TABLE OF CONTENTS

Page No.
• Introduction [1-2]
• Company Profile of [3-29]
o ICICI Prudential Life Insurance
 Product
o SBI Life Insurance
 Product
• Objective of Study [30]
• Research Methodology [31-33]
• Data Analysis [34-38]
• Findings [39-40]
• Recommendation & Suggestions [41-42]
• Conclusion
• Appendix
o Bibliography [43]
o Questionnaire [44-45]
 INTRODUCTION
What is Life Insurance?
Life insurance is a guarantee that your family will
receive financial support, even in your absence. Put
simply, life insurance provides 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, life
insurance acts as a flexible money-saving scheme, which
empowers you to accumulate wealth-to buy a new car, get
your children married and even retire comfortably.
Life insurance also triples up as an ideal tax-saving
scheme. To know more, read the Key Benefits of Life
Insurance.
Insurance is a RS. 400 billion business in India and
yet its spread in the country is relatively thin insurance as
a concept has not been able to make headway in India.
Until recently L.I.C. enjoyed a monopoly in life
insurance business. There are little option before the
consumer to decide the insurer.
A successful passage of I.R.D.A. bill had cleared
the way of private sector operators in collaboration with
their overseas partner. It is more professional and
focused approach. Moreover the foreign players would
bring sophisticated actuarial techniques with them, which
would facilitate the insurer to effectively price the product.
In this new millennium all these activities would play a

2
crucial role in over all development and maturity of
insurance industry.
Insurance business is growing in India. Even
before the advent of the insurance development
regulatory authority and privatization on the insurance
sector, insurance was a lucrative business in India as was
elsewhere life was full of risk and here was somebody who
was willing to cover some of it for nominal consideration.
Business boomed, especially after nationalization on the
insurance sectors in India after independence. But it is
roses way for this vital sectors.
The insurance policy sales executives are really
a welcome visitor to any household. Infect many people
consider him as the hard bringer of impending death, a
gentle reminder to ultimate reality waiting for each. One
of us but ironically executives many working person would
not, have head the dual pleasure of having his life covered
and that the end of the cover period, getting back a tidy
sum as saving tax exemption and of course peace of
mind. SBI Life insurance & ICICI Prudential has now
reached a stage where people have started looking down
upon you if you are not adequately insured.

3
ICICI Prudential Life Insurance Company
Overview
ICICI Prudential Life Insurance Company is a joint venture
between ICICI Bank - one of India's foremost financial
services companies-and Prudential plc - a leading
international financial services group headquartered in the
United Kingdom. Total capital infusion stands at Rs. 37.72
billion, with ICICI Bank holding a stake of 74% and
Prudential plc holding 26%.
We began our operations in December 2000 after
receiving approval from Insurance Regulatory
Development Authority (IRDA). Today, our nation-wide
team comprises of over 1,000 offices, over 270,000
advisors; and 21 bancassurance partners.
ICICI Prudential was the first life insurer in India to
receive a National Insurer Financial Strength rating of AAA
(Ind) from Fitch ratings. For three years in a row, ICICI
Prudential has been voted as India's Most Trusted Private
Life Insurer, by The Economic Times - AC Nielsen ORG
Marg survey of 'Most Trusted Brands'. As we grow our
distribution, product range and customer base, we
continue to tirelessly uphold our commitment to deliver
world-class financial solutions to customers all over India.
The ICICI Prudential Edge
The ICICI Prudential edge comes from our commitment to
our customers, in all that we do - be it product

4
development, distribution, the sales process or servicing.
Here's a peek into what makes us leaders.

1. Our products have been developed after a clear and

thorough understanding of customers' needs. It is
this research that helps us develop Education plans
that offer the ideal way to truly guarantee your
child's education, Retirement solutions that are a
hedge against inflation and yet promise a fixed
income after you retire, or Health insurance that
arms you with the funds you might need to recover
from a dreaded disease.
2. Having the right products is the first step, but it's
equally important to ensure that our customers can
access them easily and quickly. To this end, ICICI
Prudential has an advisor base across the length and
breadth of the country, and also partners with
leading banks, corporate agents and brokers to
distribute our products .
3. Robust risk management and underwriting practices
form the core of our business. With clear guidelines
in place, we ensure equitable costing of risks, and
thereby ensure a smooth and hassle-free claims
process.
4. Entrusted with helping our customers meet their
long-term goals, we adopt an investment philosophy
that aims to achieve risk adjusted returns over the
long-term.

5
 5. Last but definitely not the least, our 30,000 plus
strong team is given the opportunity to learn and
grow, every day in a multitude of ways. We believe
this keeps them engaged and enthusiastic, so that
they can deliver on our promise to cover you, at
every step in life.
Vision & Values
Our vision:
To be the dominant Life, Health 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, Boundaryless, Ownership and Passion.
Each of the values describe what the company stands for,
the qualities of our people and the way we work.

6
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.
Our values :
Every member of the ICICI Prudential team is committed
to 5 core values: Integrity, Customer First, Boundaryless,
Ownership, and Passion. These values shine forth in all we
do, and have become the keystones of our success.

Promoters
ICICI Bank
ICICI Bank (NYSE:IBN) is India's second largest bank
and largest private sector bank with over 50 years
presence in financial services and with assets of over Rs.
3,767.00 billion (USD 96 bn.) as on December 31 , 2007.
The Bank offers a wide range of banking products and
financial services to corporate and retail customers
through a variety of delivery channels and through its
specialized subsidiaries in the areas of investment
banking, life and non-life insurance, private equity and
asset management. ICICI Bank is a leading player in the
retail banking market and services its large customer base
through a network of over 955 branches (including
extension counters), 3687 ATMs, call centers and internet

7
banking (www.icicibank.com) to ensure that customers
have access to its services at all times.
Prudential Plc
Established in London in 1848, Prudential plc, through its
businesses in the UK, Europe, US, Asia and the Middle
East, provides retail financial services products and
services to more than 20 million customers, policyholder
and unit holders and manages over £267 billion of funds
worldwide (as of December 31, 2007). In Asia, Prudential
is the leading European life insurance company with life
operations in China, Hong Kong, India, Indonesia, Japan,
Korea, Malaysia, the Philippines, Singapore, Taiwan,
Thailand, and Vietnam. Prudential is one of the largest
retail fund managers for Asian sourced assets ex-Japan. Its
fund management business has expanded into ten
markets, comprising of China, Hong Kong, India, Japan,
Korea, Malaysia, Singapore, Taiwan, Vietnam and United
Arab Emirates.
Products
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 4 riders, to create a customized
solution for each policyholder.
Savings & Wealth Creation Solutions

8
• 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. It is available for terms of 15
and 20 years.
• LifeTime Gold & LifeTime Plus are unit-linked
plans that offer customers the flexibility and control
to customize the policy to meet the changing needs
at different life stages. Each offer 6 fund options -
Preserver, Protector, Balancer, Maximiser, Flexi
Growth and Flexi Balanced.
• 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 Gold is a limited premium paying plan
specially structured for long-term wealth creation.
• InvestShield Life New is a unit linked plan that
provides premium guarantee on the invested
premiums and ensures that the customer receives
only the benefits of fund appreciation without any of
the risks of depreciation.
• InvestShield Cashbak is a unit linked plan that
provides premium guarantee on the invested
premiums along with flexible liquidity options.

9
 • LifeStage RP is a unique and powerful wealth
creation insurance solution, which combines the
benefits of automatic asset allocation and quarterly
rebalancing along with increased protection.

Protection Solutions

• LifeGuard is a protection plan, which offers life

cover at low cost. It is available in 3 options - level
term assurance, level term assurance with return of
premium & 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.

Education insurance plans

• Education insurance under the SmartKid brand

provides 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 traditional retirement product that

offers guaranteed returns for the first 4 years and
then declares bonuses annually.

10
 • LifeTime Super Pension 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 price) at the time of
retirement.
• LifeLink Super Pension is a single premium unit
linked pension plan.
• Immediate Annuity is a single premium annuity
product that guarantees income for life at the time of
retirement. It offers the benefit of 5 payout options.
• PremierLife Pension is a unique and convenient
retirement solution with a limited premium paying
term of three or five years, to suit professionals and
businessmen, especially those who require more
flexibility and customization while planning their
finances.

Health Solutions

• Health Assure Plus: Health Assure is a regular

premium plan which provides long term cover
against 6 critical illnesses by providing policyholder
with financial assistance, irrespective of the actual
medical expenses. Health Assure Plus offers the

11
 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.
• Cancer Care Plus: is a wellness plan that includes
all the benefits of Cancer Care and also provides an
additional benefit of free periodical cancer
screenings.
• Diabetes Care: Diabetes Care is a unique critical
illness product specially developed for individuals
with Type 2 diabetes and pre-diabetes. It makes
payments on diagnosis on any of 6 diabetes related
critical illnesses, and also offers a coordinated care
approach to managing the condition. Diabetes Care
Plus also offers life cover.
• Diabetes Care Plus: is a unique insurance policy
that provides an additional benefit of life cover for
Type 2 diabetics and pre-diabetics
• Hospital Care: 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.
• Crisis Cover : is a 360-degree product that will
provide long-term coverage against 35 critical
illnesses, total and permanent disability, and death.

Group Insurance Solutions

12
ICICI Prudential Life also offers Group Insurance Solutions
for companies seeking to enhance benefits to their
employees.
Group Gratuity Plan: ICICI Prudential Life'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.
Group Superannuation Plan: ICICI Prudential Life offers
both defined contribution (DC) and defined benefit (DB)
superannuation schemes to optimise returns for the
members of the trust and rationalise the 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.
Group Immediate Annuities: In addition to the
annuities offered to existing superannuation customers,
we offer immediate annuities to superannuation funds not
managed by us.
Group Term Plan: ICICI Prudential Life'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

13
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.

1. Accident & disability benefit: If death occurs as

the result of an accident during the term of the

policy, the beneficiary receives an additional amount
equal to the rider sum assured under the policy. If an
accident results in total and permanent disability,
10% of rider sum assured will be paid each year,
from the end of the 1st year after the disability date
for the remainder of the base policy term or 10 years,
whichever is lesser. If the death occurs while
travelling in an authorized mass transport vehicle,
the beneficiary will be entitled to twice the sum
assured as additional benefit.
2. 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.
3. Waiver of Premium: In case of total and permanent

disability due to an accident, the future premiums

continue to be paid by the company till the time of
maturity. This rider is available with SmartKid,
LifeTime Plus, LifeTime Super and LifeTime Super
Pension.
4. Income benefit rider: In case of death of the life

assured during the term of the policy, 10% of the

14
 sum assured is paid annually to the nominee on each
policy anniversary till the maturity of the rider.

Plans Overview
ICICI Prudential has a wide array of insurance plans that
have been designed with the philosophy that different
individuals are bound to have differing insurance needs.

The ideal insurance plan is one that addresses the exact

insurance needs of the individual that will depend on the
age and life stage of the individual apart from a host of
other factors.
Life Insurance Plans
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:

• Education Insurance Plans

• Wealth Creation Plans
• Premium Guarantee plans
• Protection Plans

Key Benefits of Life Insurance

Life insurance, especially tailored to meet financial needs

Need for Life Insurance

15
Today, there is no shortage of investment options for a
person to choose from. Modern day investments include
gold, property, fixed income instruments, mutual funds
and of course, life insurance. Given the plethora of
choices, it becomes imperative to make the right choice
when investing your hard-earned money. Life insurance is
a unique investment that helps you to meet your dual
needs - saving for life's important goals, and protecting
your assets.

Let us look at these unique benefits of life insurance in

detail.

Asset Protection

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, life insurance is unique in that it gives
the customer the reassurance of asset protection, along
with a strong element of asset appreciation.

The core benefit of life insurance is that the financial

interests of one’s family remain protected from
circumstances such as loss of income due to critical illness
or death of the policyholder. Simultaneously, insurance
products also have a strong inbuilt wealth creation
proposition. The customer therefore benefits on two

16
counts and life insurance occupies a unique space in the
landscape of investment options available to a customer.

Goal based savings

Each of us has some goals in life for which we need to

save. For a young, newly married couple, it could be
buying a house. Once, they decide to start a family, the
goal changes to planning for the education or marriage of
their children. As one grows older, planning for one's
retirement will begin to take precedence.
Clearly, 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.
Life insurance is the only investment option that offers
specific products tailormade for different life stages. It
thus ensures 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.
The table below gives a general guide to the plans that
are appropriate for different life stages.
Life Insurance
Life Stage Primary Need
Product
Wealth creation
Young & Single Asset creation
plans
Young & Just Asset creation & Wealth creation and
married protection mortgage protection

17
 plans
Children's Education
education, Asset insurance, mortgage
Married with kids
creation and protection & wealth
protection creation plans
Planning for Retirement solutions
Middle aged with
retirement && mortgage
grown up kids
asset protection protection
Across all life-
Health plans Health Insurance
stages

Types of Insurance Plans - Traditional or Unit Linked

Insurance Plans - At a glance

Broadly, insurance plans can be distinctly divided into

ULIPs and traditional plans. A brief detail of both
segments:

Unit Linked Insurance Product

ULIPs have gained high acceptance due to attractive

features they offer. These include:

1. Flexibility
1. Flexibility to choose Sum Assured.
2. Flexibility to choose premium amount.
3. Option to change level of Premium /Sum
Assured even after the plan has started.
4. Flexibility to change asset allocation by
switching between funds

18
 2. Transparency
1. Charges in the plan & net amount invested are
known to the customer
2. Convenience of tracking one’s investment
performance on a daily basis.
3. Liquidity
1. Option to withdraw money after few years
(comfort required in case of exigency)
2. Low minimum tenure.
3. Partial / Systematic withdrawal allowed
4. Fund Options
1. A choice of funds (ranging from equity, debt,
cash or a combination)
2. Option to choose your fund mix based on
desired asset allocation

Traditional Plans

These are the oldest types of 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

19
 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

MARKETING STRATEGY OF ICICI-

PRUDENTIAL
MARKETING

The key tasks in marketing team in ICICI-Prudential are :

(a) Educate the customers and reposition the products

to counter the apathy for life insurance.
(b) To efficiently communicate the benefits of
insurance to counter under-insurance.
(c) Identify the new products and extend reach to
counter low absolute penetration.
(d) Position itself as the market leader to counter
competition.

The selling proposition for ICICI-Prudential will therefore

be a sound product strategy. The product will have to
be bundled after segmentation of the market and the
customer. The two pronged strategy of innovating

20
 specific products and educating the public at the same
time will be the company’s road map to leadership.

MARKETING TOOLS

ICICI-Prudential mandate is clear to sell and educate

and the customer. To achieve this, the marketing team
will need effective communication tolls at its command
but it is the market research on customer-behavior that
will give the company the cutting-edge in designing
new products.

The tools are marketing will be :

Communication – To reposition insurance attractive

educate the customer and trigger in them the latent
need for protection.

Direct Marketing – To promote relationship building

through mails, call centers personal visit and internet.

Public Relations-To build the ICICI-Prudent brand and

to establish insurance as a customer’s right to
protection.

Distribution Model – ICICI-Prudential will adopt a

multi-channel distribution model to popularize and
market its proudcts. The channel will be :

Tied agents

Banc Assurance

21
 PFS-AMC

Salaried sales force

E-commerce

Apart from the tied agents who will be attached solely

to ICICI-Prudential, a regular sale force employed by the
company will market the products. The insurance
product will also be bundled along with products of
group companies like Personal Financial and Asset
Management Company. Besides there will be the
brokers working on commission basis.

Banc assurance, through the Internet banking facility,

will also play an important part in distributing the
insurance products. Like every IT-enabled company,
ICICI-Prudential will use their Internet to market the
products. However initially, the Internet will not be
major channel for sales. It will mainly serve as the
medium for customer complaint and help in effective
service.

STRATEGY

The innovative strategy for sales and distribution will be

unique selling proposition of ICICI-Prudential. The multi-
channel distribution to it’s over dependence on one kind
of channel. The different channels will help building in
huge database Vote for the company for future
marketing efforts.

22
 The company will make over 80 of its sales face to
face for this purpose, ICICI-Prudential will mainly recruit
the new agents. It has recruit few former agents of LIC
mainly to draw from their experience the thrust will be
on having more new agents. The team of highly sales
personnel will tap newer market.

Company Profile of SBI Life

Our Mission:"To emerge as the leading company offering a

comprehensive range of life insurance and pension
products at competitive prices, ensuring high standards of
customer satisfaction and world class operating efficiency,
and become a model life insurance company in India in
the post liberalisation period".
Our Values:

• Trustworthiness
• Ambition
• Innovation
• Dynamism
• Excelllence

SBI Life Insurance is a joint venture between the State

Bank of India and Cardif SA of France. SBI Life Insurance is

23
registered with an authorized capital of Rs 1000 crore and
a paid up capital of Rs 500 crores. SBI owns 74% of the
total capital and Cardif the remaining 26%.

State Bank of India enjoys the largest banking franchise in

India. Along with its 7 Associate Banks, SBI Group has the
unrivalled strength of over 14,500 branches across the
country, arguably the largest in the world. Cardif is a
wholly owned subsidiary of BNP Paribas, which is the Euro
Zone’s leading Bank. BNP Paribas is one of the oldest
foreign banks with a presence in India dating back to
1860. Cardif is ranked 2nd worldwide in creditor’s
insurance offering protection to over 35 million
policyholders and net income in excess of Euro 1 billion.
Cardif has also been a pioneer in the art of selling
insurance products through commercial banks in France
and in 35 more countries.

SBI Life Insurance’s mission is to emerge as the leading

company offering a comprehensive range of Life Insurance
and pension products at competitive prices, ensuring high
standards of customer service and world class operating
efficiency.

SBI Life has a unique multi-distribution model

encompassing Bancassurance, Agency and Group
Corporates.

SBI Life extensively leverages the SBI Group as a platform

for cross-selling insurance products along with its

24
numerous banking product packages such as housing
loans and personal loans. SBI’s access to over 100 million
accounts across the country provides a vibrant base for
insurance penetration across every region and economic
strata in the country ensuring true financial inclusion.

Agency Channel, comprising of the most productive force

of more than 25,000 Insurance Advisors, offers door to
door insurance solutions to customers.

Customer Satisfaction - many of our customers who

have bought an insurance policy with us have bought a
second one!

Financially sound with over a 100 years of Banking

experience, when you trusted us with your money, why
would you trust somebody else with your protection
needs.

Affordability

Easy to buy (accessibility)

Trust & reliability.

With us you’re sure!

25
SBI Life Insurance is a joint venture between the State
Bank of India and Cardif SA of France. SBI Life Insurance is
registered with an authorized capital of Rs 1000 crore and
a paid up capital of Rs 500 crores. SBI owns 74% of the
total capital and Cardif the remaining 26%.
State Bank of India enjoys the largest banking franchise in
India. Along with its 7 Associate Banks, SBI Group has the
unrivalled strength of over 14,500 branches across the
country, arguably the largest in the world.
Cardif is a wholly owned subsidiary of BNP Paribas, which
is the Euro Zone’s leading Bank. BNP Paribas is one of the
oldest foreign banks with a presence in India dating back
to 1860. Cardif is ranked 2nd worldwide in creditor’s
insurance offering protection to over 35 million
policyholders and net income in excess of Euro 1 billion.

Every Indian, whether resident in India or an NRI, looks

forward to the need to feel secure, to care for the loved
ones and to provide for old age. The need is felt more
when you’re away from your homeland.

We, at SBI Life, understand this need. The feeling to do

something for your loved ones. The urge to let them know
that you care. Just why we’ve introduced the NRI
Insurance Services. Now, you can wisely invest your hard -
earned money in India. This will ensure smooth and safe
future for your family

26
At SBI Life, we endeavor to set a benchmark in the
liberalized life insurance industry in India by ensuring high
standards of customer satisfaction and world-class
efficiency offering our customers a comprehensive range
of life insurance and pension products at competitive
prices.

Our policies are formulated keeping in mind your needs at

various stages of life; whether it is security for your family,
higher education for your children, regular saving cum
protection plan or life long pensions. This ensures smart
investment of your hard earned money.

Unit Linked Products:

Unit linked Plans are an attempt to meet all your financial
& insurance needs through a single non participating
product." What's more you get market linked returns
which in the long term has always proved to give better
returns than traditional savings products".

 Horizon II
 Unit Plus II
 Unit Plus Child Plan

27
  Unit Plus Elite

Pension Products:
You need to have a comprehensive plan to meet your post
retirement financial needs ensuring complete peace of
mind. To make your post retirement years truly golden,
we offer you –

 Horizon II Pension

 Unit Plus II Pension

 Lifelong Pensions

Pure Protection Products:

There are times when everything seems to be perfect, but
who can predict future and there is always a place to
make this world a better place for our loved ones. To
ensure that these uncertainties do not shatter the dreams
you have for your family, SBI Life offers you –

 Shield
 Swadhan

 Keyman

28
Protection cum Savings Products:
SBI Life offers a variety of plans that gives you the benefit
of protection and the opportunity to save for various
events like purchase of new house, wedding, car etc. We
assist your savings.

 Sudarshan
 Scholar II (Child Plan)

Money Back Scheme Products:

As an individual your life is fueled by dreams. You
experience different special moments in life like wedding,
birth of a child, child’s education or purchasing a new
home. You have to be financially prepared for these
special moments. What you need is easy liquidity at
regular intervals with life insurance protection to take care
of these special moments.

 Money Back

29
  Sanjeevan Supreme

Comparative Study of Insurance

Companies

SBI Life ICICI Prudential

Insurance Life Insurance

Product
Recommendation 83% 47%
:
Customer Service:
Claims Settlement:
Rates/Premium:
Range of Plans:
Staff Attitude:

30
Product Rating:
(Read 6 reviews) (Read 46 reviews)

• All prices are indicative and subject to change. For

updated prices,

OBJECTIVE OF THE STUDY

The objectives of Private life insurance industry that

emerged out of the discussion and speeches in the
parliament in the time passage of the act were:
1. Spread of message of life insurance as far and wide
as possible reaching out beyond the more advanced
Urban areas well into hitherto neglected areas.
2. Effective mobilization of the people’s savings.
3. Complete security to policyholders.
4. Prompt and efficient services to the policyholders.
Conducting of the business with the utmost economy
and with the full realization that the money. Belonged to
the policyholders.

31
 RESEARCH METHODOLOGY
Research Methodology is a way to systematically
solve the research problem. It may be understood as a
science of studying how research is done scientifically. In
it we study the various steps that are generally adopted
by researcher in studying his research problem along with
logic behind them. It is necessary for the researcher to
know not only the research methods/techniques but also
the methodology. Researchers also need to understand
the assumptions underlying various techniques and they
need to know the criteria by which the can decide that
certain techniques and procedures will be applicable to
certain problems and other will not.
Research :
Research is a scientific and systematic search for
pertinent information on a specific topic. According to
Clifford Woody research comprises defining and redefining
problems, formulating hypothesis or suggested solutions;

32
collecting, organizing and evaluating data, making
deductions and reaching conclusions; and at last carefully
testing the conclusions to determine whether they fit the
formulating hypothesis.

Research Design:
A research design is purely and simply the framework
or plan for study that guides the collection and analysis of
data. Application and specification are the main
characteristics in a research designs can be classified on
the basis of the fundamental objectives of the research.
There are mainly two types of research design.
a. Exploratory
b. Conclusive
1. Descriptive
2. Experimental
Since our research is descriptive type, so research
design is also descriptive.

Sampling Design :
Sampling is a process of obtaining information about
an entire population by examining only a part of it.
Sampling is used for a variety of reasons such as:
i. Sampling can save time and money.
ii. Sampling may enable more accurate
measurements.
iii. Sampling remains the only way when
populations contain infinitely many members.

33
 iv. Sampling only remains the only choice when a
test involves the destruction of the item under
study.
Sampling methods can be divided into two.
1. Probability Sampling
2. Non-probability Sampling
In my research probability sampling is used. Again in
probability sampling, simple random sampling is used.
This sampling is stratified system.

Data Collection Method:

Data collection methods are generally of two types:
a. Primary Data
b. Secondary Data
Primary data are those which are collected a fresh
and for the first time and thus happens to be original in
character. The primary data is collected in the process of
questionnaire and interview of the outlets.
Secondary data are those which have already been
collected by someone else and which have been
already been passed through the statistical process. In
my research the secondary data is collected from the
company sales records and from research reports.
Tools and Techniques:
• Primary Data : Questionnaire and Personal
Interview.
• Secondary Data : Company sales record and other
research reports.

34
Sampling Plan:
Target Population Or Universe :All the resident of Agra
city.
o Sampling Unit : Any Insurance policy of who works

with SBI Life and ICICI Prudential.

o Sampling Size :Around 100 people

o Sampling Method : Judgment and Convenience.

o Sampling Area : Study Shall cover Agra City.

Data Analysis
Table No. 1

No. of Respondents Percentage

Person
People Not 72 72%
Having
People 28 28%
Having

35
 People Having Any insurance
Policy

80
70
60
50
40
30
20
10
0
People Not Having People having

Table No. 2

Company No. of People Percentage

LIC 85 85%
ICICI 8 8%
HDFC 3 3%
SBI Life 2 2%
Others 4 4%

36
 Policy in People Having different
insurance comapanies

90
80
70
60
50
40
30
20
10
0
LIC ICICI HDFC SBI Life Others

Table No. 3

Sector No. of Percentage

Respondents
Public 90 90%
Private 10 10%

37
 Sector which is better in Life
Insurance

Public
Private

Table No. 4

Reasons No. of Percentage

Respondents
Retirement 16 16%
Life risk 46 46%
Tax Saving 12 12%
Saving 20 20%
Others 6 6%

38
 Reasons for Purchasing life
Insurance Policy

Others Retirement
Saving 6% 16%
20% Retirement
Life Risk
Tax Saving
Saving
Tax Saving
Others
12% Life Risk
46%

Table No. 5

Company No. of Percentage

Respondents
LIC 90 90%
ICICI 3 3%
HDFC 1 1%
SBI life 1 1%
Others 5 5%

39
 100

90 LIC, 90

80

70

60

50

40

30

20

10
ICICI, 3 Others, 5
0 HDFC, 1 SBI Life, 1
LIC ICICI HDFC SBI Life Others

FINDINGS

The current scenario indicates a failure to create a

market for insurance products where 33% of LIC policies
were sold for tax benefits under Section 88 of IT Act,
which is expected to reverse after the arrival of the
private players. In the first year of operation, in Life, ICICI
Prudential has emerged as the front-runner with the sales
of 1,00,000 policies and premium collection of Rs. 112
crore from underwriting Rs. 2700 crore of business. SBI life

40
is in place with 43 crore premium income from risk
products received on 64000 whole life policies.

PUBLIC FRONT

LIC in an effort to retain its competitive edge has

revamped its service by networking all the branches and
improving information available to policyholders through
its website and tie-ups with the Internet companies. The
marketing strategy by the LIC not being focused on Risk
Products claims an advantage for the private players, in
turn LIC has improved its Product Management by
withdrawing many high guaranteed return products and re
launching them at lower guaranteed returns in view of the
falling rates of interests.

PRIVATE FRONT:

With the opening of the Insurance sector to private

players, there are 12 new entrants in the Life sector and 6
in the Non life sector The Indian insurance sector presents
opportunity for growth as penetration is very low and
premiums as a percentage of GDP is only 2.61% compared
to 15.78% for U.K. to 10.92% for Japan and 8.76 for US.
The foreign player. with the domestic partner’s string
brand value, can test the unconventional distribution
partner’s like brokers, the internet, the banking
distribution system, etc. domestic foreign players may be
tempted to keep their operation in the big company
creamy layer of the society.

41
 In the life insurance sector, ICICI–Prudential has
captured 38% of the private life insurance market, leaving
the rest for the remaining 10 players. IRDA figures up to
February 03 show that players like SBI Life insurance and
Tata AIG Life Insurance are all vying for the top five
positions. here are some of the interesting facts about the
private players:

RECOMMENDATIONS & SUGGESTIONS

As far the products of both private sectors are

concerned, no one is one the losing edge, yet they differ in
their market share. The reason being the consume
perception about the public and private sectors and the
marketing strategies of the companies. Some suggestions
and recommendations regarding he marketing strategies
are as follows:

42
• Greater market Penetration : As far as the private
companies are concerned they should emphasize on
the rural market as well, which bears more wealth
than urban sector. LIC has deep roots in the rural
India and therefore it has a large market share.
• Greater mass Appeal : The companies should have
greater mass appeal by effective advertising as done
by ICICI Prulife & SBI Life, which has a greater impact
on the mass.
• Proper Market Segmentation : The opportunity to
segment the market in terms of Geography,
demographics, Psychographics and needs is
tremendous. The very nature of an insurance product
encourages mass marketing rather focus which
points to the need to define ones Long Term Product
Market Focus and positioning for sustainable
competitive advantage.
• Emphasizing on risk factors : The marketing
strategies of the new players in the Life sector is on
offering products which have been properly marketed
by LIC i.e., SBI Life's focus on Risk products, ICICI
Prulife focus on pension and Term Insurance Products
with 40% business from new products such as Unit
Linked.
• Customer Orientation : After the advent of the
private players in the Indian market, LIC ahs
improved a lot in terms of customer orientation
several claims where are pending from a longer

43
 period have been settled so far As pending records in
the year 2005-2006 the no. of claims settles were
87,97 lakhs which amounted the sum of 14519.25
crores. giving the following slogan.
• “LIC settles one Claim in less than one Second”
• Marketing a limited no. of products The Product
strategies of the new players is to offer limited
number of product customization value and reduces
the Marketing costs and Risk of the players through
diversified product portfolio.

BIBLIOGRAPHY

• Insurance : Principles and Practice by M.N. Misra

• Modern Applications of Life Insurance by H. C. Mehta
and R. C. Chadha.
• New Business Unit Handbook.
• Manual For Accounts Department.
• Manuals For Agents.

44
 • Special Issue on IRDA Act and Regulations, 2007
• Insurance Watch, Nov. 2007, April 2008
• Investment Monitor, September, 2006
• Business standard
• Business Today
• The Economics Times
• Research Methodology by C.R. Kothari.
• Marketing Management by Philip Kotler
• www.iciciprulife.com
• www.sbilife.com

QUESTIONNAIRE
Name : Age :
Occupation : Income :
1. Do you have any Insurance policy ?
a) Yes [ ] b) No. [ ]
2. If yes in which insurance company you have your
policy ?
a) ICICI [ ] b) BAJAJ Allianz [ ]

45
 c) HDFC [ ] d) SBI Life [ ]
If no Why...................................
3. Reasons for purchasing life Insurance Policy ?
a) To cover life risk [ ]
b) To save tax [ ]
c) To invest saving [ ]
d) To meet income need after retirement [ ]
e) Any other [ ]
4. What benefit you feel for purchasing insurance policy
a) Life risk cover [ ]
b) Medi claim facility provides. [ ]
c) Family requirements fulfilled after death
of earning hand. [ ]
d) Loan Facility. [ ]
e) Returns after the specific period aids to
the income. [ ]
f) All the above [ ]

5. Which according to you is better insurance

company ?
a) ICICI [ ] b) BAJAJ Allianz [ ]
c) HDFC [ ] d) SBI Life [ ]
6. What are the reasons behind your choice of
insurance company?
a) Better Services [ ]
b) Better Plans [ ]

46
 c) Better Returns [ ]
d) Better Pension plan and other schemes [ ]
e) Better goodwill [ ]
7. Which sector you feel better for insurance sector?
a) Public [ ] b) Private [ ]
8. Do you feel that government should take proper
measures to increase the promotion of life insurance?
a) Yes [ ] b) No [
]
9. In which insurance Company you would like to invest
in near future ?
a) ICICI [ ] b) BAJAJ Allianz [ ]
c) HDFC [ ] d) SBI Life [ ]
10. What benefits you feel from taking a life insurance
policy (20 words)?
.....................................................................................
.........................................

47