A RESEARCH REPORT ON INVESTMENT PATTERN OF ICICI PRUDENTIAL LIFE INSURANCE COMPANY AT ICICI PRUDENTIAL LIFE INSURANCE

SUBMITTED TO Shree Leuva Patel Trust M.B.A. Mahila College AMRELI SUBMITTED BY Megha Bakhai
(IV SEM, FINANCE)

Year: 2004-06 GUIDED BY Dr.Vijay Pithadia AFFILIATED TO SAURASHTRA UNIVERSITY, RAJKOT

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Certificate

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2 DECLARATION I. Date: - Sign. Megha K.) of Shree Leuva Patel Trust MBA Mahila College. studying in MBA (IV Sem. The information presented through this project is true and original to the best of my knowledge. :- 4 . Amreli hereby declare that I have completed this project on “INVESTMENT PATTERNS OF ICICI PRUDENTIAL LIFE INSURANCE” in the academic year 2004-06 as per the requirements of the SAURASHTRA UNIVERSITY as a part of MASTER IN BUSINESS ADMINISTRATION (MBA) programme. Bakhai. Here I assure you that Project work has not been presented to any university or institute towards the degree/diploma fellowship or any other similar title.

Vijay Pithadia Mr. Bhargav Pandya who have always been my guiding lights .2 ACKNOWLEDGEMENT This project is the culmination of a study into the wide gamut of activities carried on in the domain of Insurance especially “INVESTMENT PATTERN OF ICICI PRUDNTIAL LIFE INSURANCE” in India. My Family who helped me in whatever small ways possible . My College Professors Dr. whose names are too numerous to be mentioned here. This project would just not have been complete without the valuable contributions from various people whom I have interacted with in the course of its completion. the treasure trove of information who has rallied strongly behind me to see me complete this project. (Megha Bakhai) 5 . I would like to express my sincere gratitude to all those people who have in their own sweet ways helped me to complete this project. Vishal Patidar Mr. Madhav Upadhyaya and Mr. My parents who have always stood by me as solid as a rock. I begin by thanking my Project Guide and my Guru. Mr. Yours sincerely. Jignesh Bhatt. it is their faith in me that has seen me complete this project on time.The list goes on …………… I wish thanks to all those people who have lent me a helping hand in finishing this project. Without him this project would have remained just an idea.

Date :Place :. Yours faithfully.Amreli Thanking You. PRINCIPAL’S RECOMMENDATION TO. The Registrar Saurastra University Rajkot. Principal 6 . Amreli-365 601. SHANTABEN HARIBHAI GAJERA SHAIKSHANIK SANKUL.2 SHREE AMRELI JILLA LEUVA PATEL CHARITABLE TURST – SURAT PLACE :. I am recommending the Final Training Project Report entitled___________________________________________________________________ _Prepared by __________________________________At _____________________________________________________As the partial fulfillment of the University requirement for the award of MBA degree of Saurastra University. Rajkot. Chakkargadh Road.SMT. Subject : MBA Final Training Project Report Respected Sir.

SMT. I am recommending the Final Training Project Report entitled___________________________________________________________________ _Prepared by __________________________________At _____________________________________________________As the partial fulfillment of the University requirement for the award of MBA degree of Saurastra University.2 SHREE AMRELI JILLA LEUVA PATEL CHARITABLE TURST – SURAT PLACE :. Director 7 . Chakkargadh Road. The Registrar Saurastra University Rajkot. SHANTABEN HARIBHAI GAJERA SHAIKSHANIK SANKUL. Subject : MBA Final Training Project Report Respected Sir. DIRECTOR’S RECOMMENDATION TO. Yours faithfully. Date :Place :. Rajkot.Amreli Thanking You. Amreli-365 601.

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SHREE AMRELI JILLA LEUVA PATEL CHARITABLE TURST – SURAT PLACE :- SMT. SHANTABEN HARIBHAI GAJERA SHAIKSHANIK SANKUL, Chakkargadh Road, Amreli-365 601. GUIDE’S CERTIFICATE
This is to certify that ________________________________ The student of MBA has carried out the project work as per the syllabus of Saurastra University. She prepared this Final Training Project Report on _____________________________________________________Under my Guidance and her contribution in making this report during the academic year ____________ is highly appreciated. To the best of my knowledge the details presented by her are original in nature and have not been copied from any other source. Also this Report has not been submitted earlier for the award of any degree or diploma in Saurastra University or any other University.

Guide’s Name & Sign.

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INDEX
Sr. No. 1. 2. 3. 4. 5. 6. 7. 8. 9. Particulars Introduction Industry profile Company Profile Research Methodology Data Collection & Interpretation Suggestions & Recommendations Summary Bibliography Appendix Page no.

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INTRODUCTION
Since the evolution of mankind, the need for biological and physical fulfillment has emerged. Over the long span of development of mankind there is a very high advancement in technological and industrial growth. In the beginning of 20th century, World has faced two major revolutionary wars World War I and World War II. These have changed the world into global village gradually. Due to advancement and growth in population has simultaneously increased the demand for physical need. Availability of options has increased competition among people. These have led to need of proper financial planning. Emergence of investment option is mainly driven by people’s social and demographic variables as described below. Needs are generally classified into protection needs and investment needs. Protection needs refers to the needs that have to be primarily taken care of, to protect the living standard , current requirements and survival requirements of investors. Need for regular incomes, need for retirement income and need for insurance cover are protection need. Investment needs are additional financial needs that have to be served through saving and investment. These are needs for children’s education, hosing and children’s professional growth. In Indian insurance sector was totally reserved for public sector companies like LIC, GIC etc. with the opening up of the economy, a score of MNCs have come in the market with Indian business houses resulting in client friendly, healthy competition and rivalry in the insurance sector. Good old days have gone, where only LIC agents were seen knocking doors of potential clients. The policies floated by the government insurance companies where primarily meant to cover risk but in today’s market, the policies are having predominantly a major part of investment option with high rate of return. One of the major challenge for all private companies is to develop a strong sales team, since LIC who enjoyed a monopoly in this sector before it was opened for private players has a network of 2,50,000 agents.

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5% per year on an average for the last decade  Saving rate : Around 30% of GDP  Estimated middle class population : 300 Million  Insured population : 70 million only  Estimated business (2008) : $6.2 India at a glance  Population : 1.6 Billion 11 .3 Billion  Economy : 5th largest in the world in terms of purchasing power parity (PPP)  Premium as a percentage of GDP :1.77 %  GDP growth rate : Over 7.

priorities and then suggest the appropriate product to that investor. Hence. knowledge. as well as knowledge about other financial products and their current markets so that we can compare those products with the insurance product and convince the client.2 REASONS FOR SELECTING AN INSURANCE SECTOR FOR RESEARCH Life Insurance Sector acts as a backbone of any economy. now if you want to sell life insurance product to anyone. risk preference. The insurance sector needs a great deal of financial planning. Insurance companies also have to manage their investment in such a way that the principal amount should not erode. Thus this would give us great exposure to financial markets as well as the intricacies of different financial institutions. This sector polls large funds from masses and then invests in the infrastructure projects as well as other long term projects. 12 . and the investor should get assured returns which the company has promised. Traditionally life insurance was taken just as a security product but now it is gaining importance as an investment product. This involves a great deal of knowledge about portfolio management and hedging of risk. how they work and what difficulties they face. you have to analyze his/her life stage. which will generate a regular income flow in the coming years.

2 What Is Insurance ? 13 .

Motor Vehicles Act 1988. man always tries to reduce risk. Insurance is not necessarily an investment from which one expects to get one's money back.” “Insurance is a protection against financial loss arising on the happening of an unexpected event. But only in terms of the financial consequences of risk. communities have pooled some of their resources to help individuals who suffer loss.it transfers the financial risks of everyday life from you to an insurance company. it would cost you a lot of money to fix it or to buy another one. in a Life Policy. For example. Nor is it gambling. Certain Insurance contracts are also made compulsory by legislation. in a car insurance. Since ancient times.” For example. It is a system by which the losses suffered by a few are spread over many. It provides financial compensation for the losses suffered due to the happening of any unforeseen events. Similarly. Another example of compulsory insurance pertains to the Environmental Protection Act. exposed to similar risks. An age-old method of sharing of risk through economic cooperation led to the development of the concept of ‘insurance’. By taking life insurance a person can have peace of mind and need not worry about the financial consequences in case of any untimely death. Insurance companies collect premiums to provide for this protection. A loss is paid out of the premiums collected from the insuring public and the Insurance Companies act as trustees to the amount collected. “Insurance is a contract between two parties whereby one party called insurer undertakes in exchange for a fixed sum called premiums. A gambler takes risks. It could cost you even more to 14 .2 Being a social animal and risk averse. Principles of Insurance Insurance is a 'risk transfer mechanism' . wherein a person using or carrying hazardous substances (as defined in the Act) must hold a valid Public Liability (Act) Policy. the family of the insured person receives a fixed compensation on the death of the insured. if you car was damaged. by paying a premium to the Insurer. to pay the other party called insured a fixed amount of money on the happening of a certain event. the insured receives the compensation to the extent of damage. Insurance is a way to share risk with others. while insurance offers protection against risks that already exist. Without insurance. stipulates that a person driving a vehicle in a public place should hold a valid insurance policy covering “Act” risks. Insurance is desired to safeguard oneself and one's family against possible losses on account of risks and perils. in the event of the car meeting with an accident.

humanitarian and sentimental consequences of an accident. For example. It cannot lighten the emotional. Before you can insure anything. The Babylonians and Phoenicians had ocean marine insurance to protect a merchant against losses incurred when a ship did not reach its intended destination with its load of goods or did not 15 . you can't take out an insurance policy on the car driven by the latest film star in the hope that it will crash and you can claim. That is nothing more than gambling. • Subrogation When you seek to claim from your insurers for a property or financial loss you must show that the loss was caused as a result of a peril covered by the policy. There must be a direct relationship of cause and effect. It is the immediate and not the remote cause which must be considered. and your insurers pay for it. • Insurable Interest This word is used to describe the type of payment you would receive. You would receive the full value of the loss but no more and the two policies would only bear part of it each. A refusal to indemnify is a refusal to pay the claim. be a chain of causes in which each cause is the natural result of the preceding cause. subject to the terms of the contract. So each policy would contribute a portion of the loss. • Contribution This is the right that your insurer has to recover from someone else where you are entitled to do so. subrogation gives them the legal right to 'stand in your shoes' and reclaim their outlay from the responsible driver. • Indemnity If there is more than one policy in force that you could claim on. There might for example. you must have a legally recognized financial interest in what you are insuring. A motor policy and a household policy are both a contract of indemnity. it will protect your financial investment in your car and your legal obligations should you have an accident. if another driver causes damage to your car. For motor insurance.2 pay for compensation to someone else involved in an accident. It means. The full and classic definition of this principle is given in case law called 'Pawsey V Scottish Union and National Insurance Co (1908)' • Proximate Cause History of Insurance Insurance has been around since ancient times. you are entitled to be put back in the same financial position after a loss as you were in before the loss. Insurance protects your financial interests. But properly used. You would suffer financially if it is damaged or stolen and benefit from its continued existence. or drive. But you can insure the car you own. the cause must be proximate in efficiency but not necessarily in point of time. you can't get payment from them both that would exceed the value of your loss.

If the ship failed to return. Those seeking marine insurance would post a list of their cargo and voyages in a London coffee house owned by Edward Lloyd.2 return with payment. and the coffee house became the world center of marine insurance. which was then one of the world's principal maritime powers. Marine Insurance spread from Italy to trading routes in other countries of Europe. The Nineteenth century marked the development of fire insurance. fidelity insurance. This system was profitable to lenders because many respondentia contracts were sold. Fire insurance has its origin in Germany where it was introduced in municipalities for providing compensation to owners of the property. Insurance in the modern form originated in the Mediterranean during 14th century. The fire insurance in its present form started after the most disastrous fire in human history known as the 'Great Fire' in London. a book written by a merchant of Florence. Insurance also existed in 17th-century England. The earliest references to insurance have been found in Babylonia. Today the organization is known as Lloyds of London. Marine insurance is the oldest form of insurance followed by life insurance and fire insurance. in return for an annual contribution. indicates premium rates charged for the shipments by sea from London to Pisa. theft and dacoity. The use of insurance appeared in the account of North Italian merchant banks who then dominated the international trade in Europe at that time. If the ship reached its destination and returned. etc. based on the rent of those premises. and debts were paid more often than cancelled. most often working in syndicates. who write all types of insurance. associations had a form of insurance for their members. called Respondentia. different forms of insurance have been developed. The patterns that have been used in England followed in other countries also in these kinds of insurance The oldest and the earliest records of marine policy relates to a Mediterranean voyage in 1347. In ancient Rome. which had destroyed several buildings. It drew the attention of the public and the first fire insurance commercially transacted in 1667. In 20th 16 . Private investors would examine the list and sign their name by the entries they were willing to guarantee for a fee. These private investors were the first insurance underwriters. the Greeks and the Romans. In the year 1400. The Industrial Revolution (1720-1850) gave much impetus to fire insurance. This form of insurance. The lender charged the borrower interest on the loan and levied an additional sum. to cover the cost of the respondentia contract. Each member made regular payments to the association in return for coverage of funeral expenses or for assistance to family members who were injured or ill. Industrial Revolution of 19th century had facilitated the development of accidental insurance. the premium. Due to the increasing demands of the time. the merchant received payment for the goods and in turn paid the moneylender. and it brings together individuals. the debt was cancelled. evolved because the goods on board often were used as collateral for a loan.

and the merchants. crop insurance. By 1938 there were 176 insurance companies. The first general insurance company. etc.. It was the first company to charge same premium for both Indian and non-Indian lives. The insurance business grew at a faster pace after independence. Several frauds during 20's and 30's sullied insurance business in India. This was in conformity with the Government's chosen path of State. viz. on the life of William Gibbons for a period of 12 months. unemployment insurance.led planning and development. insurance remained an urban phenomenon. The Bombay Mutual Life Insurance Society started its business in 1870.2 century. Indian companies strengthened their hold on this business but despite the growth that was witnessed. The first comprehensive legislation was introduced with the Insurance Act of 1938 that provided strict State Control over insurance business. The underwriters issued annuities and pension for a fixed period or for life to provide relief to widows on the death of their husbands. The Oriental Assurance Company was established in 1880. Insurance becomes an inseparable part of human development. Today. Till the end of nineteenth century insurance business was almost entirely in the hands of overseas companies.Tital Insurance Company Limited. The Government of India in 1956. was established in 1850. The first insurers of life were the marine insurance underwriters who started issuing life insurance policies on the life of master and crew of the ship. 17 . The first life insurance policy was issued on 18th June 1583. which were later repaid with interest when the goods arrived safely. cattle insurance. the use of computers in the field of insurance is frequently increasing. ORIGIN OF INSURANCE The concept of insurance is believed to have emerged almost 4500 years ago in the ancient land of Babylonia where traders used to bear risk of the caravan by giving loans. Nationalization was justified on the grounds that it would create much needed funds for rapid industrialization. This way the business of insurance developed simultaneously with human and social development. Insurance regulation formally began in India with the passing of the Life Insurance Companies Act of 1912 and the Provident Fund Act of 1912. many types of social insurance started operating. brought together over 240 private life insurers and provident societies under one nationalized monopoly corporation and LIC was born. The early developments of life insurance were closely linked with that of marine insurance. The history of life insurance in India dates back to 1818 when it was conceived as a means to provide for English Widows. Interestingly in those days a higher premium was charged for Indian lives than the non-Indian lives as Indian lives were considered more riskier for coverage. The early insurance contracts took the nature of policies for a short period only.

life insurance businesses. 1907: The Indian Mercantile insurance Ltd. 1938: Earlier legislation consolidated and amended to by the insurance Act with the objective of protecting the interests of the insuring public. a wing of the insurance Association of India. on the other hand. LIC Act. the first company to transact all classes of general insurance business. 1956: 245 Indian and foreign insurers and provident societies taken over by the central government and nationalized. the first general insurance company established in the year 1850 in Calcutta by the British. with a capital contribution of Rs. set up. frames a code of conduct for ensuring fair conduct and sound business practices. Prerequisites for Entering into Insurance Life insurance is one of the important options for the investment alternatives. can trace its roots to the Triton insurance Company Ltd. 1928: The Indian insurance Companies Act enacted to enable the government to collect statistical information about both life and non. Some of the important milestones in the life insurance business in India are: 1912: The Indian life Assurance Companies Act enacted as the first statute to regulate the life insurance business. there is the great need for the evaluation before 18 . LIC formed by an Act of Parliament. 1972: The General insurance Business (Nationalisation) Act.2 A BRIEF HISTORY OF INSURANCE SECTOR The business of life insurance in India in its existing form started in India in the year 1818 with the establishment of the Oriental life insurance Company in Calcutta. 1957: General insurance Council. viz. 1956. GENERAL INSURANCE The General insurance business in India. 1968: The insurance Act amended to regulate investments and set minimum solvency margins and the Tariff Advisory Committee set up.. So. 1972 nationalised the general insurance business in India with effect from 1st January 1973. 5 crore from the Government of India.

It is also proposed that the Indian promoter will have to mandatory 19 .2 entering into the insurance and its investment purpose. 1 billion. leaving the foreign partner with 26%. The prerequisites for entering into the insurance sectors may be described as follows. the Indian promoter will come to hold 74% stake in the venture initially.  Equity Participation for Joint Venture It is proposed that in the private insurance joint venture.  Minimum Capital Requirements The private sector is allowed to enter insurance sector.  Minimum paid up capital for reinsurance companies is Rs. they have to enter the market by way of joint venture with Indian Partners. Any private player wants to enter into an insurance sector has to comply with the following requirement without which it will not be considered eligible for obtaining license. No person other than the promoters should be allowed to hold more than 1% of the equity. at no time.  Share Holding The promoters’ holding in private insurance company should not exceed 40% and should.  Entry for Foreign Players If and when entry of foreign insurance companies is permitted.  Minimum paid up capital for life and non life insurance companies of Rs. be less than 26% of the total paid up capital. 2 billion. The Minimum paid up capital for new entrants is mentioned below.

 Minimum Rural Business  New entrance in life insurance should be required to transact a certain minimum business in rural areas.2 lower its stake in the private insurance firm from the initial 74% to 26% in the period of ten years. Insurance happens to be a mega opportunity in India.  Those who fail to comply with these stipulations should be subject to a penal assessment by the insurance regulatory authority. OVERVIEW OF THE LIFE INSURANCE SECTOR IN INDIA With largest number of life insurance policies in force in the world.  Requirements for financial intuitions  The RBI has stipulated that a minimum of 15% of Capital Adequacy Ratio for FI to enter in insurance sector. 20 . It’s a business growing at the rate of 15-20 per cent annually and presently is of the order of Rs 450 billion. the new general insurance should also write a certain minimum rural non traditional business.  Similarly. It should be ensured that such insurers do not avoid writing small policies.

construction and operation stages. Gross premium collection is nearly 2 per cent of GDP and funds available with LIC for investments are 8 per cent of GDP. The Government of India liberalized the insurance sector in March 2000 with the passage of the Insurance Regulatory and Development Authority (IRDA) Bill. they also contribute long-term funds. commercial and political risks. . With long term liability. Insurance companies not only provide risk cover to infrastructure projects. It is estimated that over the next ten years India would require investments of the order of one trillion US dollars. nearly 80% of Indian population are without life insurance cover. With a large capital outlay and long gestation periods. This itself is an indicator that growth potential for the insurance sector is immense.liability match by investing their funds in such projects. In fact. health insurance and non-life insurance continue to be below international standards. maintenance. DEVELOPMENTS IN INSURANCE SECTOR While Direct foreign investment is permitted in several areas of business in India. There is a proposal to increase this limit to 49 percent. lifting all entry restrictions for private players and allowing foreign players to enter the market with some limits on direct foreign ownership. Without covering these risks the financial institutions are not willing to commit funds to the sector. Under the current guidelines. A well-developed and evolved insurance sector is needed for economic development as it provides long term funds for infrastructure development and at the same time strengthens the risk taking ability. they get a good asset. the insurance industry has been fraught with trouble from the beginning. Yet. section 30 of the Life Insurance Corporation Act 1956 expressly provides 21 . International Insurance companies also invest their funds in such projects. IRDA regulations require insurance companies to invest not less than 15 percent of their funds in infrastructure and social sectors. it adds about 7 per cent to the country’s GDP. These include risks associated with project implementation.1999. there is a 26 percent equity cap for foreign partners in an insurance company.2 Together with banking services. infrastructure projects are fraught with a multitude of risks throughout the development.recourse basis. And this part of the population is also subject to weak social security and pension systems with hardly any old age income security. insurance companies are an ideal source of long term debt and equity for infrastructure projects.The Insurance Act1938 and the IRDA Act. including geological risks. especially because the financing of most private projects is on a limited or non. A host of private insurance companies operating in both life and non-life segments have started selling their insurance policies since 2001. For instance. There are two legislations that govern the sector. Insurance has been and continues to be a government monopoly.

This monopoly situation also applies to general insurance. several Indian and foreign insurance companies have been neeotiatinc possible tie-ups in life and general insurance business. It was expected that this Bill would be debated in December 1996. came to power. It recommended infer alia that the private sector be called upon to take some portion of the rural and non-traditional insurance market. considering the strength of opposition to the Bill. something which foreign insurers have already taken into account The Reserve Bank of India (RBI. One of the attractions of this programme was the desire to introduce wide ranging changes affecting the insurance sector. However. the following developments took place in 1996 • A Bill on the Insurance Regulatory Authority was proposed. the United Front. the insurance industry cannot be opened up until the necessary amendments have been made to the LIC Act 1956 and the General Insurance Business Act 1972. although the position is different as regards risk management and reinsurance The previous government (The Indian National Congress) appointed the Malhotra Committee which presented its Report in 1994. have strongly opposed and criticized any move to privatize insurance. on lines similar to the banking sector Based on this manifesto. It is rumoured in 22 . both at the managerial and employee level. it is likely to be at least 18 months before any changes are implemented. making recommendations for opening up the insurance sector. These will act only as channels of communication between parties in India and their head offices abroad and are not permitted to undertake any insurance business in India. Of course. So far. and in the belief that change will finally come about.2 that the Life Insurance Corporation of India shall have the exclusive privilege of carrying on life insurance business. When the present coalition government. it introduced its promised Common Minimum Programme. and the time needed to draft new guidelines and issue licences. as the Central Government. A lot of criticism has also come from the coalition partners of the United Front government. • • • Informally. the existing insurance companies. the promoter equity being 40 per cent and the balance held by the public. nearly 18 global insurance majors have signed memoranda of understanding. the central regulatory bank in India) has in the meantime granted approval to four foreign insurance companies to open liaison offices in India. As was expected. It is presently uncertain whether the Authority will be empowered to invite domestic and foreign investment in the insurance sector. There seems to be little support for the move to privatize. It also recommended that private foreign companies should enter into Joint ventures.

LIC should continue to enjoy a monopoly in life insurance business and GIC should retain a monopoly in non-life. Selected Indian companies with majority Indian ownership should be allowed to undertake business in the health insurance sector. including the power to make non-scheduled. investment and social norms should be made and enforced by the Insurance Regulatory Authority for all service providers in the insurance industry. Benefits of Insurance  Safeguards oneself and one's family for future requirements If you are married without children or single. For this purpose. then you may need life insurance to protect your partner or surviving family members against the costs associated with your death. Comprehensive regulations relating to prudential. it was decided to allow competition in a limited way by stipulating the minimum capital requirement of Rs. GIC should be permitted to promote joint ventures in health insurance business. non-consortium investments. non-health insurance business. • • • • • Hence. LIC should be permitted to promote joint ventures in pensions fund business. it had proposed setting up an independent regulatory body. The committee felt the need to provide greater autonomy to insurance companies in order to improve their performance and enable them to act as independent companies with economic motives. The following proposals were included in the 1997 Finance Bill (announced on 28 February 1997) • The Life Insurance Corporation of India (LIC) and the General Insurance Corporation of India (GIC) should enjoy substantial autonomy. probate and administrative 23 . A considerable amount of market research and product blue print has already been done. Funeral expenses.100 crores.2 insurance circles that the government is likely to give licences in the initial years only to a handful of companies—possibly only six—Three in life and Three in general insurance business.

many polices also include disability benefits. such savings can be much lesser than the sum assured. When these benefits are factored in. any other savings plan would amount to the total savings accumulated till date. after a certain time period (generally three years). for example. a life insurance policy affords full protection against risk of death. NSC etc.2 fees. the insurance company makes available the full sum assured to the policyholders' near and dear ones. and federal and state taxes are costs that all of us must consider. In the event of death of a policyholder. It is particularly advisable for housing loans when an acceptable LIC policy may also cause the lending institution to give loan at lower interest rates. it is found that most polices offer returns that are comparable or even better than other saving modes such as PPF. these provide for waiver of future premiums and payment of monthly installments spread over certain time period. the potential financial loss to the family of the policyholder is sizable. Ready Marketability and Suitability for Quick Borrowing A life insurance policy can. outstanding debts. the cost of insurance is a very negligible.  Disability Benefits Death is not the only hazard that is insured.    Indian Partner HDFC Max India Foreign Partner Standard Life UK New York Life Specialization Life Life Present Status Started Operation Started Operation 24 . b) 100 % of the premium paid is deductible from your total taxable income. (typically equal to the sum assured) if death occurs as a result of accident) Tax Relief Under the Indian Income Tax Act. Typically. be surrendered for a cash value. If the death occurs prematurely. The policy is also acceptable as a security for a commercial loan. In comparison. Moreover. Evidently.  Encourage Savings Unlike any other savings plan. the following tax relief is available a) 20 % of the premium paid can be deducted from your total income tax liability. a student loan. Accidental Death Benefits Many policies can also provide for an extra sum to be paid. special obligations to charities.

France Life Life Life Life & non-Life Life Life Life Started Operation Started Operation Started Operation Started Operation Started Operation Started Operation Started Operation Registered insurers in India Type of business Life insurance General insurance Reinsurance Public sector 1 6 1 Private sector 13 8 0 Total 14 14 1 25 .2 Bajaj Auto Kotak Mahindra ICICI TATA Group Birla Group Vysya Bank SBI Allianz Old Mutual South Prudential UK AIG.USA Sun Life ING Cardiff.

life insurance . 26 . and the reinsurance.2 Total 8 21 29 16 14 12 10 8 6 4 2 0 Registered insurers in India Units 8 13 6 1 Life insurance General insurance Private sector Public sector 0 1 Reinsurance Type of business ANALYSIS There are mainly 29 companies in the both general insurance as well as the life insurance and here in the graph I bifurcated the general insurance . The data source is the IRDA annual report of 2003-2004.

2 REASONS FOR SELECTION OF ICICI PRUDENTIAL FOR THE RESEARCH 27 .

It worked on the fundamental of building relations. ICICI Prudential life insurance company limited is one of the leading insurance companies in the private sector. Insurance Regulatory and Development Authority –The Watch Dog 28 . There is vast potential for this company in Indian market. ICICI Prudential is moving really fast to capture untapped market and it is expanding it’s operations in different regions in India.1. As we look as current performance and future targets laid down by ICICI Prudential. The company not only stands No. 1 but also treats its employees as No. The culture of ICICI Prudential is like a Hindu Undivided Family. Also it was the private sector company in India to enter the business of insurance.2 ICICI Prudential ranks as number one amongst the private life insurance players. it brings in our mind the words of the great poet : ROBERT FROST “THE WOODS ARE LOVELY DARK AND DEEP…………… AND MILES TO GO BEFORE I SLEEP” Hence we firmly believe we could not get better exposure to life insurance if we would not have joined ICICI Prudential. No other company provides rewards and recognition to their employees and advisors as done by ICICI Prudential.

Specifying the form and manner in which books of account shall be maintained and statement of accounts shall be rendered by insurers and other insurance intermediaries. Specifying the code of conduct for surveyors and loss assessors. 1999 The Authority has also been constituted. conducting enquiries and investigations including audit of the insurers. insurable interest. nomination by policy-holders. (l) regulating maintenance of margin of solvency. promote and ensure orderly growth of the insurance business and re-insurance business.2 On 19th April 2000. j. DUTIES. Levying fees and other charges for carrying out the purposes of this Act. intermediaries. the Authority shall have the duty to regulate. d. g. the Authority has been notified in the Gazette of India in terms of Insurance Regulatory and Development Authority Act.  14(2) Without prejudice to the generality of the provisions contained in subsection (1). Control and regulation of the rates. 29 . the powers and functions of the Authority shall include. Adjudication of disputes between insurers and intermediaries or insurance intermediaries. Mission: To protect the interests of the policyholders. f. settlement of insurance claim. (h) calling for information from. Promoting efficiency in the conduct of insurance business. suspend or cancel such registration. Promoting and regulating professional organization connected with the insurance and re-insurance business. 1938. withdraw. c. Regulating investment of funds by insurance companies. e. Issue to the applicant a certificate of registration. k. i. code of conduct and practical training for intermediary or insurance intermediaries and agents. surrender value of policy and other terms and conditions of contracts of insurance. b. Protection of the interests of the policy-holders in matters concerning assigning of policy. terms and conditions that may be offered by insurers in respect of general insurance business not so controlled and of 1938 regulated by the Tariff Advisory committee under section 64U of the Insurance Act. renew. insurance intermediaries and other organizations connected with the insurance business.-a. modify. advantages. h. Specifying requisite qualifications. promote and ensure orderly growth of the insurance industry and for matters connected therewith or incidental thereto. undertaking inspection of. POWERS AND FUNCTIONS OF AUTHORITY As per the INSURANCE REGULATORY AND DEVELOPMENT AUTHORITY ACT .1999  14(1) Subject to the provisions of this Act and any other law for the time being in force. to regulate.

Parisrama Bhavanam 5-9-58/B. N. o.Rangachary. It was under his stewardship that the Indian Insurance industry really opened up. m. Specifying the percentage of life insurance business and general insurance business to be undertaken by the insurer in the rural or social sector.2 l. Supervising the percentage of premium income of the insurer to finance schemes for promoting and regulating professional organization referred to in clause (f).500 004 Ph:040-55820964 040-55789768 Fax: 55823334 KEY PLAYERS IN THE MARKET Here below who are the key players in the insurance market are shown with their Market share. Rao The IRDA is located at 3rd Floor. C. and Exercising such other powers as may be prescribed. Chairman: Mr. n. Supervising the functioning of the Tariff Advisory committee. Fateh Maidan Road Basheerbagh Hyderabad . S. The founder chairman of IRDA was Mr. PLAYERS MARKET SHARE 30 .

3% 2.6% 0.8% 2.9% 0.4% 0.2 LIC ICICI Prudential Birla Sun Life Bajaj Allianz SBI Life Tata AIG Max – NYL Met Life Aviva Om Kotak ING Vysya AMP Sanmar TOTAL 80% 6.3% 0.7% 3.8% 0.2% 0.3% 100% 31 .2% 1.

2 Market share of life insurance players 80% 70% 60% 50% 40% 30% 20% 10% 0% LIC ICICI Prudential Birla Sun Life Bajaj Allianz SBI Life Tata AIG Max . I should say that before privatization only LIC is there so a kind of monopoly so that there is 80% market share and the rest 20% are divided in other private insurance companies. Percentage 32 . I should say that after LIC the next rank goes to ICICI Prudential life insurance and it is 6.NYL Met Life Aviva Om Kotak ING Vysya AMP Sanmar ANALYSIS The main players in the insurance sector are given in the table with their market share. So as the present situation now LIC day by day loosing their market share because of the private players in the market.7% and it is increasing day by day.

At present Insurance industry is growing like leaps and bounds. ICICI Prudential Life Insurance Company Limited 33 .2 Life insurance in India 20% Insured uninsured 80% ANALYSIS In India the whole population we consider at a 100% then from the above chart we can say that there are 80% People which do not have any kind of insurance. So we can conclude that there is a wide scope for the insurance in the developing country like India.

000 polices translating into a Premium Income of around Rs. The Company recognizes that the driving force for gaining sustainable competitive advantage in this business is superior customer experience and investment behind the brand. 2005. The Company was granted Certificate of Registration for carrying out Life Insurance business. The Company is a joint venture of ICICI (74%) and Prudential plc UK (26%). venture capital and asset management. ICICI had disbursed a total of Rs 319. Till March 31. ICICI Ltd ICICI Ltd was established in 1955 by the World Bank.27 billion as on 30th June. by the Insurance Regulatory and Development Authority on November 24. 1. life and non-life insurance.65 billion.200 Million and a sum assured of over Rs. 2000.851 projects. Since inception. the Government of India and the Indian Industry. ICICI has grown from a development bank to a financial conglomerate and has become one of the largest public financial institutions in India. ICICI Bank is India’s second largest bank and largest private sector bank with over 50 years of financial experience and with assets of Rs.2 ICICI Prudential Life Insurance Company Limited was incorporated on July 20. ICICI 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 and affiliates in the areas of investment banking. The Company aims to achieve this by striving to provide world class service levels through constant innovation in products. becoming one of the first few private sector players to enter the liberalized arena. The authorized capital of the company is Rs. 1500 Million.000 Million. distribution channels and technology based delivery. 2000. ICICI Bank is a leading player in the retail banking market and has over 13 million retail customer accounts.2300 Million and the paid up capital is Rs.15. In the fiscal year 2000-2001.2002 the Company has issued 100. covering 6. ICICI has financed all major sectors of the economy. The Company has already taken significant steps to achieve this goal. 2000.000 ATMs. to promote industrial development of India by providing project and corporate finance to Indian industry. It commenced commercial operations on December 19. 1812.848 companies and 16. The Bank has a network of over 570 branches and extension counters. 34 . and 2.

the US and Asia. Telephone Number: 022-462 1600 Website : http://www. Singapore. banking. mutual funds. Established in London in 1848.) as of December 31. the Philippines. has had its presence in Asia for the past 75 years catering to over 1 million customers across 11 Asian countries. As of June 30. Prudential plc. Korea. and caters to the financial needs of over 10 million customers. It manages assets of over US$ 259 billion (Rupees 11.39. It has a presence in over 15 countries. Indonesia. Malaysia. 1089. through its businesses in the UK and Europe. Prudential is the leading European life insurance company with a vast network of 24 life and mutual fund operations in 12 countries . Prudential plc.China. In Asia.2 Prudential plc: Prudential plc was founded in 1848. Hong Kong. the company had over US$300 billion in funds under management. Taiwan. unit trusts and personal banking. Prudential has brought to market an integrated range of financial services products that now includes life assurance. policyholder and unit holders worldwide. Mumbai 400 025. pensions. annuities. investment management and general insurance. 2004. Corporate Office: ICCI Prulife Towers.iciciprulife. Japan. provides retail financial services products and services to more than 16 million customers. India.com/ MANAGEMENT 35 . Prabhadevi. Thailand and Vietnam. pensions. 1999. Appasahab Marathe Marg. Since then it has grown to become one of the largest providers of a wide range of savings products for the individual including life insurance.600 crores approx.

Rajagopalan. Shikha Sharma.P. Anita Pai. Chairman Mr. R Narayanan Ms. Executive Director Mr. Chief . Managing Director Mr. K. Sandeep Batra. Gupte Mrs. V. Kamath. Mr.2 • Board of Directors The ICICI Prudential Life Insurance Company Limited Board comprises reputed people from the finance industry both from India and abroad. Kannan. Managing Director & CEO Mr. Modi Mr. Executive Director • Management Team Ms. Mark Norbom Mrs. Chanda Kochhar Mr.Investments Vision To make ICICI Prudential the dominant Life and Pensions player built on trust by world class people and service. N.S. Chief . Lalita D. N. Kannan. Puneet Nanda. Chief .Actuary Mr.V. Chief Financial Officer & Company Secretary Ms.Customer Service and Operation Mr. HT Phong Mr. Shikha Sharma. Kalpana Morparia Mrs. 36 .S. M.

• Keep customer interest in the centre of all decisions. The success of the company will be founded in its unflinching commitment to Core values      Integrity Customer First Boundryless Ownership Passion INTEGRITY Be honest and fair in what you say and what you do • Practice what you preach. deliver the promise. • Promise what you can.2 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. deliver it to finish. CUSTOMER FIRST Own the customer. • Proactively seek voice of customer and act on it. • Stand up honestly and fearlessly for what is right. building transparency in all our dealings. BOUNDRYLESS 37 . • Do not compromise the future to pay for the present. • Think and act for long term impact. • Act in a consistent and equitable manner.

there are no limits to our growth. • Pursue goals relentlessly. qualities Each of the values describes what the company stands for. Fact Sheet • THE COMPANY 38 . ICICI prudential life insurance do believe that we are on the threshold of an exciting new opportunity. Given the quality of our parentage and the commitment of our team. • Recognize and respect internal customers. • Seek and share ideas freely. • Exhibit “Winning Instinct.” • Demonstrate speed and urgency for achieving results. take ownership for a team performance. PASSION Boundless energy and enthusiasm.2 Never say “Its not my job. the of people and the way they work. • Understand and value contributions from colleagues. it is up to me. • Challenge status quo and do things differently. • Own mistakes. learn from failures. where we can play a significant role in redefining and reshaping the sector. • Take responsibility and see task through completion. OWNERSHIP If it is to be.” • Offer help and support across functions to ensure business success. never give up. • Nurture and motivate team members to reach full potential. • Be a team player.

and Prudential plc. • DISTRIBUTION ICICI Prudential has one of the largest distribution networks amongst private life insurers in India. Bank of India. a leading international financial services group headquartered in the United Kingdom.December. a policy for the socially and economically underprivileged sections of society. For the past four years. It has also tied up with NGOs. The AAA rating is the highest credit rating. having commenced operations in over 116 cities and towns in India. MFIs and corporate for the distribution of rural policies and organizations like Dhan for distribution of Salaam Zindagi. Further.170 crore and wrote 497. it leverages its state-of-theart IT infrastructure to provide superior quality of service to customers. Lord Krishna Bank and some co-operative banks. The company has 8 bancassurance tie-ups. ICICI Prudential has retained its position as the No. as well as about 290 corporate agents and brokers. the company garnered Rs 1. ICICI Prudential is also the only private life insurer in India to receive a National Insurer Financial Strength rating of AAA ( Ind ) from Fitch ratings. a premier financial powerhouse. South Indian Bank. ICICI Prudential was amongst the first private sector insurance companies to begin operations in December 2000 after receiving approval from Insurance Regulatory Development Authority (IRDA). having agreements with ICICI Bank.2 ICICI Prudential Life Insurance Company is a joint venture between ICICI Bank.430 crore of new business premium for a total sum assured of Rs 15. with a wide range of flexible products that meet the needs of the Indian customer at every step in life. ICICI Prudential has recruited and trained more than 65. Ernakulam Bank. 1 private life insurer in the country. stretching from Bhuj in the west to Guwahati in the east.765 policies. 1185 crore with ICICI Bank and Prudential plc holding 74% and 26% stake respectively. 2005. Federal Bank. 39 . ICICI Prudential’s equity base stands at Rs. and is a clear assurance of ICICI Prudential’s ability to meet its obligations to customers at the time of maturity or claims. For the period April.000 insurance advisors to interface with and advise customers. and Amritsar in the north to Trivandrum in the south.

February 21. 2005 40 . January 19.K. • • ICICI Prudential Life Insurance crosses two million policies milestone Mumbai. BASED PRUDENTIAL COMPANY. 2006 ICICI Prudential records 76% quarter-on-quarter growth in Q306 Mumbai.2 Equity holding of company 74% 80% 70% 60% 50% Percentage 40% 30% 20% 10% 0% 26% ICICI BANK PRUDENTIAL company name ANALYSIS Here above given that there is a joint venture of ICICI BANK and U. So there is 74% equity holding of ICICI BANK and 24% is of PRUDENTIAL COMPANY. News Releases Below are the 5 most recent news releases issued by ICICI Prudential Life Insurance Company.

2 • • • Fitch Rates India's ICICI Prudential Life Insurance IFS 'AAA(ind)' Fitch Ratings-London/Mumbai-16 January 2006 ICICI Prudential marches into 5th year of Bank of India partnership Mumbai; December 1, 2005 ICICI Prudential Life Insurance bridges the Gulf Bahrain; November 28, 2005

ICICI Pru in the News
• • • • • ICICI PruLife unveils unit-linked products Business Line – June 03, 2005 Let life insurers into derivatives markets' Business Line – May 23, 2005 ICICI Pru InvestShield Life Business Line – May 08, 2005 ICICI Pru's new business jumps 77% to cross Rs 1K cr The Economic Times – April 13, 2005 Insurance now a bigger draw for agents than MFs The Economic Times - April 08, 2005

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 5 riders, to create a customized solution for each policyholder.

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Savings Solutions

SecurePlus : SecurePlus is a transparent and feature-packed savings plan that offers 3 levels of protection.

CashPlus : CashPlus is a transparent, feature-packed savings plan that offers 3 levels of protection as well as liquidity options.

Save’n’Protect : Save’n’Protect is a traditional endowment savings plan that offers life protection along with adequate returns.

CashBak CashBak is an anticipated endowment policy ideal for meeting milestone expenses like a child’s marriage, expenses for a child’s higher education or purchase of an asset.

LifeTime & LifeTimeII LifeTime & LIfeTimeII offer customers the flexibility and control to customize the policy to meet the changing needs at different life stages. Each offer 4 fund options ? Preserver, Protector, Balancer and Maximiser.

LifeLink II LifeLink II is a single premium Market Linked Insurance Plan which combines life insurance cover with the opportunity to stay invested in the stock market.

Premier Life : Premier Life is a limited premium paying plan that offers customers life insurance cover till the age of 75.

InvestShield Life : InvestShield Life is a Market Linked plan that provides capital guarantee on the invested premiums and declared bonus interest.

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InvestShield Cash : InvestShield Cash is a Market Linked plan that provides capital guarantee on the invested premiums and declared bonus interest along with flexible liquidity options.

InvestShield Gold : InvestShield Gold is a Market Linked plan that provides capital guarantee on the invested premiums and declared bonus interest along with limited premium payment terms.

Protection Solutions

LifeGuard :

LifeGuard is a protection plan, which offers life cover at very low cost. It is available in 3 options. which are as follows.
• • •

Level Term Assurance with return of premium Level Term Assurance without return of premium Level Term Assurance - Single premium

HomeAssure: HomeAssure is a mortgage reducing term assurance plan designed specifically to help customers cover their home loans in a simple and costeffective manner.

Child Plans

SmartKid education plans :

As a responsible parent, you will always strive to ensure a hasslefree, successful life for your child. However, life is full of uncertainties and even the best-laid plans can go wrong. Here’s how you can give your child a 100% safe and assured tomorrow, whatever the uncertainties. SmartKid is especially designed to provide flexibility and safeguard your child’s future education and lifestyle, taking all possibilities into account.

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2 • • • • SmartKid regular premium SmartKid unit-linked regular premium SmartKid unit-linked regular premium II SmartKid unit-linked single premium II Retirement Solutions Life Expectancy has been rising rapidly and today you can expect to live longer than your earlier generations. to generate potentially higher returns. ICICI Prudential presents Retirement Solutions that combine the best of insurance and investment. and invest in market-linked funds. These solutions are developed to ensure your peace of mind for the years to come. • Life Link Pension II A single premium linked pension plan that gives you the freedom to choose the amount of premium. and invest in market-linked funds. For you. this increase will mean a longer retirement life. to generate potentially higher returns. stretching into a couple of decades. Choose from amongst 6 retirement plans: A flexible unit-linked retirement solution that offers flexibilities during the accumulation as well as payout phase. • Golden years • Investment shield pension A regular premium unit-linked pension plan with an assurance of Capital Guarantee* • Life Time Pension II A regular premium linked pension plan that gives you the freedom to choose the amount of premium. 44 . • Secure Plus Pension A regular premium pension plan that gives you the flexibility to choose between 3 levels of sum assured for the same level of total annual contribution ForeverLife • A regular premium pension plan that helps you save for your retirement while providing you with life insurance protection.

ICICI Prudential also launched “Salaam Zindagi”. • InvestShield Pension InvestShield Pension is a regular premium pension plan with a capital guarantee on the investible premium and declared bonuses. Market-linked retirement products • LifeTime Pension II LifeTime Pension II is a regular premium market-linked pension plan. with flexibility in both the accumulation and payout stages. • Health Assure Plus: 45 . irrespective of the actual medical expenses. Health Solution • Health Assure: Health Assure is a regular premium plan which provides long term cover against 6 critical illnesses by providing policyholder with financial assistance.000 u/s 80C. • LifeLink Pension II LifeLink Pension II is a single premium market-linked pension plan. • SecurePlus Pension SecurePlus Pension is a flexible pension plan that allows one to select between 3 levels of cover. a social sector group insurance policy targeted at the economically underprivileged sections of the society. • Golden Years: Golden Years is a limited premium paying retirement solution that offers tax benefits up to Rs 100.2 • ForeverLife ForeverLife is a retirement product targeted at individuals in their thirties.

2 Health Assure Plus is a regular premium plan which provides long term cover against 6 critical illnesses by providing financial assistance. Group Insurance Solutions ICICI Prudential also offers Group Insurance Solutions for companies seeking to enhance benefits to their employees. • ICICI Pru Group Term Plan: ICICI Pru’s flexible group term solution helps provide affordable cover to members of a group. • Accident & disability benefit: If death occurs as the result of an accident during the term of the policy. Employees have the option of choosing from various annuity options or opting for a partial commutation of the annuity at the time of retirement. • ICICI Pru Group Superannuation Plan: ICICI Pru offers a flexible defined contribution superannuation scheme to provide a retirement kitty for each member of the group. irrespective of actual medical expenses. Flexible Rider Options ICICI Pru Life offers flexible riders. • ICICI Pru Group Gratuity Plan: ICICI Pru’s group gratuity plan helps employers fund their statutory gratuity obligation in a scientific manner. which can be added to the basic policy at a marginal cost. the beneficiary receives an additional amount equal to the rider sum 46 . The benefit under the policy is paid to the beneficiary nominated by the member on his/her death. as well as an equivalent life insurance cover. depending on the specific needs of the customer. The plan can also be customized to structure schemes that can provide benefits beyond the statutory obligations. The cover could be uniform or based on designation/rank or a multiple of salary.

• Income Benefit: This rider pays the 10% of the sum assured to the nominee every year. It is available on SmarKid. This rider is available with SecurePlus and CashPlus. without the market risks compromising on the protection of your family! Keyman Plans A keyman is an individual who directly affects the profitability and the continuity of a business and whose absence may have an adverse effect on the health and continuity of the business. • Critical Illness Benefit: Critical Illness benefit protects the insured against financial loss in the event of 9 specified critical illnesses. SecurePlus and CashPlus. till maturity. Benefits are payable to the insured for medical expenses prior to death. If the death occurs while traveling in an authorized mass transport vehicle. in the event of the death of the life assured.2 assured under the policy. Investment Plan LifeLink II : LifeLink II is a unique plan that combines the security of a life insurance policy with the opportunity of enjoying high returns on your investments. the beneficiary will be entitled to twice the sum assured as additional benefit. Keyman insurance is a life insurance policy taken by the company on the life of such a key person. Waiver of Premium In case of total and permanent disability due to an accident. • Accident Benefit: This rider option pays the sum assured under the rider on death due to accident. 47 . the premiums are waived till maturity.

PENSION PRODUCTS AND LIFE TIME it can get the pioneer advantage. SWOT ANALYSIS Strength 1. All premiums paid for securing a keyman life insurance policy are treated as business expenditure u/s 37 (1). in absence of the keyman. 3. 48 .2 The objective of the keyman insurance is to provide the company with money so that the financial losses to the company can be protected. ICICI Prudential is the 1st life insurance company to introduce UNIT LINKED. ICICI enjoys a rating with the Moody’s which is higher than the severing rating. The aim is to indemnify the company of these losses and to allow business continuity. 2. Prudential is the 156 year old company founded in 1848 so it has full fledge experience in this industries.

Opportunity 1. The government policies and the annual budget may the insurance market. 7. 3.2 4. So it will be helpful in future while lunching new innovation products. It is private company so there is a doubt about solvency and liquidity among the general people. Yet to build a strong distribution network in the market. ICICI Prudential has the best incentives which motivate and encourage the advisors to work and fulfill the commitment. No option in rural area. Threats 1. 49 . 5. 2. Up till one no more option of product for middle class offered by ICICI Prudential. Large distribution channel with 30 branches and more than 30. Today ICICI Prudential covers 40% Market so yet there is a great potentiality to increase market share. The brand name that creates ICICI Prudential and awareness level of it is comparatively quite higher than competition. 3. Large distribution network of LIC and trust of people in LIC. Insurance plan like pension plan. So in future company can take benefit for it. Company has created a brand name. Untapped market of India. Weaknesses 1. 4. child plan and investment plan of ICICI Prudential go good response from the market. 6. 4. Change in the environmental factors many affects the company. The financial condition of both companies is very sound. 3. It has to do operation within the boundary of IRDA.000 financial advisors. 2. 4. 2. 8. Good customer has service.

2 50 .

AND INQUIRY LEADS TO INVENTION” Research has its special significance in solving various operational and planning problems of business and industry. COUBT IS OFTEN BETTER THAN OVERCONFIDENCE.2 Relevance of study “ALL PROGRESS IS BORN OF INQUIRY. FOR IT LEADS TO INQUIRY. 51 .

It is a sort of formal training which enables one to understand the new developments in one’s field in a better way.  It would suggest the integration of ICICI with prudential. Research is the fountain of knowledge for the sake of knowledge and an important source of providing guidelines for solving different business.2 Research inculcates scientific and inductive thinking and promotes the development logical habits of thinking and organization.  It would analyze whether ICICI Prudential return is moving along with the market return. In ICICI Prudential Life Insurance  Study would identify the avenue of Investment which yields maximum return. 52 . RESEARCH PROBLEM The first and foremost step happens to be that of selecting and properly defined research problem. RESEARCH PROBLEM refers to some difficulty which a researcher experiences in the context of either a theoretical or practical situation and wants to obtain a solution for the same. Thus. governmental and social problems.  It would reveal the state of competition among ICICI Prudential companies.  It would also determine the risk return relationships associated with different products of ICICI Prudential.

Without objective no one is doing any work.” Every research study has its own specific research objective. Thus zest for the work is must.2 A Research problem is one which requires a researcher to find out the best solution for the given problem that is to find out by which course of action the objective can be attained optimally in the context of a given environment. above two are very important research problem that I want to study and get the solution of it. Here in ICICI Prudential my research objectives are as follows 53 . So. To do anything there is a purpose behind it. The subject or the problem selected must involve the researcher and must have an upper most place in his mind so that he/she may undertake all pains needed for the study.  To know the Investor’s approach towards the return given by ICICI Prudential Life Insurance. RESEARCH OBJECTIVES “The word objective means purpose behind doing anything. I have selected the research problem in ICICI Prudential Life Insurance is as follows :  To know the Investment Pattern of the ICICI Prudential life insurance.

2  To know Investment Pattern of ICICI Prudential Life Insurance company.  To know the Investor’s approach towards the return provided by the ICICI Prudential Life Insurance. SCOPE OF STUDY Scope of study means the study whichever is carried out where it will helpful in future. Here above are the very important research objective that I want to study and carry out the optimum solution for it.  To know the Satisfaction of the investors towards the return offered by the ICICI Prudential Life Insurance. In the same way Investment Pattern of ICICI Prudential Life Insurance Company is helpful in the following ways 54 .

59 63.  On the basis of the study company can take the corrective actions. DATA COLLECTION Life Insurance Statistics 2002-03 Allianz Bajaj ING Vyasa AMP Sanmar SBI Life 633.42 0.01 183.96 0.05 726.37 0.  The study will helpful to know the investor’s satisfaction towards return provided by ICICI Prudential Life Insurance Company.07 278.82 1959.51 172.04 0.  The study will be helpful to know the investment pattern in comparison to LIC.81 PREMIUM(Rs.50 311. in Mn.16 341.05 55 .89 176.1 0.53 MARKET SHARE(%) 2002-03 2003-04 0.39 0.) 2003-04 % Growth 1797.2  It will be helpful to the company to know where it is lacking behind.15 1.15 718.

92 1801.96 1.38 1271.76 2.55 2093.23 247.20 472.68 134. Player in 2003-04 Pvt.93 0. As the study on ICICI Prudential life insurance the market share is the highest which is 4. 87% is of LIC and 13% is private insurance companies.01 2.68 0.41 0.12 12.) MARKET SHARE(%) 56 .05 5. PREMIUM(Rs. Total LIC Total 522.95 87. Total 13% Pvt.34 0.62 169348.07 1295.70 153.64 162846.88 233.88 106.14 76.4 0.7 0.31 0.66 352.05 100 10.82 24254.66 94.08 0.34 203.21 0.62 771.99 9581.4 0.1 673.3 159767. in Mn.08 1293.07 61.10 4498.15 1.5 245.87 187101.48 100 (Source:IRDA Journal May 2004) M arket share of LIC & Pvt.01% in the year 2003-04.15 0.14 3641.98 95.33 7509.12 4.2 Tata AIG HDFC Standard ICICI Prudential Birla Sunlife Aviva Om Kotak Max Newyork Metlife Pvt.77 0.84 260. Total LIC LIC 87% ANALYSIS We can analyze that market share of LIC and private insurance companies.02 1314.

Share 12.88 57 . Insurers 15 10 % Mkt.64 % Growth 153.15 718.95 5.2 Pvt.33 % Growth 183.66 Pvt.66 2003-04 12.08 1293.95 Market Share of Pvt.01 1801.59 63.16 341.51 172. Company Allianz Bajaj ING Vyasa AMP Sanmar SBI Life Tata AIG HDFC Standard 2002-03 633.82 1959.14 2003-04 1797.55 2093.05 726. Total 2002-03 9581.50 311.89 176.07 278.53 245.3 2003-04 24254. Total 5 0 2002-03 2003-04 ANALYSIS Here in the above chart we can see the market share of the private players in the year 2002-03 and in the year 2003-04.07 61.81 522.15 2002-03 5.

99 7509.20 472.98 95.70 Absolute Grow th in Prem ium incom e of Pvt. The amount is increase from 3641.02 1314.14 76.84 260.07 1295.07 to 7509.88 233.68 134. But as we can say there is maximum growth in ICICI Prudential Life Insurance which is 106. 5000 4000 3000 2000 1000 0 aj Vy AM as P Sa a nm a SB r IL i Ta fe H D FC ta A IG IC Sta n IC I P dar d ru de n Bi rla tia l Su nl ife Av iva ta k zB aj ew yo rk M et lif e Ko 2002-03 2003-04 O m an G IN ANALYSIS From the above chart we can interpret that there is a growth in each and every private life insurance company.38 1271.34 203. Players 8000 7000 6000 Rs.2 ICICI Prudential Birla Sunlife Aviva Om Kotak Max Newyork Metlife 3641.10 58 M ax Al li N .10 4498.66 352.62 771.23 247.82 106.23%.1 673. in Mn.

Others to be governed by exposure norms (investments in “other than in Approved investments” in no case can exceed 15% of the fund 59 Percentage 25% Not less than 50% Not less than 15% Not exceeding 35% .) Approved investments as specified in schedule I a. 1. 3. Type of Investment Government Security Government securities or other approved securities (including 1. 2. Infrastructure and social sector b.2 PATTERN OF INVESTMENT SPECIFIED BY IRDA-LIFE INSURANCE Sr. No.

5 100.1 53.2 Approved Securities (Including C.9 0.0 Central Government Securities State Govt.0 10.4 5. Vol.G.8 0.8 100.0 100.0 22.Sec.12-13.6 3.0 11.0 11.0 11.5 4.0 22. & Other 11.8 47.6 38. 13.3 Exposure norms (Including OTAI) Other than approved 4.2 Sectoral Investments by Life Insurer Percentage Share Investment Profile LIC Private Sector Total (Public Sector) 31/3/04 31/3/03 31/3/04 31/3/03 31/3/04 31/3/03 48.8 39.3 4.1 5.0 100.9 Sector Investment subject to 25. P.0 Source: IRDA. II.0 53.0 12.) Infrastructure and Social 11.5 30.0 11. No.4 100.8 48.0 25. ICICI PRUDENTIAL INVESTMENT PATTERN ACCORING TO THE PLANS PENSION PLANS Market linked plans Choice of fund: There are four fund options available to the policyholder: Plan Risk Investment 60 . November 2004.8 investments (OTAI) Total 100.0 12.8 13.

25% Preserver Low Debt . Unit Linked Smart Kid II . Age at Entry Max. LifeLink Pension 18yrs 72yrs 3yrs 45yrs 75yrs Single.60% Equity .SP Choice Of Fund There are four fund options available to the policyholder: Plan Risk Investment Pattern Maximiser High Equity .25% Debt .50% Market Linked Pension Plans at a glance: Particulars Min.25% Debt .40% Protector Moderate Debt .60% Equity .100% Debt .100% Equity .50% Equity .25% Balancer Average Debt .100% Debt .100% Equity .2 Maximiser Balancer Protector Preserver High Average Moderate Low Pattern Equity .40% Debt . Half Yearly and Monthly.50% 61 . Age at Entry Max cover ceasing Age Min Term Max Term Min Vesting Age Max Vesting Age Modes of payment LifeTime Pension 18yrs 60yrs (65yrs for zero death benefit) 70yrs 10yrs Till vesting Age 45yrs 75yrs Yearly.

RP Choice Of Fund There are four fund options available to the policyholder: Plan Risk Investment Pattern Maximiser High Equity .Rs.15 yrs.2 Equity .40% Protector Moderate Debt . 50.100% Equity .100% Debt .25% Preserver Low Debt .50% 62 .000/10 yrs 25 yrs 0 .50% SmartKid .60% Equity . Unit Linked Smart Kid I .50% Equity .II (SP) at a Glance Min Age at Entry Max Age at Entry Max Cover Ceasing Age Minimum Contribution Minimum Term Maximum Term Child's Age 20 yrs 60 yrs 70 yrs Single Premium .25% Balancer Average Debt .

9.RP Choice Of Fund There are four fund options available to the policyholder: Plan Risk Investment Pattern Maximiser High Equity .100% Debt . 1.50% Equity .Rs.40% Protector Moderate Debt .50% SmartKid .Rs.100% Equity .60% Equity .II (RP) at a Glance 63 .I (RP) at a Glance Min Age at Entry Max Age at Entry Max Cover Ceasing Age Minimum Contribution Minimum Term Maximum Term Child's Age 20 yrs 60 yrs 70 yrs Annual .25% Balancer Average Debt .2 SmartKid .25% Preserver Low Debt .Rs.000/Monthly .500/10 yrs 25 yrs 0 .15 yrs. Unit Linked Smart Kid II . 18.000/-Half-Yearly .

000/Monthly .100% Equity .15 yrs.Rs.100% Debt .Rs.000/-Half-Yearly . 9. LIFE LINK Choice of Fund: The policyholder has the flexibility of investing in all the four funds in the proportion he wishes under one single policy. 1. Following are the fund options: Plan Maximiser Balancer Protector Preserver Risk High Average Moderate Low Investment Pattern Equity .500/10 yrs 25 yrs 0 .40% Debt .25% Debt .50% 64 .2 Min Age at Entry Max Age at Entry Max Cover Ceasing Age Minimum Contribution Minimum Term Maximum Term Child's Age 20 yrs 60 yrs 70 yrs Annual .25% Debt .50% Equity . 18.60% Equity .Rs.

LIFE TIME I Choice of fund: There are four fund options available to the policyholder: Plan Maximiser Balancer Protector Preserver Risk High Average Moderate Low Investment Pattern Equity .50% Equity .60% Equity .100% Debt .at a glance: Min age at entry Max age at entry Max cover ceasing age Minimum Contribution Modes of payment Death Benefit 0 years 60 years 70 years Rs 50. Half-Yearly and Monthly The death benefit is higher of the Sum Assured reduced by the withdrawals or the value of units. However.50% 65 .100% Equity .40% Debt .25% Debt .000 Yearly.2 LifeLink . the death benefit before 7 years of age or after 70 years of age would only be the value of investments. at the time of death.25% Debt .

2 Life Time I at a glance: Min age at entry Max age at entry Max cover ceasing age Minimum Contribution Modes of payment Death Benefit 0 years 60 years 70 years Rs 50. However. Half-Yearly and Monthly The death benefit is higher of the Sum Assured reduced by the withdrawals or the value of units. Invest Shield Life Unit Linked Plan With Capital Guarantee Asset Allocation Debt Equity % Mix Minimum: 70% Maximum: 100% Minimum: 0% Maximum: 30% Invest Shield Life Features at a glance: Death Benefit Sum Assured + Higher of the value of Unit Fund or the guaranteed value of Unit Fund 66 .000 Yearly. the death benefit before 7 years of age or after 70 years of age would only be the value of investments. at the time of death.

subject to a maximum age of 75 years Minimum: 0 years Maximum: 55 years 65 years 75 years (including the extended life cover) Minimum: 10 years Maximum: 30 years To be declared at the end of every financial year.2 Maturity Benefit Extended Life Cover Age at Entry Maximum Age at Maturity Maximum Cover Ceasing Age Term of the Policy Bonus Interest Top-Up Investments Minimum Annual Premium Modes of Payment Additional Riders Offered Higher of the value of Unit Fund or the guaranteed value of Unit Fund Life Insurance for an amount of 50% of the Sum Assured. 67 . for 10 years post maturity. on the guaranteed value of the unit fund Minimum Amount of Rs 2. Half-Yearly and Monthly Accidental Death Benefit Rider Waiver of Premium Critical Illness Rider Invest Shield Cash Unit Linked Plan With Capital Guarantee The asset allocation of the unit fund in Invest Shield Cash is: Asset Allocation Debt and Money Market Instrument % Mix 100% Invest Shield Cash features at a glance: Death Benefit Sum Assured + Higher of the value of Unit Fund or the guaranteed value of Unit Fund.500/Rs 8.000/Yearly.

2 Maturity Benefit Liquidity Benefit Age at Entry Maximum Age at Maturity Term of the Policy Bonus Interest Top-Up Investments Minimum Annual Premium Modes of Payment Additional Riders Offered Higher of the value of Unit Fund or the guaranteed value of Unit Fund. Invest Shield Pension Unit Linked Plan With Capital Guarantee The Asset Allocation is as follows: Asset Allocation % Mix Debt Minimum: 70% Maximum: 100% Equity Minimum: 0% Maximum: 30% Invest Shield Pension Features at a glance: 68 .000/Yearly. Waiver of Premium. Minimum: 0 years Maximum: 60 years 75 years Minimum: 10 years Maximum: 30 years To be declared at the end of every financial year. Half-Yearly and Monthly Accidental Death Benefit Rider.500/Rs 8. Critical Illness Rider. Minimum Amount of Rs 2. From 6th year onwards in the policy. withdrawal of upto 10% of the value of unit fund is possible. This is available only once during a policy year. on the guaranteed value of the unit fund.

Sum Assured Option1: ZERO Sum Assured. The nominee. The remaining amount is used to buy an annuity. Age at Entry Minimum: 18 years Maximum: 60 years (when a Sum Assured is chosen). as lump sum or to take a pension.2. Options Option2: A Sum Assured as a multiple of the annual premium.10. on the guaranteed value of the unit fund Top-Up Minimum Amount of Rs. Maturity (Vesting) Higher of the value of Unit Fund or the guaranteed value of Benefit Unit Fund will be used to purchase an annuity. can use this value. Commutation At vesting. Age at Maturity Minimum: 45 years (Vesting) Maximum: 75 years Term of the policy Minimum: 10 years Maximum: 30 years Bonus Interest To be declared at the end of every financial year.000/Premium Modes of Payment Yearly. Annuity Options 5 options available. Invest Shield Gold Unit Linked Plan With Capital Guarantee The Asset Allocation is as follows: Asset % Mix Allocation Debt Minimum: 70% Maximum: 100% Equity Minimum: 0% Maximum: 30% Invest Shield Gold Features at a glance: Death Benefit Sum Assured + Higher of the value of Unit Fund or the guaranteed value of Unit Fund 69 .500/Investments Minimum Annual Rs. the policyholder can take upto 1/3rd of the benefit Benefit value. half-Yearly and Monthly Additional Riders Accidental Death Benefit Rider Offered Waiver of Premium.2 Death Benefit Sum Assured + Higher of the value of Unit Fund or the guaranteed value of Unit Fund. 65 years (for ZERO Sum Assured).

15 and 20 years Minimum: 0 years Maximum:60 years 75 years Minimum: 10 years Maximum 20 years To be declared at the end of every financial year. Accident and Disability Benefit Rider Critical Illness Benefit Rider SAMPLING DESIGN Sample design is definite plan for obtaining a sample from a given population.500/Rs 25. Half-Yearly and Monthly. For the study of Investment Patterns of ICICI Prudential Life Insurance I selected the non Probability sampling technique.2 Maturity Benefit Limited Premium Paying Term Age at Entry Maximum Age at Maturity Term of the policy Bonus Interest Top-Up Investments Minimum Annual Premium Modes of Payment Additional Riders Offered Higher of the value of Unit fund or the guaranteed value of Unit fund Choice of a premium paying term of 5. on the guaranteed value of the unit fund. 2. 7 or 10 years with a corresponding coverage term of 10. Sampling Design Sample Unit : Non-Probability sampling : Sample Unit is ICICI Prudential Life Insurance 70 .000/Yearly. Minimum Amount of Rs. There are many sample designs from which a researcher can choose any one. It refers to the technique or the procedure the researcher would adopt in selecting items for the sample. Sample design is determined before the data are collected.

 They are not at all ready to give any financial information to the trainees for their study of project.2 Sample Size Instrument Focus Group : Sample Size is 50 persons : Questionnaire : Focus group in my study is the employee and Financial advisor of ICICI Prudential Life Insurance.  Confidential information is not shared due to business secrecy and the lack of trust. Mode of Collection data : I have collected all the data by the personal interview and the telephonic talk. LIMITATION OF THE STUDY There are many limitation are there while conducting my study which are as follows.  Time constraint : As the Project training is of 2 month we can’t get the proper data within a limited time period. 71 .

72 .2  Due to time constraints the executives of the company are not able to allot time to the trainees  Sample size is also one of the limitations as it is not represent the whole population. As sampling design may not represent the whole population. Because of this we can not or not give the proper results.  Sampling design may also be one limitation in the study.

2 QUESTION 1 Occupation of the Persons which is the Focus group for my study ? Corporate Employees Businessmen Total 11 39 50 73 .

999 300.000 100.2 Occupation of the People 22% Corporate employee Businessman 78% ANALYSIS Here I have studied the Focus Group as my topic is selected.999 More than 500. QUESTION 2 Annual income of the Persons of the focus group? Less than 100.000 12 33 03 02 74 .000 to 299.000 to 499. My main focus group is the ICICI Prudential financial advisor and and employee of ICICI Prudential Life Insurance Company Ltd. There are 11 corporate employees and 39 Business men.

999 and More than 500. Chart shows that there are 24% persons income is less than 100.2 6% 4% Annual Income 24% Less than 100.D.000.999 More than 500. As per the general research we can say that middle class people are always more as compared to the upper class.999 300.000 to 299.000 respectively. QUESTION 3 How the persons are making their investment portfolio ? Bank F. So majority persons monthly income fall under the 8000 to 25.000.000 to 299. The same thing is also we can see through the chart.000 to 499.000 66% ANALYSIS From the above chart we can see that there are 66% persons are fall under the income group of 100.000 100. Stock Market Government Security Mutual Fund 18 2 13 1 75 . There are 6% and 4% people are of the income 300.000 to 499.999.

D.2 Post office PPF Others 7 5 4 Investment avenues 8% 10% 36% 14% 2% 4% 26% Bank F. so people are also believe to invest in gold and others assets. Here in the above chart in others I included the Gold. Stock Market Government Security Mutual Fund Post office PPF Others ANALYSIS From the above chart we can see that people are more believing in the bank fixed deposit. From the above chart we can easily say that investors are risk averse they do not want to go for risky things. Here as my research is on insurance all persons are investing in insurance more or less. and then they come to the Government security and then Post office. Land and building etc. QUESTION 4 People having policy of which policy ? LIC & ICICI Prudential 36 76 .

2 ICICI Prudential & HDFC std. People are more believing in LIC as LIC is the government body. life 72% ANALYSIS Here form the above chart we can see that people having the combination of the ICICI Prudential and LIC. They are always having the doubt about the private companies but now they are becoming broad minded and purchasing the policies of private companies. Here the combination LIC and ICICI is 72% and combination of ICICI and HDFC is 28%. QUESTION 5 Approximately How much return the investors having ICICI Prudential policy are getting? 4 to 6 1 77 . life 14 Insurance policy 28% LIC & ICICI Prudential ICICI Prudential & HDFC std.

Higher return is also given by the ICICI is about 14% of people is getting. So the return given by the ICICI Prudential life insurance is between 6 to 10%.2 6 to 8 8 to 10 More than 10 19 23 7 Percentage of return from ICICI Prudential to investor 14% 2% 38% 4 to 6 6 to 8 8 to 10 46% More than 10 ANALYSIS From the above chart we can see that there are the average returns getting by the investors from the ICICI Prudential life insurance is between 6 to 8 percentage and 8 to 10 percentage. There are also 2% people whichever getting very low return as 4 to 6%. QUESTION 6 According to you Does the return on insurance cover exceeds cost? Yes 13 78 . Which we can consider as the average return.

tax benefit. There 26% investors says that the return of policy hold by them is exceeds the cost that they are incurring on the plan. In the same way there are 16% investors says that the return of policy hold by them is not exceeds the cost. loan on investment etc. From the above chart we can say that the investor believing that there is more return than the cost incurred as there are many benefits of the insurance like life cover. QUESTION 7 What do you feel about return ? Extremely satisfied Highly satisfied Moderately satisfied 4 10 21 79 .2 No Indifferen t 8 29 Return on insurance exceeds the cost 26% Yes No 58% 16% Indifferent ANALYSIS From the above chart we can say that many persons are not say anything or we can say that they do not gave any opinion about the return and cost of the policy.

As the general research we can say there is a less return in the insurance as compared to the equity and stock market. There is also a portion of not satisfied by the return getting from the ICICI Prudential Life Insurance. Here we can also say that insurance is taken to avoid the risk or to reduce the risk.2 Satisfied Not satisfied 12 3 Investor Perception about return Extremely satisfied Highly satisfied 20% 6% 24% 8% Moderately satisfied Satisfied Not satisfied 42% ANALYSIS From the above chart we can see that investor by investing in the insurance sector they are moderately satisfied. So where there is less risk there is less return as the principle of risk and return says. So those major portions of the investors are moderately satisfied by the return from the Icici prudential life insurance. QUESTION 8 Which factor do you consider while investing in life insurance? Risk & Return Risk & Tax benefit Liquidity & Return 13 11 12 80 . Major portion is cover by the moderately satisfied that is 42%. 20% of the people are highly satisfied by investing in the insurance sector and 8% are extremely satisfied. Next rank is of the satisfied that is 24%.

2 Tax benefit 14 Factors considered while investing in life insurance 28% 26% Risk & Return Risk & Tax benefit Liquidity & Return 24% 22% Tax benefit ANALYSIS From the above chart we can say that persons are investing in the insurance because of the tax benefit they are not aware about the concept of the insurance. Now gradually people are becoming aware about the insurance and its benefits. According the situation and the individual belief investor’s are considering the main factors like risk return. QUESTION 9 Is ICICI Prudential return moving along with the market return? Yes No 8 42 81 . tax benefit and liquidity.

2 ICICI Prudential moving with market return 16% Yes No 84% ANALYSIS From the above chart we can say that 84% of the investors say return of ICICI Prudential return is not moving along with the market return. QUESTION 10 Is ICICI Prudential returns more than other insurance companies? Yes No 34 16 82 . While 16% say that ICICI Prudential return is moving along with the market return. In other words we can say that insurance gives many other benefits to the investors. According to them they are not only concern about the return but the other benefits they are getting from the insurance. According to them by investing in the stock market they can get the more return. Generally from the above chart we can say that return from the any insurance company is less than the market return as the main objective of the insurance is to reduce the risk of the investor.

So because of entry of the private companies into the insurance sector now LIC losing its market share day by day.2 ICICI returns more than other insurance 32% Yes No 68% ANALYSIS From the above chart we can see that 68% investors say that ICICI Prudential returns are more than other insurance companies.  Investor’s believe LIC as one of the safest investment option. By analyzing the data. ICICI Prudential is considered after the LIC. at present ICICI Prudential is holding the 1st position in the Private insurance sector. while on the other hand 32% of the investors say that ICICI Prudential returns is less than the other insurance companies. FINDINGS  Generally people more believe in the LIC. 83 .

 By investing in the insurance sector people are generally moderately satisfied with the provided returns.2  Investors have strong faith in banks and in post office schemes and government security. 10. So that they can afford the premium to be paid.  Investors expect high safety. SUGGESTIONS 84 ..000/.  One of the important finding of the survey is that people expect ICICI Prudential to come up with a plan with principal amount of Rs.  Generally People are paying Rs. handsome returns and the full guarantee of their investment.  People also believe that returns of ICICI are more than other insurance companies. 15000 Rs per year as a premium.

2. There are many other ways of marketing the products but according to my point of view they are more concentrating on the telephonic talk. So above are the Important suggestions which I have observed during my training period. 3. Every time persons are talking on telephones.2 There are some of the things that I feel during my training period that ICICI Prudential should improve. 1. 4. When there is a presentation they should serve the people and offer them a glass of water. ICICI Prudential should give more advertise on the Television or through any other media. 85 . So that the people who came they feel free. Many persons are not explaining the truth or hide the thing which should be discussed. There should be the transparency when you are explaining to the customer about the policy.

2 BIBLIOGRAPHY BOOKS 86 .

com www..com www. 2. 482 F.knowledgedigest..E.com www. Pathak Bharati V.com www. R.com 87 .insuranceindia. Indian Financial Systema..valueresearch.com www. Patparganj.indiatimes. Indian Branch. Kothari C.assureindia.irdaindia.moneycontrol.com www.com www.com www.2 1. New Age international publishers.bimaonline.indiainfoline. Research Methodology.iciciprulife.com www.icicionline.com www. Second edition WEBSITES             www.Published by Pearson Education(Singapore) Pte.irda.com www.New Delhi. Ltd. Delhi.I.

2 QUESTIONNAIRE SURVEY ON INVESTOR’S APPROACH TOWARDS RETURN OF ICICI PRUDENTIAL LIFE INSURANCE COMPANY 88 .

000 to 499. If Yes. of Dependence :__________________________________________ 1. Are you Investing? Yes ___________No_____________ 2. Where are you investing the money? Bank Fixed deposit Stock Market ______________ ______________ 89 . of Children :_____________________________________________ No.000 100.999 More than 500.000 ____________ ____________ ____________ ____________ No.000 to 299.2 Personal Details : Name :____________________________________________________ Address :__________________________________________________ __________________________________________________ Phone number :_____________________________________________ Education :________________________________________________ Occupation : Corporate Employees ____________________ Business men___________________________ Age :_____________________________________________________ Annual Income : Less than 100.999 300.

Do you have any insurance cover? Yes______________No____________ 4. of which Company? LIC & ICICI Prudential ICICI & HDFC std. life 5. According to you does the return on Insurance cover exceeds cost? Yes___________No___________ 9.2 Post Office ______________ Government Security _____________ Mutual Fund PPF _____________ _____________ Others Like Gold. Land and building _____________ 3. If Yes. from Approximate How much return are getting on your Insurance cover ICICI Prudential? 4 to 6%____________ 8 to 10%___________ 6 to 8%________________ More than 10%__________ 7. What do you feel about return? Extremely Satisfied Highly Satisfied Moderately Satisfied _____________ _____________ _____________ 90 . ______________ ______________ How much premium are you paying annually? Rs._______________ 6.

insurance As per your opinion. Is ICICI Prudential returns more than other companies? Yes_____________No_____________ Suggestions from your side __________________________________________________________________ __________________________________________________________________ 91 . return? What do you think. Is ICICI Prudential moving along with Market Yes_____________No_____________ 12.2 Satisfied Not Satisfied _____________ ____________ 10. Which factor do you consider while investing in Life Insurance? Risk & Return Risk & Tax benefit Liquidity & Return Tax benefit _____________ _____________ _____________ _____________ 11.

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