SUMMER TRAINING REPORT

ON

COMPARATIVE STUDY OF ICICI PRUDENTIAL LIFE INSURANCE WITH BAJAJ ALLIANZ

Conducted at

SUBMITTED TO: Kurukshetra university, Kurukshetra in the Partial Fulfillment for The Degree of Master in Business Administration. (Session 2009-2011)-MBA 3rd Semester

Under Supervision of: Ms. Kalpana Aggarwal Lect. Of MBA

Submitted By: Sanjeev Kumar Univ. Registration No. 03-RK-143 .

TILAK RAJ CHADHA INSTITUTE OF MANAGEMENT $ TECHNOLOGY (YAMUNANAGAR)

i . ex e

CONTENTS

HISTORY OF INSURANCE INTRODUCTION OF INSURANCE COMPANY PROFILE ICICI PRUDENTIAL LIFE INSURANCE CO. LTD. BAJAJ ALLIANZ LIFE INSURANCE CO. LTD.

OBJECTED OF STUDY COMPARATIVE STUDIES RESEARCH METHODOLOGY SWOT ANALYSIS ANALYSIS & FINDING LIMITATIONS OF THE STUDY CONCLUSIONS SUGGESTIONS ANNEXURE QUESTIONNAIRE BIBLIOGRAPHY

ACKNOWLEDGEMENT
My experience at ICICI PRUDENTIAL was like a ride to another world. I was overwhelmed with the support and information provided to us by ICICI PRUDENTIAL. To start with, I would like to thank Mr. VIKAS GUPTA, Channel Distribution Manager, ICICI PRUDENTIAL for his and inspiring guidance throughout the course of this helped me to bring this work to its present form. I owe my thank our Director Dr. Sanjeev Marwah and our Training Co-ordinator Mr. Rajan vij for their kind support and Guidance during the whole Project. Further, I would like to thank all the staff members of ICICI PRUDENTIAL, who provided me cooperation in collecting the data and requested the concerned authorities to extend their help for the completion of the project. The project was also enriched by their valuable suggestions.

Sanjeev kumar MBA 2nd SEM

PREFACE
PRACTICAL TRAINING IS FAR BETTER THAN ROOM TEACHING Practical training gives a feel of the actual difficulties faced during the work. As part of our summer training, we got an opportunity to work with ICICI PRUDENTIAL. Life Insurance is a mile stone in growth to the social life of the countrymen. For millions of Indias working families, may owning a home have a dream to buy a Insurance Policy to secure their and their children future. Our nations greatest opportunity now is the chance to build a better life for our people. Recognizing this, the insurance sector has now been regarded as a potent engine to economic growth. The government has outlined a substantive and detailed plan, seen first in the policy of insurance plans, to reach this goal. Many incentives announced in the Union Budget every year have helped to improve the affordability enormously over the past couple of years. All this has led to an enormous increase in the demand for Life Insurance and thus, in the banks/ institutions providing this finance. The present scenario has led to the steady evolution of especially Life Insurance with different return plans for different age group of people.

EXECUTIVE SUMMARY

The objective of this project was to assist ICICI Prudential Life Insurance in expanding their channel by recruiting Tied Agents For the company. For the company to successfully continue its operations, it needs to undergo change to get some new customers and to get some new ideas. Moreover insurance is such a growing sector that it has full potential to have new customers. so it very essential to have new people in the system which can add new customers to the company. This was achieved through a three pronged efforts. 1. 2. 3. 4. 5. 6. 7. To know about the financial position of both co. To know the Current market position of the both Co. To know the impact of Advertisement are ICICI prudential vs Bajaj Allianz. To know the preference of the customers. To invite suggestions from the customers. To compare the both companys. To know about the customers awareness regarding the company.

The research methodology consisted of a survey using simple Questionnaire and personal interview with the general public at exibhition site mostly based in KARNAL disst. The questionnaire used is given at the end of report.

HISTORY OF INSURANCE

As with so many things in so many facets of our lives, insurance too was born out of a primal need and shaped by socio-economics realities of the time. The story goes back to around 2100 BC, to the ancient civilization of Babylon and business practice call 'bottomry'. For all practical purpose a form of marine insurance, bottomry enabled ship owners to borrow money against their ships to pay for the trip. With piracy rampant on high seas, traders and seafarers were reluctant to sail to other them some semblance of security. The arrangement was that only if their ship returned did traders have to repay the loan, along with interest. Which was pegged at an above-market rate for the risk covered. So, if their ship failed to make it back, they did not have to repay the loan, thereby recovering some or all of the loss.

ORIGINS
With the marine route being the bedrock of trade and commerce in those days, the practice of bottomry evolved, and spread. With the growth of towns and trade in Europe, medieval guilds (groups organized on the basis of some common objective, like traders) pooled in money to protect their members from loss by fire and shipwreck, to pay ransom if they were captured by pirates, and to provide burial and support in sickness and poverty. By the middle of the 14th century, as evidenced by the earliest known insurance contract a crisis. Several insurers defaulted on their contractual obligations to policyholders, citing investment losses : some even folded up. The Insurance Act 1938 introduced state controls on insurance, but even this failed to safeguard policyholder interests.

INSURANCE SECTOR IN INDIA

The origin of insurance is very old .The time when we were not even born; man has sought some sort of protection from the unpredictable calamities of the nature. The basic urge in man to secure himself against any form of risk and uncertainty led to the origin of insurance. The insurance came to India from UK; with the establishment of the Oriental Life Insurance Corporation in 1818.The Indian life insurance company act 1912 was the first statutory body that started to regulate the life insurance business in India. By 1956 about 154 Indian, 16 foreign and 75 provident firms were been established in India. Then the central government took over these companies and as a result the LIC was formed. Since then LIC has worked towards spreading life insurance and building a wide network across the length and the breath of the country. After the liberalization the entrance of foreign players has added to the competition in the market. The General insurance business in India, on the other hand, can trace its roots to the Triton Insurance Company Ltd., the first general insurance company established in the year 1850 in Calcutta by the British. In 1957 General Insurance Council, a wing of the Insurance Association of India, frames a code of conduct for ensuring fair conduct and sound business practices. In 1972 The General Insurance Business (Nationalization) Act, 1972 nationalized the general insurance business in India with effect from 1st January 1973. It was after this that 107 insurers amalgamated and grouped into four companies viz. the National Insurance Company Ltd., the New India Assurance Company Ltd., the Oriental Insurance Company Ltd. and the United India Insurance Company Ltd. GIC incorporated as a company.

INSURANCE REGULATORY & DEVELOPMENT AUTHORITY (IRDA) ACT, 1999.

Under this Act an authority called IRDA has been set up. This is a corporate body established for the purpose and objects as set out in the explanation to the title. The Authority replaces Controller under Insurance Act 1938. The first schedule amends Insurance Act 1938. It states that if Authority is superceded by Central Government, the Controller of Insurance may be appointed till such time as Authority is reconstituted.

CONSTITUTION OF IRDA.
The Insurance Regulatory and Development Authority consists of the following members: 1. Chairperson. 2. Less than five whole time members. 3. Less than four part time members. Members should be persons of Ability, Integrity & Standing. They should have experience in the fields of 1. Life Insurance 2. General Insurance 3. Actuarial Science 4. Finance 5. Economics 6. Law 7. Accountancy 8. Administration Chairperson, members, officers and other employees of Authority shall be public servants.

FUNCTIONS OF IRDA
1. To issue certificate of registration, renew, withdraw, suspend or cancel such registration. 2. To protect the interest of policyholders/insured in the matter of insurance contract with the insurance company. 3. To specify requisite qualification, code of conduct and training for insurance intermediaries and agents. 4. To specify code of conduct for surveyors/loss assessors. 5. To promote efficiency in the conduct of insurance business. 6. To promote and regulate professional organizations connected with the insurance and reinsurance business. 7. To undertake inspection, conduct enquiries and investigations including audit of insurers and insurance intermediaries. 8. To control and regulate the rates, terms and conditions to be offered by the insurer regarding general insurance business not so controlled by Tariff Advisory Committee u/s 604 of Insurance Act, 1938. 9. To regulate investment of funds by the insurance companies. 10. To adjudicate dispute between insurers and intermediaries of insurance.

LIFE INSURANCE CORPORATION OF INDIA ACT, 1956

Life insurance business was nationalized in India with effect from 19 th January 1956. The life insurance business of 154 Indian life offices constituted by 16 non-Indian insurers operation in India and 75 Provident Societies was taken over by the Government of India.LIC of India Act was passed by the Parliament on 18 th June 1956 and it came into effect from 1st July 1956.

INTRODUCTION OF INSURANCE
WHAT IS INSURANCE?
Every asset has a value for its owner and also for those who are benefited with the existence of that asset. Insurance is concerned with the protection of economic value of asset. All of us are interested in the creation of asset because: 1. 2. 3. 4. All assets have value. They yield income to the owner. They meet some other needs of the owner. They may provide satisfaction of some needs and also yield income to the owner.

Under the Life Insurance, the insurance company guarantees to pay, in consideration of a regular premium, a certain sum of money to the policy holder on his attaining a certain age or to his nominee on his death, whichever is earlier. Life insurance is also known as Assurance because sooner or later the amount of the policy must be paid.

DEFINITIONS
In the words of D.S. Hansel, insurance accumulated contributions of all parties participating in the scheme.

BRIEF HISTORY OF THE INSURANCE

The beginning The beginning of insurance business is traced to the city of London. It started with the marine business. Marine traders, who used to gather at Lloyds coffee house in London, agreed to share losses to goods during transportation by ship. Marine related losses included: Loss of ship by sinking due to bad weather in high seas. Goods in transit by ship robbed by sea pirates. Loss of or damage to the goods in transit by ship due to bad weather in high seas. The first insurance policy was issued in England in 1583.

ICICI PRUDENTIAL LIFE INSURANCE CO. LTD.

ICICI Bank ICICI Bank is India''s second-largest bank with total assets of about Rs.3446.58bn and a network of about 950 branches and offices and about 3300 ATMs as on March 31, 2007. It offers a wide range of banking products and financial services to corporate and retail customers through a variety of delivery channels and through its specialised subsidiaries and affiliates in the areas of investment banking, life and non-life insurance, private equity & asset management . ICICI Bank''s equity shares are listed in India on stock exchanges at Chennai, Delhi, Kolkata and Vadodara, the Stock Exchange, Mumbai and the National Stock Exchange of India Limited and its American Depositary Receipts (ADRs) are listed on the New York Stock Exchange (NYSE).

Prudential plc
Established in London in 1848, Prudential plc, through its businesses in the UK and Europe, the US and Asia, provides retail financial services products and services to more than 20million customers, policyholder and unit holders worldwide. As of 31 December 2006, the company had over $251 billion in funds under management. Prudential has brought to market an integrated range of financial services products that now includes life assurance, pensions, mutual funds, banking, investment management and general insurance. In Asia, Prudential is the leading European life insurance company with a vast network of 24 life and mutual fund operations in twelve countries - China, Hong Kong, India, Indonesia, Japan, Korea, Malaysia, the Philippines, Singapore, Taiwan, Thailand and Vietnam.

ICICI Prudential Life Insurance Company

. India's Number One private life insurer, ICICI Prudential Life Insurance Company is a joint venture between ICICI Bank-one of India's foremost financial services companiesand Prudential plc- a leading international financial services group headquartered in the United Kingdom. Total capital infusion stands at Rs. 20.60 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 580 offices, over 234,000 advisors; and 22 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 For the past four years, ICICI Prudential has retained its position as the No. 1 private life insurer in the country, with a wide range of flexible products that meet the needs of the Indian customer at every step in life.

DISTRIBUTION
The company has seven bancassurance tie-ups, having agreements with ICICI Bank, Federal Bank, South Indian Bank, Bank of India, Lord Krishna Bank and some cooperative banks, as well as over 150 corporate agents and brokers. ICICI Prudential has recruited and trained about 234,000 insurance advisors to interface with and advise customers. Further, it leverages its state-of-the-art IT infrastructure to provide superior quality of service to customers.

PRODUCTS
Insurance Solutions for Individual ICICI Prudential Life Insurance offers a range of innovative, customer-centric products that meet the needs of customers at every stage .

ORGANISATION STRUCTURE

Central Office

Zonal Office

Regional Office

Branch Office

Office1 Office 3

Office 2

ICICI Prudential Life Insurance

PRODUCTS

LIFE TIME SUPER

SMART KID PLAN

LIFE LINK SUPER

LIFE TIME SUPER PENSION

INVESTMENT SHIELD LIFE

CANCER CARE

LIFE TIME SUPER

Why LifeTime Super

Call toll free (MTNL/BSNL)

1800-22-2020 As an individual who desires a lot from life-a car, a beautiful home and of course, the comfort and contentment of your family-you would undoubtedly want to plan your finances such that you can take care of all your requirements. Invest in ICICI Prudential's LifeTime Super policy-a regular-premium unit-linked policy, which offers potentially higher returns that systematically enable you to meet your longterm financial objectives. In addition, LifeTime Super also provides the protective benefit of an insurance cover, which keeps your family secure, always. Read more about the features and benefits of this plan.

LifeTime Supe r at a glan ce Minimum/Maximum Entry Age Maximum Age at Policy Maturity Minimum/Maximum Policy Term Premium Payment Frequency Minimum Premium Minimum Sum Assured Tax Benefit (8) 0 years to 65 years 75 years 10 years to 75 years Monthly, half-yearly, yearly Rs. 18,000 per annum Annual Premium x Term/2. Subject to a minimum of Rs. 1,00,000 Premium paid for the policy and critical illness benefit rider will be eligible for tax benefit under Sec. 80C and 80D respectively. Any amount paid to you will be eligible for tax benefits under Sec. 10 (10D) as per prevailing Income Tax laws. Call toll free (MTNL/BSNL) 1800-22-2020

Features and bene Call toll free (MTNL/BSNL)

fits of Life Tim e Supe r Flexible policy term: Decide for how long you want your policy. You can invest for a minimum of 10 years and a maximum of 75 years. 3 choices of premium payment: Opt to pay the premium on a monthly, bi-annual or an annual basis. 6 investment funds: Select among Flexi-Growth, Maximiser, Flexi-Balanced, Balancer, Protector, and Preserver, based on your financial goals and risk profile. Systematic withdrawal of money: Withdraw money in installments from the 4th year onwards. Maturity benefit: Receive the Fund Value when your policy matures. Choose to take this value as a single lump-sum amount or in monthly, bi-annual or annual installments. Death benefit: Your family receives the higher of Fund Value or Sum Assured should something happen to you. Switch benefit: Switch between funds anytime to adjust your portfolio, based on your goals and risk profiles. You can switch funds 4 times a year, at no cost. For subsequent switches, you will be required to pay a switch fee of Rs. 100. 1800-22-2020

MANAGEMENT
Board of Directors
The ICICI Prudential Life Insurance Company Limited Board comprises reputed people from the finance industry both from India and abroad. Mr. K.V. Kamath, Chairman Mr. Barry Stowe Mrs. Kalpana Morparia Mrs. Chanda Kochhar Mr. HT Phong Mr. Keki Dediseth Mr. M.P. Modi Mr. R Narayanan Ms. Shikha Sharma, Managing Director Mr. N.S. Kannan,Executive Director Mr. Bhargav Dasgupta, Executive Director Management Team Ms. Shikha Sharma, Managing Director & CEO Mr. Mr. Sandeep Batra, Chief Financial Officer & Company Secretary Ms. Anita Pai, Chief - Customer Service and Operations

Mr. Puneet Nanda, Chief Investments Mr. Shubhro J. Mitra, Chief - Human Resources Mr. Dipan Bhattacharya - Chief Information Technology

VISION
Our vision:
To make ICICI Prudential the dominant Life and Pensions player built on trust by worldclass 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.

AWARDS & RECOGNITIONS

Awards & Recognitions

Awards

India's Most Customer Responsive Insurance Company Avaya GlobalConnect - Economic Times Customer Responsiveness Awards Most Trusted Private Life Insurer The Economic Times - A C Nielsen Survey of Most Trusted Brands 2003, 2004 and 2005

Prudence Customer Centricity Award 2004 & 2005

Prudential Corporation Asia

Best Life Insurer 2003 Outlook Money Awards 2003 & 2004

IMM Award for Excellence Institute of Marketing & Management

Organisation with Innovative HR Practices Indira Group of Institutes

Superbrand 2003-04

Organisation with Innovative HR Practices Asia-Pacific H R Congress Awards for HR Excellence

Silver Effie for Effectiveness of the Retire from Work not life advertising campaign Effies 2003

Recognitions IMM Award for Excellence Institute of Marketing & Management Organisation with Innovative HR Practices Indira Group of Institutes Organisation with Innovative HR Practices Asia-Pacific H R Congress Awards for HR Excellence

BAJAJ ALLIANZ LIFE INSURANCE CO. LTD

BAJAJ GROUP

The Bajaj Group is amongst the top 10 business in India. Its footprints stretches over a wide range of industries, spanning automobiles (two-wheelers and there-wheelers), home appliances, lighting, iron and steel, insurance, travel and finance. The groups flagship company, Bajaj Auto, is ranked as the worlds fourth largest two-and three-wheeler manufacturer and the Bajaj brand is well-known in over a dozen countries in Europe, Latin America, the US and Asia. His Son, Kamalnayan Bajaj, then 27, took over the reins of business in 1942. he too was close to Gandhiji and it was only after Independence in 1947, that he was able to give his full attention to the business. Kamalnayan Bajaj not only consolidated the group, but also diversified into various manufacturing activities. The present Chairman and Managing Director of the group, Rahul Bajaj, took Auto the flagship company has gone up from Rs. 72 million to Rs. 46.16 billion (USD 936 million), its product portfolio has expanded from one to and the brand has found a global market.

MILESTONES
2004 January Bajaj unveils new brand identity, dons new symbol, logo and brandline 2003 October Pulsar DTS-I is launched. October 107, 115 Motorcycles sold in a month.

MANAGEMENT PROFILE

CEO Head, HR Head, Marketing Joint Managing Director Executive Director Vice President (Insurance) Company Secretary

Sam Ghosh Dr. R. Kurane Sanjay Jain Rajiv Bajaj Sanjiv Bajaj Ranjit Gupta J. Sridhar

AWARDS
PRODUCT AWARD YEAR BY
(1) BAJAJ AUTO Bike Maker of the Year 2004 2004 ICICI Bank OVERDRIVE Awards 2004 DTS-i Technology Auto Tech of the Year 2004 2004 ICICI Bank OVERDRIVE Awards 2004 (2) Bajaj Pulsar DTS-i Bike of the Year 2004 2004 ICICI Bank OVERDRIVE Awards 2004 Wind 125 Two Wheeler of the Year 2004 2004 CNBC AUTOCAR Awards 2004 Wind 125 Bike of the year 2004 2004 Business Standard Motoring (1) Bajaj Pulsar 180 DTS-i BBC World Wheels Viewer Choice Two Wheeler of Year 2003 2003 BBC World Wheels Awards 2003 Bajaj Pulsar 180 DTS-i BBC World Wheels Awards for Best Two Wheeler between Rs. 55,000 to Rs. 70,000 2003 BBC World Wheels Award 2003 Bajaj Pulsar 150 DTS-i BBC World Wheels Award for Best Two Wheeler between Rs. 45,000 to Rs. 55,000 2003 BBC World Wheels Award 2003 Bajaj Boxer AT KTEC BBC World Wheels Award for Best Two Wheeler under Rs. 30,000 2003 BBC World Wheels Award 2003 Bajaj Pulsar Motorcycle Total Customer Satisfaction Study 2003 NFO Automotive (2) Bajaj Pulsar Bike of the year 2003 ICICI Bank OVERDRIVE Awards 2003 Bajaj Pulsar Most exciting bike of the year 2002 OVERDRIVE Awards (3) Bajaj Eliminator Bike of the year 2002 OVERDRIVE Awards Bajaj Eliminator Most exciting bike of the year 2001 OVERDRIVE Awards (4) Certificate of Merit 1995-96 Government of India, Ministry of Commerce Award for Export Excellence 1994-95 EEPC

ORGANISATION CHART

CEO Zonal ZonalManager Manager Regional RegionalManager Manager Branch BranchManager Manager Assistant AssistantBranch BranchManager Manager Sales SalesTeam TeamManager Manager Insurance InsuranceCare CareManager Manager
ALLIANZ BAJAJ INVESTGAIN

PRODUCTS OF BAJAJ ALLIANZ

PRODUCTS

ALLIANZ BAJAJ UL MAHILAGAIN

ALLIANZ BAJAJ CHILDGAIN

ALLIANZ BAJAJ UNITGAIN PLUS SP

ALLIANZ BAJAJ UNITGAIN PLUS

ALLIANZ BAJAJ CAPITAL UNITGAIN

LIFE TIME SUPER-USPs

Partial Withdrawals allowed after 3 years. Minimum fund value post withdrawal 110% of annual premium. Surrender Value (SV) o o SV is 98% of the Fund Value after 3 years SV is 99% of the Fund Value after 4 years

Cover continuance option o Allowed after 3 years

Additional Allocation of units at regular intervals o 4% of the annual premium after every 4 years

NO Initial Management Charges

Customer convenience is very high in LT Super

Capital Unit Gain Bajaj Partial Withdrawals allowed after 3 years o Minimum fund value post withdrawal 150% of annual premium Surrender Value (SV) after 3 years o SV is 80% of the Fund Value (For 20 years term) Cover continuance option o Allowed after 3 years Additional Allocation of unit at regular intervals o Not applicable

Initial Management Charge @5% of the first premium (Capital Unit) Fund Value irrespective of Premium being paid or not

IRR COMPARISON
Features Age Term LifeTime Super 30 years of 20 years 500000 Maximiser 50000 Rs. 2212212 7.08% Protector Rs. 2439417 7.89% BAJAJ CAPITAL UNIT GAIN 30 years 20 years 500000 Equity Fund 50000 Rs. 2176808 6.94% Bond Fund Rs. 2408979 7.79%

illustration Sum Assured Fund Option Premium Maturity Amount Maturity IRRs(10%) Fund Option Maturity Amount Maturity IRRs(10%)

Life Time Super superior to Bajaj Capital Unit Gain irrespective of Investment being under Debt or Equity. The Surrender charges under Bajaj Capital Unit Gain is applicable upto 19th year of the policy.

Initial Management Charge under Bajaj Capital Unit Gain is charged even when the premium payment are stopped after 3 years.

Surrender Value High Impact

Life Time Super

BAJAJ CAPITAL UNIT GAIN PLAN

Surrender Value End of 3 years 98%

Surrender Value

End of 3 years End of 4 years End of 4 years End of 5 years 99% 100% End of 5 years End of 10 years End of 15 years End of 20 years

80% 85% 88% 95% 98% 100%

In LT Super, Customer can totally withdraw after 5 years without any surrender penalty, whereas in Bajaj CUG, he has to pay surrender penalty upto 18 years.

LIFE TIME SUPER VS BAJAJ CAPITAL UNIT GAIN PLAN

PRODUCT RELATED Features Premium Age at Entry Term Age at Maturity Min Sum Assured LifeTime Super Minimum: 18,000 p.a. Maximum: No Limit Minimum: 0 years Maximum: 65 years Minimum: 10 years Maximum: 75 years Minimum: 18 years BAJAJ CAPITAL UNIT GAIN PLAN Minimum: 10,000 p.a. Maximum: No Limit Minimum: 0 years Maximum: 60 years Minimum: 10 years Maximum: 70 years Minimum: 18 years

Maximum: 75 years Maximum: 70 years Annual Premium*Term/2, Subject to Higher of {Term/2*AP, 5*AP} min of Rs. 1,00,000

Death Benefit

Higher of the Fund Value or Sum Higher of the Fund Value or Sum Assured, reduced by the applicable Assured, reduced by the applicable partial withdrawals. Fund Value Not Applicable Not Applicable The regular premiums in the 1st yr will be used to allocate Capital Units and the regular premiums payable thereafter will be used to ADBR, CIBR, WOPR allocate Accumulations Units UL Accident Death Benefit, UL

partial withdrawals. Maturity Benefit Fund Value Premium Paying Not Applicable Term Annuity Options Not Applicable

Other Options (If Not Applicable Any

INVESTMENT RELATED
Choice of Funds 4Funds:Maximiser,Balancer,Protector, 5Funds: Liquid Fund, Bond Preserver Fund, Equity Growth Fund, Equity Index Fund, Accelerator

Mid cap Fund Partial Withdrawals Allowed after 3 Policy Year. Before age of 60, Withdrawals made in the 24 months prior to death reduce the Sum Assured by the w/d amount. After age 60,w/d reduce the Sum Assured Allowed after 3rd policy year permanently Min Partial Wdl Rs. 2,000 Amt Settlement Options Switch Option Min Switch Amt Available. Upto Period of 5 years 4 Switches free in a policy year Rs. 2,000 from Accumulation Units Only Rs. 5,000 Available. Upto Period of 5 years 4 Switches free in a policy year Rs. 5,000
rd

Cover Continuance Applicable Option Automatic Transfer Plan Additional Applicable Applicable Not Applicable Every 4 year, starting at the ends of Not Applicable
th

Allocation of Units 4th year @ 4% 0f Annual Premium Tops Ups Not Applicable Increase / Decrease Not Allowed in Term Not Allowed

Applicable Not Allowed Not Allowed

MARKET POSITION OF COMPANY

ICICI PRUDENTIAL.:
ICICI Prudential still leads the private players with the new business premium income of Rs. 115465.48 lack and with the growth rate of 100.06% and premium market share 6.69%.

BAJAJ ALLIANZ :
Bajaj Allianz displaces Birla sunlife and take no. 2 slot with the under written premium of Rs. 49405.12 lakh and with the growth rate of 333.50 growth rate and premium market shares 2086%.

This market position shows that ICICI Prudential still leads the private insurance co. the growth rate of Bajaj Allianz (333.50%) is more Allianz out of the most fastest growing co. in insurance field.

FINANCIAL POSITION OF BOTH INSU. CO.

ICICI PRUDENTIAL :
ICICI prudential life Insurance co. ltd made a net profit of Rs. 1637 crore for the first nine month of current fiscal compassed with 221 cr. Profit made in fiscal year 2006. Since 2006 , it has made total cases of Rs. 658 crore.

BAJAJ ALLIANZ :
Bajaj Allianz life Insurance co. ltd earned cash profit of 18.27 crore Rs. in the year of 2006. With the growth rate of 333.50%.

The financial position of the both co. Show that the Bajaj Allianz life Insurance co. is better than ICICI prudential Life Insurance Co. because Bajaj Allianz case of the profit of 18.27 crore but ICICI prudential made cases of Rs. 658 crore.

MARKET SHARE OF DIFFERENT INSURANCE COMPANIES

NAME OF THE PLAYER ICICI PRUDENTIAL BAJA ALLIANZ BIRLA SUN LIFE HDFC STANDARD TATA AIG Others

MARKET SHARE (%) 34 22 13 7 9 15

Market Share

15% 9% 13% 7% 22%

ICICI Pru 34% Bajaj Allianz HDFC Birla Sun Tata AIG Others

BRAND AWARENESS OF BOTH CO.

Q1. Do you know about the bajaj allianz life insurance co. Ltd?

Yes, 36%

No, 74%

Interpretation
The graph shows that the only 36% of persons are know about the Bajaj Allianz.

Q2. Do you know about the ICICI Prudential Life Insurance Co. Ltd?

No, 12%

Yes, 88%

Interpretation
This graph shows that the 88% of people are know about the ICICI Prudential life insurance co.

Q3. Which company Policies you are having ?

Bajaj Allianz , 8% ICICI Preduntial , 22% Other , 70%

Interpretation
This graph shows that the 20% of people have ICICI Prudential policy, 8% have Bajaj alliaz and other have 70% insurance company policy.

Q4. Which insurance companys add you see?

No, 1% Both , 3%

Bajaj Allianz , 7%

ICICI Prudential , 89%

Interpretation This graph shows that the 89% of people seen add of ICICI Prudential policy, 7% have seen add of Bajaj alliaz.

Q5. Which Insurance Company you prefer ?

Bajaj Allianz , 12% ICICI Preduntial , 22%

Other , 66%

Interpretation
This graph shows that the 22% of people prefer ICICI Prudential policy, 12% prefer Bajaj alliaz and other prefer 66%.

Which type of people exists in the corporate world who prefer the life insurance policy ? Respondent category SERVICEMAN BUSINESSMAN SHOP-KEEPER HOUSE-WIFE OTHER TOTAL %age of person 25 30 25 15 5 100

15%

5%

25%

SERVICEMAN BUSINESSMAN SHOP-KEEPER

25%

30%

HOUSE-WIFE OTHER

Interpretation
The graph shows that the maximum number of persons are serviceman, shopkeeper, businessman, housewifes and other respectively.

PEOPLE PREFRENCE FOR SAVING TOOL

Saving instrument Bank Post office P.P.F. Insurance Others TOTAL

%age of person 45% 25% 8% 14% 8% 100

Saving Instrument
45% 45% 40% 35% 30% 25% 20% 15% 10% 5% 0%

%age of people

25% 14% 8% 8%

Bank

Post office P.P.F. Insurance

Others

Saving instrument

Interpretation
This table shows that people mainly prefer banking for investment, then post office, then insurance, and lastly p.p.f and other option.

AGE COMPOSITION: In this market survey most of the people are between the age group of 26-55yrs which indicates that this report has most of the emphasis (84%) on those people who are well established in their related field i.e. business, profession, job, etc..

AGE COMPOSITION LESS THAN 25YRS 26YRS TO 35YRS 36YRS TO 45YRS 46YRS TO 55YRS MORE THAN 55YRS TOTAL

NO. OF PEOPLE 6 25 40 19 10 100

AGE COMPOSITION
40 35 30 25 20 15 10 5 0 40

NO. OF PEOPLE

25 19 6
LESS THAN 25YRS 26YRS TO 35YRS 36YRS TO 45YRS 46YRS TO 55YRS

10

MORE THAN 55YRS

AGE GROUP

MOST IMPORTANT CRITERIA WHILE INVESTMNET:

Nowadays people are

equally concerned for tax benefits, insurance, security, liquidity and high returns. Hence life insurance is the only source of investment which cover all these criteria so now people are getting aware of life insurance sector and gradually it will be the top most priority for the general public to invest MOST IMPORTANT CRITERIA WHILE INVESTMENT High returns Liquidity Security Insurance cover Tax benefits TOTAL PERCENTAGE 14 20 20 22 26 100

MOST IMPORTANT CRITERIA WHILE INVESTMENT

High returns, Tax benefits, 14 26 Liquidity, 20 Insurance cover, 22

Security, 20

BRAND RELIABILITY : This survey has shown that ICICI prudential with 40% of preference votes still and will remain No.1 private life insurance company in year to comes as it offer the widest range of products or plans with more and more features of flexibility, liquidity , safety, higher returns, transparency and tax benefits. It also indicates that this repot have proved that now people are aware of private life insurance companies as they are satisfying their needs. BRAND RELIABILITY ICICI prudential Bajaj Allianz HDFC Standard Life Max New York Life TATA AIG TOTAL PERCENTAGE 40 24 15 12 9 100

BRAND RELIABILITY
45 40 PE 35 RC 30 EN 25 TA 20 GE 15 10 5 0 40

24 15 12

ICICI prudential

Bajaj Allianz

HDFC Standard Max New York Life Life

TATA AIG

ICICI PRUDENTIAL LIFE INSURANCE CO. LTD.

ICICI Prudential still lead the Private Insurance Co. Financial Position of ICICI prudential are good because since 2006, it has made cases of Rs. 658 crore but the Bajaj Allianz earned profit after 18.27 crore in 2006. More people known about the ICICI Pru. Life Insurance Co. than Bajaj Allianz. More people prefer ICICI Prudential Life Insurance Co.

BAJAJ ALLIANZ LIFE INSURANCE CO. LTD

Bajaj Allianz are in the 2nd Position amongst Private Insurance co. In unit linked plan Bajaj Allianz leads with the highest return of 51.16% and 43.71%. Growth rate of ICICI prudential is more than Bajaj Allianz Less emphasis on the advertisement is given by the company. Survey shows that the Customers are not aware about the company.

WEBSITES www.icicibank.com www.iciciprulife.com www.hdfcstandardlife.com www.allianzbajaj.com www.bimaonline.com www.birlasunlife.com Study Material of ICICI PRUDENTIAL LIFE INSURANCE Study Material of ALLIANZ BAJAJ

RESEARCH METHODOLOGY

Research Methodology has many dimensions, it include not only research methods but also considers the logic behind the methods used in the context of the study and explains why only a particular method of technique had been used so that research lend themselves to proper evaluations. Thus in a way it is a written game plan for concluding research therefore in order to solve research problem it is necessary to design a research methodology for the problem as the same differ from problem to problem. A) Research Design: Scope of Study : Research design in the conceptual structure within which the research is conducted. Their function is to provide for the collection of relevant evidence with minimum expenditure of effort, time and money. But, how this can be achieved depends on the research purpose. The scope has been limited to smoke size of 100 respondents due to time & cost constraints. However, the area of study with respect to geographical city of Ambala.

Data Collection
After the research problem has been defied and the research design has been chalked out, the task of date collection begins. Data can be collected from other primary or secondary sources. For the collection of primary data the respondents were contacted personally and the tool for gathering the data was the questionnaire and tally calling. For the collection of secondary data the internet, out look magazine (15 May 2006) & the newspaper are used.

Sampling Plan
The following factors have to be decided within the scope of sampling plan.

(1)

Sampling unit : It defines the target population that will be sampled i.e. it answers who is to be surveyed.

(2)

Sampling size: It indicates the no of people to be surveyed through large sample given more reliable results than small samples but due to constraints of time and money the sample size was restricted to 100 which are related to KARNAL.

(3)

Sample technique : This refers to the procedure by which the respondent should be chosen.

In this study simple random sampling has been used a sample of 100 respondents.

OBJECTIVE OF THE STUDY

1. 2. 3. 4. 5. 6. 7.

To know about the financial position of both co. To know the Current market position of the both Co. To know the impact of Advertisement are ICICI prudential vs Bajaj Allianz. To know the preference of the customers. To invite suggestions from the customers. To compare the both companys. To know about the customers awareness regarding the company.

SWOT ANALYSIS
(ICICI Prudential & Bajaj Allianz) Strength :
1. 2. 3. 4. 5. 6. 7. Additional benefits like family income benefit. Low premium Four times risk cover in one plan. Tax Benefit Advantages for women in premium calculation. Ranked No. 1 company i.e. ICICI Prudential among Pvt. Insurance. Bajaj Allianz is going to introduce new plans and it is also competing in the market with No.2 position in Private insurance sector.

Weakness :
1. 2. 3. 4. Credibility. Low Bonus Rate Lack of Advertisement of ICICI Prudential . Bajaj Allianz is introduced to market after ICICI prudential hence its share in market is less than the ICICI Prudential.

Opportunities :
1. 2. 3. Large Global Market Quicker response to customer need Potential to become a sourcing centre

Threats :
1. 2. 3. Touch competition Lack of awareness Expensive

LIMITATION
How so ever impeccable a thing may see to be there always dwell some possibilities of failure and incompleteness. The result of this work also subject to some of limitations are as follows : Due to shortage of time the studies conducted on very small scale i.e. based upon material and information provided by the company. I have faced a lot of problem in collecting the information about the company Some of the officers were too busy to give a sincere response to investigation and hence their response may not relate to real picture. The findings of the research are limited to a particular area & can not be applied to all places. As the human behavior is not constant so the results collected through questionnaire may or may not apply to future period of time.

SUGGESTIONS

Company should emphasis on insurance plan advertisement, because at present company main focus on conventional product advertisement. Company also segment for small income people. Because company mainly plan for middle and high income people group. If company enters in this segment then company can capture a large part of rural market. Company should also change the commission structure of F.C., because in initial year commission is very high as compare to remaining year. So F.C. does not focus on remaining year and many policies lapsed. More and more advisor need to made so that the market can be covered at large. During my survey I contact to people like doctors lawyers ,bank manager, and high profile people. but according to my observation these people are not suitable because they are not interested in such kind of work. Therefore people doing clerical jobs, graduates unemployed people, who are in low income group should be taken into consideration.

CONCLUSION

ICICI Prudential Life Insurance Co. leads the Private Insurance Co. 74% people know about the co. but since 2006, it has made the total cases of Rs. 658 crore because of the high expenditure in Advertisement.

On the other hand Bajaj Allianz Life Insurance Co. Ltd. is good in quality services but the knowledge of people about co. is less only 36% know about the Bajaj Allianz life Insurance Co. Ltd. The reason behind it is not regular add and not the more relationship with the people but now it is one of the fastest.

COMPARISON OF INSURANCE OPPORTINITY IN INDIA WITH OTHER COUNTRIES

Insurance Opportunity: Low Penetration

12.00% 10.00% 8.00% 6.00% 4.00% 2.00% 0.00% 1

UK Japan South korea USA Malaysia India China

It is clear from the above graph the U.K is leading country in insurance penetration followed by Japan and South Korea.

PROGRESS SO FAR
#1 Private Life Insurer in the country Equity based stands at Rs.675 crore The company issued nearly 4, 50,000 policies in a year, taking it total policy to cover 7, 80,000. Total sum assured since inception has risen to 16,000 crore The companys total income received premium income in fy04 was Rs.989 crore,up 135% from last year ICICI Prudential has emerged as the leading private life insurer, closing the year 31, 2004 with retail market share amongst private life insurer of 36%. Over 26000 insurance agents. Over 150 years of experience in life insurance business. Leading international financial services company in U.K. Around US $276bn funds under management, and more than 16,000,000 customers worldwide. Market share of 23% in the total pension market between all life insurer and 725-market share among private insurer. Largest distribution network among private players

 67 branches across 45 locations