerful CEOs in Asia. Ms. Chanda Kochhar, Managing Director & CEO, was ranked as the 5th most recognized and respected company leaders by American research firm, Penn Schoen Berland (PSB). The survey was conducted among 600 respondents from US, EU, Asia-Pacific and India in March Ms. Chanda Kochhar Managing Director & CEO ranks 41 in the "50 Power List 2011", by India Today Ms. Chanda Kochhar, Managing Director & CEO, awarded the Skoch Challenger Awards 2011, for Banking. The Skoch awards recognizes best practices in people, projects and institutions for inclusive growth Ms. Chanda Kochhar, Managing Director & CEO, in the list of 25 most powerful professional women of the country , by India Today ICICI Bank has won the "Banking Technology Awards 2010" at The Indian Banks Association in the following categories: "Best Financial Inclusion Initiative" (first prize) "Best Online Bank" ( runner up)

"Best use of Business Intelligence" ( runner up) "Technology Bank of the year" ( runner up) ICICI Bank was recognized for its Special Citation of the Fully Electronic Branch Service Channel, first set up at Hiranandani Estate, Thane, at the Financial Insights Innovation Awards held in conjunction with Asian Financial Services Congress For the second year in a row, ICICI Bank was ranked 70th in the Brandirectory league tables of the worlds most valuable brands by ,The BrandFinance Banking 500. ICICI Bank UK, HiSAVE product range has been awarded the Consumer Moneyfacts Awards 2011 for the 'Best Online Savings Provider' ICICI Bank ranked second in the financial services sector in Business World's,"Most Respected Company Awards 2011" ICICI Bank was ranked 1st in the Banking and Finance category and 9th in the "2010 Best Companies To Work For" by Business Today Ms. Chanda Kochhar, Managing Director & CEO, ICICI Bank conferred with "Padma Bhushan"

ICICI Prudential Life Insurance Company is a joint venture between ICICI Bank, one of the foremost financial services companies of India and Prudential plc, one of the leading international financial services group headquartered in the United Kingdom. ICICI Prudential was amongst the first private sector life insurance companies to begin operations in December 2000 after receiving approval from Insurance Regulatory Development Authority (IRDA). ICICI Prudential Life's capital stands at Rs. 4,780 crores (as of September 30, 2010) with ICICI Bank and Prudential plc holding 74% and 26% stake respectively. For the period April 1, 2010 to September 30, 2010, the company garnered Rs 7,267 crores of total premiums and has underwritten over 10 million policies since inception. The company has a network of over 1,500 offices and over 1,60,000 advisors, as on September 30, 2010. The company has assets held over Rs. 65,000 crores as on September 30, 2010. For the past nine years, ICICI Prudential Life has maintained a wide range of Life Insurance products that meet the needs of the Indian customer at every step in life. ICICI Prudential Life recently completed 10 years on the Indian Insurance scape on 12th December 2010. Since the liberalization of Indian Insurance sector, ICICI Prudential Life Insurance has been one of the earliest private players. Since the time, ICICI Pru Life has been the leader in terms of market share as indicated by the IRDA (Insurance Regulatory and Development Authority, the regulator for Indian Insurance Industry) at its website. During 2007-08, the organization's focus on rural business has proved its complex project execution capability and strong partnerships for customer servicing. In June, 2009 ICICI Prudential Life Insurance has decided to snap its tie up with TTK Healthcare to settle insurance claims of its users.

ICICI Prudential's life insurance products may be loosely categorized under four forms- Life Plans (further categorised into Term Plans and Wealth Plans), Child Plans, Retirement Plans and Health Plans. Under Life Insurance Plan category it offers term plans like i-Protect online term plan, ICICI Pru Pure-Protect and ICICI Pru LifeGuard, and ULIP wealth plans like ICICI Pru LifeStage Wealth II, ICICI Pru LifeLink Wealth SP, ICICI Pru Pinnacle Super etc. Under the Child / Education Plan category it offers products like ICICI Pru SmartKid regular premium and ICICI Pru SmartKid Premier Under the Retirement Insurance Plan category it offers products like ICICI Pru Forever Life & ICICI Pru LifeLink Pension SP. Under the Health Insurance Plan category it offers products like ICICI Pru Health Saver & ICICI Pru Hospital Care II.

ACKNOWLEDGEMENT

It was a delightful learning experience to be associated with ICICI Prudential life insurance company limited. I would like to Thank my teachers, friends for helping me out in making this project. My special thanks to my banking and insurance teacher Mrs. Nitya who guided me in this assignment. I also thank Mr. Deepak from icici bank, Panvel who helped me to obtain the information about the insurance plans of icici pru bank.

I also thank my friends who helped me out to complete this project. I also thank my college lab in charge who allowed us to sit late to complete this assignment. I thank to my principal, our coordinator and all other members for helping me out in this assignment.

Life Insurance Plans Life insurance products assure your family will receive financial support, even in your absence. Put simply, when you buy insurance you provide your family with a sum of money, should something happen to you. It thus permanently protects your family from financial crises. In addition to serving as a protective cover, when you buy insurance you create a flexible money-saving scheme, which empowers you to accumulate wealth to buy a new car, get your children educational solutions, and even retire comfortably. Today, there is no shortage of investment options for a person to choose from. Given the plethora of choices, it becomes imperative to make the right choice when investing your hard-earned money, and online insurance is an ideal choice in todays technology driven world. Buying Life insurance online is a way to make a unique investment that helps you to meet your dual needs saving for life's important goals, and protecting your assets. From an investor's point of view, an investment can play two roles - asset appreciation or asset protection. While most financial instruments have the underlying benefit of asset appreciation, buying life insurance online gets you the unique reassurance of asset protection, along with a strong element of asset appreciation. When you buy life insurance online the core benefit is that the financial interests of ones family remain protected from circumstances such as loss of income due to critical illness or death of the policyholder. Simultaneously, buying life insurance online gives a strong inbuilt wealth creation proposition. The customer therefore benefits on two counts and online insurance products occupy a unique space in the landscape of investment options available to a customer. As your life stage and therefore your financial goals change, the instrument in which you invest should offer corresponding benefits pertinent to the new life stage. Online insurance products are the only investment option that offer specific products tailor-made for different life stages. You are thus ensured that the benefits offered to the customer reflect the needs of the customer at that particular life stage, and hence ensures that the financial goals of that life stage are met. On the basis of which life stage you are in and the corresponding insurance needs, ICICI Prudential plans can be categorized into the following three types:
y y y

Education Insurance Plans Wealth Creation Plans Protection Plans

Data collection

Primary Data Primary data is directly collected by personally meeting the person incharge of life insurance policies of ICICI bank, Panvel.

Secondary Data Secondary data is collected through various books related to banking and insurance of second year B.M.S 3rd Sem. It is also collected from the pamplates available of the ICICI prudential Bank And the other data is obtained from the website of the bank as well as various websites that gives information of the bank. Secondly analyzing the data collected. And givinging a good conclusion on it.

OBJECTIVES

y y y y y y

WORKING ON THE HISTORY OF THE BANK. WORKING ON THE INSURANCE POLICIES GIVEN BY THE BANK. SWOT ANALYSIS OF THE PRODUCT. ANALYSING BOTH TRADITIONAL PLANS AS WELL AS UNIT LINK PLANS. WHAT ARE THE CLAIMS AND THE MATURITY PERIOD OF THE INSURANCE POLICIES OF THE BANK CONCLUDING THE PROJECT.

BONAFIDE CERTIFICATE

This is to certify that this project report titled ICICI Bank Life Insurance is the bonafide work of Miss Sayali S Gharat of S.Y.B.M.S- C Roll no:- 2422 who has carried out the research under my Supervision. Certified further that to the best of my knowledge the work reported herein does not form part of any other project report.

Signature of the teacher

Signature of the co-ordinater

Signature of the Principal

Types of Insurance Plans - Traditional or Unit Linked (ULIP: Unit Linked Insurance Plan) Insurance Plans - At a glance Broadly, insurance plans can be distinctly divided into ULIP (Unit Linked Insurance Plans) and traditional plans. A brief detail of both segments: ULIPs (Unit Linked Insurance Plans) ULIPs, or Unit Linked Insurance Plans, have gained high acceptance due to the attractive features they offer. Benefits include flexibility, Transparency, Liquidity, and Fund Options. Flexibility A ULIP offers the customer an acute degree of flexibility: the flexibility to choose the Sum Assured, and to choose the desired premium amount. ULIPs give the customer the option of changing the level of Premium/Sum Assured even after the plan has started, and the flexibility to change asset allocation by switching between funds with ease. Transparency ULIPS offer a high degree of transparency, where all charges in the plan as well as the entire net amount invested is made known to the customer. ULIPs also offer the convenience of tracking your investment performance on a day to day basis, so you can decide instantly where you want your assets allocated. Liquidity A ULIP offers you the option of withdrawing money a few years into the plan, allowing for the exigencies of life. Alternatively, a ULIP will also allow for partial/systematic withdrawal should the need arise. Fund Options A ULIP will offer you a wide choice of funds, ranging through equity, debt, cash, or a combination of the three. The customer is also afforded the option of choosing your fund mix based on your desired asset allocation. Traditional Plans These are the oldest types of insurance plans available. These plans cater to customers with a low risk appetite. Some of the common features of traditional plans are:

1. Steady Investment 1. Major chunk of investible funds are in debt instruments. 2. Steady and almost assured returns over the long term. 2. Features 1. Death benefit is Sum Assured + guaranteed & vested bonus. 2. Helps in asset creation as they are for a long tenure. 3. Premium to Sum Assured ratios are fixed for each plan and age. 4. Generally withdrawals are not allowed before maturity.

ULIPs : An Introduction

Most importantly, what are ULIPs? Here, you will find all the information you need to set your mind at ease about how to invest in ULIPs, and which ULIP is right for you. ULIPs are a category of goal-based financial solutions that combine the safety of insurance protection with wealth creation opportunities. In ULIPs, a part of the investment goes towards providing you life cover. The residual portion of the ULIP is invested in a fund which in turn invests in stocks or bonds; the value of investments alters with the performance of the underlying fund opted by you. Simply put, ULIPs are structured in such that the protection element and the savings element are distinguishable, and hence managed according to your specific needs. In this way, the ULIP plan offers unprecedented flexibility and transparency. Working of ULIPs It is critical that you understand how your money gets invested once you purchase a ULIP: When you decide the amount of premium to be paid and the amount of life cover you want from the ULIP, the insurer deducts some portion of the ULIP premium upfront. This portion is known as the Premium Allocation charge, and varies from product to product. The rest of the premium is invested in the fund or mixture of funds chosen by you. Mortality charges and ULIP administration charges are thereafter deducted on a periodic (mostly monthly) basis by cancellation of units, whereas the ULIP fund management charges are adjusted from NAV on a daily basis. Since the fund of your choice has an underlying investment either in equity or debt or a combination of the two your fund value will reflect the performance of the underlying asset classes. At the time of maturity of your plan, you are entitled to receive the fund value as at the time of maturity. The pie-chart below illustrates the split of your ULIP premium:

Types of ULIPs

One of the big advantages that a ULIP offers is that whatever be your specific financial objective, chances are that there is a ULIP which is just right for you. The figure below gives a general guide to the different goals that people have at various age-groups and thus, various life-stages. Depending on your specific life-stage and the corresponding goal, there is a ULIP which can help you plan for it.

ULIPs for retirement planning

Retirement is the end of active employment and brings with it the cessation of regular income. Today an increasing number of people have stated planning for their retirement for below mentioned reasons
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Almost 96% of the working population has no formal provisions for retirement With the growing nuclearisation of family structure, traditional support system of the younger earning members is no longer available Developments in the healthcare space has lead to an increase in life expectancy Cost of living is increasing at an alarming rate

Pension plans from insurance companies ensure that regular, disciplined savings in such plans can accumulate over a period of time to provide a steady income postretirement. Usually all retirement plans have two distinctive phases
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The accumulation phase when you are saving and investing during your earning years to build up a retirement corpus and The withdrawal phase when you actually reap the benefits of your investment as your annuity payouts begin

In a typical pension plan you have the flexibility to make a lump sum payment or a regular contribution every year during your earning years. Your money is then invested in funds of your choice. You can opt to receive the annuity at any time after vesting age (age at which you become eligible for pension chosen by you at the inception of the plan). Most of the Unit linked pension plans also come with a wide range of annuity options which gives you choice in structuring the post-retirement benefit pay-outs. Also at the time of vesting you can make a lump sum tax-exempted withdrawal of

up to 33 per cent of the accumulated corpus. In a Retirement plan, the earlier you begin the greater you gain post retirement due to the power of compounding. Let us take an example of Gaurav & Hari. Both of them want to retire at the age of 60. Gaurav starts investing Rs. 10,000 every year from the age of 25 till the time that he retires. In all, he would have invested Rs. 350,000. If his investments were to earn 7% return every year, at the time of his retirement, Gaurav will have a retirement corpus of Rs. 13, 82,368. Now, Hari starts investing 10 years later (i.e. at the age of 35) and in order to make up for the lost time, invests Rs.15,000 every year (which is 50% more than Gauravs annual investment). So, by the time of his retirement, he would have invested Rs. 3,75,000. And assuming the same annual return of 7%, he will end up with a retirement corpus of Rs 9, 48,735.

So, you see how despite setting aside more than 50% of Gauravs annual contribution, Hari ends up with a retirement corpus which is almost a third lesser than Gauravs. That is the power of compounding. Which is why, it is never too early to invest in a ULIP for retirement planning.

ULIPs for long term wealth creation

ULIPs are the right insurance solutions for you if you are looking for a strong wealth creation proposition allied to a core insurance benefit. Such plans are ideal for people who are in their late 20s and early 30s and by investing in such a plan get the flexibility of using it to fund any of their long-term financial goals such as purchase of a house or funding their childrens education. The added element of life cover serves to make these plans a wholesome financial investment option. Wealth Creation ULIPs can be primarily classified as
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Single premium - Regular premium plan: Depending upon you needs & premium paying capacity you can either opt for a single premium plan where you need to pay premium only once during the term of entire policy or regular premium plans where you can premium at a frequency chosen by you depending upon your convenience Guarantee plans Non guarantee plans: Today there are wealth creation ULIPS which also offer guaranteed benefit. These plans are ideal insurance-cum-investment option for customers who want to enjoy the potentially higher returns (over the long term) of a market linked instrument, but without taking any market risk. On the other hand non guarantee plans comes with an in - built range of fund options to choose from ranging from aggressive funds (Primarily invested in equities with the general aim of capital appreciation) to conservative funds (invested in cash, bank deposits and money market instruments with aim of capital preservation) so that you can decide to invest your money in line with your market outlook, time horizon and your investment preferences and needs. Life Stage based Non life Stage based: Life Stage based ULIPs factor in the fact that your priorities differ at different life stages & hence distribute your money across equity & debt. Here the initial allocation is decided as per your age since age is a significant indicator of risk appetite. Such a strategy ensures that the asset allocation at all times is in sync with your age and changing financial needs.

ULIPs for child education

One of the most important responsibilities you have as a parent is to ensure that your child gets the best possible education that can be provided. Apart from conventional schooling, it becomes important to expose your child to different activities such as dance, painting and sports training for holistic development. As a parent, you want to ensure that their development is not hampered either due to rising costs or unforeseen circumstances. Today there are ULIPs that offer money at key milestones of your child's education thus ensuring that your childs education continues unhampered even if something unfortunate happens to you. While, the death of a parent is an irreparable emotional loss, child education plans safeguard the child against the financial ramifications of the death of a parent. Apart from above mentioned benefit, child plans also offers below mentioned features.
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Flexibility of adding on various riders like Income benefit rider, disability rider etc to get additional benefits .For e.g. In case of income benefit rider, In the event of the death of the parent, the child will receive a regular pre-determined amount every year to meet the educational expenses. In case of unfortunate incidence of the death of a parent, not only will the child receive the sum assured immediately but will also continue to receive money at the key educational milestones.

ULIPs for health solutions

When you are young and working you save for various goals like marriage, education, retirement etc. but saving for health care is never considered or left for later. During these years we have various sources of income or savings on which we can rely for health emergencies. But with increasing cost of healthcare, proportion of this spend is increasing at an alarming pace. This is forcing families to borrow or sell assets to meet expenses during medical emergencies. And during old age health care expenses increase due to health deterioration because of age and higher incidence of chronic illness. Thus it is important for you to invest in health insurance today so that tomorrow you are fully prepared to meet rising healthcare expenses, which would be incurred during old age, with the right health insurance plan. Health ULIP is a recent innovation from the health insurance industry. In a health ULIP part of your premiums are allocated for investment designed specifically to build a health fund to meet future health related expenses. It aims to create a health savings kitty by investing in a long term flexible savings plan with multiple fund options. The health fund thus created allows you to claim for health related expenses of any kind and also fund your future health insurance charges. You can also avail of tax benefit on premium paid u/s 80D.

Traditional Plans The construct of traditional plans is as follows: You choose a certain term i.e. number of years for which you will be paying your premium. You also choose the age at which you want to start drawing pensions. During the course of your term, in the event of death, the entire sum assured is paid to the nominee. The insurance company also declared annual bonuses that get compounded in your corpus. On the onset of your retirement age, the corpus is used to pay-out annuities to the pensioner. The different types of pension options open to the customer are as follows: Life Annuity - annuity paid for life and stops on death. No further payments Life Annuity With Return Of Purchase Price - annuity paid for life and stops on death. Purchase price returned to the nominee on death Joint Life, Last Survivor Annuity With Return Of Purchase Price - annuity paid for life and continues for spouse on death. Purchase price returned to the nominee on death of both husband & wife Joint Life, Last Survivor Annuity Without Return Of Purchase Price - annuity paid for life and continues for spouse on death. No further payments Life Annuity Guaranteed For 5, 10 & 15 Years and life thereafter - Annuity Paid For A Minimum Term i.e. 5,10 Or 15 Years And Continues For Life Thereafter. If Death Occurs Before The Selected Term, Annuity Continues Till The End Of The Term

Various Types of Insurance Plans Life Insurance Plan-(Protection Plan, Premium Guarantee plan, Education Plan & Wealth Creation Plan) Protection Plans: Currently available products to purchase 1) ICICI Pru iprotect: It is a term insurance plan which you can buy online at your convenience in just 3 easy steps. 2) Save 'n' Protect: Its a perfect plan to collect funds as savings and be protected by the insurance policy. 3) Cashbak: Its a policy with a combination of three benefits periodic liquidity, protection & savings. 4) Home Assure: It is a policy where you can cover your home loan which is a term assurance plan. 5) Life Guard: It is a cover which is available at a low cost. This plan comes with 2 options level term assurance with return of premium & single premium. Premium Guarantee Plans Old products not available for fresh purchase 1. InvestShield CashBak: It provides a premium guarantee and also balancing the returns, safety & liquidity. It is a unit linked plan. 2. InvestShield Life New: A plan where the customer is guaranteed that he will at least get back his premiums. It is a unit linked plan which also provides premium guarantee and the customer gets the benefits of high returns. The policy also offers a protection to the family with a life insurance cover. Education Insurance Plans: Currently available products to purchase 1) SmartKid Regular Premium: It is a traditional plan where funds are provided for the needs of the child in the future. Education Insurance Plan - Old products not available for fresh purchase 1. SmartKid New Unit-linked Regular & Single Premium: The policy is made in such a way that the child receives money at a stage, for his educational needs. Wealth Creation Plan: Currently available products to purchase 1) ICICI Pru Guaranteed SIP: Its a limited pay endowment product that allows you to enjoy the advantage of a long term savings plan ensuring that you and your family are free of any financial uncertainties. 2) ICICI Pru Whole Life: It provides you with an exclusive twice advantage of savings and protection which not only allows you to get together your goals but also seeks to ensure that your dear ones will continue to live their lives in comfort without financial doubts in case of unexpected eventuality. 3) ICICI Pru Life Stage Wealth II: It is a unit linked insurance plan that offers various choices to decide how your savings would be invested based on your risk

appetite. 4) ICICI Pru Pinnacle II: It is a unit linked insurance plan that offers protection for your family through its life insurance cover. 5) ICICI Pru Life Time premier: Its a complete savings plan that offers you a choice of collection strategies for your savings and at the same time secures you against worries of life. 6) ICICI Pru LifeLink Wealth SP: It is a unique single premium ULIP that provides the opportunity to enjoy potentially higher returns over the long term investments, with just a single premium. Wealth Creation Plans - Old products not available for fresh purchase 1) PremierLife Gold: Premier Life Gold helps with long-term wealth creation. It is a limited premium paying plan. And from the second year onwards it also provides flexibility of premium reduction. 2) LifeStage RP: The LifeStage RP is unit linked plan that provides you with a portfolio strategy and keeps distributing your funds across the different asset classes depending on your profile. 3) Wealth Advantage: Its an exclusive whole life single premium unit linked plan that provides long term coverage up to the age of 70 years. And you have the option of withdrawing your funds systematically. 4) Lifetime Gold: This plan is a unit linked plan from which you can get high returns over a long term with easy investment options. It offers 8 fund options - Preserver, Protector, Return Guarantee Fund, Balancer, Flexi Balanced Multiplier, R.I.C.H and Flexi Growth. 5) LifeStage Assure : A unit linked insurance plan that provides Guaranteed Maturity Addition of 100%- 450% of first year premium based on the term and number of premiums paid. Also your funds are allocated across several asset class based on your profile. 6) LifeLink Super: Its a single premium unit linked insurance which offers premium allocation along with a chance to get high returns over the long term, and your family is also protected by this plan. Group Plans: Currently available products to purchase 1) Group Term Insurance Plan: Its a flexible group term plan which provides an inexpensive cover to members of a group. The cover is either given based on 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.

2) Group Gratuity Plan: The plan helps employers fund their statutory gratuity obligation in a scientific manner and also avail of tax benefits as applicable to approved gratuity funds. 3) Group Super Annuation Plan : This plan offers a flexible market linked scheme that provides substantial benefits to both employers and employees. Both defined contribution (DC) and defined benefit (DB) schemes are offered to optimize returns for members of the trust and rationalize cost. Members have the option of choosing from various annuity options or opting for a partial commutation of the annuity at the time of retirement. 4) Annuity Solutions: This plan has annuity products which give you income and help you realize your needs. In addition to the annuities offered to existing superannuation customers, the plan also offers immediate annuities to superannuation funds managed by the team. Retirement Plans: Currently available products to purchase 1) ICICI Pru Life Link Pension SP: It is a single premium pension policy which provides you the opportunity to enjoy regular income post retirement by paying just a single premium. 2) ForeverLife : A traditional retirement product that offers guaranteed returns for the first 4 years. 3) Immediate Annuity: A single premium annuity product that assures an income for life at the time of your retirement. It has the benefit of 5 payout options. Retirement Plans - Old products not available for fresh purchase 1) LifeStage Pension: A regular premium unit linked pension plan that provides you with a unique lifecycle-based strategy that continuously re-distributes your money across various asset classes based on your age and risk profile. 2) Premier Life Pension : It is a unit-linked pension policy with a limited premium paying option for preferred customers. Health Insurance Plans: Currently available products to purchase 1) ICICI Pru MediAssure: A Health Insurance Plan with AAA guarantee for the family
y y y

Assured cover till age 75 years Assured coverage for accepted pre-existing illnesses after 2 years Assured price for 3 years

Moreover, this policy covers all your hospitalisation needs with the flexibility to choose your location and quality of treatment. 2) ICICI Pru Hospital Care II: It is a family floater plan covering your spouse and children. Health Insurance Plans - Old products not available for fresh purchase

1) Diabetes Plans: It is a long term insurance policy created for individuals with Type II diabetes and pre-diabetes. It offers long term (upto 20 years) control over diabetes through a specially designed Wellness Programme including regular health checkups and a Diabetes Coach to facilitate diabetes management. It also provides you coverage against seven major critical illnesses. 2) Cancer Plans: It provide a regular premium plan that helps you with a cash benefit on the diagnosis as well as at different stages in the treatment of various cancer conditions. 3) Comprehensive Health coverage: provides comprehensive hospitalization cover and reimburses all other medical expenses by building a health fund. 4) Critical Illness Plan: It is a 360-degree product that will provide long-term coverage against 35 critical illnesses, total and permanent disability, and death. 5) Hospitalisation Plan: A health insurance policy that provides assured insurability till age 75 years, assured coverage for accepted pre-existing illnesses after 2 years and an assured price for 3 years. Also there is another hospital care plan where there is a fixed benefit plan covering various stages of treatment hospitalisation, ICU, procedures & recuperating allowance. It covers a range of medical conditions (900 surgeries) and has a long term guaranteed coverage upto 20 years. 6) Lifetime Super Pension: It is a regular premium unit linked pension plan that helps one accumulate over the long term and offers 5 annuity options (life annuity, life annuity with return of purchase price, joint life last survivor annuity with return of purchase price, life annuity guaranteed for 5, 10 and 15 years & for life thereafter, joint life, last survivor annuity without return of purchase pric5 at the time of retirement. 7) LifeLink Super Pension: A single premium unit linked pension plan. Rural Plans - Currently available products to purchase 1) Suraksha & Suraksha Kavach: Its a rural plans which offer benefits like life Cover, low and Affordable Premiums and Hassle Free Procedure. 2) Micro Insurance Sarv Jana Suraksha: Sarv Jana Suraksha is a plan to provide protection and security to rural population at a very affordable cost. The family members are protected in this plan incase of death of the policyholder. The New Product Launched by ICICI Prudential is as followsy

Anmol Nivesh for tea tribes in Assam in January 2009

Health Saver in January 2009

Wealth Advantage a unique single premium whole life ULIP in February 2009

BIBLIOGRAPHY

1. 2. 3. 4.

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