A PROJECT REPORT

ON
"LIFE INSURANCE"
AT
ICICI PRUDENTIAL LIFE INSURANCE
PROJECT SUBMITTED IN PARTIAL FULFILLMENT FOR THE AWARD OF THE DEGREE OF

BACHELOR OF COMMERCE (GENERAL)

Submitted by
NAWAZ SHAREEF
1062-20-401-121
AHMED LAHJI
1062-20-401-457
MD SOHAILUDDIN
1062-20-401-549
MD NAYEEM
1062-20-401-550

Under the Guidance of

Mrs. BUSHRA FATIMA
(ASSISTANT PROFESSOR)

DEPARTMENT OF BUSINESS ADMINISTRATION

ANWAR-UL- ULOOM DEGREE COLLEGE (AUTONOMOUS)
(AFFILIATED TO OSMANIA UNIVERSITY)
NEW MALLEPALLY, HYDERABAD
(2020-2023)
ANWARUL ULOOM DEGREECOLLEGE
An Autonomous Muslim Minority Institution
(Affiliated to Osmania University)
# 11-3-918, New Mallepally, Hyderabad – 500 001., A.P., INDIA
Tel : 23340134, 30582660, 30582678, 30582666, 23342285 Fax: 23342750

Ref No………………………………. Date:……………………………..

CERTIFICATE

This is to certify that NAWAZ SHAREEF bearing Roll No: 1062-20-401-121 ,

AHMED LAHJI bearing Roll No: 1062-20-401-457 , MD SOHAILUDDIN
bearing Roll No: 1062-20-401-549 & MD NAYEEM bearing Roll No: 1062-20-
401-550 has successfully completed they project work entitled “LIFE
INSURANCE., and submitted in partial fulfillment of the requirement for the award
of the Degree of Bachelor of Commerce (General) Administration by Osmania
University, Hyderabad.

This is a bonafide work completed under my guidance and supervision.

Signature of Internal Guide Signature of H.O.D

Signature of Principal
 DECLARATION

We, NAWAZ SHAREEF bearing Roll No: 1062-20-401-121 , AHMED

LAHJI bearing Roll No: 1062-20-401-457 , MD SOHAILUDDIN
bearing Roll No: 1062-20-401-549 & MD NAYEEM bearing Roll
No: 1062-20-401-550 the undersigned, hereby declare that the
project report entitled "LIFE INSURANCE " carried out at ICICI
PRUDENTIAL LIFE INSURANCE is our original work written and
submitted by us in partial fulfillment of the award of the degree of
Bachelor of Commerce (General) from Anwar-Ul-Uloom Degree
College, (Autonomous). We are also declare that this project has not
been submitted earlier in any other university or institution.

Date:

NAWAZ SHAREEF
1062-20-401-121

AHMED LAHJI
1062-20-401-457

MD SOHAILUDDIN
1062-20-401-549

MD NAYEEM
1062-20-401-550
 ACKNOWLEDGEMENT
We would like to acknowledge, our sincere thanks to Mr. Mohammed Abdul
Razzak, Principal of "Anwar-UI-Uloom Degree College (Autonomous)" for the
extended helping hand for the development of our career.
We wish to express our sincere thanks to Dr. Mohammed Ahmed Mohiuddin
H.O.D and our express and sincere thanks to our Project Guide
Mrs. BUSHRA FATIMA for sharing her valuable dine in providing her valuable
Knowledge, guidance and excellent support for the successful completion of my
project.

We express our sincere thanks to Mr. RAKESH SINGH of ICICI PRUDENTIAL

LIFE INSURANCE for sharing his valuable time in providing his valuable
suggestions, information and excellent co-operation for the successful completion of
my Project.

We would like to acknowledge, our sincere thanks to all faculty members of "Anwar-
UI-Uloom Degree College (Autonomous)" who have extended helping hand in
giving the information being part of the study. We would like to express our gratitude
for all the people, who extended unending support at all stages of the project.

NAWAZ SHAREEF
1062-20-401-121

AHMED LAHJI
1062-20-401-457

MD SOHAILUDDIN
1062-20-401-549

MD NAYEEM
1062-20-401-550
 ABSTRACT

Life insurance is a contract between an insured (insurance policy holder)

and an insurer, where the insurer promises to pay a designated beneficiary a sum
of money (the "benefits") upon the death of the insured person. Depending
on the contract, other events such as terminal illness or critical illness may also
trigger payment. The policy holder typically pays a premium, either regularly or
as a lump sum. Other expenses (such as funeral expenses) are also sometimes
included in the benefits.The advantage for the policy owner is "peace of mind",
in knowing that the death of the insured person will not result in financial
hardship for loved ones and lenders.

It is possible for life insurance policy payouts to be made in order to help

supplement retirement benefits; however, it should be carefully considered
throughout the design and funding of the policy itself.

Life policies are legal contracts and the terms of the contract describe the
limitations of the insured events. Specific exclusions are often written into the
contract to limit the liability of the insurer; common examples are claims
relating to suicide, fraud, war, riot and civil commotion.

In India, Life Insurance sector plays a major role in savings of a person. There
are many players in life insurance sector and LIC is the leading as it has roots in
India from more than 50 years. To purchase anything in this world a customer
has his/her own choice of preferences.

This project is a study of insurance as a part of financial planning. The aim of

study is to examining a client’s personal situation, financial resources, financial
objectives and financial problems in a comprehensive manner, monitoring the
plan performance to take corrective action as necessary to assure that results
match the plan projections. So this studyis also intended to find whether people
are aware of the company’s life Insurance.

The method of study is market research with structured questionnaire consisting

of multiple choice questions. The sample is 100 collected from persons having
Life Insurance Policy. The Private Insurance companies are also able to create
brand value and trust in customers. So they have only 42% (approx.) market
share in Life insurance sector.
 TABLE OF CONTENTS

CHAPTER NO DESCRIPTION PAGE NO

CHAPTER - I INTRODUCTION TO TOPIC 1

CHAPTER - II REVIEW OF LITERATURE 8

CHAPTER - III RESEARCH METHODOLOGY 14

CHAPTER - IV THEORETICAL FRAME WORK 19

CHAPTER – V COMPANY PROFILE 23

CHAPTER - VI DATA ANALYSIS AND INTERPRETATION 31

CHAPTER - VII RESEARCH FINDINGS & SUGGESTIONS 59

CHAPTER -VIII SUGGESTIONS & RECOMMENDATIONS 63

 BIBLIOGRAPHY 65
 CHAPTER - I
INTRODUCTION

1
 INTRODUCTION

Life insurance is becoming more and more popular with many people now realizing
the importance and the benefits of a good life insurance policy. There are two main types of
popular life insurance, both of which offer a range of invaluable benefits to consumers.
Level term life insurance is the most popular type of life insurance policy with
consumers, and this may be because it is also the cheapest form of insurance. With level
term insurance, you and your family can enjoy peace of mind at an affordable price. If you
die during the term of this insurance policy, your family will receive a lump sum payment,
which can help to cover a number of costs as well as provide some degree of financial
security at what will inevitably be a difficult time. The money could assist with costs such
as Mortgage repayments, Funeral costs, Education costs for the children, and Day-to-day
living.
One of the reasons that level term life insurance is a fair bit cheaper than other life
insurance is because the insurer only has to make a payment if the insured party passes
away, and even then the insured party has to die during the term of the policy for the next of
kin (or the named beneficiary) to be eligible for a payout. One of the great things about
levels term insurance is that you can benefit from cover for just a few pounds each week,
and because the payments remain the same throughout the term of the policy, you‘ll never
have to worry about rising payments.

The reason why a level term insurance policy is so called is because the repayment
remain level throughout the term of the policy, so you will never have to worry about the
cost of your policy rising. The policy is also taken over a fixed term, which is where the
‗term‘ part of the policy comes in. This means that you can enjoy easy budgeting and low
cost repayments, and you‘ll know exactly how long you will be making payment for.
Insurance is something which everyone should have for their life, health etc. and
should also have knowledge about it so that one can plan about their own future. When
given a topic to write an essay, people generally get puzzled as the topic involves many
minute details and can only be written properly by such a person who has great knowledge
about insurance who has been working in this field. So to give you relief from this problem,
we are providing essay writing services to you people.

2
 Life insurance is a contract between an insurance policy holder and an insurer, where
the insurer promises to pay a designated beneficiary a sum of money (the "benefits") upon
the death of the insured person. Depending on the contract, other events such as terminal
illness orcritical illness may also trigger payment. The policy holder typically pays a
premium, either regularly or as a lump sum. Other expenses (such as funeral expenses) are
also sometimes included in the benefits.

The advantage for the policy owner is "peace of mind", in knowing that the death of the
insured person will not result in financial hardship for loved ones and lenders.

It is possible for life insurance policy payouts to be made in order to help supplement
retirement benefits; however, it should be carefully considered throughout the design and
funding of the policy itself.

Life policies are legal contracts and the terms of the contract describe the limitations
of the insured events. Specific exclusions are often written into the contract to limit the
liability of the insurer; common examples are claims relating to suicide, fraud, war, riot and
civil commotion.

INBUILT BENEFITS

• Premium Waiver Benefit: In case of death or accidental total permanent disability

of the policyholder during the premium payment term, all future premium
Payments are waived. This benefit will not be available in the event of accidental
Permanent total disability after age 65 of the policyholder.
• Family Income Benefit: In case of death or accidental total permanent disability
of the policyholder during the term of the policy, a monthly income benefit of
1% of the sum assured (12% per annum) subject to a maximum of Rs.10,000
p.m. becomes payable till the end of the policy term. This benefit will not be
Available in the event of accidental permanent total disability after age 65 of the

POLICYHOLDER.

• Option to Purchase further Insurance at Maturity: For ensuring continuity of the valuable
insurance protection that the child was enjoying, we offer the child anoption to purchase a
with profits endowment or an equivalent plan from ICICI prudential Life Insurance
Company for twice the amount of face value of this Policy, without any medical
examination, on the premium rates prevailing at That time (The application must be made at

3
least 6 months prior to maturity of this policy. Payout Structures For Child Gain 21 and Child
Gain 21 Plus: The minimum guaranteed payouts are as follows:
Policy Anniversary following Completion of Age 18 19 20 21 Payout as % of Sum Assured
20% + Accrued 25% 25% 35%* Bonuses For Child Gain 24 and Child Gain 24 Plus: The
minimum guaranteed payouts are as follows:
Policy Anniversary following Completion of Age 18 20 22 24Payout as % of Sum Assured
25% + Accrued 25% 25% 40%* Bonuses
* Refers to probable increase in payout based on higher interest during the payout
Period. Start of Life Benefit
Unique Feature of ICICI prudential ‗Child Gain‘ 21 Plus and 24 Plus
These packages offer you the choice of providing a unique Start of Life Benefit for
your child. For a nominal amount, an additional Sum Assured subject to a maximum limit of
Rs. 10 lakes will become payable to enable the child start his/her professional life smoothly,
in case of an unfortunate death or Accidental Permanent Total Disability of the Policyholder
during the term of the policy. This benefit will not be available in the event of accidental
permanent total disability, after age 65 of the policyholder.

ICICI PRUDENTIAL LIFE INSURANCE COMPANY LIMITED.

CHILD GAIN
This product brochure gives the salient features of the plan only. The policy
documents the conclusive evidence of the contract, and provides in detail all the conditions,
exclusions related to the ‗ICICI prudential Child Gain‘ Plan.
Insurance is the subject matter of the solicitation. For More Information: Kindly
consult our ―Insurance Consultant‖ or call us today on the numbers mentioned above. This
brochure should be read in conjunction with the Benefit Illustration and Policy Exclusions.
Please ask for the same along with the quotation.

SECTION 45 OF THE INSURANCE ACT, 1938.

―No Policy of life insurance affected after the coming into force of this Act shall,
After the expiry of two years from the date on which it was effected, be called in Question by
an insurer on the ground that a statement made in the proposal for Insurance or in any report
of a medical officer, or referee, or friend of the insured, Or in any other document leading to
the issue of the policy, was inaccurate or false, Unless the insurer shows that such statement
was on a material matter or suppressed Facts which it was material to disclose and that it was

4
fraudulently made by the Policy-holder and that the policy holder knew at the time of making
it that the statement was false or that it suppressed facts which it was material to disclose.‖

Prohibition of Rebate: Section 41 of the Insurance Act, 1938 states:

1) No person shall allow or offer to allow, either directly or indirectly, as an inducement to
any person to take out or renew or continue an insurance in respect of any kind of risk
relating to lives or property in India, any rebate of the whole or part of the commission
payable or any rebate of the premium shown on the policy, nor shall any person taking out or
renewing or continuing a policy accept any rebate, except such rebate as may be allowed in
accordance with the published prospectuses or tables of the insurer.
2) Any person making default in complying with the provisions of this section shall
be punishable with fine, which may extend to five hundred rupees.

CONTACT DETAILS
For your convenience we have provided 4 Premium Payment Modes that can be
Yearly, Half yearly, Quarterly and monthly. We also offer a Monthly Premium Payment
Mode under salary deduction schemes.
Surrender we offer you the choice of surrendering the policy provided three full years
premiums have been paid (Two years for premium payment terms of 5 and 6 years).
The guaranteed minimum surrender value is 30% of all premiums paid excluding the
first year premium and excluding the premiums for Premium Waiver Benefit and Family
Income Benefit and Additional Rider Benefit if opted. The guaranteed minimum surrender
value after the premium payment term will be the discounted value of the outstanding
installment payments discounted at 10% p.a. rate of interest.

LOANS
Loans are not available with ICICI prudential ‗Child Gain‘ Plan
15 days Free Look Period:
Within 15 days from the date of receipt of the policy, you have the option to review
the terms and conditions and return the policy, if you disagree to any of the terms &
Conditions, stating the reasons for your objections. You will be entitled to a refund of the
premium paid, subject only to a deduction of a proportionate risk premium for the period on
cover and the expenses incurred on medical examination and stamp duty charges.

5
PROMOTIONAL OBJECTIVES

There are a number of promotional objectives, some of the most common being
information dissemination, product demand, product differentiation, product highlights, and
sales stabilization. Regardless of the promotional objective selected, the company's goal is to
inform and convince consumers to buy the product.

Information Dissemination One of the most basic desires of a company is to provide

information about a product to potential consumers. Tools available to an organization for
informing potential consumers about a product include billboards, flyers, Internet Web sites,
magazines, newspapers, radio spots, and television commercials. Normally a variety of these
promotional tools are used to communicate a single, coordinated message to potential
consumers. These different promotional tools can provide potential consumers with an array
of information about a product, such as features, quality, and/or price. The informational
focus depends on the makeup of the target audience that the company is trying to reach with
its message.

Product Demand Another organizational goal of promotional activities is to create product

demand. A company has several promotional options for fostering product demand. For
example, a company may focus on using a primary demand strategy that concentrates on
trying to increase demand for a general product or service line. Large companies or
cooperatives that have well-known and large product lines normally use the primary demand
strategy. Advertisements for these companies carry over to all product categories and, as a
result, may improve sales in several product areas. Companies also use another marketing
strategy, known as selective demand, which concentrates on promoting a specific brand
within a company's product line. Selective demand is often used to help promote a new
product so that consumers are aware of the new addition to a large company's product line. A
company may also utilize a selective demand strategy when it wants to sell a product that has
a high profit margin. A good example of this strategy is the active promotion of sport utility
vehicles by major automobile companies.

Product Differentiation A common challenge faced by companies is increased competition,

which often results in the market being flooded with similar products. Consumers may
conclude that no substantial difference exists between the products (homogeneous demand)

6
and, therefore, look for the lowest-priced product to purchase. An industry that has
experienced the problem of homogeneous demand is the soft-drink industry. With few
exceptions, most consumers do not make a distinction among the numerous beverages that
are offered. A company that excels at product differentiation can normally demand a higher
price for a product because of its perceived higher quality.

Product Highlights Companies have another tool to employ in order to justify a higher-
priced product: A firm can accentuate the product's exceptional quality in detail to convince
consumers that the extra cost is worthwhile. Highlighting a product's quality might sound
easy, but a company must first develop superior advertisements to promote the product.
Moreover, the firm must develop a reputation for making a superior product that is well
known to the average consumer. Volvo is one company that has done an excellent job of
creating the image of producing only high-quality, safe cars. Thus. Volvo can charge an extra
premium for its cars. Caterpillar has also nurtured and promoted a reputation for producing
only the best heavy earth-moving equipment in the world. It, too, charges an increased price
for its products.

Sales Stabilization A challenge that companies face is inconsistent demand for their
products throughout the year. Reasons for this fluctuation can range from seasonal demand to
changing economic conditions. Most companies would rather have a consistent demand for
their products throughout the year, since this would allow them to have steady production
and distribution facility operations. Ice cream manufacturers often face this dilemma because
in the summer months demand for ice cream normally reaches its highest levels while sales
decrease substantially in the winter. In order to combat these shifts in product demand, ice
cream companies might offer coupons to encourage the purchase of their products during
slow sales seasons.

7
 CHAPTER II
REVIEW OF LITERATURE

8
 AN IMPACT STUDY OF PROMOTIONAL EVENTS ORGANIZED ON THE
LAUNCH OF CHILD GAIN POLICY OF ICICI PRUDENTIAL LIFE INSURANCE

PROMOTIONAL MIX
Marketing managers use different components of the promotional mix as tools for
achieving company objectives—advertising, personal selling, public relations, and sales
promotion. Each of these elements can be further divided into additional subcomponents or
strategies. The majority of a company's promotional resources are usually spent on these four
elements for a simple reason: Companies perceive these methods as the most effective means
to promote their products. Other specialized promotional techniques, however, are also used
to enhance promotional objectives.
Advertising: Advertising is often thought of as the paid, no personal communication used in
the promotion of a cause, idea, product, or service by an identified sponsor. The various
advertising delivery methods include banners at sporting events, billboards, and Internet Web
sites, logos on clothing, magazines, newspapers, radio spots, and television commercials.
Among the common forms of advertising are advocacy, comparative, cooperative,
informational, institutional, persuasive, product, reminder, point-of-purchase, and specialty.

Personal Selling: Personal selling is considered one of the most effective promotional
techniques because it facilitates interaction between consumer and seller. With personal
selling, a salesperson can listen to and determine a consumer's needs by asking questions and
receiving feedback from the consumer. Furthermore, personal selling activities can generate
long-lasting friendships between consumers and sellers that typically generate many repeat
purchases. Personal selling can also occur by means of interactive computers, telephone
conferences, and interactive videoconferencing. A drawback of personal selling, however, is
its high cost. Examples of products promoted through personal selling include automobiles,
life insurance, real estate, and many industrial products.

Public Relations: Public relations has been de scribed as building goodwill with a
company's various publics, including consumers, employees, government officials,
stockholders, and suppliers. The overall goal of any public relations effort is to project a
positive company image when dealing with such issues as community and government
relations, employment practices, and environmental issues.

Consumers. Public relations efforts are extremely important for maintaining a company's
consumer base. Consumers must believe that they are buying from a caring, honest, and
9
trustworthy company. Negative media stories about, for example, exploiting workers or
producing substandard products can do enormous damage to a company in the eyes of
consumers. Erosion of a company's client base is likely to result in both lost sales and lost
market share.

Employees. The most valuable asset a company has is its employees. Therefore, it is
essential that employees believe in their company. Public relations communications are
extremely important in ensuring that employees receive information about the company
before outside media receive and report the information. A good example of providing
superior public relations would be to inform company employees that a small reduction in the
work force is required but that a full severance package will be provided for laid-off
employees. Although this news is not positive, the employees are hearing about it first from
the company and are also aware that they will be receiving assistance from the company. If
employees read or see negative reports about the employer without a credible public relations
explanations, they may find other work or reduce their productivity because of low morale.

Government officials. Maintaining a positive public image is also important because

government agencies and offices (e.g., Federal Trade Commission, Federal Communication
Commission) monitor the media and have regulatory oversight over company activities.
Positive stories in the media obviously help promote a positive image to government
regulators, which reduces the chance of being investigated and possibly fined. The opposite
is also true: Stories about client complaints or other dishonest practices or potentially illegal
actions will draw the government's attention and probably some sort of investigation—
something that no company wants. An investigation can drag on for months, even years,
providing even more negative publicity. Even if the government regulators find no
wrongdoing, the public is still likely to be skeptical because the company was investigated.
Therefore, every company must make its best effort to answer any questions that regulators
have regarding negative media stories or consumer complaints. A strong, well-organized
public relations department will ward off potential trouble by being honest, friendly, positive,
and helpful to government regulators and members of the news media.

Stockholder: Another key interest group for any company that offers publicly traded
securities are the stockholders. If company stockholders generally receive positive news
about a company, they are more likely to maintain investment, which helps keep the stock
price up. Negative news that is not countered with positive public relations can create
uncertainty about how the company is running and encourage stockholders to sell and to

10
invest in other companies. This action can cause the stock value to decrease, making it
difficult to attract new investors.

Suppliers: Positive public relations are essential for a company's relation with its suppliers.
Suppliers are most concerned about being paid for the product they are selling to a company.
Since most suppliers are generally not paid until ten to twenty days after delivery of their
product, they must have faith in the ability of a company to pay its bills. Any negative news
regarding a company's financial position in the absence of a full and complete explanation
from the public relations department may result in a damaged reputation with suppliers.
Suppliers could stop shipping their products or demand that payment is made at the time of
delivery. Neither option is appealing to a company, and both could cause critical delays in
getting its products to market.

Sales Promotion Sales promotions are marketing practices designed to facilitate the
purchase of a product that do not include advertising, personal selling, or public relations.
Companies use sales promotion for a variety of reasons; (1) to attract new product users who
will hopefully turn into loyal consumers who keep buying the product; (2) to reward existing
consumers with a price reduction, thereby maintaining their loyalty; and (3) to encourage
repeat sales from occasional consumers.

SPECIAL PROMOTIONAL ACTIVITIES:

Companies use a variety of sales promotion tactics to increase sales, including advertising
specialties, cash refund offers/rebates, contests and sweepstakes, coupons, patronage
rewards, point-of-purchase displays, premiums, price packs/cents-off deals, samples, and
trade shows.

Advertising specialties. Companies frequently create and give away everyday items with
their names and logos printed on the items such as bottle/can openers, caps, coffee mugs, key
rings, and pencils. Companies prefer to use inexpensive handouts that will yield constant free
advertising when used by the recipient.

Cash refund offers/rebates. A cash refund or rebate is similar to a coupon except that the
price reduction comes after the product is already purchased. In order to receive the cash
refund/rebate, the consumer must send in a "proof of purchase" with the company offer in
order to obtain the refund. Rebates are often an excellent form of sales promotion for a

11
company to use because a high percentage of consumers will not send in the forms for the
refund.

Contests and sweepstakes: Many companies use contests and sweepstakes to increase the
sales of a product. As a reward for participating, consumers might win cash, free products, or
vacations. With a contest, participants are required to demonstrate a skill; for example,
entrants might be asked to suggest a name for a new product, design a company logo, or even
suggest a company name change. Contest entries are then re viewed by a panel of judges; the
originator of the winning entry receives a prize, usually in the form of cash or a vacation. In
contrast to the skill required with contests, a sweepstakes winner is determined by chance.
For example, consumers maybe given a scratch card in fast-food restaurants; if three-of-a-
kind or another predetermined criterion is achieved, the consumer would be given a free
hamburger or some other selected prize.

Coupons. Coupons are certificates that give consumers a price savings when they purchase a
specified product. Coupons are frequently mailed, placed in newspapers, or dispensed at the
point of purchase. In addition, some companies have coupons generated when an item is
scanned at the register. Companies can promote both new and mature products through the
use of coupons.

Patronage rewards. Awards provided by companies to promote and encourage the

purchasing of their products are called patronage rewards. Airlines use this strategy by
awarding frequent-flyer miles to consumers who use their services often. When a consumer
has earned enough frequent-flyer miles, he or she can redeem a free ticket. Credit card
companies also use patronage rewards by providing a list of free products a person can order
based on the number dollars charged in a specified time period.

Point-of-purchase displays. Point-of-purchase promotions can include displays and

demonstrations that take place at the point of purchase. The cardboard cutouts of popular
movie stars that are put next to merchandise are excellent examples of this method. One
drawback to point-of-purchase displays is that stores do not have time to set up all the ones
that are offered, so only a handful of them are used. Companies frequently offer assistance in
assembling and removing promotional displays to encourages storeowners to use their point-
of-purchase displays.

Premiums. A premium is a good offered free or at a low cost to encourage consumers to buy
a particular product. Companies can also offer premiums in the form of reusable containers
12
bearing names and logos in order to help promote other products. In addition, a company
may also decide to use a self-liquidating premium. The costs associated with self-liquidating
premiums are passed along to consumers through the cost of product.

Price packs/cents-off deals. Price packs provide consumers with a reduced price that is
marked directly on the package by the manufacture. Companies can offer price packs in the
format of two for the price of one or offer products such as a tube of toothpaste and a
toothbrush in one package for a lower price than that of the two items purchased separately.
Consumers generally react favorably to price packs because they are perceived as a real
bargain.

Samples. Some companies offer free samples of their products. The rationale for offering a
free product sample is to achieve immediate consumer introduction to the product.
Companies have several ways to introduce potential consumers to product samples.
Commonly used delivery methods include mailing the product, passing the product out in
stores, or door-to-door delivery of the product. The largest drawback of free samples is their
high cost. However, it is expected that the associated sales will offset the initial cost of the
free samples.

Trade shows. Most industries hold conventions and trade shows each year to show off new
technology, assess consumer trends, and review other issues important to the industry. Trade
shows provide firms that sell to a particular industry an excellent opportunity to promote new
products, make new contacts, renew existing business relationships, maintain or build a
reputation, and distribute promotional materials.

13
 CHAPTER - III
RESEARCH METHODOLOGY

14
 NEED OF THE STUDY
o To analyze the concept of insurance better and for making customer awareness
analysis towards insurance. First a sample survey should be done on these things to
know the awareness level of customers in this regard and by this the satisfactory
levels of the existing investors who have already invested in life insurance.

o There is more competition in this industry so there is a need to retain the customer with
the organization. So to sustain in the market the company has to follow various strategies
by attracting new investors and to retain the existing investors.

o Financial statement analysis is used to identify the trends and relationships between
financial statement items. Both internal management and external users (such as analysts,
creditors, and investors) of the financial statements need to evaluate a company's
profitability, liquidity, and solvency.

o The most common methods used for financial statement analysis are trend analysis,
common‐size statements, and ratio analysis. These methods include calculations and
comparisons of the results to historical company data, competitors, or industry averages
to determine the relative strength and performance of the company being analysed.

o The organization can estimate the satisfactory levels of existing customers in life
insurance.

o The Organization can know about the potential investors, who are interested and going to
invest in life insurance in the near future.

o They can know about Asset Management Companies, which people prefer to invest.

o The Organization can do more business with this

15
 OBJECTIVES OF STUDY

The main aim of the present study is to accomplish the following objectives:

1. To study the existing financial system in the ICICI PRUDENTIAL LIFE

INSURANCE
2. To analyze future financial position of the ICICI PRUDENTIAL LIFE INSURANCE
3. To examine future profitability with the help of profitability ratios.
4. To analyze the financial performance of the company with reference to the cash
flows.
5. Analyzing profit & loss account for the next four years with the help of last five years
data available.
6. To know the awareness about the life insurance policies among the respondents.
7. To know the reasons for preferring life insurance.
8. To create awareness among the customers about different products of ICICI
prudential.

SCOPE OF THE STUDY

 The scope of the study lies in finding out the awareness and perception of customers in
Hyderabad Division, the study will be able to reveal the awareness, preferences, needs,
satisfaction of the customers regarding the insurance services.
 It also help the company to know whether the existing products or services are offering
really satisfying the customers‘ needs.
 Customer satisfaction has emerged as the key differentiator and defining attribute. The
study is very much significant because it brings out the differences in various parameters
like awareness level, service quality, satisfaction level of policyholders investment
products of ICICI prudential and these are the main attributes to build up the customer
awareness, perception and loyalty towards a company. The study is significant because it
will help ICICI prudential to create a positive impact on its customers by working on its
lacking qualities.
 The information obtained from the primary and secondary Sources were limited to ICICI
PRUDENTIAL LIFE INSURANCE
 The key performance indicators were taken from 2017-2021.
 The profit & loss account was of the last five years.

16
 RESEARCH METHODOLOGY

RESEARCH METHODOLOGY USED IN PROJECT

Ho. There is no difference between observed and expected frequencies.

H1: there is difference between observation and expectation

Case study method has been adopted to carry out the study. Both primary and secondary data
have been used to complete the study.

Primary data: Primary data was collected through interaction with personnel who are
working in finance and Accounts Departments of the organization.

Secondary data: Secondary data was collected from the company annual reports &
other relevant records. Afterwards, the data collected is processed and analyzed by using
appropriate analytical tools and techniques so as to examine the efficiency. The present study
was carried out for a period of thirty days in a prestigious organization i.e. ICICI
PRUDENTIAL LIFE INSURANCE
Proposed statistical Tools for the study

Descriptive statistics- mode , percentages, frequencies, bar graphs and pie charts
Mann-Whitney Test
Correlation Analysis
Chi-square
Ratio Analysis

TOOLS USED IN THE ANALYSIS

 Statistical tools
 Financial tools
Research gap

Period of study

4 years data Time gap 2017 completed study from 2017_2021

17
 LIMITATIONS OF THE STUDY

1) The time is not sufficient to meet all the investors.

2) Respondent‘s suggestions may or may not be correct.

3) Researchers don‘t have experience.

4) Factors considered in the questionnaire may or may not be Sufficient.

5) Sample size is too low to get the proper information.

6) As many customers are not willing to give their opinions, we are unable toget Proper
information.

7) Opinions of investors may vary by time.

18
 CHAPTER – IV
THEORETICAL FRAME WORK

19
 THEORETICAL FRAME WORK
One of the major concerns for the insurance companies is the design of a tariff structure that
will fairly distribute the burden of claims among policyholders. The task of determining the
insurance premium belongs mainly to actuaries who, over time, have proposed and applied
various statistical models through which they tried to establish a link between the risk
occurrence phenomenon and the risk factors. In this context, econometric modeling aims to
describe this relationship as realistic as possible in order to determine the probability of risk
occurrence, and also to determine the frequency and cost of claims.
The calculation of a differentiated premium within the insurance portfolio is based on the
principle represented by a pricing process that involves several stages. In this regard, the risk
acceptance of the insurance company is followed by a priori analysis which involves the
segmentation of the risks ensemble depending on the influencing factors, so that each group
includes the insureds with similar risk profile and pays the same reasonable insurance
premium. At this stage of the analysis, the actuary aims to determine the impact of the
observable factors or variables of the insured risk and the existence of a data correlation. This
step allows determining the basic elements of the pure premium obtained by multiplying the
conditional expectation of the claims frequency with the expected cost of claims
The last stage of insurance pricing process appreciates the predictive power of the individual
history of insured, integrating the a posteriori component in the calculation of the insurance
premium. In other words, a posteriori analysis allows the correction and adjustment of a
priori tariff in order to obtain a reasonable risk classification. Consequently, the pursued
result is defined as the product of risk estimation, considering the observable risk
characteristics, and the component that summarizes the insured‘s claim history. Therefore,
pricing analysis allows obtaining an equilibrium between the premium paid by policyholders
and the risk assumed by the insurance company. This paper provides an overview of the
pricing concept main elements and presents some issues related to the specifics and the
methods significance, corresponding to the two-known types of pricing applied in non-life
insurance business. Taking into consideration the proposed aim, the paper is organized as
follows. Section 2 defines the concept of pricing in non-life insurance, emphasizing the
distinction between a priori and a posteriori risk classification. Section 3 proposes a review of
the empirical literature, presenting the main statistical techniques that can be practically
implemented for pricing risks in non-life insurance. Section 4 presents some concluding
remarks.
Etymologically, the term pricing comes from the French tarifaire, the word designating the
tariff action and its outcome. From here, the pricing concept gets the meaning of establishing
20
a price or a tariff. Transposed in insurance business, Denuit (2003) considers that the pricing
process designates a procedure for determining a fair premium corresponding to the insured‘s
individual risk profile. Developing this idea, the insurance pricing process can be understood
as an ensemble of methods that establishes the price paid by the insureds to the insurance
company in exchange for the risk transfer. Within the insurance business, the necessity of
different charging tariffs is emphasized by the insurance portfolio heterogeneity that leads
directly to the so-called concept of asymmetrical information. The information problems
between the insurance company and the policyholders arise when the insurer has difficulties
in evaluating the risk level of the insured. The economics literature presents two aspects of
asymmetrical information, namely moral hazard and adverse selection. Denuit (2007)
considers that adverse selection occurs when the policyholders have a better knowledge of
their claim behaviour than the insurer does and they take advantage of information unknown
to the insurer. Chiappori, Jullien, Salanié and Salanié (2006) stressed the fact that moral
hazard arises when the probability of risk occurrence depends on the insured behaviour and
his decisions.
The difference between the two phenomena is remarked also by Dionne, Michaud and
Pinquet (2013), who argued that adverse selection is the effect of unobserved differences
among individuals that affect the optimality of insurance contracting while moral hazard is
the effect of contracts on individuals‘ unobserved behaviour. In other words, in the context of
insurance markets, the information problems can be defined as the effect of applying the
same premium for the entire portfolio. This basically presumes that the unfavourable risks are
also assured (at a lower price comparing with the real cost of the risk occurrences) and it
discourages insuring medium risks. In recent empirical studies, Chiappori and Salanié (2000)
and Dionne, Gouriéroux and Vanasse (2001, 2006) argued that insurance pricing is efficient
to combat the asymmetrical information by dividing the insurance portfolio into sub-
portfolios, where the risks can be considered independent.
According to McClenahan‘s (2001) observations, in the 18th century, the determination of
fire insurance premiums was based upon the roof type and the structure of buildings, and the
premium for marine insurance, considered to be the oldest form of insurance, was based on
the design characteristics of the ship. The author argues that, considering the presence of
uncertain events that may occur depending on certain risk factors, actuaries have always
aimed to find a mathematical formulation in order to determine the probability of risk
occurrence and to establish the insurance premium. Based on risks mathematical theory, the
involvement of actuarial science in insurance business has a long and rich history. Under the
notable influence of Lundberg‘s (1903) and Cramer‘s (1930) studies, considered the founders

21
of mathematical theory of risks, actuaries were interested in approaching the risks from the
insurance companies perspective.
The famous monograph published by Hans Bühlmann (1970) requires the recognition of
actuarial mathematics as a fundamental subject in probabilities theory and applied statistics of
non-life insurance. As mentioned by Hans Gerber (1979) in his paper‘s introduction, the
determination of the probability law of risk occurrence cost has always been the central topic
in risk theory literature. Obviously, the recurrent nature of risk theory prevails, being
corroborated by the impressive evolution of the methods introduced over time in non-life
insurance business. Analyzing retrospectively, the actuarial science was limited to the use of
Gaussian linear models, assuming the usage of regression analysis which aims to quantify the
impact of explanatory variables on the phenomenon of interest. The linear model, proposed
by Legendre and Gauss in 19th century, has taken the lead in econometrics, but the
applicability of this model in insurance has been found to be difficult. In this context, the
linear modeling implies a series of hypothesis (Gaussian probability density, the linearity of
the predictor and homoscedasticity) that are not compatible with the reality imposed by the
frequency and cost of the damages generated by the risks occurrence. While the complexity
of the statistical criteria has become more pronounced, the actuaries had to solve the problem
of finding some models that explain as realistic as possible the risk occurrence.
Although no mathematical model will describe completely the reality, the models analysis
and the confrontation of theoretical properties of the studied phenomenon with those
observed is a pragmatic way to acquire a better understanding of reality and to predict the
future responses of analyzed events. Considering the consecrated distinction between a priori
and a posteriori pricing, actuarial researches were focused on finding adequate methods or
tools for each of the two types of pricing applied in non-life insurance. By analyzing the
contribution of actuarial science in this area, it can be observed that the entire activity of
actuaries is based on completing and developing the methods of establishing the tariffs. The
complexity and practicability of the analyzed phenomenon explain entirely the imperious
need for studies in this research field.

22
 CHAPTER V
COMPANY PROFILE

23
 COMPANY PROFILE

ABOUT THE COMPANY

Company Overview

ICICI Prudential Life Insurance Company Limited (ICICI Prudential Life) is promoted by
ICICI Bank Limited and Prudential Corporation Holdings Limited.

ICICI Prudential Life began its operations in the fiscal year 2001 and has consistently been
amongst the top companies* in the Indian life insurance sector. Our Assets Under
Management (AUM) at 31st December 2021 were `2,048.72 billion.

At ICICI Prudential Life, we operate on the core philosophy of customer-centricity. We offer

long term savings and protection products to meet different life stage requirements of our
customers. We have developed and implemented various initiatives to provide cost-effective
products, superior quality services, consistent fund performance and a hassle-free claim
settlement experience to our customers.

In FY 2017 ICICI Prudential Life became the first private life insurer to attain assets under
management of `1 trillion. ICICI Prudential Life is also the first insurance company in India
to be listed on National Stock Exchange (NSE) and Bombay Stock Exchange (BSE).

Year Particulars

FY2001 Our company started operations

FY2002 Crossed the mark of 100,000 policies

FY2005 Crossed the mark of 1 million policies

Crossed the mark of 5 million policies

FY2008 Crossed receipt of `100 billion of the total premium
Crossed `250 billion of assets under management

Established subsidiary to undertake pension funds related business

FY2010 Our company turned profitable - a registered profit of `2.58 billion
Crossed `500 billion of assets under management

24
FY2013 Started paying dividends

FY2017 Crossed `1 trillion of assets under management

FY2019 First insurance company in India to list on NSE and BSE

FY2021 Crossed `2 trillion of assets under management

Vision: The purpose of our existence

To build an enduring institution that serves the protection and long-term saving needs of
customers with sensitivity.

Values: The way we do things

Our core Values are Customer First, Humility, Passion, Integrity, and Boundarylessness.
Values guide our actions and define the way we work. We encourage all our colleagues to
exemplify and role model the Values.

 Customer First: Keep customers at the center of everything we do

 Humility: Be open to learn and change

 Passion: Demonstrate infectious energy to win and excel

 Integrity: Do the right thing

 Boundarylessness: Treat organisation agenda as paramount

ICICI PRUDENTIAL LIFE WINS NEW BUSINESS

ICICI prudential Life Insurance, meanwhile, reported a 216 percent increase in new
business premium to 505 million euros in its business year 2005-6. The company, which is
now Indian's leading life insurance company, said its industry market share grew to 7.6
percent from 3.4 percent in the previous year. It aims to become India's first profitable life
insurance company soon, by employing an innovative economic model & keeping costs low.
It issued 777,492 new policies in fiscal 2005-6.

ICICI prudential Life Insurance is now based in 534 towns, compared with 293

25
towns in 2004-5. It employed 108,155 agents in its last fiscal year, more than doubling than
47,078 agents in the previous year.

Growth follows the company's refocus on customer needs, a program which started
two years ago. "Our basic promise is 'Jaisi Jaroorat Vaisa Insurance' – insurance meeting the
customers' needs," said CEO Sam Ghosh. "We focus on what customers want and not what
we want to sell. We let customers decide which channel they are comfortable to buy from."

"Our end objective is to have satisfied customers and satisfied customers are drivers
in the life insurance business more than anything else," continued Ghosh. "This focus has
brought us so far so rapidly and we are sure this focus will help up maintain our leadership as
well."
DIVERSE RANGE OF CUSTOMERS
The company has identified flexible products which are suitable for Indians' needs. It
caters for more than 290 segments of consumers, stemming from diverse religious, cultural
and educational backgrounds.
ICICI prudential Life Insurance recognizes that its average customers are looking for
low-price products, such as its "6-in-1 Healthcare" product, with a premium of just 100
rupees (1.75 euros) per month. It also offers more sophisticated products for astute investors,
as well as an ethical fund, which takes into account religious guidelines and environmental
concerns.
It entitled its innovation of the year "ICICI prudential Banyan Tree". This expansion
model reflects how a branch sets up small sibling satellites, which in turn grow into branches,
in the same way that banyan tree branches start another tree when their branches touch the
ground.
As with all content published on this site, these statements are subject to our Forward
Looking Statement disclaimer, provided on the right.
ANALYSIS:
After collecting the data through survey I have done analysis of the information
collected. The sample size in the present study is 100 and the total respondents of this survey
has well responded in a very interesting manner. The topic on which the survey is conducted
is Customer Perception towards Private Life Insurance Companies. The survey covers only
the Hyderabad region. The analysis is based on questionnaire designed.

ICICI PRUDENTIAL DECLARES BONUS FOR POLICYHOLDERS:

26
 Pune, 15th March, ICICI prudential Life Insurance Company Limited, a joint venture
between AG of Germany and ICICI prudential Auto and also the fastest growing private life
insurance company, announced the compounded reversionary bonus on the Sum Assured up
to March 2003-04 for the second continuous year. The Board of Directors of the company
also approved a “special bonus for the policyholders. Bonuses once declared by the
company are fully guaranteed.

The compounded bonus is different from simple bonus as in a compounded bonus, the
bonuses already attached to the policy also earn through bonuses declared every year. If this
declaration of bonus were repeated every year, then at the current level i.e. at 2.3%, the
policyholder would receive a return on investment of up to 5.7% on premiums paid in the
long term, in addition to the valuable life protection benefits.

The compounded reversionary bonus would be applicable to all regular premium

with-profits policies in-force as on 31.03.2004.The total compounded reversionary bonus rate
for the main line of regular premium products like Invest Gain and Cash Gain will be a total
2.3% p.a. of the Sum Assured of which 1.8% p.a. will be compounded reversionary bonus
and 0.5% p.a. will be the “special bonus€•.

Announcing the bonus rates, Sam Ghosh, Country Manager, and CEO, ICICI
prudential Life Insurance said “The total bonus of 2.3% on the mainline products this year
compares favorably with the 2.5% declared last year in the current market conditions. This is
significantly better if one takes into account that the drop in 10-year gilt rates from 6% to 5%
during the course of the year and also the benchmark interest rates dropped significantly
during 2003-04. This has put a downward pressure on the bonuses. We are using the process
of smoothing our bonus rates for participating policies to provide better bonuses to
policyholders.

The bonus rate for all other types of regular premium policies like Save Care, Cash
Care, Lifetime Care and Child Care would be a total of 1.2% of the Sum Assured (inclusive
of the special bonus).

ICICI prudential Life Insurance Company has developed insurance solutions that
cater to every segment and age-income profiles. Its products include Invest Gain (a unique
life insurance plan where sustenance of income is combined in the same plan that also pays a
lump sum), Cash Gain (Money Back), Child Gain (Children’s plan), Risk Care (Pure
Term), Lifetime Care (whole life), Term Care (term with return of premium), Swarna
27
Vishranti (Retirement Plan), Protector (Mortgage term insurance plan), Unit Gain (Unit
Linked Whole of Life Plan) and Unit Gain Single Premium.

ICICI prudential is poised for an accelerated growth in the market and has already
become the fastest growing private life insurance company in India. ICICI prudential has a
wide pan India presence of office network in 56 cities of the country and is aided with a
strong and trained Agency network of over 27,000 agents. ICICI prudential has also forged
strong Banc assurance and Corporate Agency relationships and continues to build on new tie-
ups for fast track growth and deep market penetration.

ICICI prudential has launched a slew of need-based products to cater to each varied
needs of the customer. Currently ICICI prudential has a product portfolio of 18 products and
more need-based products are in the pipeline.

GROUP

Group is one of the world's leading insurers and financial services

providers.

 Founded in 1890 in Berlin, is now present in over 70 countries with almost 174,000
employees. At the top of the international group is the holding company, AG, with its
head office in Munich.
 Group provides its more than 60 million customers worldwide with a comprehensive
range of services in the areas of:
 Property and Casualty Insurance,
 Life and Health Insurance,
 Asset Management and Banking.

AG- A GLOBAL FINANCIAL POWERHOUSE

 Worldwide 2nd by Gross Written Premiums - Rs.4, 46,654 cr.

 3rd largest Assets Under Management (AUM) & largest amongst Insurance cos. -
AUM of Rs.51, 96,959 cr.

 12th largest corporation in the world

 49.8 % of global business from Life Insurance

28
  Established in 1890, 110 yrs of Insurance expertise

 70 countries, 173,750 employees worldwide

ICICI PRUDENTIAL GROUP

ICICI prudential Auto Ltd, the flagship company of the Rs. 8000 crore ICICI
prudential group is the largest manufacturer of two-wheelers and three-wheelers in India and
one of the largest in the world.

A household name in India, ICICI prudential Auto has a strong brand image & brand
loyalty synonymous with quality & customer focus.
WHY ICICI PRUDENTIAL LIFE INSURANCE?
An Impeccable track record across the globe in providing security and cover for you and your
family...
We, at ICICI prudential , realize that you seek an insurer who you can trust your hard earned
money with
AG with over 110 years of experience in over 70 countries and ICICI prudential Auto,
trusted for over 55 years in the Indian market, together are committed to offering you
financial solutions that provide all the security you need for your family and yourself.
ICICI prudential brings to you several innovative products, the details of which you can
browse in this section
COMPETITORS OF THE ICICI PRUDENTIALCHILD GAIN POLICY
 birla sun life insurance
 hdfc standard life
 sbi life insurance
 aviva life insurance
 max new york life
 ing vysya life insurance
 tata aig insurance
 tata aig
 group term insurance
 convertible insurance
 shriram life insurance
 hdfc standard life insurance
 icici prudential

29
 lic
 birla sun life
 lic india
 money back policy
 pension plan
 lic agent
 Lic of india
 tata aig life
 max newyork life insurance
 birla sunlife
 tata aig life insurance
 icici lombard
 metlife india life insurance
 lic insurance
 Insurance nri
 om kotak mahindra
 new india assurance company
 bharti axa
 ing vysya life
 sahara india insurance
 kotak life insurance

30
 CHAPTER VI
DATA ANALYSIS AND
INTERPRETATION

31
 LIFE INSURANCE

ICICI Prudential Life Insurance Company Ltd. (ICICI Prudential Life) is a joint venture
between ICICI Bank Ltd., one of India's largest private sector banks, and Prudential
Corporation Holdings Limited.

ICICI Prudential Life began its operations in fiscal year 2002 and has consistently been the
market leader* amongst private players in the Indian life insurance sector. Our Assets Under
Management (AUM) as on 31st March 2020 were `1,229.19 billion.

At ICICI Prudential Life, we operate on the core philosophy of customer centricity. We offer
long term savings and protection products to meet different life stage requirements of our
customers. We have developed and implemented various initiatives to provide cost-effective
products, superior quality services, consistent fund performance and a hassle-free claim
settlement experience to our customers.

In FY2018 ICICI Prudential Life became the first private life insurer to attain assets under
management of `1 trillion. ICICI Prudential Life is also the first insurance company in India
to be listed on NSE and BSE.
VALUES

Fiscal Particulars

2002 Our Company started operations

2003 Crossed the mark of 100,000 policies

2006 Crossed the mark of 1 million policies

Crossed the mark of 5 million policies
2009
Crossed receipt of `100 billion of total premium
Crossed `250 billion of assets under management
Established Subsidiary for the purposes of undertaking pension funds related business
2011
Our Company turned profitable - registered profit of `2.58 billion
Crossed `500 billion of assets under management

2014 Started paying dividends

2018 Crossed `1 trillion of assets under management

2020 First insurance company in India to list on NSE and BSE

The success of the company will be founded in its unflinching commitment to 5 core values -
Integrity, Customer First, Boundaryless, Humility and Passion. Each of the values describes
what the company stands for, the qualities of our people and the way we work. Every
32
 member of the ICICI Prudential team is committed to the 5 core values and these values shine
forth in all that we do.

 Boundaryless: I will treat organisation agenda as paramount

 Integrity: What I do when nobody is watching me
 Humility: Openness to change and learn
 Customer First: Service excellence towards Internal and External Customers
 Passion: Demonstrates infectious energy and enthusiasm

HOW TO APPLY

You will need to apply for life insurance. The application will ask for basic information such
as your name, address and employer. It will also ask for the following personal information:

 Height
 Weight
 Date of birth
 Lifestyle habits (i.e., smoking, drinking, exercise)
 Financial information, including your annual income and net worth

While it may be tempting to lie about your weight or other health issues, it's important to tell
the truth. If the company discovers you lied about a health condition or lifestyle, it can
increase your premium, cancel your policy and/or deny a beneficiary's claim to the death
benefit.

Some insurance companies will accept your answers to health-related questions on the
application. However, most companies require an in-person medical exam. A life insurance
agent will arrange for a paramedical (a licensed healthcare professional contracted by the
insurance company) to meet you at your home, office, or a clinic selected by the insurance
company.

During the exam, the paramedical will likely:

 Take your medical history (including medical conditions, surgeries and any
prescription medications)
 Ask about your immediate family's medical history
 Take your blood pressure

33
  Listen to your heartbeat
 Check your height and weight
 Draw a blood sample
 Get a urine sample
 Ask about lifestyle habits that could affect your health (e.g. exercise, smoking,
drinking, recreational drug use, frequent travel, high-risk hobbies)

There may be additional tests you need to undergo depending on your age, the type of policy
you want and the amount of coverage you're applying for. Additional tests could include an
EKG, a chest X-ray, and/or a treadmill test.

Next, an underwriter at the insurance company will review your application and medical
exam results. He or she may order medical records from your physician to learn more about
any medical conditions you may have and any treatment received. This information helps
them determine what risk you represent to the company financially and how much to charge
you for coverage. If you lie about a medical condition, the insurance company may not only
deny you coverage but may also "red-flag" you, meaning other insurers will know you were
denied coverage because you lied.

Once your application and medical exam have been reviewed, the company will either
approve or deny your request to purchase coverage. That process can take days or weeks,
depending on if you have submitted a complete application, how long it takes to receive lab
results, if the company requests information from your physician

DOCUMENTS REQUIRED
Insurance companies will need certain documents from you when you buy a term insurance
policy. These documents need to be sent to the insurance companies before the policy can be
issued. You can either upload it directly onto their site while applying, email it to their
customer service id or courier them to their processing units (the address would be made
available to you when you are making the application. Please remember that the documents
need to be self-attested by the applicant.
The companies will ask for the following documents before issuing you the policy. In fact
these documents would be required for issuing any life insurance policy and not just term
insurance plans.

34
INCOME DOCUMENTS
This is to assess the amount of cover that should be provided to you. Usually most life
insurance companies offer a cover of upto 20 times your annual income - this multitier may
vary from company to company. The standard income proof documents which are accepted
by most companies are:

 Last 3 months salary slips

 Income Tax Returns of last 2/3 years
 Latest 6 months Bank Statement with salary entries in the last 3 months
 CA certificate in case of Businessmen
 Latest Form 16

ADDRESS PROOF
Companies would need to know your address details also. The list of documents which are
acceptable are:

 Leave & License agreement

 Bank Statement or Passbook with latest entries for 6 months
 Credit Card statement less than 3 months old
 Driving License with address mentioned
 Electricity / Telephone / Water / Gas bill (less than 3 months old)
 Passport
 Ration Card
 Voter ID card
 Aadhar Card

ID PROOF
The following documents are accepted as ID proof:

 PAN Card
 Passport
 Aadhar Card
 Voter Id card

Age Proof
While some of the above mentioned documents will have your address and they would
suffice for the age proof, here is the comprehensive list which is usually acceptable:
35
  PAN Card
 Passport
 Aadhar Card
 Voter Id card
 Marriage certificate
 Ration card
 Birth certificate
 Driving License
 School/College leaving certificate

DEATH CLAIM
Death Claim
When an insured dies during the term of the policy – that is, the policy hasn‘t matured – then
their beneficiary can claim the proceeds. This claim is referred to as a ‗death claim‘ or a ‗Life
Insurance claim‘.

How to Make a Death Claim

The first and most important step is informing the insurance company of the death of the
insured. There are two classifications for death according to insurance companies – an ‗early
death‘ and a ‗non-early death‘. These are based on the time from when the policy was taken.

An early death is one wherein the insured dies within three years of having taken the policy.
The documents necessary for claiming insurance for the two types of death can
vary. Approach the insurance company and obtain the claim intimation form. At the same
time, you could also ask them for the necessary documents that you need to produce for the
claim. For online insurance policies, you can apply online for the form.

DOCUMENT CHECKLIST
Generally, a death claim would require these documents:

 The death certificate

 Original policy documents
 ID proof of the beneficiary
 Age proof of insurer
 Discharge form (executed and witnessed)
 Medical certificate (as proof of cause of death)
36
  Police FIR (in case of unnatural death)
 Post-mortem report (in case of unnatural death)
 Hospital records/certificate (if the deceased died due to an illness)
 Cremation certificate and employer certificate (in case of early death)
 As a claimant, you should make the insurance claim immediately following the death of
the insured. Ensure that you have all the necessary documents with you too.

VARIOUS SCHEMES AVAILABLE

Date of Outlay/Status
Scheme Ministry Sector Provisions
Launch statistics
A pension program that allows
people to make voluntary
Atal Pension May 9, contributions within a certain
Pension
Yojana [1] 2018 range in order to receive
matching government
contributions.
Bachat Lamp reduce the cost of compact
MoP 2009 Electrification
scheme fluorescent lamps
comprehensive medical care
Central
facilities to Central
Government Health MoHFW 1954 Health
Government employees and
Scheme
their family members
Create an enabling environment
Deendayal
to ensure equal opportunities,
Disabled
MoSJE 2003 Social Justice equity, social justice and
Rehabilitation
empowerment of persons with
Scheme
disabilities.
Government List of all schemes launched by
MoP 2018 Sarkari Yojana
Schemes[2] Central Government
It is a Goveronment of India
Deen Dayal Project to engage rural youth
Upadhyaya Rural specially BPL and SC/ST
MoRD 2018
Grameen Development segment of population, in
Kaushalya Yojana[3] gainful employment through
skill training programmes.
Aims to ensure that government
services are available to citizens
Digitally
Digital July 1, electronically and people get
MoC&IT 1 Lakh Crore Empowered
IndiaProgramme[4] 2018 benefited from the latest
Nation
information and communication
technology
Creation of scientific storage
capacity with allied facilities in
rural areas to meet the
requirements of farmers for
storing farm produce, processed
Gramin Bhandaran March 31,
MoA Agriculture farm produce and agricultural
Yojana 2007
inputs. Improve their
marketability through
promotion of grading,
standardization and quality
control of agricultural produce.
Pradhan Mantri MoRD 1985 Housing, Rural Provides financial assistance to

37
Gramin Awaas rural poor for constructing their
Yojana houses themselves.[5]
The Indira Gandhi A cash incentive of Rs. 4000 to
Matritva Sahyog MoWCD 2011 Mother Care women (19 years and above)
Yojana for the first two live births[6]
Integrated Child tackle malnutrition and health
October 2, Child
Development MoWCD problems in children below 6
1975 Development
Services years of age and their mothers
self-employment program to
raise the income-generation
capacity of target groups among
Integrated Rural
Rural the poor and The scheme has
Development MoRD 1978
Development been merged with another
Program
scheme named Swarnajayanti
Gram Swarozgar Yojana
(SGSY) since 01.04 1999.
One-time cash incentive to
Janani Suraksha pregnant women for
MoHFW 2006 Mother Care
Yojana institutional/home births
through skilled assistance
a programme meant to improve
Jawaharlal Nehru the quality of life and
National Urban December Urban infrastructure in the cities. To
MoUD
Renewal Mission 3, 2006 Development[7] be replaced by Atal Mission for
(JnNURM) Rejuvenation and Urban
Transformation.
Educational facilities
(residential schools) for girls
belonging to SC, ST, OBC,
Kasturba Gandhi
MoHRD July 2004 Education minority communities and
Balika Vidyalaya
families below the poverty
line(BPL) in Educationally
Backward Blocks
Department
Scholarships for top Science
of Science
INSPIRE students, Fellowships for
and
Programme pursuing PhD, Research Grants
Technology
to researchers
(India)
Scholarship program to
encourage students to take up
Kishore Vaigyanik
MoST 1999 research careers in the areas of
Protsahan Yojana
basic sciences, engineering and
medicine
Insurance to cattle and attaining
Livestock
MoA agriculture qualitative improvement in
Insurance Scheme
livestock and their products.
Legal guarantee for one
hundred days of employment in
every financial year to adult
Mahatma Gandhi
Rs. 40,000 members of any rural
National Rural February Rural Wage
MoRD crore in 2011– household willing to do public
Employment 6, 2006[8][9] Employment
11 work-related unskilled manual
Guarantee Act
work at the statutory minimum
wage of Rs. 120 per day in
2009 prices.
Members of Each MP has the choice to
Parliament Local December suggest to the District Collector
MoSPI
Area Development 23, 1993 for, works to the tune of Rs.5
Scheme Crores per annum to be taken

38
 up in his/her constituency. The
Rajya Sabha Member of
Parliament can recommend
works in one or more districts
in the State from where he/she
has been elected.
Midday Meal August Lunch (free of cost) to school-
MoHRD Health, Education
Scheme 15, 1995 children on all working days
Integrates the efforts to clean
Namami Gange March 20000 crore Clean & Protect
MoWR and protect the River Ganga in
Programme[10] 1995 for 5 years Ganga
a comprehensive manner
National Literacy
May 5, Make 80 million adults in the
Mission MoHRD Education
1988 age group of 15 – 35 literate
Programme
National Pension January 1, Contribution based pension
Pension
Scheme 2004 system
Financial assistance to fishers
for construction of house,
National Scheme
community hall for recreation
on Welfare of MoA Agriculture
and common working place and
Fishermen
installation of tube-wells for
drinking water
Personality development
National Service
MoYAS 1969 through social (or community)
Scheme
service
Public assistance to its citizens
in case of unemployment, old
National Social August
MoRD Pension age, sickness and disablement
Assistance Scheme 15, 1995
and in other cases of
undeserved want
Pooled Finance
Development Fund
Scheme
Pradhan Mantri Integrated development
July 23,
Adarsh Gram MoRD Model Village of Schedule Caste majority
2011
Yojana villages in four states
To provide encouragement to
youth for development of
SKILL
Pradhan Mantri employable skills by providing
[12] April DEVELOPMENT
Kaushal Vikas MoSD&E monetary rewards by
2018[13] INITIATIVE
Yojna[11] recognition of prior learning or
SCHEMES
by undergoing training at
affiliated centres.
Pradhan Mantri
May 9, Accidental Insurance with a
Suraksha Bima MoF Insurance
2018 premium of Rs. 12 per year.
Yojana [1]
Pradhan Mantri Life insurance of Rs. 2 lakh
May 9,
Jeevan Jyoti Bima MoF Insurance with a premium of Rs. 330 per
2018
Yojana [1] year.
National Mission for Financial
Inclusion to ensure access to
financial services, namely
Pradhan Mantri Jan August Financial
MoF Banking Savings & Deposit
Dhan Yojana 28, 2016 Inclustion
Accounts, Remittance, Credit,
Insurance, Pension in an
affordable manner
Pradhan Mantri Good all-weather road
December Rural
Gram Sadak MoRD connectivity to unconnected
25, 2000 Development
Yojana villages

39
 It envisages a "Slum Free
India" with inclusive and
Rajiv Awas equitable cities in which every
MhUPA 2014 Urban Housing
Yojana[14] citizen has access to basic civic
infrastructure and social
amenities and decent shelter
To be
replaced Programme for creation of
Rajiv Gandhi
by Deen Rural Electricity Infrastructure
Grameen April Rural
MoP Dayal & Household Electrification for
Vidyutikaran 2006 Electrification
Upadhyaya providing access to electricity
Yojana[15]
Gram Jyoti to rural households
Yojana
Achieve 4% annual growth in
agriculture through
Rashtriya Krishi August 1,
MoA Agriculture development of Agriculture and
Vikas Yojana 2007
its allied sectors during the XI
Plan period
Health insurance to poor (BPL),
Domestic workers, MGNERGA
workers, Rikshawpullers,
Rashtriya Swasthya April 1,
MoHFW Insurance Building and other construction
Bima Yojana 2009
workers, and many other
categories as may be identified
by the respective states
RNTCP MoHFW 1997 Health Tuberculosis control initiative
Aims at all-round development
of Adolescent Boys and make
them self-reliant, gender-
sensitive and aware citizens,
when they grow up. It cover all
Saksham or Rajiv
adolescent boys (both school
Gandhi Scheme for Skill
MoWCD 2016 going and out of school) in the
Empowerment of Development
age-group of 11 to 18 years
Adolescent Boys
subdivided into two categories,
viz. 11-14 & 14–18 years. In
2016–15, an allocation of Rs.
25 crore is made for the
scheme.
Empowering adolescent girls
(Age) of 11–18 years with
focus on out-of-school girls by
improvement in their nutritional
Sabla or Rajiv
and health status and upgrading
Gandhi Scheme for Skill
MoWCD 2011 various skills like home skills,
Empowerment of Development
life skills and vocational skills.
Adolescent Girls
Merged Nutrition Programme
for Adolescent Girls (NPAG)
and Kishori Shakti Yojana
(KSY).
Providing additional wage
Sampoorna
September Rural Self employment and food security,
Grameen Rozgar MoRD
25, 2002 Employment alongside creation of durable
Yojana
community assets in rural areas.
To make banking facility
available to all citizens and to
February Financial
Swabhiman MoF get 5 crore accounts opened by
15, 2011 Inclusion
Mar 2014. Replaced by
Pradhan Mantri Jan Dhan

40
 Yojana.
Bring the assisted poor families
above the poverty line by
organising them into Self Help
Groups (SHGs) through the
Swarnajayanti
April 1, Rural process of social mobilisation,
Gram Swarozgar MoRD
1999 Employment their training and capacity
Yojana
building and provision of
income generating assets
through a mix of bank credit
and government subsidy.
pension scheme to the workers
in unorganised sector. Any
citizen who is not part of any
statutory pension scheme of the
To be
Government and contributes
September replaced by
Swavalamban MoF Pension between Rs. 1000 and Rs.
26, 2011 Atal Pension
12000/- per annum, could join
Yojana
the scheme. The Central
Government shall contribute
Rs. 1000 per annum to such
subscribers.
Training Program for ICDS
Udisha MoWCD Child Care
workers
Opportunity to the income tax/
Voluntary Closed on 31
June 18, wealth tax defaulters to disclose
Disclosure of December
1997 their undisclosed income at the
Income Scheme 1998
prevailing tax rates.
This scheme will organize rural
poor into Self Help
National Rural Group(SHG) groups and make
June
Livelihood MoRD $5.1 Billion[16] them capable for self-
2011[16]
Mission(NRLM) employment. The idea is to
develop better livelihood
options for the poor.
This scheme will reduce
poverty of urban poor
households specially street
National Urban vendors who constitute an
24 Sep,
Livelihood MoHUPA important segment of urban
2014[18]
Mission(NULM)[17] poor by enabling them to access
gainful self-employment and
skilled wage employment
opportunities.
HRIDAY –
Heritage City The scheme seeks to preserve
Jan Urban
Development and MoUD and rejuvenate the rich cultural
2018[19] Development
Augmentation heritage of the country.
Yojana
The scheme primarily ensures
equitable share to a girl child in
Sukanya Samridhi
22 Jan resources and savings of a
Yojana (Girl Child MoWCD
2018[16] family in which she is generally
Prosperity Scheme)
discriminated as against a male
child.
To enable better living and
Smart Cities June 25, [20] Urban drive economic growth
MoUD
Mission 2018 Development stressing on the need for people
centric urban planning and

41
 development.
To enable better living and
drive economic growth
June 25, [20] Urban
AMRUT MoUD stressing on the need for people
2018 Development
centric urban planning and
development.
To enable better living and
Pradhan Mantri drive economic growth
June 25, [20]
Awas MoHUPA Housing stressing on the need for people
2018
Yojana(PMAY) centric urban planning and
development.
launched
in 9 The objective of this project is
districts in to eliminate child labour in
1987 and hazardous industries by 2011.
has been Under this scheme, the target
expanded group is all children below 14
National Child Ministry of in January years of age who are working in
Labour Labour and 2006 to occupations and processes
Projects(NCLP) Employment 250 listed in the Schedule to the
districts in Child Labour (Prohibition &
21 Regulation) Act, 1986 or
different occupations and processes that
states of are harmful to the health of the
the child.
country
The objective of this project is
to help job-seekers land up at
the job they deserve.
Under this scheme, an online
job-portal named as National
Career Service portal has been
launched which acts as a
National Career Ministry of
20 July common platform for Job-
Service Labour and Employment
2018 seekers, employers, skill
(India)(NCS) Employment
providers, govt. departments,
placement organizations and
counsellors. The portal
possesses mre than 3.11 crore
registered job-seekers and more
than 9 lakh employers from
across the country.
Under the scheme 1 crore of the
poorest among the (Below
Poverty Line)BPL families
covered under the targeted
public distribution system are
identified.
Issue of Ration Cards
Following the recognition of
25
Antyodaya Anna NDA Antyodaya families, unique
December
Yojna government quota cards to be recognized an
2000
"Antyodaya Ration Card" must
be given to the Antyodaya
families by the chosen power.
The scheme has been further
expanded twice by additional
50 lakh BPL families each in
June 2003 and in August
2004,thus covering 2 crore
42
 families under the AAY scheme
Seeks to provide the
Pradhan Mantri
July 15, Skill institutional capacity to train a
Kaushal Vikas MoSD&E
2018 Development minimum 40 crore skilled
Yojana
people by 2022 [20]
It launched in 2007 for 5 years
to increase production and
productivity of wheat, rice and
pulses on a sustainable basis so
as to ensure food security of the
National Food Government 2007 for 5
country.
Security Mission of India years
The aim is to bridge the yield
gap in respect of these crops
through dissemination of
improved technologies and
farm management practices.
Launched to provide free LPG
Pradhan Mantri 1 May
MoP&NG Rs. 8000 crore connections to women from
Ujjwala Yojana 2018
below poverty line families.
[21]
Pradhan Mantri Bhartiya
Janaushadhi Pariyojana‘ is a
campaign launched by the
Department of Pharmaceuticals,
Govt. Of India, to provide
quality medicines at affordable
prices to the masses through
Pradhan
special kendra‘s known as
Mantri Bhartiya Jan Government 1 July
Generic Medicine Pradhan Mantri Bhartiya Jan
Aushadhi Kendra of India 2018
Aushadhi Kendra. Pradhan
(PMBJK)
Mantri Bhartiya Jan Aushadhi
Kendra (PMBJK) have been set
up to provide generic drugs,
which are available at lesser
prices but are equivalent in
quality and efficacy as
expensive branded drugs.[22]
The objective of the Stand-Up
India scheme is to facilitate
bank loans between INR 10
lakh (INR 1,00,000) and INR 1
Crore (INR 10,000,000) to at
least one Scheduled Caste (SC)
or Scheduled Tribe (ST)
borrower and at least one
woman borrower per bank
Loans to
branch for setting up a
DFS, MoF SC/ST/Women
April 5, [23] greenfield enterprise. This
Standup India Government entrepreneurs for
2018 enterprise may be in
of India greenfield
manufacturing, services or the
enterprises
trading sector. In case of non-
individual enterprises at least
51% of the shareholding and
controlling stake should be held
by either an SC/ST or Woman
entrepreneur. Loans can be
applied online through
the Standup Mitra or Udyami
Mitra portals.

43
WHAT IF THE POLICY IS EXPIRED
Generally, the best time to buy a term insurance policy is around your mid-twenties, when
your responsibilities and the number of dependants on you are growing. In this case, your
term policy ensures your loved ones are financially protected in your absence.

In order to get the most of your term policy, it is important to keep in mind details like the
expiry date of your policy. This is because once your policy has expired, you stop receiving
life coverage from it. And in case an unfortunate event occurs during this time, your loved
ones will not receive the financial protection they would have if your term insurance policy
was active. In order to avoid such a situation, here‘s what you can do when your term
policyreaches the end of its tenure.

EXTEND YOUR INSURANCE

Most term insurance policies have a long tenure. This means that you may keep your policy
active by continuing the premium payments. This is a good option if you wish to keep your
policy active for a short duration of two to three years. However, as you age, the costs of your
policy premiums will go on increasing, if you extend the tenure.

CONVERT YOUR INSURANCE

Today, a number of term insurance policies may be converted to whole life insurance
policies. However, you will need to take steps towards converting your policy before it
reaches its expiration date. One of the benefits of converting a policy from term to whole life
is that you do not need to show insurability (no medical tests needed), if the coverage amount
is the same. You should opt for conversion only when it is necessary.

RENEW YOUR INSURANCE

This is the most feasible of the three options. Unlike earlier, today you are able to renew
insurance online in a quick and hassle-free way. While you may still choose to renew your
term policy offline, here‘s why renewing your policy online will help you:

44
CONVENIENCE

When you renew insurance online, you have the flexibility and convenience of doing so at
your own time and pace. There is no agent involved here. This means you save a lot of time.
In addition to this, you have the option of making renewal payments via:

1. Internet banking
2. Credit cards
3. Debit cards
4. National Electronic Fund Transfer (NEFT)
5. Electronic Clearing Services (ECS)
6. Cheques

LESS CHANCE OF FRAUD

When you renew insurance online, you generally do so via your insurance provider‘s website.
This means you have access to all the accurate information. This ensures negligible chances
of a fraud.

EASIER ON THE POCKET

Renewing your insurance policy online helps you save money. This is because not only are
online insurance policies cheaper, but also because you save on the commission, you will
otherwise pay for an agent‘s services.

It is essential to keep a tab on your term insurance policy‘s maturity so that you are well-
prepared in advance to either extend, convert, or renew your policy on time, depending on
what you‘re looking for.

45
 DATA ANALYSIS

BALANCE SHEET OF ICICI PRUDENTIAL LIFE INSURANCE FOR THE PERIOD

OF 2017 TO 2021

Balance Sheet ------------------- in Rs. Cr. -------------------

Mar '21 Mar '20 Mar '19 Mar '18 Mar '17

12 mths 12 mths 12 mths 12 mths 12 mths

Sources Of Funds
Total Share Capital 1,435.97 1,435.86 1,435.78 1,435.50 1,435.35
Equity Share Capital 1,435.97 1,435.86 1,435.78 1,435.50 1,435.35
Share Application Money 0.55 0.00 0.00 0.00 0.00
Reserves 10,676.38 5,782.76 5,587.63 5,427.46 4,960.91
Networth 12,112.90 7,218.62 7,023.41 6,862.96 6,396.26
Secured Loans 1,200.00 0.00 0.00 0.00 0.00
Total Debt 1,200.00 0.00 0.00 0.00 0.00
Total Liabilities 13,312.90 7,218.62 7,023.41 6,862.96 6,396.26
Mar '21 Mar '20 Mar '19 Mar '18 Mar '17

12 mths 12 mths 12 mths 12 mths 12 mths

Application Of Funds
Gross Block 879.83 858.49 815.95 743.70 514.01
Less: Revaluation Reserves 68.67 65.52 23.33 21.50 11.78
Less: Accum. Depreciation 444.36 401.22 353.18 0.00 0.00
Net Block 366.80 391.75 439.44 722.20 502.23
Capital Work in Progress 21.73 20.35 12.86 17.58 7.23
Investments 212,211.86 151,256.20 159,008.54 138,540.11 121,585.97
Cash and Bank Balance 557.40 810.56 661.02 203.74 213.70
Total Current Assets 557.40 810.56 661.02 203.74 213.70
Loans and Advances 4,001.64 3,490.89 2,945.15 2,655.36 2,729.08
Total CA, Loans & Advances 4,559.04 4,301.45 3,606.17 2,859.10 2,942.78
Current Liabilities 76,052.90 60,686.84 52,318.23 42,602.29 34,377.52
Provisions 127,793.62 88,064.28 103,725.36 92,334.54 83,956.97
Total CL & Provisions 203,846.52 148,751.12 156,043.59 134,936.83 118,334.49
- - - - -
Net Current Assets
199,287.48 144,449.67 152,437.42 132,077.73 115,391.71
Total Assets 13,312.91 7,218.63 7,023.42 7,202.16 6,703.72

Contingent Liabilities 1,340.38 702.83 418.17 0.00 0.00

Book Value (Rs) 84.35 50.27 48.92 47.81 44.56

46
THE PROFIT AND LOSS ACCOUNT OF ICICI PRUDENTIAL LIFE INSURANCE
FOR PERIOD OF 2017 TO 2021.

Profit & Loss account ------------------- in Rs. Cr. -------------------

Mar 21 Mar 20 Mar 19 Mar 18 Mar 17

12 mths 12 mths 12 mths 12 mths 12 mths

INCOME
Revenue From Operations
34,973.37 32,878.95 30,578.29 26,810.68 22,155.25
[Gross]
Revenue From Operations [Net] 34,973.37 32,878.95 30,578.29 26,810.68 22,155.25
Other Operating Revenues 48,206.26 -11,857.42 10,856.26 12,001.02 15,641.64
Total Operating Revenues 83,179.63 21,021.53 41,434.54 38,811.69 37,796.89
Other Income 1,668.46 1,577.94 616.57 150.13 89.38
Total Revenue 84,848.09 22,599.47 42,051.12 38,961.82 37,886.26
EXPENSES
Employee Benefit Expenses 11.42 8.66 10.84 10.51 10.94
Finance Costs 33.00 0.12 0.13 0.17 0.10
Provsions and Contingencies 36.49 46.56 527.20 75.28 1.80
Depreciation And Amortisation
0.01 0.01 0.01 0.01 0.01
Expenses
Other Expenses 83,423.40 21,145.69 40,080.54 36,762.25 36,067.30
Total Expenses 83,504.33 21,201.04 40,618.72 36,848.21 36,080.15
Mar 21 Mar 20 Mar 19 Mar 18 Mar 17

12 mths 12 mths 12 mths 12 mths 12 mths

Profit/Loss Before Exceptional,

1,343.76 1,398.44 1,432.40 2,113.61 1,806.12
ExtraOrdinary Items And Tax
Profit/Loss Before Tax 1,343.76 1,398.44 1,432.40 2,113.61 1,806.12
Tax Expenses-Continued Operations
Current Tax 121.25 131.39 135.50 219.81 181.59
Deferred Tax 141.85 0.04 0.00 0.00 0.02
Total Tax Expenses 263.10 131.44 135.50 219.81 181.61
Profit/Loss After Tax And
1,080.67 1,267.00 1,296.89 1,893.80 1,624.50
Before ExtraOrdinary Items
Extraordinary Items -120.52 -198.25 -156.25 -273.97 57.73
Profit/Loss From Continuing
960.15 1,068.75 1,140.65 1,619.83 1,682.23
Operations
Profit/Loss For The Period 960.15 1,068.75 1,140.65 1,619.83 1,682.23
Mar 21 Mar 20 Mar 19 Mar 18 Mar 17

12 mths 12 mths 12 mths 12 mths 12 mths

OTHER ADDITIONAL INFORMATION

47
EARNINGS PER SHARE
Basic EPS (Rs.) 6.69 7.44 7.95 11.28 11.73
Diluted EPS (Rs.) 6.69 7.43 7.94 11.28 11.72
VALUE OF IMPORTED AND
INDIGENIOUS RAW MATERIALS
STORES, SPARES AND LOOSE TOOLS
DIVIDEND AND DIVIDEND
PERCENTAGE
Equity Share Dividend 0.00 337.42 703.43 990.46 552.27
Tax On Dividend 0.00 69.36 144.59 201.63 112.43
Equity Dividend Rate (%) 20.00 8.00 32.00 78.00 53.00

Table 1 Showing growth rate of PAT for the period 2017-2021

YEAR PAT% GROWTH % AVERAGE
2017 16.82
2018 16.2 -3.69%
2019 11.41 -29.57%
2020 10.69 -6.31%
2021 9.6 -10.20% -12.44%

Chart 1 Showing growth rate of profit after tax for the period 2017-2021

PAT%
20

15

10
PAT%
5

0
1 2 3 4 5

INTERPRETATION:
In the year 2017 the profit after tax was very high then in year 2019 it
declined to a large extent, then in year 2020 it increased, in 2021 its was 9.6

48
Table 2 Showing growth rate of cost of goods sold for the period 2017-2021

COGS TO
YEAR GROWTH% AVERAGE
SALES
2017 81.45
2018 82.24 0.97%
2019 80.23 -2.44%
2020 77.86 -2.95%
2021 77.91 0.06% -1.09%

Chart 2 Showing growth rates of COGS for the period 2017-2021

COGS TO SALES
83
82
81
80
79
COGS TO SALES
78
77
76
75
1 2 3 4 5

INTERPRETATION:

In the year 2017-2021 the cost of goods sold declined for three years
2018-2020 and increased only in 2021.thus the annual cost of sales in every was
also decreasing.

49
 Table3 Showing growth rate of Sum of PER, ADMIN & SELLING EXP
for the period 2017-2021

SUM OF
YEAR PER,ADMINI&SELLING GROWTH% AVERAGE
EXP
2017 20.53
2018 24.61 19.87%
2019 29.54 20.03%
2020 35.47 20.07%
2021 46.5 31.10% 22.77%

Chart 3Showing growth rate of Sum of PER, ADMIN & SELLING EXP
for the period 2017-2021

SUM OF
PER,ADMINI&SELLING EXP
50
40
30 SUM OF
20 PER,ADMINI&SELL
ING EXP
10
0
1 2 3 4 5

INTERPRETATION:
In the year 2017-2021 the SUM OF personal, administration and selling
exp was almost common for three years 2018-2020 and increased only in 2021
by 12%. But annual personal administration and selling exp increased in every
year. .

50
 Table 4 Showing growth rate of P.S.A EXP for the period 2017-2021

P.S.A.EXP
YEAR GROWTH% AVERAGE
TO SALES
2017 18.2
2018 17.84 -1.98%
2019 18.05 1.18%
2020 19.04 5.48%
2021 20.33 6.78% 2.86%

Chart4 Showing growth rate of P.S.A EXP for the period 2017-2021

P.S.A.EXP TO SALES
21
20
19
18 P.S.A.EXP TO SALES

17
16
1 2 3 4 5

INTERPRETATION:
The personal selling and administration exp to sales was negative in the
first year 2018 then there after there is continuous increase in personal
administration and selling exp on sales.

51
Table 5 Showing growth rate of interest to sales% for the period 2017-2021

INTEREST
YEAR GROWTH% AVERAGE
TO SALES%
2017 13.81
2018 9.27 -32.87%
2019 9.48 2.27%
2020 9.21 -2.85%
2021 8.55 -7.17% -10.16%

Chart5 Showing growth rate of interest to sales% for the period 2017-2021

INTEREST TO SALES%
15

10
INTEREST TO
5 SALES%

0
1 2 3 4 5

INTERPRETATION:
From the chart 5, it can be seen that during the period 2017-2021 there is
gradual negativity in the growth rate of interest to sales%, but 2018-2021 there
is increasing in the growth rate of interest to sales%.

52
Table 6 Showing growth rate of NO.OF EQUITY SHARES for the period
2017-2021

NO.OF
YEAR EQUITY GROWTH% AVERAGE
SHARES
2017 6
2018 6 0.00%
2019 6 0.00%
2020 6 0.00%
2021 6.84 14.00% 3.50%

Chart 6 Showing growth rates of NO.OF EQUITY SHARES for the period
2017-2021

NO.OF EQUITY SHARES

7
6.8
6.6
6.4
6.2
NO.OF EQUITY SHARES
6
5.8
5.6
5.4
1 2 3 4 5

INTERPRETATION:
From the chart 6, it can be seen that during the period 2017-2020 there is
no increasing in the growth rate of No .Of Equity Shares of the company, but
2020-2021 it has increased with nearly 17% growth rate.

53
 Table 7 Showing growth rate of EARNING PER SHARE for the period
2017-2021

EARNING
YEAR GROWTH% AVERAGE
PER SHARE
2017 11.73
2018 11.28 -3.84%
2019 7.95 -29.52%
2020 7.44 -6.42%
2021 6.69 -10.08% -12.46%

Chart 7 Showing growth rate of EARNING PER SHARE for the period
2017-2021

EARNING PER SHARE

15

10

EARNING PER SHARE

5

0
1 2 3 4 5

INTERPRETATION:
From the chart 7, it can be seen that during the period 2017-2021 there
is gradual decreasing in the growth rate of earning per share of the
company.eventhough there is an increase in the earning per share of the
company.

54
 Table 8 Showing growth rate of NET WORTH for the period 2017-2021

NET
YEAR GROWTH% AVERAGE
WORTH
2017 6,396.26
2018 6,862.96 7.30%
2019 7,023.41 2.34%
2020 7,218.62 2.78%
2021 12,112.90 67.80% 20.05%

Chart 8 Showing growth rate of NET WORTH for the period 2017-2021

NET WORTH
14,000.00
12,000.00
10,000.00
8,000.00
6,000.00 NET WORTH
4,000.00
2,000.00
0.00
1 2 3 4 5

INTERPRETATION:
From the chart 8, it can be seen that during the period 2017-2021 there is
gradual increase in the growth rate of NET WORTH of the company.

55
 Table 9 Showing growth rate of BOOK VALUE PER SHARE for the
period 2017-2021

BOOK VALUE
YEAR GROWTH% AVERAGE
PER SHARE
2017 44.56
2018 47.81 7.29%
2019 48.92 2.32%
2020 50.27 2.76%
2021 84.35 67.79% 20.04%

Chart 9 Showing growth rate of BOOK VALUE PER SHARE for the
period 2017-2021

BOOK VALUE PER SHARE

100
80
60
BOOK VALUE PER
40 SHARE
20
0
1 2 3 4 5

INTERPRETATION:
In the year 2006 the book value per share increasing every year and then in the
year 2007 percentage of growth rate is declined double and then year 2017 there
increase in double percentage of growth and sudden fall of growth percentage in
the year 2017 even though there is continuously increase in book value of share
of the company.

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 Table 10 Showing growth rate of diff b/w reserves per yr. for the period
2017-2021

YEAR DIFF B/W RESERVES OF PR YSR GROWTH% AVERAGE

2017
2018 14.92
2019 20 34.05
2020 24.63 23.15
2021 55.69 126.11 61.10

Chart 10 Showing growth rates of diff b/w reserves of pr ysr for the period
2017-2021

INTERPRETATION:

In the year 2019 the difference between reserves of pr ysr is increasing every
year and then in the year 2020 percentage of growth rate is decreased and
sudden rise of growth percentage in year 2021.

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Table 1 Showing growth rate of net operating income for the period 2017-
2021

NET
YEAR OPERATING GROWTH% AVERAGE
INCOME
2017 37,796.89
2018 38,811.69 2.68%
2019 41,434.54 6.76%
2020 21,021.53 -49.27%
2021 83,179.63 295.69% 63.97%

Chart 1 Showing growth rate of net operating income for the period 2017-
2021

NET OPERATING INCOME

100,000.00

80,000.00
60,000.00
NET OPERATING
40,000.00 INCOME
20,000.00

0.00
1 2 3 4 5

INTERPRETATION:
From the chart 1, it can be seen that during the period 2017-2021 there is
a decrease in the operating profit for first three years and suddenly growth rate
increases in 2017. Even though there is an increase in the net operating income,
the growth rate is decreasing. This mean there may be a gradual increase in the
operating expenses.

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 CHAPTER VII
RESEARCH FINDINGS AND
SUGGESTIONS

59
 FINDINGS
ADVANTAGES OF LIFE INSURANCE

 Life insurance provides an infusion of cash for dealing with the adverse
financial consequences of the insured‘s death.
 Life insurance enjoys favorable tax treatment unlike any other financial
instrument.
o Death benefits are generally income-tax-free to the
beneficiary.
o Death benefits may be estate-tax free if the policy is
owned properly.
o Cash values grow tax deferred during the insured‘s
lifetime.
o Cash value withdrawals are treated on a first-in-first-out
(FIFO) basis, therefore cash value withdrawals up to the
total premiums paid are generally income-tax free.
o Policy loans are income tax free.
o A life insurance policy may be exchanged for another life
insurance policy (or for an annuity) without incurring
current taxation.

DISADVANTAGES OF LIFE INSURANCE

 Policyholders forego some current expenditure to pay policy premiums.

Moreover, life insurance is typically purchased for the benefit of others and
usually only indirectly for the insured person.
 Cash surrender values are usually less than the premiums paid in the first
several policy years and sometimes a policyowner may not recover the
premiums paid if the policy is surrendered.
 The life insurance purchase decision and the positioning of the life
insurance can be complex especially if the insurance is for estate planning,
business situations or complex family situations.
 The life insurance acquisition process can be annoying and perplexing (e.g.
Is the life insurance agent trustworthy? Is this the right product and carrier?
How can medical underwriting be streamlined?).

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 In the year 2017 the profit after tax was very high then in year 2019 it declined to a
large extent, then in year 2020 it increased, in 2021 its was 9.6
 In the year 2017-2021 the cost of goods sold declined for three years 2018-2020 and
increased only in 2021.thus the annual cost of sales in every was also decreasing.
 In the year 2017-2021 the SUM OF personal, administration and selling exp was
almost common for three years 2018-2020 and increased only in 2021 by 12%. But
annual personal administration and selling exp increased in every year.
 The personal selling and administration exp to sales was negative in the first year
2018 then there after there is continuous increase in personal administration and
selling exp on sales.
 From the chart 5, it can be seen that during the period 2017-2021 there is gradual
negativity in the growth rate of interest to sales%, but 2018-2021 there is increasing in
the growth rate of interest to sales%.
 From the chart 6, it can be seen that during the period 2017-2020 there is no
increasing in the growth rate of No .Of Equity Shares of the company, but 2020-2021
it has increased with nearly 17% growth rate.
 From the chart 7, it can be seen that during the period 2017-2021 there is gradual
decreasing in the growth rate of earning per share of the company.eventhough there is
an increase in the earning per share of the company.
 From the chart 8, it can be seen that during the period 2017-2021 there is gradual
increase in the growth rate of NET WORTH of the company.
 In the year 2006 the book value per share increasing every year and then in the year
2007 percentage of growth rate is declined double and then year 2017 there increase
in double percentage of growth and sudden fall of growth percentage in the year 2017
even though there is continuously increase in book value of share of the company.
 In the year 2019 the difference between reserves of pr ysr is increasing every year
and then in the year 2020 percentage of growth rate is decreased and sudden rise of
growth percentage in year 2021.
 From the chart 1, it can be seen that during the period 2017-2021 there is a decrease in
the operating profit for first three years and suddenly growth rate increases in 2017.
Even though there is an increase in the net operating income, the growth rate is
decreasing. This mean there may be a gradual increase in the operating expenses.

61
 SUGGESTIONS
 All the hidden charges should clearly be stated in the form and explained by the agent
and LIC should provide better training to its agents.
 The aim of marketing of insurance product is to create customer and generat profit
through customer satisfaction.
 The company has the option of tying up with local NGO‘s for selling its rural
insuranceproducts.
 The physical evidence practices of ICICI have been appreciated by majority of the
policy holders. But the other dimensions of marketing mix have been considered less
effective. But recent developments that have taken place in the company reveal that
the defects have been rectified
 The gross profit of the company is increasing year after year for the period of 2017 –
2021, but it is not the same with net profit for the period of 2017 – 2021. To improve
profits, the company needs to cut down on expenses by applying more effective
costing and budgeting techniques.
 2017-2018 seems to be the most profitable year as almost all the elements in this year
stand strong in comparison to other years considered in the study for the period of
2017 – 2021.
 The high liquidity ratios reflect a very strong short-term financial structure for the
period of 2017 – 2021. The company should maintain current assets in the form of
receivables and cash rather than in inventory to meet its current obligation efficiency.
 On a long term, the company can be looked as good investment opportunity for the
period of 2017 – 2021.
 ICICI prudential are not concentration on the advertisements that why people don‘t
know the company name I think company is little bit of amount spending on the
advertisement company will be growing very well and they comes lot of profit They
know the public Averance.
 Compare to other companies ICICI prudential is good growing company in India.
They covered only main big cities, towns. Company has don‘t know the rural places.
Company has concentrate on those rural places. Why because in India rural places has
more then the cities.

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 CHAPTER VIII
SUGESTIONS AND
RECOMMENDATIONS

63
 SUGESTIONS AND RECOMMENDATIONS
ICICI PRUDENTIAL LIFE INSURANCE is one of the most promising companies in India.
The company has a bright future because of its scientific and flexible management approach.

 2017-2021 is considered as the period of study.

 The methodology used is financial statement analysis and ratio analysis during the period
of 2017 – 2021.
 The company is growing year after year during the period of 2017 – 2021.
 Quality of earnings has been good with minimum dependence on other income.
 The recession is passing off starting early during the period of 2017 – 2021.
 The company has shown strong increase in sales.
 The company maintains modest ratios during the period of 2017 – 2021.
 The overall position of the company remains satisfactory the period of 2017 – 2021..

 The M.T. has been very helpful in developing the soft skill area, boosting the confidence
and also understanding the application of theory learned in the classroom. Also it has
been helpful to enhance knowledge in terms of various functional aspects of organization,
products and industry.

 A part from given practical exposure to me, OJT is beneficial to organization also as it
provides platform to the organization to experiment different low cost activities and
enhancing with channel partners

 ICICI is not left behind in the present race of advertisement.

 The entry of more Pvt. players in the Insurance Sector have expanded the product
segment to meet the different level of the requirement of the customers. It has brought
about greater choice to the customers.

 ICICI has vast market and very firm grip on its traditional customers and monopoly of
life insurance products.

64
BIBLIOGRAPHY

65
 BIBLIOGRAPHY:

BOOKS:

 Brostoff, Steven. "Regulators toughen Holocaust stance". National Underwriter 102,

no.8(February 23, 1998): 3, 57.
 Allianz-AG: progress report. Munich: Allianz-AG, 1997.
 Feldman, Gerald A. Insurance in the National Socialist Period: sources and research
problems. Washington: National Archives, 1999.
 Jawaharlal seetapathi K (2002) Life insurance VOI -II ICFAI Press.
 Jawaharlal V (2005) Insurance industry ICFAI university press.
 Kothari C.R. (2004) Research Methodology New Age Publications.
 The English Health Service (1958);
 D. S. Hirshfield, The Lost Reform (1970);
 M. V. Pauly, Medical Care at Public Expense (1971);
 J. Blanpain, National Health Insurance (1978);
 D. Long, Principles of Life and Health Insurance (1988).

JOURNALS AND BROCHURES

 LIC of India product profile brochure.

 ICICI Prudential product profile brochure.

 SBI Life insurance product profile brochure.

WEBSITES:

 www.google.com
 www.iciciprudential.com
 www.irdaindia.com
 www.bimaonline.com
 www.marketresearch.com

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