Professional Documents
Culture Documents
A PROJECT REPORT
Submitted By
JAYADEEP MANJESHWAR
MMS
Anjuman-I-Islams
Allana Institute of Management Studies
July 2013
Market Scoping and Analysis of Financial
Investment & Loan Products
July 2013
Declaration
This is to certify that the study presented by Sarfaraz Mohammed Zubair Holy to the
Anjuman-I-Islams Allana Institute of Management Studies, in part completion of the MMS
under the title Market Scoping and Analysis of Financial Investment & Loan Products
has been done under the guidance of Prof. Jayadeep Manjeshwar.
The project is in the nature of original work that has not so far been submitted for any
program of Anjuman-I-Islams Allana Institute of Management Studies or any other
University / Institute. References of work and related sources of information have been given
at the end of the project.
I would like to express my sincere gratitude to my project guide Prof. Jayadeep Manjeshwar
for giving me the opportunity to work on this topic. It would never be possible for us to take
this project to this level without his innovative ideas and his relentless support and
encouragement.
A - 15
INDEX
INDIA INFOLINE FINANCE LTD
INTRODUCTION
IIFL was founded in 1995 by Mr. Nirmal Jain (Chairman and Managing Director) as an
independent business research and information provider. It gradually evolved into a financial
services solutionprovider. IIFL has a network of 3000 business locations spread over more
than 500 cities and towns across India.
IIFL is listed on the Bombay Stock Exchange (BSE) and the National Stock Exchange of
India (NSE) for securities trading; with MCX, NCDEX and DGCX for commodities trading;
and with CDSL and NSDL as depository participants. IIFL is registered as a Category I
merchant banker and is a SEBI registered portfolio manager.
IIFL is a one-stop financial services shop, most respected for quality of its advice,
personalised service and cutting-edge technology. They have come a long way since their
inception and made a mark in the industry. The IIFL group, comprising the holding company,
India Infoline Ltd and its subsidiaries, is one of leading players in the Indian Financial
Services Space.IIFL offers advice and execution platform for the entire range of financial
services covering products ranging from Equities and Derivatives, Commodities, Wealth
Management, Asset Management, Insurance, Fixed Deposit, Investment Banking,
Loans(Gold, Home, Mortgage, Commercial Vehicle). IIFL recently received an in-principle
approval for Securities Trading and Clearing memberships from Singapore Exchange (SGX)
paving the way for IIFL to become the First Indian Brokerage to get a membership of the
SGX. IIFL also received membership of the Colombo Stock Exchange becoming first foreign
broker to enter Sri Lanka. IIFL owns and manages the website, www.indiainfoline.com,
which is one of Indias leading online destinations for personal finance, stock markets,
economy and business.
IIFL has been awarded the Best Broker, India by Finance Asia and the Most Improved
Brokerage, India in the Asia Money Polls. India Infoline was also adjudged as Fastest
Growing Equity Broking House-Large Firms by Dun & Bradstreet. A forerunner in the field
of equity research, IIFLs research is acknowledged by none other than Forbes as Best of
Web and a must read for investors in Asia. IIFLs research is available not just over the
internet but also on international wire services like Bloomberg, Thomson First Call and
Internet Securities where it is amongst one of the most read Indian Brokers.
Board of Directors
Mr. Nirmal Jain is the founder and Chairman of India Infoline Ltd. He is a PGDM (Post
Graduate Diploma in Management) from IIM (Indian Institute of Management) Ahmedabad,
a Chartered Accountant and a rank-holder Cost Accountant. His professional track record is
equally outstanding. He started his career in 1989 with Hindustan Lever Limited, the Indian
arm of Unilever. During his stint with Hindustan Lever, he handled a variety of
responsibilities, including export and trading in agro-commodities. He contributed immensely
towards the rapid and profitable growth of Hindustan Levers commodity export business,
which was then the nations as well as the Companys top priority.
He founded Probity Research and Services Pvt. Ltd. (later re-christened India Infoline) in
1995; perhaps the first independent equity research Company in India. His work set new
standards for equity research in India. Mr. Jain was one of the first entrepreneurs in India to
seize the internet opportunity, with the launch of www.indiainfoline.com in 1999. Under his
leadership, India Infoline not only steered through the dotcom bust and one of the worst stock
market downtrends but also grew from strength to strength.
Mr. R. Venkataraman
Managing Director , India Infoline Ltd.
Mr. R Venkataraman, Co-Promoter and Managing Director of India Infoline Ltd, is a B.Tech
(electronics and electrical communications engineering, IIT Kharagpur) and an MBA (IIM
Bangalore). He joined the India Infoline Board in July 1999. He previously held senior
managerial positions in ICICI Limited, including ICICI Securities Limited, their investment
banking joint venture with J P Morgan of US, BZW and Taib Capital Corporation Limited.
He was also the Assistant Vice President with G E Capital Services India Limited in their
private equity division, possessing a varied experience of more than 19 years in the financial
services sector.
Pallab Mukherji
President, Human Resource
IIFL Vision
To become the Most Respected Company in the financial services space in India
IIFL Values GIFTS
Services Growth
Transperency Integrity
Fairness
Growth
IIFL has grown from a search firm in 1995 to a leading financial powerhouse in less
than a decade. From research, now the company provides the entire range of services
including Institutional Broking, Investment Banking, Wealth Management Services,
Life Insurance Distribution, Credit and Loans and Gold Loans. In the last five years
IIFL has grown at a compounded annual rate of 30%.
Today, the company has one of the widest networks across the country with more
than 3000 business locations spread over more than 500 cities and towns across India
facilitating smooth acquisition and servicing of a large customer base. The group
caters to a customer base of about a million customers, over a variety of mediums viz.
online, over the phone and its branches. Its International footprints cover Singapore,
Dubai, Sri Lanka, USA and Europe.
Integrity
At IIFL they believe all employees to implement things which are legally morally and
ethically correct Integrity is the cornerstone on which business is built. No short cuts
compliance is necessary for business to grow. A cardinal rule no compromises on
ethics and any wrong act like even fudging a travel bill will mean termination.
Fairness
Merit is the sole determinant in the career growth of an IIFL employee. The appraisal
process in IIFL is transparent with the employee being evaluated on clearly defined
parameters. There are internal job postings which are posted at regular intervals. IIFL
always prefer to fill in vacancies by internal promotions and only then recruits from
external source are considered.
Transparency
At IIFL most of the information is available on intranet IWIN (India Infoline Web
based Information Network) via circulars and policies.
Employees can also directly communicate with the top management via the IWIN
Q&A (Question & Answer) feature.
Service
IIFL organizes many activities as a part of its corporate social responsibility initiative.
Employees participate as volunteer at these events.
IIFL regularly conducts eye donations camps, medical camps and blood donation
camps. Active participation of employees is encouraged in running the whole process.
IIFL BUSINESSES
1. Broking
Retail One of the leading brokerage houses in the nation with options to
invest in Equity, Commodity and Currency.
Institutional High Quality Research and block placement capabilities.
2. Wealth Management
Advisory IIFL are on the leading Indian Players in Wealth Management and
having Assets under Advisory above 200bn.
4. Investment Banking
Primary expertise is Equity Capital Markets with a view to leverage
institutional and retail distribution capabilities.
5. AMC
Successfully launched own Mutual Fund with NIFTY ETF and IIFL FMP.
Glory of gold is unique. The precious yellow metal is celebrated as Emperor of metals.
Some people compare this metal with the Almighty God. Gold is called as Swarnam,
Aparanji, Chinna, Sona, Pon, Thangam, Bangaru in various Indian languages. Pure gold is
called as Fine Gold in English.
Gold is taken out from the earth, naturally with silver & cooper. South Africa is the major
supplier of gold(50% of gold). Only in Australia gold is mined in pure state of 99.65%
naturally. India is the top most user of gold in the world. India is consuming 800 tons of gold
per annum approximately.
In India gold is mined in Kolar&Hatti in Karnataka state. But recently the Kolar mines were
closed, because the administrative & executing expenses were higher than the gold.
Gold is a very soft metal we can mould the gold into a very thin foil & stretch it into a thin
wire. Gold is a best conductor of heat & electricity. If the gold is put in water or sea even for
hundred years it wont get rusted. Gold will not react with single chemical or any acid. But it
will dissolve only in Aquaregia, a mixture of nitric acid & hydrochloric acid.
Gold is mostly available in South Africa, USA, Mexico, Canada, Brazil, Russia, China &
Australia in large amount. Gold is used in various fields such as electronics, communications,
technology, medical field & in jewellery. Gold is utilised in minting coins as alloy metal.
Now a days every countrys currency is based on the reserve of the gold in that Government.
USA, Canada, UK, Australia, China & South Africa govts are economically well off because
of their gold stock.
Basic Features of Gold
Colour : Yellow
Symbol : Au (Aurum)
Atomic No. : 79
Weighing Units
1 Sovereign : 8 gm
1 Tola : 11.664 gm
100% purity is not available, because sometimes other metal particles may be available while
Refining. So pure gold is denoted as 24 Karat or 99.99% Gold.
24 99.99
22 91.60
21 87.50
18 75.00
14 58.50
9 37.50
Carat
Generally Karat denotes the purity of Gold and Carat denotes the weight of the Gems and
Diamonds.
Carat Weight
Before using the touch stone, it should be cleaned & some drops of coconut oil have
to be applied over the surface evenly.
While checking the gold in touch stone, the rubbing should be done deeply &
repeatedly rubbing in the same place 8 to 10 times. The rubbing length should not
exceed 2cms.
While rubbing the gold, if the rubbing seems to be soft, it shows high percentage of
gold (88% to 91.60%).
Where rubbing seems to be hard, it may be below 83% purity.
When rubbing gold, if blister are found more it may be high percentage & it may look
like dim
When rubbing gold, if blister are not found, it may be low percentage & it may look
like bright.
With these points, we may come to a conclusion of nearly knowing the percentage of
quality. But for confirming the percentage of gold, we have to use the nitric acid &
sodium chloride (salt).
If we rub metal other than gold, while applying nitric acid, the rubbing will disappear
quickly.
If we rub the gold of 50% & below, while applying nitric acid, the rubbing will not
disappear quickly. Only colour will change to reddish. After applying salt, the rubbing
will disappear & lustre will form in that place.
3. Quality. (Skin %)
4. Less in weight for dust, stones, enamels, beats, shellac weight. (Gross wt)
6. Appraisal value. (Value of pure gold) = G. wt. * Melting % * Pure Gold rate.
7. Bank value. (Loan amount) Gross wt. * As per Scheme Rate / gm.
Types of Jewels
I. Casting Jewels:
Coins, Bangles, Rings, Lockets, Necklace, Bracelet & Stud drops.
2. Competition:
How often do you come across a customer who tells you that your charges are high
compared to broker or this facility is available with broker. Or broker always
provides me this much credit etc. Hence it becomes imperative that you as a
relationship manager keep a track of competition products and services. Quite often
you will find that if another broker is offering a different product then he is missing
out on some feature which your product holds. Use this strength of your product to
convince the customer.
Never ever badmouth any other company in customers presence. It reflects your lack
of faith in your own product. There might be instances wherein you really find that we
can improve our current offerings by adding a certain feature to existing product. In
such scenario, please communicate your suggestions to the respective product head.
IIFL believe that in these dynamic times there is always room for improvements.
3. Communication:
What you wish to communicate is as important as how you communicate it. There are
various modes of communication available like physical meeting, emails, smss etc. It
is important to understand the importance and urgency level of the message that you
need to get through. Every customer likes to feel special, so when you are sending
across a mail to a customer, dont send bulk mails. There is a specific team for
sending bulk mails. To create an impact send properly addressed mails with greetings
and objectives, if you want to communicate something very important dont just send
a mail, call the customer if he is not available then send across a message. Meetings
should be done when you want to introduce yourself to the customer as his RM,
exchange some physical material and if you are amongst the chosen few who the
customer has invited for some function/gathering.
4. Care:
Suppose you were to meet Amitabh Bachchan at his residence, would you not take
care to dress well, prepare yourself with questions that he might ask or you would
want to ask. Similarly one should start treating their customer also as Amitabh
Bachchan, because he is not only inviting you to be a part of his circle but entrusting
you with his hard earned money. Meeting Amitabh Bachchan might not change your
life but meeting the right customer just might and you never know who the right
customer is.
5. Competence:
There is absolutely no alternative to competence wherein you are dealing in the
financial industry. There is a constant need to keep yourself updated in current events,
markets, your organizational product and process as well as customers portfolio. This
will not only give you an edge but mould the customer to in still his faith in you.
It is important to understand that one does not gain competence overnight. It requires
a continuous ongoing effort and the will to implement your learning.
6. Complaints:
A customer complaints either because he has genuinely suffered a setback due to a
mismanagement from our end or because he feels that he has suffered a setback due to
a mismanagement from our end. In both the circumstances it is important to listen to
the customer, ask him time for investigation and not commit except the TAT you will
require to come back to him/her.
Convey your regret, if needed one can apologize for the inconvenience caused but any
kind of over commitment can have legal repercussions. The best way to handle this
would be to keep the customer informed of any update that is happening with his case
and always take the customers call.
7. Checks:
Check and Double Check. This approach will help you minimise mistakes and ensure
that you give complete and correct picture to your customer. There can be no margin
of error while dealing with clients money and financials. This is a huge responsibility
which we take over when the customer signs in with us.
What is gold loan?
Gold Loan:
Gold Loan is defined as a form of debt financing whereby a potential gold producer borrows
gold from a lending institution, sells the gold on the open market, uses the cash for mine
development, then pays back the gold from actual mine production. Gold loans had less
appeal in the 1990s as mining companies were offered other increasingly sophisticated
financial instruments, such as forwards and options, by the bullion banks.
Gold Loan or Loan against Gold is the easiest and quickest way for servicing financial needs.
To avail a gold loan, all you need to do is pledge your gold ornaments with us and we would
provide you with a loan amount as per the market value of your gold. Unlike other loans,
gold loan does not require you to provide any income or salary proof. Moreover, it has
comparatively lower interest rates, requires lesser documentation, hence is processed in lesser
time.
IIFL provide maximum loan against your gold at lowest interest rates. IIFL have a strong
presence Pan India and have serviced a large number of customers in a very short span. IIFL
offer different types of schemes as per your requirement and convenience.
Valuer 1
Valuer 2
Confirms the purity, loan amount & passes the same to CCE.
CCE At the same time, CCE and valuers does system entry. Signature of customer,
valuers & BM done in the loan docs. Paper passed on to Cashier.
Cashier
Role of Cashier:
To make sure that cash is taken from vault strictly as per cash denomination entered
in the system.
Ensuring that cash is counted twice before giving it to customer.
To make sure that cash transaction is done in front of CCTV camera.
Prospects: Any suspect who is contactable and available for communication is a prospect.
Qualified Prospects: Any prospect who has the Money, Motivation, and Authority to buy
the product.
Professional Management
Mutual fund investments are managed by professionals who are experts in
investments.
All investment is done by the professional based on extensive research.
Liquidity
Most Mutual Funds offer the investor the facility of redeeming the units at any
time to the investor.
Diversification
As an individual investor in the capital markets it is expensive to build and
maintain a diversified portfolio.
Mutual funds can help the investor diversify at a much lower investment level.
If the investor invests in a diversified Mutual Fund, he can get a professionally
managed diversified portfolio for a much lesser investment.
Tax Benefits
Provide tax deduction up to the limits specified u/s 80C of the Income Tax
Act, 1961 is eligible for deduction.
Shorter lock-in period of 3 years as compared to other traditional tax saving
instruments.
It offers a potential for a higher return and potential to earn tax-free dividend.
Also, there is no tax on long term capital gains on redemptions done after lock
in period.
Convenience
No additional documents or medical tests are required; only certain details are
to be filled up.
Classification of Mutual Fund
Mutual fund
Open ended: At any time during the scheme period, investors can enter and exit the
fund scheme by buying and selling fund units at its NAV.
Close ended: Redemption can take place only after maturity or at regular pre
stipulated intervals. However funds are listed on the stock exchange and investors can
buy and sell units from the secondary markets.
Large cap: Funds are invested in only large companies and are perceived to be less
risky and more liquid in the markets.
Mid cap: Funds are invested in mid-sized companies and are perceived to be
moderately risky and less liquid in the markets.
Small cap: Funds are invested in small sized companies and are perceived to be very
risky and comparatively illiquid in the event of correction.
Debt Fund:
Income Fund
o Investment is made in income bearing instruments like bonds,
debentures government securities and commercial paper.
Gilt Fund
o Funds are invested in Government securities and Treasury bills.
Fixed Maturity Plan (FMP)
o These are close ended funds which mature after a certain period. They
invest in securities matching the maturity profile of the fund.
Hybrid Fund:
Balanced Fund
o They have an equity exposure of 60-70% and the balance is invested in
debt instruments.
Monthly Income Plan (MIP)
o They have equity exposure of 10-15% and rest is invested in debt
instrument. MIPs provide monthly income to the investors by way of
dividends.
3. Home Loan:
A new home brings with it new hopes, joys and emotions. At IIFL, we have shared
new hopes, joys and emotions with our customers. Every customer has a specific and
unique concern and our home loan product is customized to provide you solutions for
your unique concern. IIFL group has set up India Infoline Housing Finance Ltd.
(IIHFL) to offer highly customized facilities of availing Home Loans.
We believe that in order to succeed, we need to offer not only competitive products,
but also the best possible service and value-added features and benefits. In a market
where the basic product is largely similar, the differentiator is our ability to
understand the customer's need completely and structure the value-adds appropriately.
4. Wealth Management:
5. Equity Research:
IIFL special research cell where some of India's finest financial analysts bring you
intensive research reports on how the stock market is faring, when is the right time to
Invest when to execute your order and more. IIFL make sure that investors are always
prepared to make own investment decision when the opportunity arises. IIFL bring
you intensive research reports - whether sectoral or company-wise or more - that tell
you exactly when and where to invest. So whenever there is an exciting investment
opportunity, you are in the know and always ready to invest. Research reports IIFL
will help you choose your investments wisely, without wasting time. Presented in a
lucid and easy-to-understand format; these reports help you make informed decisions.
In India, insurance has a deep-rooted history. It finds mention in the writings of Manu
( Manusmrithi ), Yagnavalkya (Dharmasastra ) and Kautilya ( Arthasastra ). The writings
talk in terms of pooling of resources that could be re-distributed in times of calamities such as
fire, floods, epidemics and famine. This was probably a pre-cursor to modern day insurance.
Ancient Indian history has preserved the earliest traces of insurance in the form of marine
trade loans and carriers contracts. Insurance in India has evolved over time heavily drawing
from other countries, England in particular.
1818 saw the advent of life insurance business in India with the establishment of the
Oriental Life Insurance Company in Calcutta. This Company however failed in 1834. In
1829, the Madras Equitable had begun transacting life insurance business in the Madras
Presidency. 1870 saw the enactment of the British Insurance Act and in the last three decades
of the nineteenth century, the Bombay Mutual (1871), Oriental (1874) and Empire of India
(1897) were started in the Bombay Residency. This era, however, was dominated by foreign
insurance offices which did good business in India, namely Albert Life Assurance, Royal
Insurance, Liverpool and London Globe Insurance and the Indian offices were up for hard
competition from the foreign companies.
The Insurance Amendment Act of 1950 abolished Principal Agencies. However, there were
a large number of insurance companies and the level of competition was high. There were
also allegations of unfair trade practices. The Government of India, therefore, decided to
nationalize insurance business.
An Ordinance was issued on 19th January, 1956 nationalising the Life Insurance sector
and Life Insurance Corporation came into existence in the same year. The LIC absorbed 154
Indian, 16 non-Indian insurers as also 75 provident societies245 Indian and foreign
insurers in all. The LIC had monopoly till the late 90s when the Insurance sector was
reopened to the private sector.
The history of general insurance dates back to the Industrial Revolution in the west and
the consequent growth of sea-faring trade and commerce in the 17th century. It came to India
as a legacy of British occupation. General Insurance in India has its roots in the establishment
of Triton Insurance Company Ltd., in the year 1850 in Calcutta by the British. In 1907, the
Indian Mercantile Insurance Ltd, was set up. This was the first company to transact all classes
of general insurance business.
1957 saw the formation of the General Insurance Council, a wing of the Insurance Associaton
of India. The General Insurance Council framed a code of conduct for ensuring fair conduct
and sound business practices.
In 1968, the Insurance Act was amended to regulate investments and set minimum
solvency margins. The Tariff Advisory Committee was also set up then.
In 1972 with the passing of the General Insurance Business (Nationalisation) Act, general
insurance business was nationalized with effect from 1st January, 1973. 107 insurers were
amalgamated and grouped into four companies, namely National Insurance Company Ltd.,
the New India Assurance Company Ltd., the Oriental Insurance Company Ltd and the United
India Insurance Company Ltd. The General Insurance Corporation of India was incorporated
as a company in 1971 and it commence business on January 1sst 1973.
This millennium has seen insurance come a full circle in a journey extending to nearly 200
years. The process of re-opening of the sector had begun in the early 1990s and the last
decade and more has seen it been opened up substantially. In 1993, the Government set up a
committee under the chairmanship of RN Malhotra, former Governor of RBI, to propose
recommendations for reforms in the insurance sector.The objective was to complement the
reforms initiated in the financial sector. The committee submitted its report in 1994 wherein ,
among other things, it recommended that the private sector be permitted to enter the
insurance industry. They stated that foreign companies be allowed to enter by floating Indian
companies, preferably a joint venture with Indian partners.
Following the recommendations of the Malhotra Committee report, in 1999, the Insurance
Regulatory and Development Authority (IRDA) was constituted as an autonomous body to
regulate and develop the insurance industry. The IRDA was incorporated as a statutory body
in April, 2000. The key objectives of the IRDA include promotion of competition so as to
enhance customer satisfaction through increased consumer choice and lower premiums, while
ensuring the financial security of the insurance market.
The IRDA opened up the market in August 2000 with the invitation for application for
registrations. Foreign companies were allowed ownership of up to 26%. The Authority has
the power to frame regulations under Section 114A of the Insurance Act, 1938 and has from
2000 onwards framed various regulations ranging from registration of companies for carrying
on insurance business to protection of policyholders interests.
In December, 2000, the subsidiaries of the General Insurance Corporation of India were
restructured as independent companies and at the same time GIC was converted into a
national re-insurer. Parliament passed a bill de-linking the four subsidiaries from GIC in July,
2002.
Today there are 24 general insurance companies including the ECGC and Agriculture
Insurance Corporation of India and 23 life insurance companies operating in the country.
The insurance sector is a colossal one and is growing at a speedy rate of 15-20%.
Together with banking services, insurance services add about 7% to the countrys GDP. A
well-developed and evolved insurance sector is a boon for economic development as it
provides long- term funds for infrastructure development at the same time strengthening the
risk taking ability of the country.
ICICI Prudential
About us
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 Life's capital stands at Rs. 4,793 crores (as of March 31, 2013) with ICICI
Bank and Prudential plc holding 74% and 26% stake respectively. For the financial year
2013, the company has garnered total premium of Rs 13,538 crores and has underwritten over
13 million policies since inception. The company has assets held over Rs. 74,000 crores as on
March 31, 2013.
For the past decade, ICICI Prudential Life Insurance has maintained its dominant position (on
new business retail weighted basis) amongst private life insurers in the country, with a wide
range of flexible products that meet the needs of the Indian customer at every step in life.
Our vision
To be the dominant Life, Health 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 our policyholders
Providing an enabling environment to foster growth and learning for our employees
And above all, building transparency in all our dealings
The success of the company will be founded in its unflinching commitment to 5 core values -
- Integrity, Customer First, Boundaryless, Ownership and Passion. Each of the values
describe what the company stands for, the qualities of our people and the way we work.
We do believe that we are on the threshold of an exciting new opportunity, where we can
play a significant role in redefining and reshaping the sector. Given the quality of our
parentage and the commitment of our team, there are no limits to our growth.
Our values
Every member of the ICICI Prudential team is committed to 5 core values: Integrity,
Customer First, Boundaryless, Humility, and Passion. These values shine forth in all we do,
and have become the keystones of our success.
Promoters
ICICI Bank (taken from the press release of ICICI Bank)
ICICI Bank Limited (NYSE:IBN) is India's one of the leading private sector bank and the
second largest bank in the country, with consolidated total assets of US$ 111 billion at June
30, 2012. ICICI Bank's subsidiaries include India's one of the leading private sector insurance
companies and among its largest securities brokerage firms, mutual funds and private equity
firms. ICICI Bank's presence currently spans 19 countries, including India.
About Prudential Plc (taken from the press release of Prudential Plc)
Prudential plc is incorporated in England and Wales, and its affiliated companies constitute
one of the world's leading financial services groups. It provides insurance and financial
services through its subsidiaries and affiliates throughout the world. It has been in existence
for over 160 years and has 363 billion in assets under management (as at 30 June 2012).
Range of Products
At ICICI Prudential Life, we understand that different individuals have different needs.
The ideal insurance plan is one that addresses the exact insurance needs of the individual
which depends on the age and life stage of the individual apart from a host of other factors.
ICICI Prudential Life offers plans under the following major need categories:
Term plans
Wealth plans
Child plans
Health plans
Retirement plans
group plans
Rural plans
Customer Speak
"I was getting confused with so many different brands. When you look at the basic
and the fundamentals, you know who you can rely on in the long term and the figures
are out there for everyone to see." - Mr. Vikram Singh
"The online buying experience was simply superb and easy. I am proud to be
associated with a company which stands by its words." - Yogesh Garg
Claim Assurance
We believe every claim is a fulfillment of a promise that we have made to our policy
holders. We are committed towards securing the future of your loved ones in a quick
and efficient manner.
Our Claims settlement ratio: 96.5% (As per IRDA Annual Report FY 2011-2012)
Insurance
Insurance is the equitable transfer of the risk of a loss, from one entity to another in
exchange for payment. It is a form of risk management primarily used
to hedge against the risk of a contingent, uncertain loss. An insurer, or insurance
carrier, is a company selling the insurance; the insured, or policyholder, is the person
or entity buying the insurance policy. The amount of money to be charged for a
certain amount of insurance coverage is called the premium. Risk management, the
practice of appraising and controlling risk, has evolved as a discrete field of study and
practice.
The transaction involves the insured assuming a guaranteed and known relatively
small loss in the form of payment to the insurer in exchange for the insurer's promise
to compensate (indemnify) the insured in the case of a financial (personal) loss. The
insured receives a contract, called the insurance policy, which details the conditions
and circumstances under which the insured will be financially compensated.
Types of Insurance
Non-Life Insurance
Life Insurance
General Insurance includes insurance of all assets and events other than death of an
individual.
o Health Insurance
o Car Insurance
o Property Insurance
o Travel Insurance
Life Insurance
Utmost good faith: A positive duty to voluntarily disclose, accurately and fully, all
facts material to risk being proposed, whether requested or not.
Insurable Interest: A relationship with the Insured recognized in law and gives legal
right to the person to insure the insured.
Mortality Expense: This is the amount of premium utilized to provide life cover.
Administrative Expense & Charges: This is the amount charged to cover
Administrative expenses of the insurer.
Investment Expenses: This is the amount that is invested by the Life Insurance
Company to provide returns to the customers.
Traditional Life Insurance plans are plans where the investment is made mainly into debt
instruments with very less or no exposure to the equity markets. The customer cannot decide
where the investment is made or choose his investment options.
Types of Insurance Plans
A Systematic Investment Plan (SIP) is a disciplined approach to wealth creation. It allows the
investor to adopt a systematic and dedicated approach to financial planning by inculcating a
regular savings habit.
Instead of investing a large amount at one time, the investor can choose to stagger his
investment at regular intervals according to his convenience and ability.
Advantages of SIP
It is very difficult to predict the day to day movement of the stock markets. Hence it is good
to start investing on a staggered basis by making regular monthly investments. This helps the
investor to spread out his investments evenly over a period of time. This process of making
regular monthly investments over a period of time at various market levels is known as
Rupee Cost Averaging. It is not always possible for an investor to buy at the lowest point and
sell at the highest point. Rupee cost averaging helps the investor to reduce this of timing the
market to a great extent.
PRIMARY DATA & SECONDARY DATA (Survey)
15
2 0 times
1 times
6
2 times
50 3 times
6
4 times
5 times
6 times
18
Relatives
30
Friends
53 Loan
Savings
10
Are you aware about gold loan?
28
yes
no
72
41
Yes
No
59
If yes which company?
35
Jewellery shop
49
Bank
Financial Institute
16
37 >1000
12
upto 1500
upto 20000
upto 25000
above 30000
37
16
owned
rented
84
Have you taken any housing loan?
yes
no
97
15
yes
no
85
Activities performed: