Professional Documents
Culture Documents
PROJECT REPORT
ICICI PRUDENTIAL LIFE
INSURANCE NEW CHANNEL TIE
UP WITH POST OFFICE
Submitted To
DR.IT INSTITUTE OF MANAGEMENT AND
TECHNOLOGY (IMT)
In partial fulfillment of the requirement for the degree of
BACHULAR OF BUSINESS ADMINISTRATION (BBA)
(Session 2010-2011)
Submitted to Submitted By
MISS. TARUNA DUREJA SANDEEP KUMAR
BBA 5th SEM
1
TABLE OF CONTENTS
COMPANY PROFILE
ICICI INTRODUCTION
HISTORY ICICI PRUDENTIAL
BOARD OF DIRECTORS ICICI
PRODUCTS
Profile of the study
Justification of study
Organization Structure
POST OFFICE PRODUCTS
OBJECTIVES OF STUDY
Research Methodology and Analytical Tools
Sampling &Sampling Design
Analytical Tools
Statistical Tools
Data Collection
Hypothesis Testing
Limitations of Study
Advantages
Recommendations
Policy Implications
Bibliography
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Annexure
ACKNOWLEDGEMENT
I would like to thanks Miss Taruna Dureja to give me guidelines and my worthy
thanks to my teacher (faculty member) for their valuable contribution during the
academic session and guidance in preparation of this project report.
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Company profile of ICICI PRUDENTIAL
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PREFACE
Beginning of the system project is entirely creative. This does not come all
of a sudden, but it comes by result of discussion, consultation and
contemplation. Problem unsolved here can never be satisfactory eliminated
later. It is therefore a slow process.
Moreover practical training is an important part of management courses.
The theoretical studies are not sufficient to get into the corporate world.
Only practical knowledge can help us to understand the complexities of
large scale organizations.
To develop healthy managerial and administration skill in potential
managers, it is necessary that theoretical knowledge must be supplemented
with exposure to the real environment. Actually, it is life for, a management
itself is realized.
In my case I confronted myself to ICICI prudential Life insurance company
Ltd. & the exposure that I could not have gained from the books. I found it
very interesting and challenging. I did my training at Una branch office and
my topic of project is INCLINATION TOWARDS ULIP security and
Investment solution with special reference to ICICI PRUDENTIAL
LIFE INSURANCE.
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DECLARATION
I hereby declare that the project ICICI PRUDENTIAL LIFE INSURANCE LTD
NEW CHANNEL TIE UP WITH POST OFFICE of Life Insurance
Corporation of India and ICICI Prudential in UNA) for ICICI
PRUDENTIAL LIFE INSURANCE is original and beneficed work done by me.
The project is being submitted in partial fulfillment requirements for the award degree of BBA
Under PTU JALANDHER .
The contents of this project are based on the field work and analysis done by me during my
tenure at ICICI Prudential, UNA
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EXECUTIVE SUMMARY
The Winter training is a integrated part of BBA course. In this period of 6 weeks we
come to know about the problem and how to solve those problems. In this we gained
practical knowledge about the organizational work.
I came to the conclusion that the financial position of company very strong and people
are more interested to invest their earning in ICICI PRUDENTIAL LIFE
INSURANCE as compare to other financial institutions. In last three or four year
ICICI PRUDENTIAL LIFE INSURANCE constantly ranked no.2 position in
Insurance sector. ICICI PRUDENTIAL LIFE INSURANCE satisfied their consumers
by fulfilling their needs sets.
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IRDA GUIDELINES ON ULIPS
IRDA has prescribed a minimum sum assured equal to 50 per cent of the total
annualized premium during the entire policy term or five times the annualized
premium, whichever is higher. This regulation is aimed at maintaining the basic
characteristic of a life insurance policy, where life cover should be the primary
benefit. Till the policyholder turns 60 years old, the sum assured cannot be
reduced by partial withdrawals. This is aimed at protecting the life insurance
cover.
Time Period:
According to new guidelines the time period of investment in ULIPs has been
increased to 5 years. Earlier it was for 3 years.
Top-up Premiums:
Earlier, withdrawals from ULIPs were possible even within a year of issue.
Depending on the option selected, they were reduced from the sum assured,
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resulting in dilution of death benefits to the nominees. Now, withdrawals will be
allowed only after three years. The new guidelines provide that except for
withdrawals made during the two years immediately preceding death, no other
withdrawals can be reduced from the sum assured. But once the customer is
past the age of 60, all withdrawals can be reduced from the sum assured.
Lock-in period:
A top-up premium cannot be withdrawn for three years. This places ULIPs on
par with mutual fund contributions under Section 80C of the Income Tax Act,
1961. The only relaxation in this condition is on withdrawal of top-up premiums
made during the last three years of the policy contract.
Settlement options:
Charges:
Market Conduct:
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CHAPTER 1
INTRODUCTION
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Introduction to study:
My study is that I have to Analysis with regard to Investors base and Investment avenues
in case of insurance companies-ICICI PRUDENTIAL NEW CHANNEL TIE UP WITH
POST OFFICE Lets discuss the concept of insurance and a brief introduction about
these 2 companies.
Its hard to think about those you leave behind if something happens to you. Your family
counts on you every day for financial support: food, shelter, transportation, education,
and much more. You and your spouse have plans or your future and dreams for your
family: a bigger home, a new business, college education, travel, retirement etc.
Life insurance is all about making sure your family has adequate
financial resources to make those plans and dreams come true, if you were
to die prematurely
It provides financial protection to help your family to manage after your 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
Many companies are coming with various plans Ulip plan is one of them which provides
huge benefit to the public. It provides insurance as well as investment.
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Why Life Insurance?
You think twice before taking the plunge into buying insurance. Is buying
insurance a necessity now? Spending an 'extra' amount as premium at
regular intervals where you do not see immediate benefits does not seem a
necessity at the moment.
Insurance is not about how much more it can offer you when the stock
market is at its peak. It may not be an attractive investment option. But
weigh the pros and cons and consider how much more it offers at a small
price.
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If the earning member of the family is no more your child's
educational needs will not suffer. In fact his higher education too will be
provided for. You need not spend sleepless nights thinking about how to save
for your child's marriage. Life Insurance will take care of that typical once-
in-a-life-time spending on marriages.
The need for life insurance comes from the need to safeguard our family. If
you care for your familys needs you will definitely consider insurance.
Today insurance has become even more important due to the disintegration
of the prevalent joint family system, a system in which a number of
generations co-existed in harmony, a system in which a sense of financial
security was always there as there were more earning members.
Times have changed and the nuclear family has emerged. Apart from other
pitfalls of a nuclear family, a high sense of insecurity is observed in it today
besides, the family has shrunk. Needs are increasing with time and
fulfillment of these needs is a big question mark. Insurance provides a sense
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of security to the income earner as also to the family. Buying insurance frees
the individual from unnecessary financial burden that can otherwise make
him spend sleepless nights. The individual has a sense of consolation that he
has something to fall back on.
From the very beginning of your life, to your retirement age insurance can
take care of all your needs. Your child needs good education to mould him
into a good citizen. After his schooling he needs to go for higher studies, to
gain a professional edge over the others - a necessity in this age where
cutthroat competition is the rule. His career needs have to be fulfilled.
Life insurance today plays a major role in ones life at various stages.
Considering the benefits it offers one cannot but give a thought to buying an
insurance policy at the earliest.
INSURANCE PROVIDES:-
1 Risk Coverage
2 Child Solutions
3 Whole-Life Plans
4 Health Protection
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5 Superior Saving Instrument
6 Investment
7 Retirement(Pension Plans)
1 Board of Directors
The ICICI Prudential Life Insurance Company Limited Board comprises reputed people
from the finance industry both from India and abroad.
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PROFILE OF INSURANCE INDUSTRY
You think twice before taking the plunge into buying insurance. Is buying
insurance a necessity now? Spending an 'extra' amount as premium at
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regular intervals where you do not see immediate benefits does not seem a
necessity at the moment. May be later well you could be wrong. Buying
Insurance cannot be compared with any other form of investment. Insurance
gives you a life long benefit and the returns will definitely come but only
when you need it the most i.e. at the right time. Besides buying insurance
early in life is one of the wise decisions you could take. Because the
premium you would be paying would be comparatively lower.
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Birla Sun Life Insurance Company Ltd.
General Insurers:
GIC had four subsidary companies, namely ( with effect from Dec'2000,
these subsidaries have been de-linked from the parent company and made as
independent insurance companies.
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4. United India Insurance Company Limited.
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Company Profile of
POST OFFICE
GENERAL PROFILE OF THE ORGANISATION, FUNCTIONS AND DUTIES
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Shri. Sachin Pilot is the Minister of State for Communications and Information
Technology.
Ms. Radhika Doraiswamy Secretary (Posts) Chairman, Postal Board & Director
General
Dr. Uday Balakrishnan Member (PLI) & Chairman Investment Board, Postal
Services Board
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Sri P K Gopinath Member (Planning), Postal Services Board
For providing postal services, the whole country has been divided into 22 Postal
Circles. These Circles manage the day-to-day functioning of the various Head
Post Offices, Sub - Post Offices and Branch Post Offices, through their Regional and
Divisional level arrangements.
Objectives
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printing of public postage stamps/commemorative stamps including postal
stationery, premium postal products and any agency function.
6. Matters relating to administration of the Indian Post Office Act, 1898 and rules
made there under as well as other laws or enactments having a bearing on
postal activities, not specifically allotted to any other Department.
Network
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INDIA HAS THE LARGEST POSTAL NETWORK IN THE WORLD WITH
1,55,669 POST OFFICES OF WHICH 89% ARE IN RURAL AREAS. AT THE TIME
OF INDEPENDENCE, THERE WERE 23,344 POST OFFICES, WHICH WERE
PRIMARILY IN THE URBAN AREAS. THUS THE NETWORK HAS REGISTERED A
SEVEN FOLD GROWTH OVER THE LAST FIVE DECADES, THE FOCUS OF THIS
EXPANSION BEING IN THE RURAL AREAS. ON AN AVERAGE, A POST OFFICE
SERVES AN AREA OF 21.09 SQ. KM. & POPULATION OF 6,585. THROUGH
THESE OFFICES IT ENSURES DAILY DELIVERY OF DAK AT THE DOORSTEP OF
EVERY CUSTOMER ALL OVER THE COUNTRY, COLLECTION OF LETTERS
THROUGH LETTERBOXES, AND ALSO SALE OF STAMPS AND STATIONERY
THROUGH VILLAGE POSTMEN AT THE DOORSTEP OF CUSTOMERS IN RURAL
AREAS. POST OFFICES IN URBAN AND RURAL AREAS PROVIDE A RANGE OF
BASIC POSTAL SERVICES TO THE CUSTOMERS, INCLUDING BANKING AND
INSURANCE SERVICES. BILL COLLECTION FELICITIES ARE BEING EXTENDED
THROUGH ALL POST OFFICES IN URBAN AREAS, AND IDENTIFYING POST
OFFICES IN RURAL AREAS. CERTAIN VALUE ADDED SERVICES ARE BEING
PROVIDED IN SELECTED OFFICES IN URBAN AREAS.
Efforts are also being made to identify means of providing postal services
through more cost effective measures. The Licensed Stamp Vendor Scheme,
Licensed Postal Agents Scheme and the Panchayat Sanchar Sewa Yojana(PSSY) were
initiatives that were taken up in this regard. So far 7,697 Panchayat Sanchar Sewa
Kendras(PSSKs) have been opened, including 2,371 PSSKs under the 10 th Plan.
Since an assessment of these schemes indicates the need for restructuring them, no
targets were given in 2004-05 for opening PSSKs.
Efforts are also underway to optimize the retailing capacity of the network.
One major initiative taken up in the current year is the retailing of non-life insurance
products through Post Offices. The Department has entered into an agreement with
the Oriental Insurance Company to function as their Corporate Agent for marketing
identified non-life products. This Scheme was launched on a pilot basis through
select Post Offices in 2 districts each of 7 Circles. It is being gradually expanded,
after providing the requisite training to other Circles.
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Postal Services
Postal operations at the post office encompass the entire gamut of the basic
postal services which interalia include:
Mail Operations
Mail processing, transmission and delivery are the core activities of the
Department. Mail is collected from 0.60 Million letter boxes in the country. This is
processed by a network of 466 Railway Mail Service Offices, and conveyed by road,
rail and airlines all over the country.
Philately
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Aerogram and Registered Cover etc.
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Insurance is a must because of the uncertain future adversities of life.
Accidents, illnesses, disability etc are facts of life that can be extremely
devastating. Other than the hospitalization, medication bills these may run
up its the aftermath of the incident, the physical well being of the individual
that has to be taken into consideration. Will the individual be in a position to
earn as before? A pertinent question. But what if he is not? Disability can be
taken care of by insurance. Your family will not have to go through the grind
due to your present inability.
You think twice before taking the plunge into buying insurance. Is buying
insurance a necessity now? Spending an 'extra' amount as premium at
regular intervals where you do not see immediate benefits does not seem a
necessity at the moment. May be later well you could be wrong. Buying
Insurance cannot be compared with any other form of investment. Insurance
gives you a life long benefit and the returns will definitely come but only
when you need it the most i.e. at the right time. Besides buying insurance
early in life is one of the wise decisions you could take. Because the
premium you would be paying would be comparatively lower.
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29
30
)
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The company mainly depends on advisors. The advisors are
considered as the brand ambassadors of the company or the working
partner who doesnt have to invest to get returns but just work with
the company to make money. Advisors main job is to sell policy and
in return the advisors get huge return like high commission, rewards,
recognition etc. He is, for all purposes, an authorized salesman for
insurance.
Advisors can become the Unit Manager of the company if they
pass the pinnacle program. ICICI Prudential has recruited and trained
about 56,000 insurance advisors to interface with and advise
customers. Further, it leverages its state-of-the-art IT infrastructure to
provide superior quality of service to customers.
Manager will get a fixed salary and the commission on the
policies sold by his advisor and the commission of the policies which
he has already sold. Tiger team manager is one who gets to sell the
policy and get commission, train the advisors about the product and
he is also a paid up employee of the company.
ICICI GROUP
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VISION
To be the dominant Life, Health and Pensions player built on trust by
world-class people and service
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VALUES
Very member of the ICICI Prudential team is committed to 5 core
values: Integrity, Customer First, Boundary less, Ownership, and
Passion. These values shine forth in all we do, and have become the
keystones of our success
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ICICI Prudential Life Insurance Company is a joint part of ICICI Bank, a
premier financial powerhouse, and Prudential policy, 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. 18.15 billion with ICICI Bank and
Prudential plc holding 74% and 26% stake respectively. For the period
April-December 2006, the company garnered new business weighted
premium of over Rs 2,302 crore and wrote over 1.1 million policies. The
company has assets held to the tune of over Rs 13,000 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. To know more
about the company, please visit www.iciciprulife.com.
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Distribution
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1 .NSC
2 .PPF
4 .PO MIS
5 .TIME DEPOSITS
6 .FIXED DEPOSITS
1.Kisan vikas patra min/max investment min 100rs 500rs 1000rs 10000rs
50000rs there is no maximum limit
2. Term 8years7months
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2.post office time deposits
Interest rate
1years-6.25%
2years-6.5%
3years-7.25%
5years-7.5%
Quartely compounding
Interim withdrawal-taxable
Withdrawal on maturity-taxable
3.NSC
Term-6years
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Tax benefits-at the time of investment rebate available on investment and
accrued interest up to 1 lac under sec 80c
Withdrawal on maturity-taxable
Interim withdrawal-taxable
Withdrawal on maturity-taxable
TERM-6 year
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TERM-5years extended by 3year
INTERIM PAYABLE-taxable
TERM-15 year
rationale.
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To study the awareness level of private COMPANY among the GOVT
requirement
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2 Insurance Plans
ICICI Prudential has a wide array of insurance plans that have been
designed with the philosophy that different individuals are bound to have
differing insurance needs.
The ideal insurance plan is one that addresses the exact insurance needs of
the individual that will depend on the age and life stage of the individual
apart from a host of other factors.
Under Life insurance plans, ICICI Prudential offers plans under the
following major need categories:
Education Insurance Plans
Wealth Creation Plans
Premium Guarantee plans
Protection Plans
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Pension & Retirement Solutions:
The primary objective of a pension plan is to help you provide for your
financial needs in your post retirement years. You will find a Pension
Planning Calculator on the site, meant to make your pension plan review as
simple as possible. The calculator is the first step in your Pension Plan
scheme, there are othe steps towards getting the Indian pension policy you
need.
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Health Product Suite:
Under Health Product Suite, ICICI Prudential offers plans under the
following major need categories:
Hospitalisation Plans
MediAssure
Hospital Care
Cancer Products
Cancer Care
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Diabetes Products
Diabetes Care Active
Diabetes Assure
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Under the education insurance plans platform, ICICI Prudential brings
the following products to you. Please click on the product name to know
more about the plans.
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life cover to be allied to the returns of market linked instrument giving
them an unmatched combination of benefits.
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Retirement Solutions
Group Plans
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CHIEF MANAGING DIRECTOR (CMD)
(PENINSULAR) (HIMALAYAN)
Sales Head
ZONAL MANA GER ZONAL MANA GER ZONAL MANA GER ZONAL MANA GER ZONAL MANA GER
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RESEARCH
METHODOLOGY
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Research Methodology deals with, the procedure adopted to carry
data cllection.
TYPE OF RESEARCH
Research plays an important role in the project work. The result of the
project is completely based upon the research of the facts and figures
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collected through the different ways of research. That is why it is also
an event.
Research Design
Primary data:
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by me with the help of Miss Taruna Arora who provide useful guidelines
Secondary data:
Data Source:
The data that is collected from different sources, as the first hand
Research Approach:
questionnaire method.
Sampling plan:
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There is a stage where the planning is done about the sample
Sample units:
Sample size:
that total sample size is 150, which cover from different area of Una.
Sampling Procedures:
Research Instruments:
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method a questionnaire was framed. This is Philip by the potential
SWOT ANALYSE
Strength
Weakness
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Lack of promotional campaigns
Competitors are in the market offer same product offered
by the difference in the premium and offering.
Lack of customer awareness
Opportunity
.
Threats
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Results and Disscussions/Findings
Do you invest?
100 72 28
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If not, why? What is the reason for that?
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If not investing, are you interested in investing?
28 20 8
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What comes do you perceive first while investing?
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Are you adequately insured?
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No. of Respondents Yes No
72 53 19
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No. of Security High saving Tax others
Respondents returns benefits
72 15 15 16 21 5
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Are you satisfied with the investment decision?
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72 6 39 19 6 2
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8 1 1 1 1 1 3
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What do you think who can better guide you for investment?
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Which Company do you prefer for investing?
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Are you satisfied with the behavior/knowledge of broker/agent of a
company preferred by you?
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CONCLUSION
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code of conduct, contributing to a common catastrophe reserve fund,
and chalking out agreements between insurers to settle claims to the
benefit of the consumer will require concerted effort from both
sectors.
The market is now in an evolving phase where one can expect a lot
of actions in coming days. The current impediments for foreign
participation like 26% equity cap on foreign partner, ill defined
regulatory role of IRDA (Insurance Regulatory development Authority-
the watchdog of the industry) in pension business etc.are expected
to be removed in near future. The early-adopters will then have a
clear advantage compared to laggards in gaining the market share
and market leadership. The will need to make sure right now that all
their infrastructure is in place so that they can reap the benefit of an
"unlimited potential."
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BIBLIOGRAPHY
Books:
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4 Statistical Methods by S.P. Gupta, 34th edition, published
by Sultan Chand & Sons.
Websites:
1 www.economywatch.com
2 www.icicipru.com
3 www.licindia.com
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4 www.irda.org
5 www. Indiainfoline.com
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