Summer Project Report On

On study of all managerial departments & financial analysis of

ICICI Prudential Life Insurance
Prepared by: Amit Kumar (BBA-IV) Project Guide: Mr. Navin Aggarwal Submitted to: Miss. Gurneet Kaur Lovely professional university

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Preface
An Industrial, Business or service organization by taking up a project study is most important part of our B.B.A course & is must as per the syllabus prescribed by Lovely Professional University. Our BBA course is of administrative and managerial activity of industrial, Business or service organization. The main objective of this project study is to help the student to develop ability to practical technique to solve real life problem related industrial, Business or Service organization. According to the rules, I have taken my summer training in ICICI Prudential Life Insurance. Our gardeners, professors and banks sum manager’s gives the knowledge and guidance of this bank to us. The summer training programmed for student of B.B.A Sam-IV training is for six weeks in the time of summer vacation theoretically knowledge and class room discussion is not sufficient for the student but training given them practical and day to day working of company. In this project report I had tried to analyze the needs of the customers and suggest them the most suitable insurance solution. As well as I also analyzed the brand awareness among the people.

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ACKNOWLEDGEMENT
To take training is a part of our BBA programming and is an important part. Training quit valuable and important aspect to provide practical knowledge student of management studies. It was very useful and experience which I got during my training in “ICICI Prudential Life Insurance”. I was able to prepare this training report with the co-operation of various people. First of all I am very much thankful to training in charge professor of our university. Our project in charge, Mr. Navin Aggarwal, (area manager of ICICI prudential life insurance, Jalandhar) who has given me an opportunity and Miss Pinki Gupta(Unit Manager) & all consultant trainers of ICICI prudential life insurance Jalandhar, who helped me very much in preparing the report by their guidance.

Thanking you Amit Kumar

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EXICUTIVE SUMMARY
The economy is highly influenced by the Financial System of the country. The Indian Financial System has been broadly divided into two segments: the organized and the unorganized. An investor has a wide array of investment avenues available. Economic well being in the long run depends significantly on how wisely he invests. For today’s complex financial scenario a Mutual Fund is the ideal investment option. Markets for other investment avenues have become information driven. The Mutual Fund Industry in India began with the setting up of the Unit Trust of India (UTI) in 1964 by the Government of India. Ever since then this industry has witnessed numerous changes and growth. In 1987 public sector banks and insurance companies were permitted to set up mutual funds. Securities Exchange Board of India (SEBI) formulated the Mutual Fund (Regulation) 1993, which for the first time established a comprehensive regulatory framework for the mutual fund industry. Since the private and joint sectors and the share of the private players have set up then several mutual funds has risen rapidly. When investors are confronted with an astounding range of products, from traditional bank deposits to downright shady money-multiplier schemes, it has to be judged on the yardsticks of return, liquidity, safety, convenience and tax efficiency.

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Objective of the Study
Management as a profession can’t be taught merely in the four walls of classrooms. Only theoretical knowledge is not sufficient to build competitive managers. Practical knowledge of the business environment is equally important. In today business world, insurance sector is running towards its booming stage. This industry still has many things to come up to, so many changes and opportunities will be given by insurance industry. So I choose insurance industry for my training session in B.B.A. I choose ICICI Prudential Life Insurance is one of those private insurance players who entered the market before few years and made its own place among all its competitors. This report is shows insurance sector & how insurance is most important part of life. And understand insurance definitions, different providers of life insurance and comparisons. It also shows ICICI Prudential Life Insurance’s Products. As a Trainee ICICI Prudential Life Insurance give me very practical knowledge about life insurance and how to working in organization, How to manage work, how to maintain relations with top level management as well as colleges and bottom level management. So, this experience will helpful in future. I am pleased by taken training at India’s one of the best insurance company.

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NATURE & DEFINITION OF INSURANCE

Insurance is defined as a co-operative device to spread the loss caused by a particular risk over a number of persons who are exposed to it and who agree to ensure themselves against that risk. Risk is uncertainty of a financial loss. It should not be confused with the chance of loss, which is the probable number of losses out of confused with peril, which is defined as the cause of loss or with hazard, which is a condition, may increase the chance of loss. Every risk involves the loss of one or other kind. The function of insurance is to spread the loss over a large number of persons who are agreed to co-operate each other at the time of loss. The risk cannot be over rated but loss occurring due to a certain risk can be distributed amongst the agreed persons. They are agreed to share the loss because the chance of loss is there. Everybody’s greatest asset during his/her working years is his/her ability to earn an income. It is important to adequately safeguard this asset to ensure his/her cash flow will continue in the event of an unexpected disaster. His/her insurance policies will help to protect him/her (if any) against any unforeseen odds. There are two kinds of insurance available viz. Life Insurance and General Insurance.

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Life Insurance
   Provides Replaces Protects marriage for dependents in case of death. earning power, if disabled. his/her ability to meet accumulation / education / goals.

General Insurance
    Addresses health care concerns. Provides for auto, home and personal liability protection. Provides for potential long-term care costs. Plans for business continuation.

GENERAL DEFINITION
The general definitions are given by the social scientists & they consider insurance as a device to protection against risks, or a provision against inevitable contingencies or a co-operative device of spreading risks. Some of such definitions are given below:  In the words of John Magee , “Insurance is a plan by which large number of people associate themselves & transfer to the shoulder of all, risks that attach to individuals.”  In the words of Sir William Bevridges , “The collective bearing of risks is insurance.”  In the words of Boone & Kurtz , “Insurance is a substitution for a small known loss (the insurance premium) for a large unknown loss, which may or may not occur.”  In the words of Thomas , “Insurance is a provision, which a prudent man makes against for the loss or inevitable contingencies, loss or misfortune.”  In the words of Allen Z. Mayerson , “Insurance is a device for the transfer to an insurer of certain risks of economic loss that would otherwise come by the insured.”  In the words of Ghosh & Agarwal , “Insurance is a co-operative form of distributing a certain risk over a group of persons who are exposed to it.”

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FUNDAMENTAL STATEMENT
These are based on economic or business oriented since it is a device providing financial compensation against risk or misfortune.  In the words of D. S. Harsell , “Insurance may be defined as a social device providing financial compensation for the effects of misfortune, the payments being made from the accumulated contribution of all parties participating in the scheme.”  In the words of Robert I. Mehr & Emerson Cammark , “Insurance is purchased to offset the risk resulting from hazards, which exposes a person to loss.”  In the words of Riegel & Miller , “Insurance is a social device whereby the uncertain risks of individuals may be combined in a group & thus made more certain small periodic contributions, by the individuals providing a fund, out of which, those who suffer losses may be reimbursed.” Insurance follows important characteristics. Sharing of Risks Insurance is a co-operative device to share the burden of risk, which may fall on happening of some unforeseen events, such as the death of head of the family, or on happening of marine perils or loss of by fire. Co-operative Device Insurance is a co-operative form of distributing a certain risk over a group of persons who are exposed to it (Ghosh & Agarwal). A large number of persons share the losses arising from a particular risk. Evaluation of Risk For the purpose of ascertaining the insurance premium, the volume of risk is evaluated, which forms the basis of insurance contract. Payment of happening of specified event On happening of specified event, the insurance company is bound to make payment to the insured. Happening of the specified event is certain in life insurance, but in the case of fire, marine or accidental insurance, it is not necessary. In such cases, the insurer is not liable for payment of indemnity. 8

Amount of payment The amount of payment in indemnity insurance depends on the nature of losses occurred, subject to a maximum of the sum insured. In life insurance, however, a fixed amount is paid on the happening of some uncertain event or on the maturity of the policy. Large number of insured persons The success of insurance business depends on the large number of persons insured against similar risk. This will enable the insurer to spread the losses of risk among large number of persons, thus keeping the premium rate at the minimum. Insurance is not a gambling Insurance is not a gambling. Gambling is illegal, which gives gain to one party & loss to the other. Insurance is a valid contract to indemnity against losses. Moreover, insurable interest is present in insurance contracts & it has the element of investment also. Insurance is not charity Charity pays without consideration but in the case of insurance, premium is paid by the insured to the insurer in consideration of future payment. Protection against risks Insurance provides protection against risks involved in life, materials & property. It is a device to avoid or reduce risks. Spreading of risk Insurance is a plan, which spread the risks & losses of few people among a large number of people. John Magee writes, “Insurance is a plan by which large number of people associates themselves & transfer to the shoulders of all, risks attached to individuals.” Transfer of risk Insurance is a plan in which the insured transfers his risk on the insurer. This may be the reason that Mayerson observes, that insurance is a device to transfer some economic losses to the insurer, and otherwise such losses would have been borne by the insured themselves.

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Ascertaining of losses By taking a life insurance policy, one can ascertain his future losses in terms of money. This is done by the insurer to determining the rate of premium, which is calculated on the basis of maximum risks. A contract Insurance is a legal contract between the insurer & insured under which the insurer promises to compensate the insured financially within the scope of insurance policy, & the insured promises to pay a fixed rate of premium to the insurer. Based upon certain principle Insurance is a contract based upon certain fundamental principles of insurance, which includes utmost good faith, insurable interest, contribution, indemnity, causa proxima, subrogation, etc., which are the basis for successful operation of insurance plan. Utmost Good Faith Insurance is a contract based on good faith between the parties. Therefore, both the parties are bound to disclose the important facts affecting to the contract before each other. Utmost good faith is one of the important principles of insurance. To conclude, insurance is a device for the transfer of risks from the insured to the insurers, who agree to it for a consideration (known as premium), & promises that the specified extent of loss suffered by the insured shall be compensated. It is a legal contract of a technical nature. To conclude, insurance is a device for the transfer of risks from the insured to the insurers, who agree to it for a consideration (known as premium), & promises that the specified extent of loss suffered by the insured shall be compensated. It is a legal contract of a technical nature.

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INTRODUCTION TO INSURANCE COMPANY.

In order to go through the journey of LIC – Path of private sector insurance companies to nationalize company to again private sector insurance companies is given as below: Path Private Life Insurance Companies

Nationalization

Privatization of Life Insurance Sector 1870 – 1956 Life Insurance concept was accepted with almost 250 Private Life Insurance Companies Merging of almost 250 Private Sector Life Insurance Companies in one nationalized Life Insurance Corporation of India Proposal to privatize life insurance business Registration process was notified Application was filed 1 s t license was issued with introduction of IRDA During the month of January, 11 Life and Non-Life Private Insurance license were issued

1956

1995 June 2000 August 2000 October 2000 2002

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In order to elaborate the above path lets go through the history of Life Insurance Sector. On 3 r d December 1670, seven earnest men of Bombay with just seven rupees for initial expenses gave shape to a plan of offering insurance to the public without the risk of ruin and the Bombay Mutual Life Insurance Society came into existence. Right up to the end of the 19 t h century, foreign insurance companies had an upper hand in the matter of insurance business and they enjoyed mere monopoly and the partiality were observed in the form that Indian lives were insured with 10% extra premium as a common practice, at that time Lala Harikishan Lal from Lahore was called “The Napoleon of Indian Finance” as he was then called to launch the Bharat Insurance Company at Lahore (1896) in Punjab. Prior to 1912, India had no legislation for regulating insurance. The Life Insurance Companies Act 1912 and the Provident Fund Act 1912 were passed. The Insurance Act 1938 was the first comprehensive legislation governing not only life but also non-life branches of insurance to provide strict state control over insurance business. But after the introduction of Insurance Act 1938, the demand for nationalization of Life Insurance Industry was raised, there were so many reasons in order to nationalize the insurance sector. They are:     Policyholders will be provided cent percent security. Expenses will be reduced due to Absence of duplication, wasteful competition Better service due to absence of profit motive. The funds will be available for nation building activities.
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Insurance is servicing sector and so that it should be in the hands of government only.

Above are few but strong reasons, which have contributed towards nationalization of insurance sector, and then after in the year 1956, all insurance companies were merged in to one and Life Insurance Corporation of India came into existence. Till the year 1999, LIC of India was the only insurance sector in economic market with ever-increasing growth rate and market share with the capacity to earn high rate of profit and thus profitability. In spite of all these merits of LIC, the overall status of insurance sector was not so satisfactory. Business figure before the introduction of IRDA Population Insurable Population No. Of insured individuals Potential uninsured individuals New Business premium 1.00 0.36 0.08 0.28 Billion Billion Billion Billion

0.66 Billion

Above stated figures clearly shows that from 1 Billion population
of India, almost 0.28 Billion population was uninsured. Again the existing government unit did not properly meet the emerging segments like retirement, disability. Moreover, the government wanted 25% p.a. growth rate in new business premium from insurance sector. All these factors combine forced the government to take the decision about the privatization of insurance sector. In order to increase the business activities, the introduction of IRDA was made by Government. Thus, IRDA (Insurance Regulatory and Development Authority) witnessed the existence power to co-ordinate regular and control the insurance business.
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Private Insurers in Indian Insurance Market
Registration No. Date of Registration Name of the Company

101 104 105 107 109 110 111

23.10.2000 15.11.2000 24.11.2000 10.01.2001 31.01.2001 12.02.2001 30.03.2001

HDFC Standard Life Max New York Life ICICI Prudential Life Om Kotak Mahindra Life Birla Sun Life Insurance TATA AIG Life Insurance SBI Life Insurance

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SHARE OF PRIVATE INSURANCE PLAYERS

As per the figure available with IRDA reports for the period ended in August 2005, the 13 private players have grabbed nearly 26% market share from LIC in terms of premium underwritten as against 17.70% in August 2004” The list of insurer with premium underwritten, investment and their market share have been presented in table. Table shows that the life insurance market has collected Rs. 16,604cr as a fresh premium. It grew about 2.8 times bigger than he 3 players put together in terms of premium collection. It is still growing at the rate 26% per annum. It is relevant to that the market share by them. Out of 13 pvt. Players, ICICI prudential has leading pvt. Player in the Life insurance, invested Rs. 625 cr which is the highest investments among the private players and captured first position with 7.11% of the market share. Secondly, Max New York life has invested Rs. 305 cr and had failed to capture the second position in terms of market share and was satisfied with only 1.32% Followed by HDFC standard Life had invested Rs. 255 cr and 2.96% of the market share was captured and stood third position interims of investments and capturing market share. Allianz Bajaj has invested Rs. 250 cr and stands fourth in terms of investment but captured second position with 6.12% of the market share. This indicates that there is no relation between investment and acquiring market share and mere capital is not alone playing any significant role in terms of capturing market share. There may be some other variables like: (a) innovative schemes, (b) brand loyalty, (c) professional outlook, (d) transference in their transactions, etc. It can be noticed that the capital is not playing any attaching, kindly significant role in terms of premium collection and capturing market share. It seems to be Bajaj Allianz would occupy the first position in near future in terms of market share as well as annual growth rate. Chart 1 shows that. Among private players, the ICICI prudential has captured the 28% of the market share up to December 2005, followed by Allianz Bajaj with 23% and HDFC Standard Life with 11% TATA Aig life and Birla Sunlife with 7% each and remaining other players have captured less than 5% of market share.

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2% 4% 3% 7%

6%

2% 2% 28%

LIC ICICI Pru. Life New York MaxLife HDFC Standard Life Alliance Bajaj TATA AIG OM Kotak Mahindra AVIVA Life

7%

5% 11% 23%

ING Vysya SBI Life Insu. AMP Sanmar Metlife

Chart 2 shows that the annual growth rate of the private life insurance players from November 2004-05. it is interesting to note that Allianz Bajaj has achived 264.09% annual growth rate in terms of premium collection and the fastest growing insurance players, followed by HDFC Standard with 143.1% and Metlife with 136.45%, and remaining other players have doubled their premium in a span of one year, whereas Birla Sunlife and SBI life have failed to collect the premium consistently and registered negative growth rates 7.93% and 2.48% respectively. Surprisingly, ICICI Prudential Co. has not been retrained in their leading position in 2005. The market share of the LIC has been declining since 2000, after opening up of the sector to private companies, LIC’s higher market share in the number of policies sold compared with premium income, so it is to be inferred that the private players are cornering a larger share of high premium policies. Further all policymakers are expected that, insurance business will take wings under bancassurance but despite the belief SBI Life was registered negative 2.48% annual growth rate in corresponding period. It is need to be viewed serious by the RBI and IRDA authorities.

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Annual Growth rate of Private Insu. Players from Nove. 2004-05
Annual growth rate 300 200 100 0 -100 264.09 164.31 136.48 93.9 9 73.02 0.41 66.23 8.24 100.43 98.69 78.06 4 -2.48 -7.93 HDFC Standard Birlasunli fe TATA AIG SBI Life Insu. AVIVA Life Metlife

ICICI Pru. Life

Insurers

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INTRODUCTION TO ICICI GROUP

ICICI BANK
ICICI Bank is India’s second-largest bank with total assets of about Rs.112.024 crore and a network of about 450 branches and offices and about 1750 ATMs. ICICI Bank offers a wide range of banking products and financial services to corporate and retail customer through a variety of delivery channels and through its specialized subsidiaries and affiliates in the areas of investment banking, life and non-life insurance, venture capital, asset management and information technology. ICICI Bank’s equity shares are listed in India on stock exchanges at Chennai. Delhi, Kolkata and Vadodara, the Stock Exchange, Mumbai and the National Stock Exchange of India Limited and its American Depositary Receipts (ADRs) are listed on the New York Stock Exchange (NYSE). ICICI Bank was originally promoted in 1994 by ICICI Limited, an Indian financial institution, and was its wholly owned subsidiary. ICICI’s shareholding in ICICI Bank was reduced to 46% through a public offering of shares in India in fiscal 1998, an equity offering in the form of ADRs listed on the NYSE in fiscal 2000, ICICI Bank’s acquisition of Bank of Mathura Limited in an all-stock amalgamation in fiscal 2001, and secondary market sales by ICICI to institutional investors in fiscal 2001 and fiscal 2002. ICICI was formed in 1955 at the initiative of the World Bank, the Government of India and representatives of Indian industry. The principal objective was to create a development financial institution for providing medium term and long term project financing to Indian businesses. In the 1990s, ICICI transformed its business from a development financial institution offering only project finance to a diversified financial services group offering a wide variety of products and services, both directly and through a number of subsidiaries and affiliates like ICICI Bank, In 1999, ICICI become the first Indian company and the first bank or financial institution from nonJapan Asia to be listed on the NYSE. After consideration of various corporate structuring alternatives in the context of the emerging competitive scenario in the Indian banking industry, and the move towards universal banking, the management of ICICI and ICICI Bank formed the view that the merger of ICICI with ICICI Bank would be the optimal strategic alternative for both entities, and would create the optimal legal structure for the ICICI group’s universal banking strategy. The merger would enhance value for ICICI shareholders through the 18

merged entity’s access to low-cost deposits, greater opportunities for earning feebased income and the ability to participate in the payment system and provide transaction-banking services. The merger would enhance value for ICICI Bank shareholders through a large capital base and scale of operations, seamless access to ICICI’s strong corporate relationships built up over five decades, entry into new business segments, higher market share in various business segments, Particularly feebased services, and access to the vast talent pool of ICICI Bank approved the merger of ICICI and two of its wholly-owned retail finance subsidiaries, ICICI Personal Financial Services Limited and ICICI Capital Services Limited, With ICICI Bank. Shareholders of ICICI and ICICI BANK approved the merger in January 2002, by the High Court of Gujarat at Jalandhar in March 2002, and by the High Court of Judicature at Mumbai and the Reserve Bank of India in April 2002. Consequent to the merger, the ICICI group’s financing and banking operations, both wholesale and retail, have been integrated in a single entity. ICICI Bank is the only Indian company to be rated above the country rating by the international rating agency moody “s and the only Indian company to be awarded an investment grade international credit rating. The Bank enjoys the highest AAA (or equivalent) rating from all Leading Indian rating agencies.

Prudential P.L.C.
Established in 1848, today prudential plc is a leading international financial services company with some 16 million customers, policyholders and unit holders and some 20,000 employees worldwide. In the UK Prudential is a leading life and pensions provider with around seven million customers. M&G was acquired by Prudential in 1999 and is the Group’s UK and European fund manager, responsible for managing over of 111 billion of funds (as at December 2003). Launched by Prudential in 1998, Egg is an innovative financial services company, with over three million customers, with nearly six per cent of UK credit card balances. In Asia, Prudential is the leading European life insurer with 23 life and fund management operations in 12 countries serving some five million customers. In the US, Prudential owns Jackson National Life, a leading life insurance company, and has more than 1.5 millions policies and contracts in force.

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Prudential has brought to market an integrated range of financial services products that now includes life assurance, pensions, mutual funds, banking, investment management and general insurance. In Asia, Prudential is UK”s Largest life insurance company with a vast network of 22 life and mutual fund operations in twelve countries – China, Hong Kong, India, Indonesia, Japan, Korea, Malaysia, the Philippines, Singapore, Taiwan, Thailand and Vietnam. Since 1923, Prudential has championed customer-centric products and services, supported by over 60,000 staff and agents across the region. Prudential plc’s strong mix of business around the world positions us well to benefit form the growth in customer demand for asset accumulation and income in retirement. Our international reach and diversity of earnings by geographic region and product will continue to give us significant advantage. Our commitment to the shareholders who own Prudential is to maximize the value over time of their investment. We do this by investing for the long term to develop and bring out the best in our people and our businesses to produce superior products and services, our international peer group in terms of total shareholder returns. At Prudential our aim is lasting relationships with our customers and policyholders, through products and services that offer value for money and security. We also seek to enhance our Company’s reputation, built over 150 years, for integrity and for acting responsibly within society.

ICICI Prudential Life Insurance:
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 equity base stands at Rs.6.75 billion with ICICI Bank and Prudential plc holding 74% and 26% stake respectively. In the year ended
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March 31,2004 the company had issued over 430,000 policies, for a total sum assured of over Rs 8,000 crore and premium income in excess of Rs.980 crore. The company has a network of about 30,000 advisors; as well as 12 banc assurance tie-ups. Today the company is the number one private life insurer in the country.

Management

K. V. Kamath Managing Director and Chief Executive Officer

Lalita Gupte Joint Managing Director

Kalpana Morparia Joint Managing Director

Chanda Kochhar Deputy Managing Director

Nachiket Mor Deputy Managing Director

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Board Committees Audit Committee Mr. Sridar Iyengar Mr. Narendra Murkumbi Mr. M. K. Sharma Customer Service Committee N. Vaghul Narendra Murkumbi M.K. Sharma P.M. Sinha K. V. Kamath Fraud Monitoring Committee Mr. M. K. Sharma Mr. Narendra Murkumbi Mr. K. V. Kamath Ms. Kalpana Board Governance & Remuneration Committee Mr. N. Vaghul Mr. Anupam Puri Mr. M. K. Sharma Mr. P. M. Sinha Prof. Marti G. Subrahmanyam Credit Committee Mr. N. Vaghul Mr. Narendra Murkumbi Mr. M .K. Sharma Mr. P. M. Sinha Mr. K. V. Kamath Risk Committee Mr. N. Vaghul Mr. Sridar Iyengar Prof. Marti G. Subrahmanyam Mr. V. Prem Watsa Mr. K. V. Kamath
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Morparia Ms. Chanda D. Kochhar Share Transfer & Shareholders'/ Investors' Grievance Committee Mr. M. K. Sharma Mr. Narendra Murkumbi Ms. Kalpana Morparia Ms. Chanda D. Kochhar Committee of Directors Mr. K. V. Kamath Ms. Lalita D. Gupte Ms. Kalpana Morparia Ms. Chanda D. Kochhar Dr. Nachiket Mor

Asset-Liability Management Committee

Ms. Lalita D. Gupte Ms. Kalpana Morparia Ms. Chanda D. Kochhar Dr. Nachiket Mor

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ICICI PRUDENTIAL’S PRODUCTS.

Insurance solution 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 17 products cab is enhanced with up to 6 riders, to create a customized solution for each policyholder.

Savings Solutions….. Secure Plus is a transparent and feature-packed savings plan that offers 3 levels of protection. Cash Plus is a transparent, feature-packed savings plan that offers 3 levels of protection as well as liquidity options. Save n Protect is a traditional endowment savings plan that offers life protection along with adequate returns. Cash Back 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.

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Protection Solutions……. LifeGuard is a protection plan, which offers life cover at very low cost. It is available in 3 coupons – level term assurance, level term assurance with return or premium and single premium.

Child Solutions……. Smart kid child plans provide guaranteed educational benefits to a child along with life 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 child planed are also available with in unit-linked form – both single premium and regular premium. Market-linked Solutions LifeLink is a single premium Market Linked Insurance Plan, which combines life insurance cover with the opportunity to stay, invested in the stock market. Life Time offers customers the flexibility and control to customize the policy to meet the changing needs at different life stages. It offers 3 investment options –Growth Plan, Income plan and Balance plan.

Retirement Solutions…… Forever Life is a retirement products targeted at individual in there thirties. Secure Plus Pension is a flexible pension plan that allows one to select between 3 levels of cover.

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Market-linked retirement products Life Time Pension is a regular premium market-linked pension plan. Life Link Pension is a single premium market linked pension plan. ICICI Prudential also launched “Salaam Zindagi”, a social sector group insurance policy targeted at the economically underprivileged sections of the society.

Group Insurance Solutions…… ICICI Prudential also offers Group Insurance Solutions for companies seeking to enhance benefits to their employees.

Group Gratuity Plan…… ICICI Pru”s group gratuity plan helps employers fund their statutory gratuity obligation in a scientific manner. The plan can also customize to structure schemes that can provide benefits beyond the statutory obligations. Group Superannuation Plan ICICI Bank offers flexible defined contribution superannuation scheme to provide a retirement kitty for each member of the group. Employees have the option of choosing from various annuity options or opting for partial commutation of the annuity at the time of retirement. Group Term Plan Group Term Plan……

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ICICI Pru”s flexible group term solution helps provides affordable cover to members of 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 Pru Life offers flexible riders, which can be added to the basic policy at marginal cost, depending on the specific 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 sum assured under the policy. 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. Accident benefit: This rider option pays the sum assured the rider on death due to accidents. 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 prior to death. Major Surgical Assistance Benefits: provides financial support in the event of medical emergencies, ensuring that benefits are payable to the life assured for medical expenses Incurred for surgical procedures. Cove is offered against 43 different surgical procedures. Income Benefit: This rider pays the 10% of the sum assured to the nominee every year, till maturity, in the event of the death of the life assured. It is available on SmartKid, SecurePlus and Cashplus. Waiver of Premium: In Case of total and permanent due to an accident, the premiums are waived till maturity. This rider is available with SecurePlus and CashPlus.

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INTRODUCTION TO FINANCE MANAGEMENT Financial management, as an academic discipline, has undergone fundamental changes in its scope and coverage. In the early years of its evolution it was treated synonymously with the raising of funds. In the current literature pertaining to financial Management, a broader scope so as to include, in addition to procurement of funds, efficient use of resources is universally recognized. Similarly, the academic thinking as regards the objective of financial management is also characterized by a change over the years. Financial management, as an integral part of overall management, is not a totally independent area. It draws heavily on related disciplines and fields of study, such as economics, accounting, marketing, production and quantitative methods. Although these disciplines are interrelated, there are key differences among them. The relationship between finance and accounting, conceptually speaking, has two dimensions: (1) They are closely related to the extent that accounting is an important input in financial decision-making and (2) There are key differences in viewpoints between them. The viewpoint of accounting relating to the funds of the firm is different from that of finance. The measurement of funds (income and expenses) in accounting is based on the accrual principle/system. Capitalization and Capital Structure: Capital structure can affect the value of a company by affecting either its expected earnings or the cost of capital, or both. While it is true that financing-mix cannot affect the total operating earnings of a firm, as they are determined by the investment decisions, it can affect the share of earnings belonging to the ordinary shareholders. The capital structure decision can influence the value of the firm through the earnings available to the shareholders. But the leverage can largely influence the value of the 28

firm through the cost of capital. In exploring the relationship between leverage and value of a firm the relationship between leverage and cost of capital from the standpoint of valuation. The importance of an appropriate capital structure is, thus, obvious. There is a viewpoint that strongly supports the close relationship between leverage and value of a firm. There is an equally strong body of opinion, which believes that financing-mix or the combination of debt and equity has no impact on the shareholders’ wealth and the decision on financial structure is irrelevant. In other words, there is nothing such as optimum capital structure. Capital structure theories are based on certain assumptions, they are: [1] There are only two sources of funds used by a firm: perpetual risk less debt and ordinary shares. [2] There are no corporate taxes. This assumption is removed later. [3] The dividend-payout ratio is 100. That is, the total earnings are paid out as dividend to the shareholders and there are no retained earnings. [4] The total assets are given and do not change. The investment decisions are, in other words, assumed to be constant. [5] The total financing remains constant. The firm can change its degree of leverage (capital structure) either by selling shares and use the proceeds to retire debentures or by raising more debt and reduce the equity capital. [6] The operating profits (EBIT) are not expected to grow. [7] All investors are assumed to have the same subjective probability distribution of the future expected EBIT for a given firm. [8] Business risk is constant over time and is assumed to be independent of its capital structure and financial risk. [9] Perpetual life of the firm. Leverage Analysis: A firm can make use of different sources of financing whose costs are different. These sources may be, for purposes of exposition, classified into those that carry a fixed rate of return and those on which the returns vary. The fixed returns on some sources of finance have implications for those who are entitled to a variable return. Thus, since debt involves the payment of a stated rte of interest, the return to the ordinary shareholders is affected by the magnitude of debt in the capital structure of a firm. The employment of an asset or source of funds for which the firm has to pay a fixed cost or fixed return may be termed as leverage. Consequently, the earnings available to the shareholders as also the risk are affected. If earnings les the variable costs exceed the fixed cost, or earnings before interest and taxes exceed the fixed return 29

requirement, the leverage is called favorable. When they do not, the result is unfavorable leverage. There are 2 types of leverage- ‘operating’ and ‘financial’. The leverage associated with investment (asset acquisition) activities is referred to as operating leverage, while leverage associated with financing activities is called financial leverage. While we are basically concerned with financial leverage for purposes of the financing decision of a firm, the discussion of operating leverage is to serve as a background to the understanding of financial leverage because the two types of leverage are closely related. Operating leverage is determined by the relationship between the firm’s sales revenues and its earnings before interest and taxes (EBIT). The earnings before interest and taxes are also generally called as operating profits. Financial leverage represents the relationship between the firm’s earnings before interest and taxes (operating profits) and the earnings available for ordinary shareholders. The operating profits (EBIT) are thus, used as the pivotal point in defining operating and financial leverage. In a way, operating and financial leverage represents two stages in the process of determining the earnings available to the equity shareholders and, Apart from the elaboration of the return-risk implications, their combined effect has also been discussed. Operating leverage results from the existence of fixed operating expenses in the firm’s income stream. The operating leverage may be defined as the firm’s ability to use fixed operating costs to magnify the effects of changes in sales on its earnings before interest and taxes. Operating leverage occurs any time a firm has fixed costs that must be met regardless of volume. We employ assets with fixed cost in the hope that volume will produce revenues more than sufficient to cover all fixed and variable costs. In other words, with fixed costs, the percentage change in profits accompanying a change in volume is greater than the percentage change in volume. This occurrence is known as operating leverage. Financial leverage relates to the financing activities of a firm. The sources from which funds can be raised by a firm, from the point of view of the cost/charges, can be categorized into [1] those which carry a fixed financial charge, and [2] those which do not involve any fixed charge. The sources of funds in the first category consist of various types of long-term debt, including bonds, debentures, and preference shares. Long-term debts carry a fixed rate of interest which is a contractual obligation for the firm. Although the dividend on preference shares is not a contractual obligation, it is fixed charge and must be paid before anything is paid to the ordinary shareholders. The equity shareholders are entitled to the remainder of the operating profits of the firm after all the prior obligations are met. Financial leverage results from the presence of fixed financial charges in the firm’s income stream. These fixed charges do not vary with the earnings before interest and taxes (EBIT) or operating profits. 30

Capital Budgeting: Capital budgeting decision pertains to fixed/long-term assets which by definition refer to assets which are in operation, and yield a return, over a period of time, usually, exceeding one year. They therefore, involve a current outlay or series of outlays of cash resources in return for an anticipated flow of future benefits. In other words, the system of capital budgeting is employed to evaluate expenditure decisions which involve current outlays but are likely to produce benefits over a period of time longer than one year. These benefits may be either in the form of increased revenues or reduced costs. Capital expenditure management, therefore, includes addition, disposition, modification and replacement of fixed assets. Capital budgeting decisions are of paramount importance in financial decisionmaking. In the first place, such decisions affect the profitability of a firm. They also have a bearing on the competitive position of the enterprise mainly because of the fact that they relate to fixed assets. The fixed assets represent, in a sense, the true earning assets of the firm. They enable the firm to generate finished goods that can ultimately be sold for profit. The current assets are not generally earning assets. Rather, they provide a buffer that allows the firms to make sales and extend credit. True, current assets are important to operations, but without fixed assets to generate finished products that can be converted into current assets, the firm would not be able to operate. Further, they are ‘strategic’ investment decisions as against ‘tactical’- which involve a relatively small amount of funds. Therefore, such capital investment decisions may result in a major departure from what the company has been doing in the past. Acceptance of a strategic investment will involve a significant change in the company’s expected profits and in the risks to which these profits will be subject. Working Capital Management: Working capital management is concerned with the problems that arise in attempting to manage the current assets, the current liabilities and the interrelationship that exists between them. The term current assets refer to those assets which in the ordinary course of business can be, or will be, converted into cash within one year without undergoing a diminution in value and without disrupting the operations of the firm. The major current assets are cash, marketable securities, accounts receivable and inventory. Current liabilities are those liabilities which are intended, at their inception, to be paid in the ordinary course of business, within a year, out of the current assets or earnings of the concern. The basic current liabilities are accounts payable, bills payable, bank overdraft, and outstanding expenses. The goal of working capital management is to manage the firm’s current assets and liabilities in such a way that a satisfactory level of working capital, it is likely to become insolvent and may even be forced into bankruptcy. The current assets should be large enough to cover its current liabilities in 31

order to ensure a reasonable margin of safety. Each of the current assets must be managed efficiently in order to maintain the liquidity of the firm while not keeping too high a level of any one of them. Each of the short-term sources of financing must be continuously managed to ensure that they are obtained ad used in the best possible way. The interaction between current assets and current liabilities is, therefore, the main theme of the working capital management. Receivables Management: The receivables represent an important component of the current assets of a firm. The receivables are defined as ‘debt owned to the firm by customers arising from sale of goods or services and in the ordinary course of businesses. When a firm makes an ordinary sale of goods or services and does not receive payment, the firm grants trade credit and creates accounts receivable, which could be collected in the future. Receivables management is also called trade credit management. Thus, accounts receivables represent an extension of credit to customers, allowing them a reasonable period of time in which to pay for the goods received. The sale of goods on credit is an essential part of the modern competitive economic systems. In fact, credit sales and, therefore, receivables are treated as a marketing tool to aid the sale of goods. The credit sales are generally made on open account in the sense that there are no formal acknowledgements of debt obligations through a financial instrument. As a marketing tool, they are intended to promote sales and thereby profits. However, extension of credit involves risk and cost. Management should weigh the benefits as well as cost to determine the goal of receivables management. The objective of receivables management is ‘to promote sales and profits until point is reached where the return on investment in further funding receivables is less than the cost of funds raised to finance that additional credit (i.e. cost of capital)’. The specific costs and benefits, which are relevant to the determination of the objectives of receivables management, are: o Cost o Collection cost o Capital cost o Delinquency cost o Default cost Dividend policy: Dividend refers to that portion of a firm’s net earnings which are paid out to the shareholders. Since dividends are distributed out of profits, the alternative to the payment of dividends is the retention of earnings/profits. The retained earnings constitute an easily accessible important source of financing the investment requirements of firms. There is, thus, a type of inverse relationship between retained earnings and cash dividends. Larger the retention, lesser dividends, and smaller retentions, larger dividends. Thus, the alternative uses of the net earnings-dividends and retained earnings-are competitive and conflicting. 32

A major decision of financial management is the dividend decision in the sense that the firm has to choose between distributing the profits to the shareholders and plugging them back into the business. The choice would obviously hinge on the effect of the decision on the maximizing present values; the firm should be guided by the consideration as to which alternative use is consistent with the goal of wealth maximization. That is, the firm would be well advised to use the net profits for paying dividends to the shareholders if the payment will lead to the maximization of wealth of the owners. If not, the firm should rather retain them to finance investment programes. The relationship between dividends and value of the firm should, therefore, be the decision criterion. There are however, conflicting opinions regarding the impact of dividends on the valuation of a firm. According to one school of thought, dividends are irrelevant so that the amount of dividends paid has no effect on the valuation of a firm. On the other hand certain theories consider the dividend decision as relevant to the value of the value of the firm measured in terms of the market price of the shares. The crux of the argument supporting the irrelevance of dividends to valuation is that the dividend policy of a firm is a part of its financing decision. As a part of the financing decision, the dividend policy of the firm is a residual decision and dividends are a passive residual. If the dividend policy is strictly a financing decision, whether dividends are paid out of profits, or earnings are retained, will depend upon the available investment opportunities. It implies that when a firm has sufficient investment opportunities, it will retain the earnings to finance them. Conversely, if acceptable investment opportunities are inadequate, the implication is that the earnings would be distributed to the shareholders. The test of adequate acceptable investment opportunities is the relationship between the return on investments and the cost of capital. As long as investments exceed cost of capital, a firm has acceptable investment opportunities. In other words, ifs firm can earn a return higher tan its cost of capital; it will retain the earnings to finance investment projects. If the retained earnings fall short of the total funds required, it will raise external funds-both equity and debt-to make up the shortfall.

Annual Report of ICICI Prudential
33

Assets Under Management (AUM) as at the end of Feb-2007 (Rs in Lakhs)
AUM Mutual Fund Name 1. ABN AMRO Mutual Fund 2. AIG Global Investment Group Mutual Fund 3. Benchmark Mutual Fund 4. Birla Sun Life Mutual Fund 5. BOB Mutual Fund 6. Canbank Mutual Fund 7. DBS Chola Mutual Fund 8. Deutsche Mutual Fund 9. DSP Merrill Lynch Mutual Fund 10. Escorts Mutual Fund 11. Fidelity Mutual Fund 12. Franklin Templeton Mutual Fund 13. 14. 15. 16. 17. 18. 19. 20. 21. 22. 23. 24. 25. 26. 27. HDFC Mutual Fund HSBC Mutual Fund ING Vysya Mutual Fund JM Financial Mutual Fund JPMorgan Mutual Fund Kotak Mahindra Mutual Fund LIC Mutual Fund Lotus India Mutual Fund Morgan Stanley Mutual Fund PRINCIPAL Mutual Fund ICICI PRUDENTIAL Mutual Fund Quantum Mutual Fund Reliance Mutual Fund Sahara Mutual Fund SBI Mutual Fund Average AUM For The Month Fund Of Funds 35962.1 N/A 0 2016.87 0 0 0 0 0 0 8669.47 33551.3 0 0 97905.45 0 N/A 59243.32 0 0 0 0 3982.85 0 0 0 0 2861.86 0 0 0 0 244193.22

Excluding Fund Of Excluding Fund Of Fund Of Funds Funds Funds 527298.61 34793.7 520357.41 N/A 493459.19 2107032.33 13189.46 220055.55 267272.69 632738.66 1363796.81 11892.52 567052.22 2210219.06 3107988.05 1196159.48 465070.34 382811.94 N/A 1340625.72 1149722.96 123858.99 287119.9 1060032.69 4328067.51 5380.17 4221591.34 17596.99 1847383.96 1299706.71 780107.96 1419829.99 23543.31 3860299.44 35330904.55 N/A 0 1901.45 0 0 0 0 0 0 7885.48 32939.41 0 0 91168.93 0 N/A 55835.13 0 0 0 0 3731.96 0 0 0 0 2886.65 0 0 0 0 231142.71 N/A 565300.47 2276874.74 12710.58 224400.85 236941.15 643309.79 1337579 9857 594872.17 2343907.4 3222873.02 1219830.8 469516.87 386731.37 N/A 1335816.27 1197068.82 84093.35 310427.14 1094027.66 3907924.85 5818.48 4359281.53 16987.98 1874050.79 1381960.47 793897.25 1448329.74 25362.02 3926014.55 35826123.52

28. Standard Chartered Mutual Fund 29. Sundaram BNP Paribas Mutual Fund 30. Tata Mutual Fund 31. Taurus Mutual Fund 32. UTI Mutual Fund Grand Total

Asset Under Management

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Mutual Fund Name ABN AMRO Mutual Fund Alliance Capital Mutual Fund Birla Sun Life Mutual Fund Canbank Mutual Fund Chola Mutual Fund Deutsche Mutual Fund DSP Merrill Lynch Mutual Fund Fidelity Mutual Fund Franklin Templeton Mutual Fund HDFC Mutual Fund HSBC Mutual Fund ING Vysya Mutual Fund JM Financial Mutual Fund Kotak Mahindra Mutual Fund LIC Mutual Fund PRINCIPAL Mutual Fund Prudential ICICI Mutual Fund Reliance Mutual Fund Sahara Mutual Fund SBI Mutual Fund Standard Charted Mutual Fund Sundaram Mutual Fund Tata Mutual Fund Taurus Mutual Fund UTI Mutual Fund

AUM 1580.36 1431.46 10049.66 1565.19 1004.62 2366.72 6472.80 1628.06 16704.74 15707.82 7250.63 2072.86 3780.83 6501.52 2959.15 6264.96 17095.89 9907.89 565.50 7189.35 7636.86 2035.21 8713.95 170.76 21975.57

Equity & Balance 464.589. 589.48 1668.77 224.35 232.63 96.57 1462.33 1628.06 6965.36 6126.04 1987.93 337.25 85.52 1065.12 277.46 1682.48 2169.46 4226.40 25.74 2311.54 0.00 997.91 2629.09 157.53 8791.81

Debt & MIP 1115.92 841.98 8380.89 1340.84 771.99 2270.15 5010.47 0.00 9739.38 9581.78 5262.70 1735.62 3694.51 5436.41 2681.69 4582.48 14926.44 5681.49 539.76 4877.81 7636.86 1037.31 6084.86 13.23 13183.77

Equity % 29.39 41.18 16.61 14.33 23.16 4.08 22.59 100.00 41.70 39.00 27.42 16.27 2.26 16.38 9.38 26.86 12.69 42.66 455 32.15 0.00 49.03 30.17 92.25 40.01

Debt % 70.61 58.82 83.39 85.67 76.84 95.92 77.41 0.00 58.30 61.00 72.58 83.73 97.74 83.62 90.62 73.14 87.31 57.34 95.45 67.85 100.00 50.97 69.83 7.75 59.99

List of Assets Management Companies and their assets under management As on June 2008 (In Crores.) ICICI PRUDENTIAL 35

Particulars

Diversified Tax Planning Index Sector Total Equity FMP MIP Debt ST Income Total Debt Balanced Gilt LT Gilt ST Total Gilt Liquid Total

1593.8546 47.9336 2.0978 179.0116 2107.78 1551.236 823.2623 479.4336 3778.4525 6932.384 469.6412 412.9397 150.5677 563.5074 6961.6842 17095..89

(Above Table showing Acquisition and Utilization of fund of ICICI PRUDENTIAL) Fund Manager does utilization of fund, ICICI PRUDENTIAL AMC has variety of scheme and each scheme has different Fund Manager who is responsible of investing money into market and also responsible to give return to investors.

RATIO ANALYSIS Growth Fund Ratio Current ratio Formula Current asset/current 2008 2438.37/1818.15=1.34 2007 1275.46/1066.90=1.19 36

EPS Div payout to unit holders Div. payout Div. to total income Profit on sales redemption to total income

liability Total profit/unit capital Div. paid/unit capital Div. paid/net profit Dividend/total income Profit/sales redemption

23311.45/7700.63=3.02 941.81/7700.63=0.12(12%)Div. paid/unit capital 941.81/23311.45=0.04(4%) 428.45/18041.54=0.24(2.4%)

14126.20/9981.01=1.41 621.86/9981.01=0.62(6.2% ) 621.86/14126.20=0.04(4%) 717.53/14882.68=0.48(4.8 %) 12074.52/14882.68=0.81(8 1%)

13834.17/18041.54=0.77(77%)

(Above Table Showing - Ratio analysis of ICICI PRUDENTIAL AMC)

Marketing Yesterday and Today Today the definition of marketing has been changed. The marketing activity of an organization before the product is produced and continues even after the product is sold. In the buyer market of recent times the sharpest weapon that a company can develop is globalize marketing place in the value creation and delivery. The proud and 37

demanding customer of today brings before corporate a critical fact, when the customer is jury. It is the value generation for the customer that will separate the victor from vanquished. The value of customer service cascades all over the company. The aim of customer focus is not just satisfaction but delight satisfaction. Till the year 1999 the life insurance business was exclusively conducted by the Life Insurance Corporation (LIC) while the general insurance business in India, was exclusive by General Insurance Corporation and its four subsidiaries. The insurance sector is opened for private participation since November, 2000. Before 1999 there was no marketing done by LIC due to its monopoly but now after 5 years the picture has changed. Now there are private players in market. With the effective marketing techniques the private players has changed the whole scenario of the insurance sector. They are slowly and gradually driving the business out of the hands of the LIC. Before 1999 customer had no option other then LIC, but now they have got many options. This is the significant change in insurance industry. Now the customer is back in the center state. All the companies are trying to please the customer with the innovative schemes and better service. Relationship Marketing in Insurance Introduction It is five times more expensive to acquire a new customer than to retain an old one. Relationship marketing is the practice of building long term satisfying relationship with key parties customers and suppliers. They accomplish this by promoting and delivering high quality, goods, services, and fair prices to other parties overview. Relationship marketing results in strong economic, technical and social ties among the parties.

Definition of Relation Marketing: Relationship marketing can be defined as the “process to identify, establish, maintain and other stakeholders at a profit so that the objective of all parties involved are net and this is done by mutual exchange and fulfillment of promises.

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The important objectives of relationship marketing to acquire new customers maintain and enhance relationship with existing customers, re-activities of ex-customers and handling of customer terminations. The key objective of relationship marketing is to establish one to one relationship with all the customers. This may have sound like a day dream few dream few years ago but thanks to the technological breakthrough and technological solution providers, it is very much of a reality.

How to add value through relationship Marketing

Identify loyal customers Recognize their special needs Provide special reward for loyalty Establish continuing relationship Ensure increase in customer value

Relationship marketing is one of the hottest tread in the present marketing scenario. Satisfied customers not only stay with a company but they are also walking talking advertisement for the company’s product.

OPERATION DEPARTMENT The Operation department oils the work processes between the customer and company to ensure consistent and quality service to the customer. To streamline the operations, the operations department interfaces between the clients and the agents, the branches and the under writers, and manages work processes. 39

The vision at customer service Vision of the company is to deliver “World Class Service” at every opportunity. Units such as the 9 to 9 contact centre, out bound call centre, customer care. And query reduction unit are all committed across the country. ICICI Prudential has one of the largest distribution networks amongst private life insurers in India, having commenced operations in 58 cities and towns in India. These are….. Agra, Jalandhar, Ajmer, Amritsar, Aurangabad, Bangalore, Bhopal, Calicat, Chandigrah, Chennai, Coimbatur, Dehradun, Gurgaon, Hyderabad, Hubli, Indore, Jaipur, Jalandhar, Jamnagar, Kanpur, karnal, Kochi, Kolkatta, Kota, Kolhapur, Kottayan, Lucknow, Ludhiana, Madurai, Mangalore, Meerut, Mumbai, Nagpur, Nashik, Noida, New Delhi, Patiala, Pune, Raipur, Rajkot, Ranchi, Surat, Thane, Thrissur, Trichy, Trivendrum, Udaipur, Vadodara, Vashi, Vijayawada and Vizag. The Company has twelve banc assurance tie-ups having agreements with ICICI Bank, Federal Bank, South Indian Bank, Bank of India, Lord Krishna Bank, Punjab and maharastra Co-Operative Bank, Goa State Co-operative Bank, Indoor Paraspar Sahakari Bank, Manipal State Co-Operative and Jalgaon People’s Co-Operative Bank, as well as some corporate agents. It has tie-up with organizations like Dhan for Distribution of Salaam Zindgi, a Policy for the socially and economically underprivileged sections of society. ICICI Prudential has recruited and trained over 32000 insurance advisors to interface with and advice customers. Further, it leverages is State-of the art IT infrastructure to provide superior quality of service to customer. The Operation Department of ICICI Prudential delivers the following services to the customers such as:  Out Bound Call Centre  Customer Care  Query Resolution Unit  Policy Login Process  9 to 9 Contact Centre Role of Information Technology in Operation Department: The Information Technology function at ICICI Prudential is committed to enables business through the use of technology. It is segmented into 4 groups to enable 40

highest levels of delivery to the customers: Life Asia Solutions Group that provides flexibility in designing better product offering to end-users, the Solutions GroupWeb that provides real-time information to customers and is responsible for customer relationship management, IT Architecture and Corporate Solutions Group is in charge of developing and maintaining a blueprint for the IT Architecture for the enterprise as a whole. This team works as an in house R & D Solution Group, exploring new technological initiatives and also caters to information needs of corporate functions in the organizations. IT Infrastructure group is responsible for providing hardware, software, network services to the whole organization. This group runs the “Digital Nervous System” of the Enterprise at the highest levels of efficiency and provide robust, scalable and highly available platform for development of business application. With the help of Information Technology, an advisor and managers can login the policy fro any of the offices of ICICI Prudential Ltd. And also with the help of IT any employee or management can know any information, any thing about the policy, advisor’s record, any branch’s sales, any new schemes, any manager’s record, and other thins at any time any place.

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HUMAN RESOURCE MANAGEMENT DEPARTMENT Introduction to HRM:Human resource management is a management function that helps managers’ recruit, select, train and develops members for an organization. HRM is concerned with the people’s dimension in organization. ‘Manpower’ or ‘human resource’ may be thought of as ‘the total knowledge, shills, creative abilities, talents and aptitudes of an organization’s work force, as well as the values, attitudes and benefits of an individual involved. It is the sum total of inherent abilities, acquired knowledge and shills represented by the talents and aptitudes of the employed persons. Of all the ‘Ms’ in management (i.e. the management of materials, machines, methods, money, motive power), the most important ‘m’ for men or human resources. It is the most valuable asset of an organization, and not the money or physical equipment. It is in fact an important economic resource, covering all human resources- organized or unorganized, employed or capable of employment, working at all levels- supervisors, executives, government employees, ‘blue’ and ‘white' collar workers, managerial, scientific, engineering, technical, skilled or unskilled persons, who are employed in creating, designing, developing, managing and operating productive and service enterprises, and other economic activities. Human resources are utilized to the maximum possible extent in order to achieve individual and organizational goals. And organization’s performance and resulting productivity are directly proportional to the quantity of its human resources Organization Structure:‘Organization’ is a group of people working together cooperatively under ‘authority’ toward achieving goals and objectives that mutually benefit the participants and the organization. A well-known author of HRM Allen says “the process of identifying and grouping the work to be performed, defining and delegating responsibility and authority, and establishing relationships for the purpose of enabling people to work most effectively together in establishing of objectives” The essence of this definition is that people who work together require a defined system or structure through which they relate to each other and through which their efforts can be coordinated. Every organization has goals or objectives for its existence. In the case of Personnel Management, it is to optimize “the effectiveness of human resources”. These goals can be achieved more suitably if the behavior of the workers and the composition of the organization can be predicted and integrated cooperatively. 42

The formal organization structure attempts to give order and unity to the actions and efforts of those who work together. An organization tries to establish an effective behavioral relationship among selected employees and in selected work places in order that a group may work together effectively. There are three kinds of work which must be performed whenever an organization comes into being: Division of labor Combination of labour and Coordination The organization structure at ICICI web trade is somewhat like this:

• • •

C.E.O. Mr. K.V. Kamath

Board of Directors

National Head (at Mumbai-branch) Area manger/ In charge of Project at Jalandhar (Navin Aggarwal) Assistant unit manager (Miss Pinki Gupta)
Sales Executive Sales Executive Sales Executive Sales Executive

In any organization there is what is termed a ‘hierarchy’, refers to various levels of authority in an organization, ranging from the Board of Directors at the top to the sales executives at the bottom.

Human Resource Planning:43

Human resource planning can be explained as “the process by which a management determines how an organization should move from its current manpower position to its desired manpower position. Through planning, a management strives to have the right number and right kind of people at the right places, at the right time to do things which result in both the organization and the individual receiving the maximum longrange benefit”. Coloman has defined human resource or manpower planning as “the process of determining manpower requirements and the means for meeting those requirements in order to carry out the integrated plan of the organization.” Stainer defines HRM as “Strategy for the acquisition, utilization, improvement, and preservation of an enterprise’s human resources. It relates to establishing job specifications or the quantitative requirements of jobs determining the number of personnel required and developing sources of manpower.” Human resources planning are a double-edged weapon. If used properly, it leads to the maximum utilization of human resources, reduces excessive labor turnover and high absenteeism; improves productivity and aids in achieving the objectives of an organization. Faultily used, it leads to disruption in the flow of work, lower production, less job satisfaction, high cost of production and constant headaches for the management personnel. Therefore, for the success of an enterprise, human resource planning is a very important function, which can be neglected only at its own peril. It is as necessary as planning for production, marketing, or own peril. It is as necessary as planning for production marketing, or capital investment.

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Recruitment Sources:Human resource planning helps to determine the number and type of people an organization needs. Job analysis and job design specify the tasks and duties of jobs and the qualifications expected from prospective jobholders. The next logical step is to hire the right number of people of the right broad groups of activities. Recruitment forms the first stage in the process which continues with selection and ceases with the placement of the candidate. It is the next step in the procurement function, the first being the manpower planning. Recruiting makes it possible to acquire the number and types of people necessary to ensure the continued operation of the organization. Recruiting is the discovering of potential applicants for actual or anticipated organizational vacancies. In other words, it is ‘linking activity’ bringing together those with jobs and those seeking jobs. As Dale Yoder and other point out: “Recruitment is a process to discover the sources of manpower to meet the requirements of the staffing schedule and to employ effective measures for attracting that manpower in adequate numbers to facilitate effective selection of an efficient working force.” Accordingly, the purpose of recruitment is to locate sources of manpower to meet job requirements and job specifications. Recruitment has been regarded as the most important function of personnel administration, because unless the right types of people are hired, even the best plans, organization charts and control systems would not do much good. Flippo views recruitment both as ‘positive’ and ‘negative’ activity. He says “it is a process of searching for prospective employees and stimulating and encouraging them to apply for jobs in an organization. It is often termed positive in that it stimulates people to apply for jobs to increase the ‘hiring ratio’ i.e. the number of applicants for a job. Selection, on the other hand tends to be negative because it rejects a good member of those who apply, leaving only the best to be hired.” MANPOWER PLANNING AT ICICI PRUDENTIAL Human Resource Planning is the process by which an organization ensures that it has the right number and kind of people, at the right place, at the right time, capable of effectively and efficiently competing those tasks that will help the organization achieve its overall objectives. Human Resource Planning translates the organization’s objectives and plans into the number of workers meet those objectives. Without a clear-cut planning, estimation of an organization’s human resource need is reduced to mere guesswork. ICICI PRUDENTIAL Asset Management Company considers several factor in HRP are strategy of company, organization planning about new schemes, environment uncertainties, time horizons, and nature of jobs being filled. By considering these entire factors it helps to 45

ICICI PRUDENTIAL to coping with change, creates highly talented personnel, and helps to determine futures needs. Manpower planning is needed with respect to persons who can work as sub-broker for the companies. Companies focused on Insurance Advisor and post office agent, Tax consultants and CAs for making sub-broker. ICICI PRUDENTIAL AMC Forecast HR Demand – it estimates the future quantity and quality of people required. It uses forecasting technique that is Management Judgment that involves “bottom-up” or “top-down” approach. After forecasting company forecast about HR supply that may be from Existing human resource, internal sources or External sources. RECRUITMENT The upper level members like zonal managers, regional managers, branch managers and senior executives are recruited. The regional manager has authority to select lower level employee like peon, marketing executives, financial accountant etc. by approval of zonal manager. ICICI PRUDENTIAL AMC recruits through following sources: • Internal Sources:  Present Employees  Employee Referrals  Previous Applicants • External Sources:  Advertisement  Campus interview  Consultants  Walk-ins SELECTION Selection is a process to select a fixed number of personnel from a large number of applicant received by employees, seeking the job and selecting those who suitable for the given job selection includes a number of steps. The purpose of selection is to pick up the right person for every job. A scientific procedures of selection, requires 2 things: 1. Knowledge regarding the qualities which a person should posses in order to do the given job properly 2. The evaluation of qualities possessed by a candidate for the job. Prudential ICICI has adopted the following steps for selection procedure:

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PRELIMINARY INTERVIEW The main purpose of preliminary interview is to screen out those who are unsuitable. Those interviews are quite short. If candidates are found suitable then an application blank may be given to him to fill up and return. In ICICI PRUDENTIAL AMC regional manager first interviews candidates, and if selected than he is interviewed by zonal manager & if he is found suitable than an application blank is given to them. APPLICATION BLANK Here the applicants are asked to complete a blank that provides space for him to record data relating to the name of candidates, experience etc. The application blank must not be too lengthy. In Pru ICICI AMC this application blank is forwarded to Mumbai branch to hr department. INTERVIEW After the application blank reaches to the HR Department Mumbai, a telephonic interview is conducted by HR Manager to see that the regional manager & zonal manager has made the right choice or not. MEDICAL CHECK UP If the candidates clears all the above stages, company checks his medical report the basic purpose of medical check-up is to determine the job for which candidate is fit or not. REFRENCES Checking of references is an important part of selection process. The company prefers to select the candidate within the group or if the candidate gives the name of reputed person as his references. FINAL SELECTION If the candidate passes successfully from the above stages he is finally selected for the post. The final selection lies with the regional manager.

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PLACEMENT The last stage in selection process is the placement of candidate. After the final selection is done, the selected candidate is finally placed on the job. TRAINING THERE ARE TWO TYPES OF TRAINING PROGRAMS: • ON THE JOB TRAINING • OFF THE JOB TRAINING Continuous training and upgrading technical, behavioral and managerial skills is a way of life in ICICI PRUDENTIAL AMC. ICICI PRUDENTIAL AMC encourages agent or sub-broker to hone their skills regularly to enable them to face the challenges of the changing requirements of customers that fit market up and down. Training needs analysis is done on a regular basis and systematic methodologies are ensured that skills and capabilities of all agents are constantly upgraded to enable them to perform in the challenging work. There is special training session at regular time period in local branch to all financial consultant and agents about new scheme and to improve their effectiveness. PERFORMANCE APPRAISAL “It is the systematic evaluation of the individual with respect to his or her performance on the job and his or her potential for development.” Objective of Performance appraisal if for Developmental uses for agents and Financial Consultants, for wages, transfer, promotion, for documentation and for organizational purpose like Human Resource Planning, Job analysis and for training and development. ICICI PRUDENTIAL first set the objective of performance appraisal then in establish job expectation and then decide whose performance should be rated and who the raters are. Basically raters are immediate supervisor, subordinates, peers, clients. For Performance Appraisal modern method is used like MBO (Management by Objectives) and 360” appraisal. But there is some limitation like Hello effect, Bias, Perception factor, Spill over etc Selection Methods: The selection procedure is concerned with securing relevant information about an applicant. This information is secured in a number of steps or stages. The objective of 48

selection process is to determine whether an applicant meets the qualifications for a specific job and to choose the applicant who is most likely to perform well in that job. The hiring procedure is not a single act but it is essentially a series of methods or steps or stages by which additional information is secured about the applicant. At each stage, facts may come to light which may lead to the rejection of the applicant. A procedure may be compared to a series of successive hurdles or barriers which an applicant must cross. These are intended as screens, and they are designed to eliminate an unqualified applicant at any point in the process. This technique is including all these hurdles. Placement & Induction:Placement at ICICI bank is done very critically. The human resources are considered very critical and are said to be main power of the bank. The CEO Mr. K. V. Kamath says, “Human capital is very important at ICICI. Training is a big thing; each employee spends at least 69 hours during the year recharging himself”. Placement is done on the qualification and merit basis. Generally for the retail banking and other in house jobs placement is done on the basis of the interviews by branch and regional heads. They select only those competent people who are ready to work round the clock and have full dedication towards the bank. Induction is a technique by which a new employee is rehabilitated into the changed surroundings and introduced to the practices, policies and purposes of the organization. In other words, it is a welcoming process-the idea is to welcome a new comer, make him feel at home and generate in him a feeling that his own job, however small, is meaningful and has significance as a part of the total organization. When a new comer joins an organization, he is an utter stranger to the people, work place and work environment. He may feel insecure, shy and nervous. The first few days may be anxious and disturbing ones for him. He may have anxiety caused by not following the usual practices prevalent in the organization, or the haphazard procedures, and lack of information. These may develop discouragement, disillusionment or defensive behavior. Induction leads to reduction of such anxieties; dispels the irrational fears present employees and hold colleagues responsible for assisting the new comer so that he may feel confident. ICICI says that, “newcomers are to be a part of informal identification of talent apart, there is a formal process. It starts form induction, where newcomers are subject to the OPQ (occupational personality questionnaire). The tests have also been conducted right up to the general manager and senior general manger.

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Training and Development:ICICI is a kind of private sector bank where if you are confident and competent then you can get your carrier advancement and development at a very high speed. CEO Mr. K. V. Kamath says, “There are several young people in our organization who are on the threshold of making it to the board”. He himself has this habit of dropping in unannounced on people tow or three levels below him. It helps him to keep a tab on things and also to find out who is knocking on top management doors. His management by walking about also takes him to the basement, to see that everything is spick and span. He does like to get to the bottom of things. At ICICI executive development programme is more important. Because they believe that if the executives are properly trained, properly motivated and fully focused then they can guide any kind of work force. All those persons who have authority over others and are responsible for their activities and for the operations of an enterprise are managers. In a business organization, the co-ordination and direction of the efforts of others is a major part of the management job. The manager has to deal not only with the staff but also with others outside his own group, and has decided influence on the organization. Performance Appraisal Policy:Once the employee has been selected, trained and motivated, he is then appraised for his performance. Performance appraisal is the step where the management finds out how effective it has been at hiring and placing employees. If any problems are identified, steps are taken to communicate with the employee and to remedy them. A “performance appraisal” is a process of evaluation an employee’s performance of a job in terms of its requirements.

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RESEARCH DESIGN & METHODOLOGY Objectives • • • • To Study the Brand awareness of the new product i.e. Unit Linked Insurance Plans in Jalandhar City. To know what are the priorities of people of city for making investment in Insurance. To know what are the perception of the consumer about ICICI Prudential Life Insurance Co. To know the standing of the ICICI Prudential Life Insurance Co. in Jalandhar City.

Data Source: The data would be collected from both primary as well as secondary source. Consumers would be asked to fill questionnaires to arrive at the information. Various secondary sources of data as magazines, journal, Internet etc. would also be explored. Sampling Area: The sampling areas of this research are Jalandhar. Sampling method: The convenient sampling method was used for this research and the respondents were those who have already taken life insurance policy. Sample Size: The size of this research is 50 respondents. Research Instrument: The research instruments, which was used, for collecting the data is questionnaire. Method of contact: The method of contact would be personal and direct as this would help to qualify the customer’s issues while filling up the questionnaire and also helps them if they do not have the knowledge about any insurance plan of the company. Method of making an approach for Sales: After analyzing the data form the questionnaires the needs of prospects were identified and the best suitable insurance solution was suggested to them accordingly. 51

Data Collection and Analysis Q.1. Do you have a Life Insurance Policy? Criteria Yes No No. Of Respondents 50 0

As our sample is those people who have insurance so all the respondents are falling under the “Yes” criteria. Q.2. Which Company’s Insurance Policies do you have?

Company LIC Birla Sunlife SBI ICICI Pru. Life Kotak Mahindra Post Office HDFC

No. of Respondents 50 2 3 10 3 15 3

No. of Respondents 60 50 40 30 20 10 0 LIC SBI Kotak Mahindra HDFC

No. of Respondents

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As from the above chart it is very clear the all of the respondents have an insurance of the LIC while some of them have an insurance of the other companies like post Office, ICICI Prudential Life insurance Co., HDFC Co. Etc. The reason behind this is that the LIC competitor since more than four decades and the Indian Govt. allowed the Introduction of private player in Insurance in the year 2000. Q.3 What is amount of insurance premium you pay annually? Criteria Below Rs. 10,000 10,000 to 20,000 20,000 to 30,000 30,000 to 40,000 Above 40,000 No. of Respondents 11 18 6 5 10

The analysis of the above available data is merely to find out the percentage of income that one is willing to invest in insurance. Q.4 What priorities would you consider most important, while purchasing a policy? 1 29 7 5 8 2 2 10 13 5 18 5 3 6 21 6 8 3 4 2 3 20 8 11 5 3 0 7 6 25 Total 50 44 43 48 46

Criteria/Rank Death Benefit Children’s Future Retirement Planning Tax Planning Financial Planning

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No. of Respondents

Priorities of Respondents
60 50 40 30 20 10 0
T o ta l 1 2 3 4 5

Death Benefit Children’s Future Retirement Planning Tax Planning Financial Planning

Rank

From the table and chart it can be say that most of the people rank death benefit first for the decision to make investment in Insurance. Their second priority is tax planning because the premium, which is paid by the people towards Insurance, is deductible up to certain limit from the income and also the maturity amount is also tax free. The third and fourth priorities are children’s future and retirement planning.

Q.5

Do you have any knowledge of the stock market? Criteria Yes No No. of Respondents 32 18

Q.6

If “Yes” do you have any knowledge about unit linked insurance plans? Criteria Yes No No. of Respondents 25 7

The question number 5 and 6 are designed to know the awareness of people who have knowledge of share market or deals in shares also have the knowledge of the new modern insurance product i.e. Unit Linked Insurance Plan. From the available data it can be say that those who deal in shares are also aware of the ULIP. Q.7 Is your current Insurance policy “Unit Linked” or “Traditional? 54

Criteria Only Unit Linked Only Traditional Both

No. of Respondents 0 39 11

Respondents Having ULIP and Traditional Insurance Products

22%

0% Only Unit Linked Only Traditional 78% Both

From the Q. No. 7 we can say that even though the modern products available in the market since more than two years and which are having the more flexibility and also giving the higher return than traditional one most of the people do not have or may be not aware of it which shows the lack of brand awareness and it requires an aggressive promotional efforts on the part of company. There is a lot of scope available for the company to attract more customers by giving or introducing most suitable ULIP products and at the same time increase the customer base. Q.8 If given a choice, where would you like to invest your money? (Please Rank Your Choice) 1 0 4 4 17 22 0 0 10 2 1 12 8 3 12 2 6 5 3 5 14 1 0 12 4 12 0 4 1 4 2 5 2 10 19 2 5 25 8 2 2 2 1 1 1 6 12 3 5 6 0 14 0 0 7 5 0 13 1 0 2 3 0 8 1 0 13 0 0 0 1 2 Total 50 45 48 34 50 33 42 20

Choice/Rank Mutual Fund Insurance Gold Equities Post Office Debenture Bank Deposit Other

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Investment Priorities
No. of Respondents 60 50 40 30 20 10 0 Total 1 2 3 4 5 6 7 8 Mutual Fund Insurance Gold Equities Post Office Debenture Bank Deposit Other

Rank

This question is mainly designed to know the investment priorities of the people of Jalandhar town. The objective behind this Q. is that after the Charotar Nagrik Cooprerative Bank and other Credit Societies, which are giving higher interest on deposits, the whole scenario of city is changed. Most of the people prefer to invest in post office saving schemes and where their money is safe even though the return is very less. So there is a great need to divert the efforts of the company towards the safety and security as ICICI Prulife is a private insurance Company. Q.9 According to you what are the factors that would affect you decision while purchasing an insurance policy? 1 12 21 20 1 1 2 15 17 14 1 2 3 15 8 15 9 0 4 6 2 1 18 16 5 2 2 0 21 21 50 50 50 50 50 40

Criteria/Rank Premium Return Safety Liquidity Market Condition

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Factors Affecting the Insurance Decision
No. of Respondents 60 40 20 0 1 2 3 4 5 6 Rank Criteria/Rank Premium Return Safety Liquidity Market Condition

The question No. 9 is designed to know which the factors are affecting the most to the prospect while making decision to invest in insurance. As far as investment in insurance is concerned most of the people want that it should be safe and at the same time giving the compatible returns because insurance is not only for death benefit it is also a saving tool for future. So the mix response of respondents is welcomed. Available data is such that there is a bit ambiguity. But we can say that the most affecting factors to the prospect are return and safety. As per the finance theory risk and return goes in hand in hand but as far as insurance is concerned it is all about the compatible and safe returns over others.

Q. 10 Are you or ay of your family members are planning to buy an insurance policy in near future? Criteria Yes No No. of Respondents 13 37

This question is taken to collect the information of those respondents who are going to plan to purchase insurance within near future that is used by the company for making personal contact for sale.

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Q. 11 Are your needs satisfied with your current investment in insurance? Criteria Yes No Q. 11(a) No. of Respondents 10 30

If “No”, then give reasons? No. of Respondents 0 1 7 2
No. of Respondents

Criteria High Premium Low Return Poor Services Others

20%

0%

10%

High Premim Low Return Poor Services Others

70%

The question No.11 and 12 are designed to know the percentage of people who are not satisfied with the current investment in insurance and also to know the reasons behind it. So that the company can focus on those areas where the competitors fail. Because now a days the competition is very stiff in the insurance industry. All companies are trying to attract more customers by anyhow. So it will be useful for designing the promotional schemes of the company. From the above table and chart it can be seen that the respondents who are dissatisfied give the main reason behind it are poor services. There are many others reasons like more time taken by the company for claim settlement, nondispatchment of cheques and other important vouchers, etc. So the company can improve upon these and increase its market share by offering quality service to the customers. Q. 12 Do you know anything ICICI Prudential Life Insurance?
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Criteria Yes No

No. of Respondents 30 20

Q. 13 If “Yes”, from where did you come to know about the company? Criteria Television News Paper Sales Representative Others source No. of Respondents 4 3 14 9

Toal No. of Advertisement
Television 30% 13% 10% News Paper Sales Representative 47% Others source

Q. 14 What do you feel about “ICICI Prudential Life Insurance? (Open Ended) The question No.13, 14 and 15 are designed to know the company awareness the respondents of the city and also the source of awareness. But I felt very much difficulty while filling up these questions because most of the people know about the company but they know it as an ICICI Bank not as a different identity. So there is a great need to design the advertisement campaign in such a way that it will create the different image of the company. The main reason behind this is that the image of ICICI Bank in city is such that most of the people ask for charges first than the service that it provides.

QUESTIONNAIRE
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Q.1.

Do you have a Life Insurance Policy? Yes  No  Which Company’s Insurance Policies do you have? (Please specify the numbers) LIC HDFC Standard Life Birla Sunlife Cholamandalam TATA AIG Insurance ING Vysya AVIVA Life        SBI Life Insurance New York MaxLife Alliance Bajaj ICICI Pru. Life Insurance MetLife Insurance OM Kotak Mahindra AMP Sanmar       

Q.2.

Q.3

what is amount of insurance premium you pay annually? Amount

Q.4

What priorities would you consider most important, while purchasing a policy? (Please Rank Your Choice) Death Benefit Children’s Education Retirements Benefit Tax Planning Financial Planning All of above      

Q.5

have you any knowledge of the stock market? Yes  No 

Q.6

If “Yes” do you have any knowledge about unit linked insurance plans? Yes  No 

Q.7

Is your current Insurance policy “Unit Linked” or “Traditional? Yes  No  60

Q.8

If given a choice, where would you like to invest your money? (Please Rank Your Choice) Mutual Funds  Post Office Schemes  Insurance Policies  Debentures  Gold  Banks (FD’s etc.)  Equities  If other (specify) ___________ According to you what are the factors that would affect you decision while purchasing an insurance policy? (Please Rank Your Choice) Premium  Return  Safety  Liquidity  Market Condition 

Q.9

Q. 10 Are you or any of your family members are planning to buy an insurance policy in near future? Yes  No  Q. 11 Are your needs satisfied with your current investment in insurance? Yes  No  Q. 11 (a) If “No”, then give reasons? High Premium  Poor Services  Low Return  Other Reasons__________ ______________________ Q. 12 Do you know anything ICICI Prudential Life Insurance? Yes  No  Q. 13 If “Yes”, from where did you come to know about the company? T.V.  Newspaper  Magazine  Radio  Internet  Hoarding  Others (Please Specify)_____________________________

Q. 14 What do you feel about “ICICI Prudential Life Insurance? _______________________________________________________________ 61

_______________________________________________________________ _____________________

CONCLUSION
So according to the data available form the survey one can conclude that even though the Unit Linked Insurance Plans are very much popular in Metro and semi cities, the product awareness of ULIP is very low among the people of villages/rural areas and at the same time there is a need to create the different image of the company among the people by any means like advertisement, seminars or meetings.

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SWOT ANALYSIS
•   world. Strengths Flexible Products Partners having experience in different markets of the Synergy with existing operations Expertise in the field of insurance Professional management Good Customer service Create a brand name Weakness


    •

 Low capital base  Yet to build strong distribution network  Cannot tap rural market • Opportunities  Untapped market  Banks ready to tie up for as a readymade distribution network for a small fee. • Threats  Large distribution network of LIC  Decades of experience and brand name of LIC  5% service tax on investments.

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BIBILIOGRAPHY

Website address www.bimaonline.com www.licindia.com www.irdaindia.com www.iciciprulife.com Magazines India Today ICFAI Journal Outlook Express Materials LIC literature and brochures ICICI Prudential literature and brochures IC-33 OF IRDA ACT

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