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PREFACE

Without practical training, commerce education is meaningless so long with


the theory; practical training is provided to management students to expose
them to the actual working environment of any organization. Such training
provides a framework of knowledge relating to the concepts and practices of
the assigned topics in the organization.

The summer training is an integral part of the course curriculum of


Bachelors of Commerce (Professional)-II. In this the student is in the
position to analyze the integral working of an organization with mature eyes
and understand the dynamics in a much better manner.

This particular project has been conducted at ICICI Prudential Life


Insurance Company Ltd. In the first phase of the research project, there is
a introduction of life insurance, company profile ICICI & HDFC and
insurance products are given. After that a market research is performed with
a sample size of 100 people. The research study was limited to Jalandhar
city. Here, in my survey, I have contacted the respondents through personal
interviews with the help of questionnaires.

The main objective of the research is to do comparative study of ICICI


Prudential Life Insurance Co. Ltd. and HDFC Standard Life Insurance Co.
Ltd. and to know the customer satisfaction level and their perception
regarding ICICI Prudential and HDFC Standard Life Insurance.
In the last phase of the report findings, suggestions and conclusions have
been drawn. To introduce innovative products offering a right mix of
flexibility/risk/return depending, which will suit the requirement of the
customers and should target specific niches, which are poorly served or not
served at all. Number of formalities should reduce, as customer feels
irritated with lots of formalities.
ICICI Prudential Life Insurance Company should lay more stress on
advertisements, both in print as well as in other media.
Opening up the sector will certainly mean new products, better packaging
and improved customer service. Both new and existing players will have to
explore new distribution and marketing channels. Potential buyers for most
of this insurance lie in the middle class. New insurers must segment the
market carefully to arrive at appropriate products and pricing. Recognizing
the potential, in the past three years, the nationalized insurers have already
begun to target niches like pensions, women or children.
TABLE OF CONTENTS

SR. NO. PARTICULARS PAGE NO.


CHAPTER – I : INTRODUCTION
1.1 Introduction to Insurance
1.2 Life Insurance
1.3 Function Of Insurance
1.4 Benefits Of Life Insurance
1.5 Insurance Sector In India
CHAPTER – II : COMPANY PROFILE – ICICI PRUDENTIAL
2.1 Introduction
2.1 Vision & Values
2.1 Promoters
2.1 Fact Sheet of ICICI Prudential
2.1 Products of ICICI Prudential
2.1 Management
2.1 Awards & Recognitions
CHAPTER – II : COMPANY PROFILE – HDFC STANDARD LIFE
3.1 Profile of HDFC Standard Life Insurance
Comparison of Different Plans of ICICI Prudential and HDFC
CHAPTER – IV : OBJECTIVES OF THE STUDY
4.1 Objectives of the Study
CHAPTER – V : RESEARCH METHODOLOGY
5.1 Research Methodology
5.2 Limitations of the Study
CHAPTER – VI : DATA ANALYSIS AND ITS INTERPRETATION
6.1 Data Analysis and Its Interpretation
CHAPTER – VII: FINDINGS AND SUGGESTIONS
7.1 Findings of the Study
7.2 Suggestions
CHAPTER – VIII : CONCLUSION
8.1 Conclusion
BIBLIOGRAPHY
Bibliography
ANNEXURE
Questionnaire
CHAPTER-I
INTRODUCTION
INTRODUCTION

Insurance may be described as a social device to reduce or eliminate the risk


of loss of life and property. Under the plan of insurance a large number of
people associate themselves by sharing risk attached to individuals. The
risks, which can be insured against, include fire, perils of sea, death,
accidents and burglary. Any risk contingent upon these may be insured
against at a premium commensurate with the risk involved. This we can say
“ collective bearing of risk is Insurance”.

Insurance is a plan by themselves which large number of people associate


and transfer to the shoulder of all, risk that attach to individuals.
……..John Magee

Insurance is a contract in which a sum of money is pad to the assured as


consideration of insurer’s incurring the risk of paying a large sum upon a
given contingency
……Justice Tindall

The insurance ensured protection of economic value of assets. Assets are


insured against the risk of being destroyed or made the non-functional due to
any accidental occurrence.
Today, every company in every sector is scrambling to sell products & to
earn profits. Today, the customers enjoy variety of products, brand choices,
prices & suppliers. To survive in this competitive world one has to make
customer satisfied. Because it is generally said “Satisfied customer is half
work done”. When we talk about service industry, banking & insurance
strikes our mind immediately. Insurance is a service industry. Insurance
companies do not sell any goods but sell promises. They sell the promise to
take care of customer, in case he suffers a loss due to some unforeseen
contingencies.

CONCEPT OF INSURANCE

Today, Insurance is one of the most effective methods found by man as a


way of dealing with risk, against uncertainty. As the man is a social animal
and lives in a tradition is a very common in India. A family is generally
dependent for its food. Clothing and shelter on the income brought in at
regular intervals by the breadwinner of the family.
So long as he lives and the income is received steadily, that family is secure,
but should death or in any sort of misshapenness suddenly intervene, the
family may be left in very inherent in human life and this risk gave rise to
the necessity for some from of protection against the financial loss arising
from occurring of any unwanted situation and insurance Substitutes this
uncertainty by certainty. Insurance is a contract where by the insurer pay the
financial losses suffered by the insured as a result of the occurrence of
certain unforeseen events in return for the payment of premium as
consideration by the insured, the party which promises to indemnify the loss
is called ‘Insurer’. The person or the property subject to risk is called
‘Insured’. The agreement providing for insurance is called an Insurance
Policy. So Insurance is process in which many who are equally exposed to
same risk share losses of few. A large number of persons could be facing the
same risk. One or a few of them unfortunately suffer the loss. All others
share the loss. The only difference is that those exposed to the risk pay their
share just in the beginning, when no one knows who will meet the loss.

CLASSIFICATION OF INSURANCE INDUSTRY


Insurance Risks are classified into two industries, from the industry point of
view:

i) Life Insurance
As is evident from the name, this industry deals with insurance of
human life and saving for long time. As per requirements of various
segments of market, Different types of policies have been devised. Life
Insurance Corporation of India – a sector undertaking has the monopoly in
this sector since nationalization of industry.
ii) General Insurance
General Insurance meets the demand of all types of non-life
insurance. This has been classified as Fire, Marine and miscellaneous
including Vehicle Insurance.
LIFE INSURANCE

With such a large population and the untapped market area of this population
Insurance happens to be a very big opportunity in India. Today it stands as a
business growing at the rate of 15-20 per cent annually. Together with
banking services, it adds about 7 per cent to the country’s GDP .In spite of
all this growth the statistics of the penetration of the insurance in the country
is very poor. Nearly 80% of Indian populations are without Life insurance
cover and the Health insurance. This is an indicator that growth potential for
the insurance sector is immense in India. It was due to this immense growth
that the regulations were introduced in the insurance sector and in
continuation “Malhotra Committee” was constituted by the government in
1993 to examine the various aspects of the industry. The key element of the
reform process was Participation of overseas insurance companies with 26%
capital. Creating a more efficient and competitive financial system suitable
for the requirements of the economy was the main idea behind this reform.
Since then the insurance industry has gone through many sea changes .The
competition LIC started facing from these companies were threatening to the
existence of LIC.since the liberalization of the industry the insurance
industry has never looked back and today stand as the one of the most
competitive and exploring industry in India. The entry of the private players
and the increased use of the new distribution are in the limelight today. The
use of new distribution techniques and the IT tools has increased the scope
of the industry in the longer run.
Meaning

Life insurance is a contract for payment of a sum of money to the person


assured (or failing him/her, to the person entitled to receive the same) on the
happening of the event insured against. Usually the contract provides for the
payment of an amount on the date of maturity or at specified dates at
periodic intervals or an unfortunate death, if it occurs earlier. Among other
things, the contract also provides for the payment of premium periodically to
the Corporation by the assured. Life insurance is universally acknowledged
to be an institution, which eliminates 'risks', substituting certainty for
uncertainty and comes to the timely aid of the family in the unfortunate
event of the death or of total permanent disability of the breadwinner. By
and large, life insurance is civilization's partial solution to financial
uncertainties caused by untimely death.

Definitions

1. Tindall Justice, “The act or system of insuring against death; a


contract by which the insurer undertakes, in consideration of the
payment of a premium (usually at stated periods), to pay a stipulated
sum in the event of the death of the insured or of a third person in
whose life the insured has an interest.”

2. Poter Hary, “Insurance paid to named beneficiaries when the


insured person dies; ‘in England they call life insurance life
assurance’"
Insurance in 21st century

A financial planner once said this about the life insurance buying habits of
Indians: They don’t buy life insurance it’s sold to them. Unfortunate, it is
true. Individual awareness and understanding of life insurance products is
extremely low, and many among the insured don’t even know whether the
life insurance policy they own meets their insurance needs, and in larger
context, their personal finance needs.
Life insurance is chiefly a risk management tool, meant to offer financial
protection to your dependents in the unfortunate event of your death. If you
are adequately insured, your life insurance should enable to your dependents
{spouse, children, and parents} to maintain their current life style and pursue
their goals---till such time as they are in a position to set up an attractive
income stream by themselves. That’s the basic purpose of life insurance. But
in India, as the most other developing markets, life insurance has come to
represent more than just risk cover. The best selling insurance products in
the market double as investment options and offer attractive tax breaks.
CHARACTERISTICS:
 Sharing of risk
 Cooperative device
 Evaluation of risk
 Payment on happening of a special event
 The amount of payment depends on the nature of losses incurred.
 The success of insurance business depends upon the large number of
people against similar risk.
 Insurance is a plan, which spreads the risks and losses of few people
among a large number of people.

FUNCTION OF INSURANCE

Primary functions

 Provides protection: insurance cannot check the happening of risk

but can provide for losses of risk.


 Collective bearing of risk: insurance is a device to share the financial

losses of few among many others.


 Assessment of risk: insurance determines the probable volume of risk

by evaluating various factors, which give rise to risk.


 Provide certainty: insurance is a device, which helps to change from

uncertainty to certainty.

Secondary Functions

 Prevention of losses: insurance caution businessman and individuals

to adopt suitable device to prevent unfortunate consequences of risk


by observing safety instructions.

 Small capital to cover large risk: insurance relieves the businessman

from security investment, by paying small amount of insurance


against large risk and uncertainty.
 Contribute towards development of large industries.

BENEFITS OF LIFE INSURANCE

Life Insurance has come a long way from the earlier days when it was
originally conceived as a risk-covering medium for short periods of time,
covering temporary risk situations, such as sea voyages. As Life Insurance
became more established, it was realized what was useful tool it was for a
number of situations, including…

Temporary needs/ threats


The original purpose of Life Insurance remains an important element,
namely providing for replacement of on death etc.

Regular Savings
Providing for one’s family and one self, as a medium to long term exercise
(through a series of regular payment of premiums) this has become more
relevant in recent times as people financial independence for their family.

Investment
Put simply, the building up of savings while safeguarding it from ravages of
inflation. Unlike regular saving products, investment products are
traditionally regular investments, where the individual makes a one off
payment.
Retirement
Provision for later years becomes increasingly necessary, especially in a
changing cultural and social environment. One can buy a suitable insurance
policy, which will provide periodical payments in one’s old age.

ISSUES AND CHALLENGES

The liberalization followed by growth of the Indian Insurance industry has


opened wide opportunities for service and infrastructure sectors. This growth
has to be properly canalized. Some of the major challenges, which have to
be addressed for canalizing the growth of insurance sector, are…
 Product Innovation
 Distribution Network
 Investment Management
 Customer Service and Education.

Product innovation
Customers are now looking at insurance as complete financial solution
offering stable returns coupled with total protection. There is a need to
constantly innovate in terms of product development to meet ever-changing
consumer needs. Understanding the customer better will enable an Insurance
company to design appropriate products, determining price correctly and to
increase profitability. In this context Management Guru Peter Drucker has
rightly said, “Markets are changing from Cost lead pricing to Price lead
costing.”

Distribution Network
While companies have been successful in product innovation, most of them
are still grappling with right mix of Distribution Channels for:
a) Capturing maximum market share to build brand equity.
b) Building strong and Effective Customer relationships.
c) Cost effective customer service.

This calls for Selection of right type of distribution channel mix along with
prudent and efficient FOS (Fleet on Street) Management.

1. Distribution Network
While the traditional channel of tied up advisors or agents would be the chief
distribution channel, HDFC Standard Life should innovate and find new
methods of delivering the products to consumers. Corporate agency,
brokerage, banc assurance, e-insurance, co-operative societies and
Panchayats are some of the channels, which can be tapped by the company
to reach the appropriate market segments.
2. FOS Management
The major issues to be addressed in insurance FOS management are High
Attrition, lack of Motivation and Product knowledge. Continuous training,
performance linked reward systems, and career counseling can effectively
tackle these issues.

Customer Education and Service


Insurance, particularly life insurance is never bought but sold. To convince a
large population, which is comparatively not well informed about the
intangible benefits of life insurance, is indeed an onerous task. This apart,
the task would be to position Insurance as a risk planning tool rather than a
tax saving and investment tool.
In the present competitive scenario, a key differentiation would be
professional customer service in terms of quality of advice on product
choice along with policy servicing. Servicing should focus on enhancing the
customer experience and maximizing customer convenience would create
sustainable competitive advantage and build long lasting relationship.

Investment Management
The most difficult challenge would be to provide returns comparable to other
financial instruments. The problem is further aggravated by interest rates
moving south. Need of the hour for the company is to follow prudent
underwriting practices and efficiently cut down management and
administrative expenses. Insurers must follow best investment practices and
have a strong Asset management company to maximize return.
INSURANCE SECTOR IN INDIA

In 1993, Malhotra Committee headed by former Finance Secretary and RBI


Governor R.N. Malhotra was formed to evaluate the Indian insurance
industry and recommend its future direction. The Malhotra Committee was
set up with the objective of complementing the reforms initiated in the
financial sector.

The reforms were aimed at “creating a more efficient and competitive


financial system suitable for the requirements of the economy keeping in
mind the structural changes currently underway and recognizing that
insurance is an important part of the overall financial system where it was
necessary to address the need for similar reforms…”
In 1994, the committee submitted the report and some of the key
recommendations that were included:

Structure

 Government stake in the Insurance Companies to be brought down to


50%.
 Government should take over the holdings of GIC and its subsidiaries
so that these subsidiaries can act as independent corporations.
 All the Insurance Companies should be given greater freedom to
operate.
Competition

 Private Companies with a minimum paid up capital of Rs. 1 billion


should be allowed to enter the industry.
 No Company should deal in both Life and General Insurance through
a single entity foreign companies may be allowed to enter the industry
in collaboration with the domestic companies.
 Postal Life Insurance be allowed to operate in the rural market.
 Only one State Level Life Insurance Company should be allowed to
operate in each state.

Regulatory Body

 The Insurance Act should be changed.


 An Insurance Regulatory body should be set up.
 Controller of Insurance (Currently a part from the Finance Ministry)
should be made independent.

Investments
 Mandatory Investments of LIC Life Fund in government securities to
be reduced from 75% to 50%.
 GIC and its subsidiaries are not to hold more than 5% in any company
(There current holdings to be brought down to this level over a period
of time).

Customer Service

 LIC should pay interest on delays in payments beyond 30 days.


 Insurance companies must be encouraged to set up Unit Linked
Pension Plans.
 Computerization of operations and updating of technology to be
carried out in the insurance industry.

The committee emphasized that in order to improve the customer services


and increase the coverage of the insurance industry should be opened up to
competition. But at the same time, the committee felt the need to exercise
caution as any failure on the part of new players could ruin the public
confidence in the industry.
Hence, it was decided to allow competition in a limited way by stipulating
the minimum capital requirement of Rs 100crore. 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. For this purpose, it had proposed setting up an
independent regulatory body.

BEFORE LIBERALISATION
Life Insurance in pre-independence India had been under the control of
private enterprises. There were 245 insurance companies in India by the
years 1956. In 1956 the government of India decided to nationalize all life
insurance business in India. As a first step, the life Insurance (Emergency
Provisions) ordinance was promulgated on the 18th January 1956. This
ordinance vested in the government the management and control of all life
insurance companies in India, both Indian and foreign. Under the life
Insurance corporation Act,1956, the Life insurance corporation (LIC) of
India was et up on 1st September that the government of India took over life
Insurance business in its own hands. It’s the largest government owned
organization in the world, operating life Insurance business.

CAUSES OF NATIONALIZATION
The main causes underlying the nationalization process of insurance
business in India are:
1. One of the important reasons, which prompted the government to
nationalize insurance business, is the failure of a large number of
companies during the decade preceding nationalization.
2. Many companies frittered away their resources overlooking the
interests of the policyholders.
3. Some companies were charged with embezzlement and defalcation of
funds.
4. Many individuals who controlled the insurance business utilized the
funds of the companies under their management in other ventures
disregarding the loss of the industry and the policyholders.
The nationalization of life insurance aims at widening and deepening all
possible channels of public savings. It is an important step towards
mobilizing these savings more effectively to finance the national plans.
Nationalized insurance is designed to bring to the door of even the humblest
citizen, wherever he may be, the benefits of this social service to ensure
complete of the funds collected by way of premiums and to utilize profitably
such funds for nation-building activities.
OBJECTIVES BEHIND NATIONALIZATION
1. Security to policy Holders
2. Channelize the funds
3. Greater Return to policy holders
4. To prevent misuse of funds.
5. To spread Insurance Business

IMPACT OF LIBERALIZATION ON LIFE INSURANCE


CORPORTAION.

Life Insurance in its present form came to India from the United Kingdom
with the establishment of a British firm, Oriental Life Insurance Company in
Calcutta, in 1818, followed by Bombay Life Assurance Company, in 1823.
the Indian Life Assurance Companies Act, 1912, was the first statutory
measure to regulate life insurance business. In 1935, earlier legislation was
consolidated and amended by the Insurance Act, 1938, with comprehensive
provisions aimed at exercising effective control over the activities of
insurers. The main concern was to protect the interests of the insuring
public. The Act was amended in 1950 resulting in far-reaching changes in
the insurance sector. By 1956, 154 Indian and 16 foreign insurers and 75
provident societies were carrying on Life insurance business in the country.
In January 1956, in keeping with the then prevailing political and
economical philosophy of socialism, 245 Indian and foreign insurers and
provident societies operating in India were taken over by the Central
Government by an Act. The LIC, with a capital of Rs 5 cr was set up in
September that year.

Growth of LIC
Since 1956, LIC has worked resolutely towards spreading life insurance, and
in the process has built a wide network across the length and breadth of the
country, consisting of 2,048 branches, 100 divisional offices, 7 zonal offices
and a corporate office. The number of new policies sold each year grew from
14.62 lakhs in 1961 to 1.45 cr in 1999, of which 54.70% are rural. The rural
share in 1961 was 36.53%. Similarly, the annual premium income rose from
Rs 88.65 cr in 1957 to Rs 22,805.80 cr in 1999. The life fund of the
corporation also grew from Rs 410 cr to Rs 2,89,895.52 cr in 2003.

Privatization in the 1990’s


The wave of reforms that swept across the economy in the 1990’s had its
impact on the insurance industry also. The Malhotra committee was
constituted by the government in 1993 to examine the various aspects of the
industry. The committee went into the entire gamut of reforms that could be
considered for the Industry, and along with many other recommendations, it
advised the opening up of the sector to private players. Consequent upon the
recommendations, the government passed the Insurance Regulatory and
development Authority Act in 1999. The key element of the reform process
was the participation of overseas insurance companies, though restricted to
26% of the capital. In the budget 2004, the government enhanced the foreign
direct investment in the Insurance sector up to 49%. But due to political
pressure from the left parties, the government could not implement the new
policy decision. Hence, the current level of 26% of foreign direct investment
in the insurance sector will come in force in the years to come.

Private Sector Entry


As mentioned earlier, the insurance sector was opened for private players
when the government enacted the Insurance Regulatory and Development
Authority Act, 1999, leading to the establishment of IRDA. The 1st private
Life Insurance company was registered with the IRDA in October 2000, and
started operations shortly thereafter, thereby, ending 44 years of public
sector monopoly. Since then, ,many more private companies have been
registered bringing the number to be more than a dozen, all of which are
joint ventures between major business houses or banks in India and
renowned international giants.

Life Insurance Players in India

Today there are 14 insurance players in India. Out of these 13 players are
private and one is public.

1. Yr: 1947-2000: (From 1947 to 1st April 2000)

First life insurance company (LIC) set by Indian government in 1956. This is
public company.
2. Yr: 2000-2001: (From 2nd April '2000 to 31st December'2001)

Insurance Industry in the year 2000-2001 had 10 new entrants, namely:

S.No. Registration Date of Name of the Company


Number Reg.

1 101 23.10.2000 HDFC Standard Life Insurance Company


Ltd.
2 104 15.11.2000 Max New York Life Insurance Co. Ltd.
3 105 24.11.2000 ICICI Prudential Life Insurance Company
Ltd.
4 107 10.01.2001 Kotak Mahindra Old Mutual Life
Insurance Limited
5 109 31.01.2001 Birla Sun Life Insurance Company Ltd.
6 110 12.02.2001 Tata AIG Life Insurance Company Ltd.
7 111 30.03.2001 SBI Life Insurance Company Limited .
8 114 02.08.2001 ING Vysya Life Insurance Company
Private Limited
9 116 03.08.2001 Bajaj Allianz Life Insurance Company
Limited
10 117 06.08.2001 Metlife India Insurance Company Pvt.
Ltd.
3. Yr: 2001-2002: (From 1st Jan 2001 to Dec. 2002)

Insurance Industry in this year, so far has 5 new entrants; namely

S.No. Registration Date of Name of the Company


Number Reg.

1 121 03.01.2002 AMP Sanmar Life Insurance Company


Limited.
2 122 14.05.2002 Aviva Life Insurance Co. India Pvt. Ltd.

4. Yr: 2003-2004: (From 1st Jan 2003 till Date)

Insurance Industry in this year, so far has 1new entrants; namely

S.No. Registration Date of Name of the Company


Number Reg.

1 127 06.02.2004 Sahara India Insurance Company Ltd.

CHAPTER-II
PROFILE OF ICICI
PRUDENTIAL
PROFILE OF ICICI PRUDENTIAL LIFE INSURANCE

ICICI Prudential Life Insurance Company is a joint venture between ICICI


Bank-one of India's foremost financial services companies-and Prudential
plc- a leading international financial services group headquartered in the
United Kingdom. Total capital infusion stands at Rs. 20.60 billion, with
ICICI Bank holding a stake of 74% and Prudential plc holding 26%.

ICICI Prudential began its operations in December 2000 after receiving


approval from Insurance Regulatory Development Authority (IRDA). Today,
nation-wide team comprises of over 580 offices, over 230,000 advisors; and
23 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. As ICICI
grow its distribution, product range and customer base, continue to tirelessly
uphold its commitment to deliver world-class financial solutions to
customers all over India.

The ICICI Prudential Edge - What makes us No. 1


The ICICI Prudential edge comes from its commitment to customers, in all
that company do - be it product development, distribution, the sales process
or servicing. Here's a peek into what makes us leaders.
 ICICI prudential products have been developed after a clear and
thorough understanding of customers' needs. It is this research that
helps company develop Education plans that offer the ideal way to
truly guarantee child's education, Retirement solutions that are a
hedge against inflation and yet promise a fixed income after retire, or
Health insurance that arms customer with the funds you might need to
recover from a dreaded disease.
 Having the right products is the first step, but it's equally important to
ensure that customers can access them easily and quickly. To this end,
ICICI Prudential has an advisor base across the length and breadth of
the country, and also partners with leading banks, corporate agents
and brokers to distribute our products
 Robust risk management and underwriting practices form the core of
business. With clear guidelines in place, ICICI ensure equitable
costing of risks, and thereby ensure a smooth and hassle-free claims
process.
 Entrusted with helping its customers meet their long-term goals, ICICI
Prudential adopt an investment philosophy that aims to achieve risk
adjusted returns over the long-term.
VISION & VALUES

Vision of ICICI Prudential :


To make ICICI Prudential the dominant Life and Pensions player built on
trust by world-class people and service.

• 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
policyholders
• Providing an enabling environment to foster growth and learning for
employees
• And above all, building transparency in all its dealings.

The success of the company will be founded in its unflinching commitment


to 5 core values -- Integrity, Customer First, Boundaryless, Ownership and
Passion.

Values of ICICI Prudential :


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

ICICI Bank is India's second largest bank and largest private sector bank
with over 50 years presence in financial services and with assets of over Rs
3446.58 bn (USD 79 billion) as on March 31, 2007. The Bank offers a wide
range of banking products and financial services to corporate and retail
customers through a variety of delivery channels and through its specialised
subsidiaries in the areas of investment banking, life and non-life insurance,
private equity and asset management. ICICI Bank is a leading player in the
retail banking market and services its large customer base through a network
of over 950 branches and extension counters, 3300 ATMs, call centers and
internet banking to ensure that customers have access to its services at all
times.

Prudential Plc
Established in London in 1848, Prudential plc, through its businesses in the
UK and Europe, the US and Asia, provides retail financial services products
and services to more than 20 million customers, policyholder and unit
holders and manages over £251 billion of funds worldwide (as of 31
December 2006). In Asia, Prudential is the leading European life insurance
company with life operations in China, Hong Kong, India, Indonesia, Japan,
Korea, Malaysia, the Philippines, Singapore, Taiwan, Thailand, Vietnam.
Prudential is the second largest retail fund manager for Asian sourced assets
ex-Japan as at June 2006. Its fund management business has expanded into a
total of ten markets : China, Hong Kong, India, Japan, Korea, Malaysia,
Singapore, Taiwan, Vietnam and United Arab Emirates.
FACT SHEET OF ICICI PRUDENTIAL

THE Company
ICICI Prudential Life Insurance Company is a joint venture between ICICI
Bank, a premier financial powerhouse, and Prudential plc, a leading
international financial services group headquartered in the United Kingdom.
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).

ICICI Prudential's capital stands at Rs. 20.60 billion with ICICI Bank and
Prudential plc holding 74% and 26% stake respectively. As of March 31,
2007, the company garnered Rs. 4,843 crore of weighted retail + group new
business premiums and wrote over 1.96 million retail policies. The company
has assets held to the tune of over Rs. 15,000 crore.

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.
The AAA (Ind) rating is the highest rating, 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 past six 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
ICICI Prudential has one of the largest distribution networks amongst
private life insurers in India. As of March 31, 2007 the company has over
580 offices across the country and over 234,000 advisors.
The company has over 22 bancassurnace partners, having tie-ups with ICICI
Bank, Federal Bank, South Indian Bank, Bank of India, Lord Krishna Bank,
Idukki District Co-operative Bank, Jalgaon Peoples Co-operative Bank,
Shamrao Vithal Co-op Bank, Ernakulam Bank, 9 Bank of India sponsored
Regional Rural Banks (RRBs), Sangli Urban Co-operative Bank, Baramati
Co-operative Bank, Ballia Kshetriya Gramin Bank, The Haryana State Co-
operative Bank.
PRODUCTS OF ICICI PRUDENTIAL

Insurance Solutions for Individuals


ICICI Prudential Life Insurance offers a range of innovative, customer-
centric products that meet the needs of customers at every life stage. Its
products can be enhanced with up to 4 riders, to create a customized solution
for each policyholder.

Savings & Wealth Creation Solutions :


• Save'n'Protect is a traditional endowment savings plan that offers life
protection along with adequate returns.
• CashBak is an anticipated endowment policy ideal for meeting
milestone expenses like a child's marriage, expenses for a child's
higher education or purchase of an asset. It is available for terms of 15
and 20 years.
• LifeTime Super & LifeTime Plus are unit-linked plans that offer
customers the flexibility and control to customize the policy to meet
the changing needs at different life stages. Each offer 6 fund options -
Preserver, Protector, Balancer, Maximiser, Flexi Growth and Flexi
Balanced.
• LifeLink Super is a single premium unit linked insurance Plan which
combines life insurance cover with the opportunity to stay invested in
the stock market.
• Premier Life Gold is a limited premium paying plan specially
structured for long-term wealth creation.
• InvestShield Life New is a unit linked plan that provides premium
guarantee on the invested premiums and ensures that the customer
receives only the benefits of fund appreciation without any of the risks
of depreciation.
• InvestShield Cashbak is a unit linked plan that provides premium
guarantee on the invested premiums along with flexible liquidity
options.

Protection Solutions
• LifeGuard is a protection plan, which offers life cover at low cost. It
is available in 3 options - level term assurance, level term assurance
with return of premium & single premium.
• HomeAssure is a mortgage reducing term assurance plan designed
specifically to help customers cover their home loans in a simple and
cost-effective manner.

Child Plans
Education insurance under the SmartKid brand provides guaranteed
educational benefits to a child along withlife insurance cover for the parent
who purchases the policy. The policy is designed to provide money at
important milestones in the child's life. SmartKid plans are also available in
unit-linked form - both single premium and regular premium.

Retirement Solutions
• ForeverLife is a traditional retirement product that offers guaranteed
returns for the first 4 years and then declares bonuses annually.
• LifeTime Super Pension is a regular premium unit linked pension
plan that helps one accumulate over the long term and offers 5 annuity
options (life annuity, life annuity with return of purchase price, joint
life last survivor annuity with return of purchase price, life annuity
guaranteed for 5,10 and 15 years & for life thereafter, joint life, last
survivor annuity without return of purchase price) at the time of
retirement.
• LifeLink Super Pension is a single premium unit linked pension
plan.
• Immediate Annuity is a single premium annuity product that
guarantees income for life at the time of retirement. It offers the
benefit of 5 payout options.

Health Solutions
• Health Assure and Health Assure Plus: Health Assure is a regular
premium plan which provides long term cover against 6 critical
illnesses by providing policyholder with financial assistance,
irrespective of the actual medical expenses. Health Assure Plus offers
the added advantage of an equivalent life insurance cover.
• Cancer Care: is a regular premium plan that pays cash benefit on the
diagnosis as well as at different stages in the treatment of various
cancer conditions.
• Diabetes Care: Diabetes Care is a unique critical illness product
specially developed for individuals with Type 2 diabetes and pre-
diabetes. It makes payments on diagnosis on any of 6 diabetes related
critical illnesses, and also offers a coordinated care approach to
managing the condition. Diabetes Care Plus also offers life cover.
• Hospital Care: is a fixed benefit plan covering various stages of
treatment – hospitalisation, ICU, procedures & recuperating
allowance. It covers a range of medical conditions (900 surgeries) and
has a long term guaranteed coverage upto 20 years.

Group Insurance Solutions:


ICICI Prudential also offers Group Insurance Solutions for companies
seeking to enhance benefits to their employees.
• Group Gratuity Plan: ICICI Prudential's group gratuity plan helps
employers fund their statutory gratuity obligation in a scientific
manner. The plan can also be customized to structure schemes that can
provide benefits beyond the statutory obligations.
• Group Superannuation Plan: ICICI Prudential offers both defined
contribution (DC) and defined benefit (DB) superannuation schemes
to optimise returns for the members of the trust and rationalise the
cost. Members have the option of choosing from various annuity
options or opting for a partial commutation of the annuity at the time
of retirement.
• Group Immediate Annuities: In addition to the annuities offered to
existing superannuation customers, we offer immediate annuities to
superannuation funds not managed by us.
• Group Term Plan: ICICI Prudential's flexible group term solution
helps provide affordable cover to members of a group. The cover
could be uniform or based on designation/rank or a multiple of salary.
The benefit under the policy is paid to the beneficiary nominated by
the member on his/her death.

Flexible Rider Options


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

• Accident & disability benefit: If death occurs as the result of an


accident during the term of the policy, the beneficiary receives an
additional amount equal to the rider sum assured under the policy. If
an accident results in total and permanent disability, 10% of rider sum
assured will be paid each year, from the end of the 1st year after the
disability date for the remainder of the base policy term or 10 years,
whichever is lesser. If the death occurs while traveling in an
authorized mass transport vehicle, the beneficiary will be entitled to
twice the sum assured as additional benefit.
• Critical Illness Benefit: protects the insured against financial loss in
the event of 9 specified critical illnesses. Benefits are payable to the
insured for medical expenses prior to death.
• Waiver of Premium: In case of total and permanent disability due to
an accident, the future premiums continue to be paid by the company
till the time of maturity. This rider is available with LifeTime Super,
LifeTime Super Pension and CashPlus.
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. M.P. Modi
• Mr. R Narayanan
• Mr. Keki Dadiseth
• Ms. Shikha Sharma, Managing Director
• Mr. N. S. Kannan, Executive Director
• Mr. Bhargav Dasgupta, Executive Director
Management team :
The ICICI Prudential Life Insurance Company Limited Management team
comprises reputed people from the finance industry both from India and
abroad.
• Ms. Shikha Sharma, Managing Director & CEO
• Mr. N. S. Kannan, Executive Director
• Mr. Bhargav Dasgupta, Executive Director
• Ms. Anita Pai, EVP – Customer Service & Technology
• Mr. Azim Mithani, Chief Actuary
• Mr. Puneet Nanda, Chief Investments Officer
AWARDS & RECOGNITIONS

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
CHAPTER-III
PROFILE OF HDFC
STANDARD LIFE
INSURANCE
HDFC STANDARD LIFE INSURANCE

HDFC standard life insurance is backed by HDFC, the reputed housing


financial institution operating since several decades and Standard Life
Assurance Company, one of the Europe’s largest mutual fund companies.

HDFC Ltd. Founded in 1977 has provided financial assistance to 1.5 million
homes. Asset base: about Rs 15,000 crore. Financial strength: “AAA” rating
by CRISIL and ICRA.

Standard Life insurance is a leading insurer in the UK with around 4 million


customers in that country.

HDFC has 18000 crores of assets and Standard life as $119 billion of assets.
So they can be comfortably considered as safe as insurers. They entered into
life insurance with four policies.

Initial capital base: RS 160 crore


It has around 17,100 agents.
Centres in 49 cities- one of the widest presence among all new life insurance
companies
Advertising Agency: Canco
HDFC Standard Life was rated best new insurer 2003 by outlook money.
The Partnership:

HDFC and Standard Life first came together for a possible joint venture, to
enter the Life Insurance market, in January 1995. It was clear from the outset
that both companies shared similar values and beliefs and a strong
relationship quickly formed. In October 1995 the companies signed a 3-year
joint venture agreement.
Around this time Standard Life purchased a 5% stake in HDFC, further
strengthening the relationship. The next three years were filled with
uncertainty, due to changes in government and ongoing delays in getting the
IRDA (Insurance Regulatory and Development authority) Act passed in
parliament. Despite this both companies remained firmly committed to the
venture.
In October 1998, the joint venture agreement was renewed and additional
resource made available. Around this time Standard Life purchased 2% of
Infrastructure Development Finance Company Ltd. (IDFC). Standard Life
also started to use the services of the HDFC Treasury department to advise
them upon their investments in India.
Towards the end of 1999, the opening of the market looked very promising
and both companies agreed the time was right to move the operation to the
next level. Therefore, in January 2000 an expert team from the UK joined a
hand picked team from HDFC to form the core project team, based in
Mumbai.
Around this time Standard Life purchased a further 5% stake in HDFC and a
5% stake in HDFC Bank.In a further development Standard Life agreed to
participate in the Asset Management Company promoted by HDFC to enter
the mutual fund market. The Mutual Fund was launched on 20th July 2000.
Incorporation of HDFC Standard Life Insurance Company Limited:

The company was incorporated on 14th August 2000 under the name of
HDFC Standard Life Insurance Company Limited.

Its ambition from as far back as October 1995, was to be the first private
company to re-enter the life insurance market in India. On the 23rd of
October 2000, this ambition was realized when HDFC Standard Life was the
only life company to be granted a certificate of registration.

HDFC are the main shareholders in HDFC Standard Life, with 81.4%, while
Standard Life owns 18.6%. Given Standard Life's existing investment in the
HDFC Group, this is the maximum investment allowed under current
regulations.

HDFC and Standard Life have a long and close relationship built upon
shared values and trust. The ambition of HDFC Standard Life is to mirror
the success of the parent companies and be the yardstick by which all other
insurance companies in India are measured.

The Mission:
HSLIC aim to be the top new life insurance company in the market.
This does not just mean being the largest or the most productive company in
the market; rather it is a combination of several things like-
• Customer service of the highest order
• Value for money for customers
• Professionalism in carrying out business
• Innovative products to cater to different needs of different customers
• Use of technology to improve service standards
• Increasing market share
Products Available:

HSLIC offers a range of products to suit the needs of individual persons.


-Endowment Assurance Plan, Money Back Plan, Single Premium Whole of
life, Children Plan, SLIC, ULIP.

PLAN BENEFITS
Savings Plans
Endowment Assurance Plan Life Insurance with Savings
Life Insurance & Savings with choice of
Unit Linked Endowment Plan investment funds
Children’s Plan Financial Security for your child
Money Back Plan Life Insurance with Savings
Investment Plans
Single Premium Whole Of Life
Investment with Life Insurance
Plan
Protection Plans
Term Assurance Plan Life Insurance at an affordable price
Loan Cover Term Assurance Plan Life Insurance customized for home loans
Retirement Plans
Personal Pension Plan Savings for retirement
Retirement Savings with a choice of
Unit Linked Pension Plan investment funds

Riders Available:

Double Sum assured (DSA), Accidental Death Benefit (ADB), Waiver of


Premium (WOP), Critical Illness.
Comparison of Different Plans of ICICI Prudential and
HDFC Standard

Smarkid New ULRP Vs. HDFC Youngstar Plus


Features SmartKid New ULRP HDFC YoungStar Remarks
Plus
Life Assured Parent Parent
Options Available None 1. Life Option (Death benefit).
2. Life & Health Option (Death
Benefit + Critical Illness
Benefit)
Death Benefit 1. Sum Assured paid out 1. Sum Assured paid out
immediately. 2. Company pays immediately. 2. Company pays
future premiums. 3. Policy future premiums. 3. Policy
benefits continue & FV can be benefits continue & FV can be
withdrawn withdrawn
Maturity Benefit Fund Value Fund Value
Minimum Annual Premium Rs. 10,000 p.a Rs. 10,000 p.a
Min/Max Term 10 - 25 years 10 - 25 years

Investment Related

Choice of Funds 6 Funds - Flexi Growth II , Flexi 6 Funds - Growth Fund, Equity
Balanced II , Maximiser II, Managed Fund, Balanced
Balancer II, Protector II, Managed Fund, Defensive
Preserver Managed Fund, Secure
Managed Fund, Liquid Fund
Top-ups Not Allowed currently Allowed subject to basic
premiums being paid upto date
& Top-up amount being within
25% of basic regular premiums
paid till date of Top-up. Min
Top-up amount - Rs. 5000

Switches 4 switches free in a policy year 24 switches free in a policy


year
Partial Withdrawals Allowed after 5 policy years. 5 Allowed after 3 policy years.
withdrawals allowed during the Unlimited Partial w/d allowed
entire policy term. Each w/d ina policy year. FV after w/d
restricted to 25% of Fund Value should be equal to one year's
at the time of withdrawal. FV premium. Min Partial w/d
post w/d should be 110% of one amount - Rs. 10,000
year's premium. Min partial w/d
amount - Rs.2,000
Additional Allocation of Not Available Increase of 0.10% of number of
Units(Bonus units) units in each of the funds at the
end of every policy year
Special Conditions
(If Any) None None
Surrender Values
(At end of year 3) 96% 100%
(At end of year 4) 98% 100%
(At end of year 5) 100% 100%
Riders ADBR, IBR, WOPR CIBR under Life & Health IBR in SK New
Option ULRP provides
an additional
income of 10% of
IBR SA upto end
of term in case of
death of parent.
WOPR waives
premium in case
of TPD of Parent
Settlement Period Options Available. Upto a period of 5 Available. Upto a period of 5
years years
Automatic Transfer Plan Available Not Available
Boundary Conditions
Min/Max Age at Entry 20 - 60 years 18 - 65 yrs for Life Option, 18 -
(Parent) 55 for Life & Health Option
Min/Max Age at Entry (Child) 0 - 15 years -
Max Age at maturity 75 years 75 years for Life Option, 65
years for Life & Health Option
Min/Max Sum Assured Term/2 * Annual Premium Min of 5 times chosen AP and
subject to a min of Rs. 1 Lac Max of 40 times chosen AP
Increase/Decrease in Annual Not Allowed Allowed
Premium
Increase/Decrease in Term Not Allowed Not Allowed
Increase/Decrease in Sum Not Allowed Not Allowed
Assured
Charges
SmartKid New ULRP HDFC YoungStar Plus

Premium
Allocation Charges
10,000 - 1,99,999: 60%, 2,00,000 -
10,000 - 19,999: 20%, 20,000 -
4,99,999: 40%, 5,00,000 - 9,99,999:
49,999: 19%, 50,000 & above:
30%, 10,00,000 - 19,99,999: 20%,
18%
Year 1 20,00,000+: 10%
1% for all premium bands from 2nd
Year 2 - 5 5% for all premium bands year onwards

Year 6 - 10 2% for all premium bands

Year 11 onwards 1% for all premium bands


Fund Management
Charges
Flexi Growth II / Maximiser II -
1.50%, Flexi Balanced II /
Balancer II - 1.00%, Protector II &
Preserver - 0.75% 0.80% across all funds
Policy
Administration
Charge Rs. 60 per month. Rs. 20 per month
2.50% of Top-up amount in the first
Top-up Charge N.A year. 1% from 2nd year onwards

Rs. 100 for subsequent switch Rs. 100 for subsequent switch over 24
Switching Charge over 4 switches in a policy year switches in a policy year

Partial Withdrawal Rs. 250 per part w/d over & above 6
Charge No charge free part w/d's
Miscellaneous
Charge None Rs. 250 for Policy revival
Life Time Super Pension Vs. HDFC Unit Linked Pension Plus

Features LifeTime Super HDFC Unit Remarks


Pension Linked
Pension Plus
Premium Pay Frequency Regular Premium Regular Premium
Annuity Options 5 Annuity options: Life Annuity, No defined Annuity Customer has
Life Annuity with Return of Options defined annuity
Purchase Price, Life Annuity options
Guaranteed for 5/10/15 years &
life thereafter, Joint Life Last
Survivor without return of
Purchase Price, Joint Life Last
Survivor with return of Purchase
Price
Death Benefit Spouse gets higher of Sum The Nominee Customer has
Assured or the Fund Value. This recieves the FUND choice to
may be taken as lumpsum or VALUE choose the fund
annuity. Benefit would be paid in either in lump
lumpsum if spouse is not the sum or in
nominee annuity
Vesting Age Between 45-75 years. Option to 50 yrs - 75 yrs lower vesting
postpone the vesting age any age
number of time
Minimum Annual Premium Rs. 10000/- Rs. 10000/-

Min Term 10 yrs 10 yrs Higher term to


choose
Max Term 57 yrs 40 yrs
Investment Related

Choice of Funds 6 Funds :Pension Flexi Growth Liquid Fund, Secure


II, Pension Maximiser II, Pension Managed Fund,
Flexi Balanced II , Pension Defensive Managed
Balancer II, Pension Protector II, Fund, Balanced
Pension Preserver Managed Fund,
Equity Managed
Fund, Growth Fund

Top-ups Not available Available


Switches 4 free switches every policy year. 24 switches free per
However, alongwith ATP option policy year
there are 16 free switches.

Partial Withdrawals Not Allowed Not Allowed


Additional Allocation of Not available End of every year
Units(Loyality units) bonus unit will be
added by 0.10%
Special Conditions
(If Any) Premium Redirection
Surrender Values
(At end of year 3) 96% 100%
(At end of year 4) 98% 100%
(At end of year 5) 100% 100%
Riders ADBR, WOPR No Rider
Automatic Transfer Plan Available Not Available
Boundary Conditions
Min Age at Entry 18 18
Max Age at Entry 65 65
Max Age at maturity 75 years 75 years
Min/Max Sum Assured Zero DB or Between (Rs. 100000 Zero DB
& Annual premium* Policy term)
Increase/Decrease in Annual Not allowed Increase Allowed
Premium
Increase/Decrease in Term Not allowed Not allowed
Increase/Decrease in Sum Not allowed Not allowed
Assured
Charges

LifeTime Super Pension HDFC Unit Linked


Pension Plus
Premium Allocation
Charges
Year 1 10,000 - 19,999: 20%, 20,000 - 10,000 - 1,99,999: 50%,
49,999: 17%, 50,000 & above: 2,00,000 - 4,99,999: 35%,
14% 5,00,000 - 9,99,999: 25%,
10,00,000 - 19,99,999:
15%, 20,00,000+: 10%
Year 2 9% for all premium bands 1% for all premium bands
from 2nd year onwards
Year 3 - 10 1% for all premium bands
Year 11 onwards Nil
Fund Management Charges
Pension Flexi Growth II / 0.80% across all funds
Pension Maximiser II - 1.50%,
Pension Flexi Balanced II /
Pension Balancer II - 1.00%,
Pension Protector II & Pension
Preserver - 0.75%
Policy Administration Rs. 40 per month. Additional Rs. 20 per month
Charge Policy admin charge of Rs. 40 if
premiums not paid in the first 5
policy years
Top-up Charge N.A 2.50% of Top-up amount in
the first year. 1% from 2nd
year onwards
Switching Charge Rs. 100 for subsequent switch Rs. 100 for subsequent
over 4 switches in a policy year switch over 24 switches in
a policy year

Partial Withdrawal Charge N.A. N.A.


Miscellaneous Charge None 6 policy requests free in a
policy year & subsequently
Rs. 250 per request. 12
premium redirection free in
a policy year &
subsequently Rs. 250 per
additional reuqest.
Charges
LifeTime Super Pension HDFC Unit Linked Pension Plus
Premium Allocation
Charges
Year 1 10,000 - 19,999: 20%, 20,000 - 10,000 - 1,99,999: 50%, 2,00,000
49,999: 17%, 50,000 & above: 14% - 4,99,999: 35%, 5,00,000 -
9,99,999: 25%, 10,00,000 -
19,99,999: 15%, 20,00,000+: 10%

Year 2 9% for all premium bands 1% for all premium bands from
2nd year onwards
Year 3 - 10 1% for all premium bands
Year 11 onwards Nil
Fund Management Charges
Pension Flexi Growth II / Pension 0.80% across all funds
Maximiser II - 1.50%,
Pension Flexi Balanced II / Pension
Balancer II - 1.00%,
Pension Protector II & Pension
Preserver - 0.75%
Policy Administration Rs. 40 per month. Additional Policy Rs. 20 per month
Charge admin charge of Rs. 40 if premiums
not paid in the first 5 policy years
Top-up Charge N.A 2.50% of Top-up amount in the
first year. 1% from 2nd year
onwards
Switching Charge Rs. 100 for subsequent switch over Rs. 100 for subsequent switch
4 switches in a policy year over 24 switches in a policy year

Partial Withdrawal Charge N.A. N.A.


Miscellaneous Charge None 6 policy requests free in a policy
year & subsequently Rs. 250 per
request. 12 premium redirection
free in a policy year &
subsequently Rs. 250 per
additional reuqest.
CHAPTER-IV
OBJECTIVES
OBJECTIVES OF THE STUDY

 To do comparative study of ICICI Prudential and HDFC Standard


Life Insurance.

 To know the customer satisfaction level and their perception


regarding ICICI Prudential and HDFC Standard Life Insurance.

 To know the customer preference towards the Private or Public


Life Insurance sector.

 To know the scope of as an investment opportunity and to know


the priority of people while selecting different Saving Schemes.

 To make the comparison between the products offered by ICICI


Prudential and HDFC Standard Life Insurance.

 To know about the future plans of people for buying an insurance


policy.
CHAPTER-V
RESEARCH
METHODOLOGY
RESEARCH METHODOLOGY

Introduction and Meaning


Research is a careful investigation or inquiry especially through search for
new facts in branch of knowledge: market research specifies the information.
Required to address these issues: designs the method for collecting
information: manage and implements the data collection process analyses
the results and communicates the finding and their implications.

Research problem is the one which requires a researcher to find out the best
solution for the given problem that is to find out the course of action, the
action the objectives can be obtained optimally in the context of a given
environment.

Techniques

The problem definition can be said to be the quite essential part of the
research process; as it determine precisely, what the managerial problem is
and the type of information that the research can generate to help the
problem before conducting the fieldwork. It is better to decide upon the
method/technique of data collection. Generally, there are two technique of
data collection are:

1. Census Technique 2. Sample Technique or Convenient sampling


A census is a complete enumeration of each and every unit of population
where as in a sample only a part of the universe is studied and conclusion
about the entire universe is drawn about that basis. The census method is
costlier and more time consuming as compared to sampling method but the
result are near representatives than sample method. The availability of
resources, time factor degree of accuracy desire and scope of the problem
enable us to apply sample technique.

Data Collection

The objectives of the project are such that both primary and secondary data
is required to achieve them. So both primary and secondary data was used
for the project. The mode of collecting primary data is questionnaire mode
and sources of secondary data are various magazines, books, newspapers, &
websites etc.

1. Primary Data
The primary data was collected to make the comparison between the
products offered by ICICI Prudential and HDFC Standard Life Insurance.
The primary data was collected by means of questionnaire and analysis was
done on the basis of response received from the customers. The
questionnaire has been designed in such a manner that the consumer’s
satisfaction level can be measured and consumer can enter his responses
easily.

2. Secondary Data
The purpose of collecting secondary data was to achieve the objective of
studying the recent trends and developments taking place in Life Insurance.
Sample Plan

Sample size: - Keeping in mind all the constraints 100 working people local
residents of Jalandhar city were selected.

Sampling Unit: - Jalandhar

Sampling Technique: - Convenient sampling

Analysis and Interpretation


After the data collection, it was compiled, classified and tabulated manually
and with help of computer. Then the task of drawing inferences was
accomplished with the help of percentage and graphic method. Different
suggestions given by me to the Company after analyzing the views of every
respondent are also given in the report.
LIMITATIONS OF THE STUDY
It is said, “Nothing is perfect” and if the quite is true, I am sure that there
would be few shortcoming in this project also. Sincere efforts have been
made to eliminate discrepancies as far as possible but few would have
reminded due to limitations of the study. These are:

1. Limited scope
The survey was conducted in Jalandhar thus the respondents belonged to
only this region of the country. This could have brought bias into the study.

2. Nature of the study


The survey concentrated on personal information about income, saving and
investment. All these issues are highly sensitive and of secretive nature
therefore there could have been untrue answers to some of the questions.

3. Ambiguous replies
Some of the respondents gave ambiguous replies for certain questions or
omitted the responses to some of them. The interpretation of such responses
becomes difficult and could generate wrong results.

4. Unrepresentative sample size


The sample size taken for the purpose of the study does not very
significantly represent the whole society and their saving investment
patterns may not clearly bring out the average trends existing in the market.

5. Assumption for the purpose of analysis


Some assumption was made while doing analysis and interpretation; there
could be few limitations in regard to these.
CHAPTER-VI
DATA ANALYSIS
AND ITS
INTERPRETATION
PRUDENTIAL
DATA ANALYSIS AND ITS INTERPRETATION

1. Are you aware of Life Insurance ?

Response No. of Respondents %age


Yes 100 100%
No 0 0%

0%

Yes
No

100%

Interpretation :

From the above chart it is clear that all the respondents are aware of Life

Insurance i.e. 100%.


2 : Are you aware of the following Life Insurance Companies ?

Companies No. of %age


Respondents
ICICI Prudential Life Insurance 88 54%
HDFC Standard Life Insurance. 75 46%

46%

54%

ICICI HDFC

Interpretation :
From the above graph it is clear that out of 100 respondents, 88 respondents
are aware of ICICI Prudential Life Insurance and 75 respondents are aware
of HDFC Standard Life Insurance. So, we can say that ICICI Prudential has
a good name and fame in the market as compare to HDFC Standard Life
Insurance.
3 :- Which companies policy had you opted from the following :

Companies %age
ICICI Prudential Life Insurance 59%
HDFC Standard Life Insurance. 41%

41%

59%

ICICI HDFC

Interpretation :

From the above graph it is clear that majority of the respondents i.e. 59%

opted for ICICI Prudential and 41% respondents prefer to have HDFC

Standard Life Insurance policy.


Q4. Are you satisfied with the services offered by ICICI Prudential ?

Response No. of Respondents %age of Respondents


Yes 84 84%
No 16 16%

16%

84%

Yes No

Interpretation :
From the above graph it is clear that majority of the respondents are satisfied
with the services offered by ICICI Prudential Company i.e. 84%. Only 16%
respondents are dissatisfied with the services offered by ICICI Prudential
Company.
Q5. From where did you heard about ICICI Prudential ?

Response No. of Respondents %age of Respondents


Electronic Media 39 39%
Print Media 28 28%
Agents 22 22%
Others 11 11%

11%

39%
22%

28%

Electronic Media Print Media Agents Others

Interpretation :
• 39% of the respondents have heard about ICICI Prudential through
Electronic Media i.e. Computers, Internet, Television etc
• 28% of the respondents have heard about ICICI through Print Media i.e.
Newspapers, Magazines, Journals etc.
• 22% have heard about it from their agents and remaining 11% have heard
about ICICI through others sources.
6. What was the motive behind purchasing the policy?
Response No. of Respondents %age of Respondents
Risk Coverage 5 5%
Saving 29 29%
Investment 14 14%
Taxation 52 52%

5%

29%

52%

14%

Risk Coverage Saving Investment Taxation

Interpretation :
• Majority of the respondent (52%) says that the most important reason
in mind while taking the life insurance policy is tax benefit as there
life insurance policy is exempted from tax.
• People who believe in capital gains propose to go for investment in
insurance that made 14%
• 5% respondents invest in life insurance policy. So as to set adequate
risk coverage.
7. Are you aware of the following insurance plans?
Response No. of Respondents %age of Respondents
Single Premium 1 1%
Money Back 25 25%
Endowment 20 20%
Children 20 20%
Pension 24 24%
ULIP 1 1%
All 9 9%

9% 1%
1%
25%

24%

20%
20%

Single Premium Money Back Endowment


Children Pension ULIP
All

Interpretation :
• Majority of the respondent i.e.25% are aware about the money back
plan.
• 24% of the respondent is aware about the pension plan.
• 20% of the respondent is aware about the Endowment policy.
• 20% of the respondent is aware about the children policy.
• Only 9% of the respondents know about all the plans.
8. What according to you are the motives of buying Life Insurance
Policy?

Response No. of Respondents %age of Respondents


Tax Saving 44 44%
Lives Cover 10 20%
Liquidity 6 12%
Secure Investment 12 24%

17%

8%

14% 61%

Tax Saving Lives Cover Liquidity Secure Investment

Interpretation
As the above figure showed that most of the respondents buy insurance
policy for the purpose of saving tax. 44% respondents are in favor of this.
24% respondents gave preference to secure investment, 20% and 12% are
with life cover and liquidity respectively.
9. If you are not taking any insurance policy, please tell us the reasons
why?

Response No. of %age of


Respondents Respondents
We could not afford 12 12%
We don’t see any benefit with the 28 28%
system
We don’t want insurance 20 20%
We don’t understand how system 40 40%
works

12%

40%

28%

20%

We could not afford


We don’t see any benefit with the system
We don’t want insurance
We don’t understand how system works

Interpretation
As the evident shows that as most as 40% of the total respondents don’t
understand the working of the insurance system and nearly 28% of the
respondents don’t see any benefit with the system, 20% and 12% of the
respondents don’t want insurance and could not afford respectively.
CUSTOMER PROFILE

10. What is your occupation?

Response No. of Respondents %age of Respondents


Business Class 58 58%
Service Class 42 42%

42%

58%

Business Class Service Class

Interpretation :
• Majority of the respondents covered were businesspersons i.e. 58%.
• Service class formed 42% of the total respondents.
• The business class didn’t respond as strongly as service class, as the
service class wanted to save their taxes through insurance, where as the
business people were of the view that their CA’s are capable enough to
provide better alternatives than insurances for the same purpose.
11. How much of your income do you invest annually?
Response No. of Respondents %age of Respondents
1000-5000 20 20%
6000-10000 30 30%
10000 and above 50 50%

20%

50%

30%

1000-5000 6000-10000 10000 and above

Interpretation :
• 20% respondents say that they invest between Rs. 1000 to Rs.
5000 out of their annual income.
• 30% respondents say that they invest more than Rs. 6000 to 10000
out of their annual income.
• 50% respondents say that they invest up to Rs. 10000 out of their
annual income.
CHAPTER-VII
FINDINGS &
SUGGESTIONS
FINDINGS OF THE STUDY

 From the above study, it is clear that all the respondents are aware of Life

Insurance i.e. 100%.


 It is clear from the above study that out of 100 respondents, 88

respondents are aware of ICICI Prudential Life Insurance and 75


respondents are aware of HDFC Standard Life Insurance. So, we can say
that ICICI Prudential has a good name and fame in the market as
compare to HDFC Standard Life Insurance.
 From the above study it is clear that majority of the respondents i.e. 59%

opted for ICICI Prudential and 41% respondents prefer to have HDFC
Standard Life Insurance policy.
 Majority of the respondents are satisfied with the services offered by

ICICI Prudential Company i.e. 84%. Only 16% respondents are


dissatisfied with the services offered by ICICI Prudential Company.
 Majority of the respondents have heard about ICICI Prudential thorugh

electronic media and print media.


 Majority of the respondent (52%) says that the most important reason in

mind while taking the life insurance policy is tax benefit as there life
insurance policy is exempted from tax.
 Majority of the respondents are aware of Money Back, Endowment,

Children and Pension plans.


 Most of the respondents buy insurance policy for the purpose of saving

tax. 44% respondents are in favor of this. 24% respondents gave


preference to secure investment, 20% and 12% are with life cover and
liquidity respectively.
 From the study it is evident that as most as 40% of the total respondents

don’t understand the working of the insurance system and nearly 28% of
the respondents don’t see any benefit with the system, 20% and 12% of
the respondents don’t want insurance and could not afford respectively.
 Majority of the respondents covered were businesspersons i.e. 58%.

Service class formed 42% of the total respondents. The business class
didn’t respond as strongly as service class, as the service class wanted to
save their taxes through insurance, where as the business people were of
the view that their CA’s are capable enough to provide better alternatives
than insurances for the same purpose.
RECOMMENDATIONS

1. ICICI should cover uneducated people, as they are not aware of the
advantages of the policies for tax savings.
2. ICICI should cover rural areas, as they are also the segment of
population not aware of the advantages of policies.
3. ICICI must conduct seminars and presentations at all kinds of
places whether cities or towns and focus should be on people who
have large network of references.
4. Moreover presentations should be conducted at places where more
and more people are available such as educational institutes,
society clubs, hospitals etc.
5. The agent should be provided with more and more incentives so
that they can keep further some assistants who can help them to
fetch more policies side by side what agents themselves fetch out.
6. ICICI should do efforts to promote the brand name and create
awareness through channels such as advertisements.
7. Measures to build faith among people about ICICI Life Insurance
must be taken on accounts of its reliability, credibility,
responsibility, sincerity and the long lasting establishment.
8. Since all the riders attached with any of its products is along with a
slight increment in the premium rates, as such a few cost free
riders should be designed to attract more customers.
9. ICICI should put up ATM’s in different areas so that premium can
be collected across the country.
10. The agent should not only be provided with training at the time of
selection but they should also be given refresher training
periodically. It increases their professionalism and make them
more competitive. Every year the agents should be given the
training for at least one week.
11. The agent should be given sufficient traveling allowance so as to
compensate the expenditures made by them to meet customers
from one place to another.
12. ICICI should cover various risks in one policy with same premium.
13. ICICI should deal with the customer’s complaints. The company
should avoid legal proceedings by setting the claims out of the
courts.
14. Investment plans suitable to the female population (female child)
should be brought in the market with minimum premium and
additional benefits.

CONCLUSION
C H A P T E R - V I I
CHAPTER-VIII
CONCLUSION
CONCLUSION

At the end I would like to conclude that ICICI is the no. 1 private life
insurance company in India and HDFC is giving tough competition to ICICI
Prudential.

It is seen that till today a large portion of population is unaware of various


insurance plans, these include educated professionals also. Therefore, the
Private sector insurance companies should focus on improving awareness
and the increase the understanding about insurance plans thus increasing
their scope of sale.

ICICI Prudential Life Insurance Company should lay more stress on


advertisements, both in print as well as in other media.

Opening up the sector will certainly mean new products, better packaging
and improved customer service. Both new and existing players will have to
explore new distribution and marketing channels. Potential buyers for most
of this insurance lie in the middle class. New insurers must segment the
market carefully to arrive at appropriate products and pricing. Recognizing
the potential, in the past three years, the nationalized insurers have already
begun to target niches like pensions, women or children.
BIBLIOGRAPHY
BIBLIOGRAPHY

Books

• Mishra, M.N., “Insurance Principles and Practices”


(S.Chand & Co., Delhi, 1999)

• Kotler, Philip, “Marketing Management”


(Prentice Hall India, 2004)

• Kothari, C.R., “Research Methodology: Methods & Techniques”


(Wishwa Publication, Delhi, 1990)

Magazines and Journal

• Outlook—Insurance Special, June 12, 2006


• The Charted Accountant Journal, June 16, 2006

Web sites

• www.iciciprulife.com
• www.bimaonline.com
ANNEXURE
QUESTIONNAIRE

1. Are you aware of Life Insurance ?


Yes  No 

2. Are you aware of the following Life Insurance Companies ?


ICICI Prudential Life Insurance 
HDFC Standard Life Insurance. 

3. Which companies policy had you opted from the following :


ICICI Prudential Life Insurance 
HDFC Standard Life Insurance. 

4. Are you satisfied with the services offered by ICICI Prudential ?


Yes  No 

5. From where did you heard about ICICI Prudential ?


Electronic Media 
Print Media 
Agents 
Others 

6. What was the motive behind purchasing the policy?


Risk Coverage 
Saving 
Investment 
Taxation 

7. Are you aware of the following insurance plans?


Single Premium 
Money Back 
Endowment 
Children 
Pension 
ULIP 
All 

8. What according to you are the motives of buying Life Insurance


Policy?
Tax Saving  Lives Cover 
Liquidity  Secure Investment 

9. If you are not taking any insurance policy, please tell us the reasons
why?
We could not afford 
We don’t see any benefit with the system 
We don’t want insurance 
We don’t understand how system works 
BACKGROUND DATA
1. Name _________________________________________

2. Sex: (a) Male (b) Female

3. Age: (a) Below 18 (b) 18-35

(c) 35-50 (d) Above 50

4. Education: (a) Under Graduate (b) Graduate

(C) Post Graduate

5. Occupation: (a) Service (b) Profession

(c) Business (d) Others

6. Income:
1000-5000

6000-10000

10000 and above

7. Address __________________________________________
__________________________________________
__________________________________________

8. Phone no. _________________________________________