DISSERTATION REPORT ON "RECRUITEMENT OF FINANACIAL ADVISOR FOR INCREASING PRODUCTIVITY” SUBMITTED IN PARTIAL FULFILLMENT OF THE REQUIREMENT OF THE DEGREE OF "MASTER OF BUSINESS ADMINISTRATION" UTTARAKHAND TECHNICAL UNIVERSITY SUBMITTED TO : SUBMITTED BY : TWEENA PANDEY MOHD DANISH (FACULTY MANAGEMENT ) MBA (UIM) Sem.- IV U.I.M.
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DISSERTATION REPORT
ON
"RECRUITEMENT OF FINANACIAL ADVISOR
FOR INCREASING PRODUCTIVITY”
SUBMITTED IN PARTIAL FULFILLMENT OF THE REQUIREMENT
OF THE DEGREE OF
"MASTER OF BUSINESS ADMINISTRATION"
UTTARAKHAND TECHNICAL UNIVERSITY
SUBMITTED TO : SUBMITTED BY : TWEENA PANDEY MOHD DANISH (FACULTY MANAGEMENT ) MBA (UIM) Sem.-IVU.I.M.
(2009-2011)UTTARANCHAL INSTITUTE OF MANAGEMENT
DEHRADUNCERTIFICATE
I have the pleasure in certifying that
MOHD DANISH is a bonafide student of 4th
Semester of the Master's Degree of Business
Administration of Uttaranchal Institute of
Management, Dehradun.
He has completed his dissertation report
work entitled "RECRUITEMENT OF FINANCIAL ADVISORS
FOR INCREASING PRODUCTIVITY" under my guidance.
I certify that this is his original
effort and has not been copied from any other
source. This project has also not been
submitted in any other University for the
purpose of award of any degree.
This report fulfills the requirement of
the curriculum prescribed by Uttarakhand
Technical University, Dehradun for the said
course.
Signature :........................................
......
Name of the Guide :...............................
Date :.............................................
.........
DECLARATION
I hereby declare that Dissertation titled
"RECRUITMENT OF FINANCIAL ADVISORS FOR INCREASING
PRODUCTIVITY" is submitted as a requirement
for partial fulfillment of "Master of
Business Administration (MBA)" degree from
Uttaranchal Institute of Management,
Dehradun.
The empirical findings in the
dissertation are based on the basis of
primary date collected and prepared by me. I
have not copied anything from any source or
project submitted earlier.
(MOHD DANISH)
M.B.A. (Sem. -IV)
(Batch 2009-2011)
ACKNOWLEDGEMENT
The completion of the report “WITH SPECIAL REFERENCE TO
THEIR REQUIRMENT IN INSURANCE SECTOR” has given us immense
pleasure and knowledge. It is an incident of great pleasure
of submitting this report, obligations were heavy and many
during our report work.
It gives me immense pleasure to express my deep sense
of gratitude and appreciation to my external guide Ms.
TWEENA PANDEY whose constant encouragement and valuable
suggestion gave back bone support in completing this
project.
I take the opportunity to thanks to the faculty of MBA
department for motivating, encouraging, guiding and
supporting at every step & sparing their valuable time for
me.
Last but not the least I record my sincere thanks to
all beloved and respectable persons who directly or
indirectly helped me in the completion of this report
successfully and could find any separate mention.
Above all I praise “GOD” the most beneficial, the most
merciful that I have been able to complete my training
project successfully.
��T A B L E O F C O N T E N T S
��
1) Executive Summary
2) Company profile
About ICICI Bank About Prudential About ICICI Prudential…………………..17
2) Industry Profile……………………………… 19
Insurance Importance of Insurance Privatization of Insurance Need of Insurance Major Players of Life Insurance
3) Sectional Work Done in the Company
Products Offered Work Done at ICICI Prudential Learning Suggestions
4) Research Methodology
Primary Objective Limitations
5) Case Study
6) Swot Analyses
7) Recommendation
8) Conclusion
9) Bibliography
10)Synopsis
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��E X E C U T I V E S U M M A R Y
��
Insurance is a legal contract that protects people from the
financial costs that result from Loss of life, loss of
health, lawsuits, or property damage. Insurance provides a
means for individuals and societies to cope with some of the
risks faced in everyday life. People purchase contracts of
insurance, called policies, from a variety of insurance
organizations.
� Insurance has been divided into two segments
Life Insurance
General Insurance
Life insurance is a contract for payment of a sum of money
to the person assured on the happening of the event insured
against. Usually the contract provides for the payment of an
amount on the date of maturity or at specified intervals or
at unfortunate death. The contract also provides for the
payment of premium periodically to the corporation by the
assured. General Insurance includes many areas of insurance
like marine, motor, engg. Health, fire etc. the contract
provides for the payment of an amount on the happening of
some contingency.
These types of contracts are annual in nature. ICICI and
prudential came together in 1993 to provide mutual fund
products in India and today are the largest private sector
mutual fund company in India.
ICICI prudential was amongst the first private sector
insurance companies to begin operations in December 2000
after receiving approval from Insurance Regulatory
Development Authority (IRDA). ICICI Prudential’s equity base
stands at Rs. 3.75 billion, with ICIC Bank and Prudential
plc holding 74% and 26% stake respectively. As of December
31, 2002, the company had issued nearly 230,000 policies
with a sum assured of over Rs. 6,500 crore and premium
income in excess of Rs. 340 crore. Today the company is the
#1 private life insurer in the country.
At ICICI prudential customer delight is their guiding
principles. Ensuring world class solution by offering
customized product with transparent benefits supported by
the best technology is their business philosophy benefits
supported by the best technology is their business
philosophy. According to Mr. Majid Khan unit manager, ICICI
PRU. The company has used innovative marketing as well as
pricing strategies and their premium chart would be much
lower than the other player in the market. Company has
launched various products in the market with most
competitive premium among all players
��
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��C O M P A N Y P R O F I L E
��
Industrial Credit Investment Corporation of India (ICICI)
was formed in 1995 at the initiative of the World Bank, the
Government of India and representatives of Indian industry.
The principal objective was to create a development
financial institution for providing medium-term and long-
term project financing to Indian businesses. ICICI bank is
India’s second largest bank with total assets of about Rs. 1
trillion and a network of about 540 branches and offices and
over 1,000 ATMs. ICICI Bank offers a wide range of banking
products and financial services to corporate and retail
customers through a variety of delivery channels and through
its specialized subsidiaries and affiliates in the areas of
investment banking, life and non life insurance, venture
capital, asset management and information technology. ICIC
Bank’s equity shares are listed in India on stock exchanges
at Chennai, Delhi, Kolkata and Vadodara, the Stock Exchange,
Mumbai and the National Stock Exchange of India Limited and
its American Depositary Receipts (ADRs) are listed on the
New York Stock Exchange (NYSE). The Bank offers a broad
spectrum of financial services to individuals and companies
including deposit accounts, commercial banking, mortgagees,
car loans, personal loans, corporate and trade finance,
credit and debit cards and other banking services. In the
1990s, ICICI transformed its business from a development
financial institution offering only project finance to a
diversified financial services group offering a wide variety
of products and services, both directly and through a number
of subsidiaries and affiliates like ICICI Bank. In 1999,
ICICI become the first Indian company and the first bank or
financial institution from non-Japan Asia to be listed on
the NYSE.
ICICI prudential has one of the largest distribution
networks amongst private life insurers in India, having
commenced operations in 23 cities and towns in India. These
are:
Ahemdabad, Bangalore, Chandigarh, Chennai, Coimbatore,
Gurgaon, Hyderabad, Indore, Jaipur, Kochi, Kolkata, Lucknow,
Ludhiana, Madurai, Mangalore, Meeruit, Mumbai, Nagpur,
Nasik, Noida, New Delhi, Pune and Vadodara. The company has
the largest number of bancassurance tie-ups, having
agreements with ICICI Bank, Citibank, Allahabad Bank,
Federal Bank, South Indian Bank, Bank of India, Lord Krishna
Bank, and Punjab & Maharashtra Co-operative Bank, as well
as some corporate agents. It has also tied up with
organizations like Dhan for distribution of Salaam Zindagi,
a policy for the socially and economically underprivileged
sections of society.
� About Prudential
Established in 1848, prudential is a leading international
financial services company in the UK, with some US$276
billion funds under-management and more than 13 million
customers worldwide. Prudential has brought to market an
integrated range of financial services products that now
includes life assurance, pensions, mutual funds, banking,
investment management and general insurance. In Asia,
prudential is UK’s largest life insurance company with a
vast network of 22 life and manual fund operations in twelve
countries – China, Hong Kong, India, Indonesia, Japan,
Korea, Malaysia, the Philippines, Singapore, Taiwan,
Thailand and Vietnam. Since 1923, Prudential has championed
customer centric products and services supported by over
60,000 staff and agents across the region.
� About ICICI Prudential
ICICI and prudential came together in 1993 to provide mutual
fund products in India and today are the largest private
sector mutual fund company in India. ICICI prudential was
amongst the first private sector insurance companies to
begin operations in December 2000 after receiving approval
from Insurance Regulatory Development Authority (IRDA).
ICICI Prudential’s equity base stands at Rs. 3.75 billion,
with ICIC Bank and Prudential plc holding 74% and 26% stake
respectively. As of December 31, 2002, the company had
issued nearly 230,000 policies with a sum assured of over
Rs. 6,500 crore and premium income in excess of Rs. 340
crore. Today the company is the #1 private life insurer in
the country.
ICICI prudential has recruited and trained over 16,000
insurance agents to interface with and advise customers, and
has the highest number amongst private life insurers on the
renowned million-dollar round table (MDRT). Their latest
venture ICICI prudential life plans to take car eof the
insurance needs at various stages of life. ICICI prudential
life insurance company has mopped up a premium income of Rs.
75 crore for the year ended March 31, 2004 reflecting a 106
per cent growth over corresponding period last year. It has
sold 4.7 lacks policies during the year, against one lakh
policies sold in fiscal 2002. ICICI prudential has cornered
about 31 percent of the private sector insurance market,
which today accounts for 10 pe cent of incremental sales of
the entire industry. Average premium is Rs. 18000+ majority
of 1.2 lakh policies sold by ICICI prudential in last
quarter of fiscal 2004 were pension and unit-linked plan.
Pension products accounts 25 per cent of the sales giving
ICICI prudential an overall industry share of 25 percent
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��I N D U S T R Y P R O F I L E
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Insurance is a legal contract that protects people from the
financial costs that result from Loss of life, loss of
health, lawsuits, or property damage. Insurance provides a
means for individuals and societies to cope with some of the
risks faced in everyday life. People purchase contracts of
insurance, called policies, from a variety of insurance
organizations. Insurance is conceived as a method of sharing
of these losses, embodying the principle of co-operation
existed in the early civilization. There is evidence that
during the Aryan civilizations, loss of profits in industry
was insured by the village co-operative in India. Almost
everyone living in modern, industrialized countries buys
insurance, for instance, laws in most states require people
who own a car to buy insurance before driving it on public
roads. Lenders require anyone who finances the purchase of a
home or car with borrowed money to insure that property.
Business partners take out life insurance on each other to
make sure that business will succeed even if one of the
partners die.
� Insurance has been divided into two segments
Life Insurance
General Insurance
Life insurance is a contract for payment of a sum of money
to the person assured on the happening of the event insured
against. Usually the contract provides for the payment of an
amount on the date of maturity or at specified intervals or
at unfortunate death.
The contract also provides for the payment of premium
periodically to the corporation by the assured. General
Insurance includes many areas of insurance like marine,
motor, engg. Health, fire etc. the contract provides for the
payment of an amount on the happening of some contingency.
These types of contracts are annual in nature. Historians
believe that insurance first developed in summer and
Babylonia.
The merchants and traders of these societies transferred and
pooled their money to protect themselves and pirates. In the
18th Century BC, Babylonian king Samurai developed a code of
law, known as the code of specific rules governing the
practices of early risk sharing activities. Insurance also
developed during the 1700s in the North American colonies.
In 1730 Benjamin Frank contributed for the Insurance of
Houses from Loss by fire. Early development of insurance was
unorganized. It was mainly insuring commercial risks. The
insurance inhuman life started in England in 1583AD for term
Assurance for 12 months, which was issued for the first
time.
In 1705 amicable society started paying assurance on death a
tern carried on unto 1757.
In 1762 equitable society was the first co. to start charging
premium on scientific basis. In India the references to
insurance history relates to the East India Co. when some
policies where issued on the life of Bruisers in foreign
currency. In 1870- Bombay Mutual Insurance Limited
In 1874- Oriental Govt. Security life Assurance Co Limited
In 1896 – Bart Insurance Co. and 1897 empire of India.
In 1905 – no of insurance company life Hindustan co-op United
India, Bombay Life
National – Asian were set up during the above period. After
2nd world war several new companies were established, most
important being New India Assurance Co. others were Jupiter,
Lame, Andhra, Industrial Metropolitan and New Asiatic. After
1st World War the peace of Industrialization was accelerated
in India.
The Swedish movement had already gathered momentum and
nationalism in the twenties, Indian offices began to take
due share of the country’s business. It continuously
progressed and there seemed to be steady rise in the per
capita insurance in the country. The government started to
exercise control with the passing of insurance act 1912
there was a marked increase in the volume of insurance
business and other form of Business. More companies were
floated.
With a view to have a closer watch on the matter of
investment of funds and expenditure and general management
of business govt. enacted the insurance act in 1938 and also
the Dep’t of Insurance under the authority of the
superintendent of Insurance was established. This act was
further amended in 1950. Before nationalization there were
97 operating centers almost all urban.
There were 245 different insurance companies then.
Nationalization off the Insurance business in 19 Jan 1956.
LIC act of 1956 was passed by the parliament and received
presidential assent on 18th June 1956 and act come into
force on 1st July 1956-LIC came into existence on the 1st
September 1956.
� Importance of Insurance
Insurance benefit society by allowing individuals to share
the risks faced by many people. But it also serves many
other important economic and societal functions. Because
insurance is available and affordable, banks can make loans
with the assurance that the loan’s collateral is covered
against damage. This increased availability of credit helps
people buy homes and cars. Insurance also provides the
capital that communities need to quickly rebuild and recover
economically from natural disasters, such as floods or
earthquakes. Insurance itself has become a significant
economic force in most industrialized countries. Employers
buy insurance to cover their employees against work related
injuries and health problems. Businessmen also insure their
property, including technology used in production against
damage and theft. Because it makes business operations
safer; insurance encourages businesses to make economic
transactions, which benefit the economies of countries.
Insurance companies perform a type of monetary
redistribution they collect premium and eventually
redistribute that money as payments. Depending on the type
of insurance, redistribution can take place anywhere from a
few months to many decades. Because of this delay between
collections and paying out funds, insurance companies invest
their funds to bring in extra revenues. Such investments
help businesses and government finance their operations, and
few months from those investments deport the operations of
insurance companies. With these investments earnings,
insurance companies can keep rates much lower than would
otherwise be possible.
� Privatization of Insurance
The Indian insurance has finally opened up. The first movetowards liberalization came
with the Amphora Committee Report in 1993 which recommendedthe privatization of
insurance.
Indian stands to gain witty the following major advantages:
Better products with more reasonable and
affordable pricing
Quick servicing
Increased saving rate
Long-term funds for infrastructure development
will be available to the country
Large inflow of foreign capital
It is debated that the insurance business does not produce
profit in the first five year. Cross subsidization is a
feature of the Indian Market. Event the fire portfolio which
is considered profitable, cross subsidizes the other
department. Tariff reductions are likely to reduce further.
Insurer will have to institute proper claims management
process in order to extract proficiencies. The govt. is
soon to present the new model for taxing life insurance
companies at internationally competitive rates.
New entrants would be well advised to look ahead to the
stage where brand strength will be a competitive advantage
and sketch their alliances accordingly. Infect alliances
related to distribution rather than to product or technology
will prove most valuable in the long run. Brokers will come
into the market for first time and there is bound to be
intense competition as a result of this in the multi
channels of distribution.
� Need of Insurance
Since beginning of the world, man has always felt insecurity
for his assets and even life. There is uncertainty in every
aspect of life. It is an old saying that only death and tax
are certain, however even the time of death and rate jog tax
is not certain. Uncertainties expose our assets to losses
and consequently endless problems. A fire in a factory may
burn everything and owner’s only source of earning with
investment of huge capital is finished but insurance will
come to one’s rescue if insurance is taken, all the
operations can be started again. Insurance does not only
provide reimbursement at the time of loss but at the time
of taking the policy, insurer provides suggestive measures
to reduce the effect of hazards and losses. Earthquake,
flood, riot, strike, theft, explosion, fire, etc. are some
of the common dangers to our assets. Moreover life insurance
besides providing financial assistance to the insured,
these policies provide investment opportunities and even
pension plans at market interest rate.
� Opportunities in Insurance
In Indian market, the opportunity for insurance companies is
huge. The efforts of government companies have lacked
sincerity, as there is large untapped market even after 45
years of nationalization. According to sources, 30 cores
people of India can afford insurance however only 8 cores
of them have taken any insurance. Life insurance premium
collected in a year is only 2% of gross domestic product in
India with that of 12% in USA. Total non-life insurance
premium is a mere 0.6% of GDP which is almost negligible. On
the basis of this it can be sold that there is huge scope
for insurance in India. There is still much to achieve and
a big market to explore.
The latent demand foreseen in Indian market and the success
of liberalized market in emergent economies make this a
great opportunity. To avail this may international players
including the world leaders have set up their business in
India in last two years.
Prudential life insurance was first company to tie up with
an Indian company i.e. is ICICI and gets a license. Each
company requires 100 crores of capital to start their
business, which is a big amount to ensure the solvency of
company at all times. Other companies, which have come up,
are:
MAJOR PLAYERS OF LIFE INSURANCE IN INDIA
Life Insurance Corporation of India
ICICI prudential Life Insurance
HDFC Standard Life Insurance
Max New York Life Insurance
Birla Sun Life Insurance
Om Kotak Mahindra Life Insurance
Reliance Life Insurance
Allianz Bajaj Life Insurance
Ing Vyasa Life Insurance
SBI Life Insurance
Metlife Insurance
Sahara Life Insurance
Aviva Life Insurance
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��S E C T I O N A L W O R K D O N E I N T H
E C O M P A N Y��
� Advisors recruitment for the company
Advisors are the base of any insurance company .For his
recruitments ,primarily we analyse his/her necessary,
qualification his personality and selling skill and than
experience. It s a challenging job to recruit the advisors
in competitive market.
� Products offered by the company through advisors
At ICICI prudential customer delight is their guiding
principles. Ensuring world class solution by offering
customized product with transparent benefits supported by
the best technology is their business philosophy benefits
supported by the best technology is their business
philosophy. According to Mr. Majid Khan unit manager, ICICI
PRU. The company has used innovative marketing as well as
pricing strategies and their premium chart would be much
lower than the other player in the market. Company has
launched various products in the market with most
competitive premium among all players.
PROJECTION PLAN
These are very good plan for those who want protection
(especially) for their family because happiness and security
for our family is all that we want. However, the
uncertainties of life often worry you. Unfortunate events
can make you are no longer around. Life insurance can help
ease many of those worries. It ensures that your loved ones
are adequately provided for and that their future is secure,
no matter what the uncertainty.
ICICI PRU offers you a choice of 3 level term products with insuranceprotection:
Life Guard Level Term Assurance Life Guard Level Term Assurance with Return of Premium Life Guard Single premium
��HOW THESE PLANS WORK
��Life Guard Level Term Assurance
What is Life Guard level term assurance policy? Thisplan provides financial protection to your familyin case of the unfortunate event of death.
How does the Life Guard Level Term Assurance policywork? You will have to pay a regular annualpremium for the term chosen and will be providedthe insurance cover on your life equal to the sumassured.
What benefit does this plan offer you? In case of death of the life assured during their term,
the sum assured under the plan will be paid to thebeneficiary. There are no maturity benefits.Hence, on survival till maturity, the policy willterminate without any returns.
How much you have to pay for this plan?
The following table gives you indicative premiums for
various age term combinations for a sum assured of
Rs. 10 Lakhs.
AgeTerm of the policy
5 years 10 years 15 years 20 years30 years 2455 2504 2553 268035 years 2876 2925 3072 358240 years 3386 3601 4287 5110
What tax benefits are available for this plan? The planoffers tax benefits u/s 88.
What additional feature does this plan offer you? Youcan avail of the Accident and Disability Benefitunder this plan.
What are your entry conditions for Life Guard LevelTerm Assurance? Your age at entry should bebetween 18 years and 50 years. The minimum term is5 years and the maximum term is 25 years, which issubject to a maximum of 65 years of age. Theminimum premium for the product is Rs. 2400 perannum.
Life Guard Level Term Assurance with Return of Premium
How does the Life Guard Level Term Assurance with return ofpremium policy work?
You will have to pay a regular premium for the
term chosen and will be provided the Insurance
cover on your life equal to the sum assured.
What benefit does this plan offer you?
In case of death of the life assured during the
term, the sum assured under the plan will be paid
to the beneficiary. On survival till maturity, all
the premiums paid, will be returned without
interest.
What tax benefits are available for this plan?
The plan offers tax benefits u/s 88.
What additional feature does this plan offer you?
You can avail of the accident and disabilitybenefit under this plan.
What are your entry conditions for Life Guard Level Term Assurancewith Return of premium?
Your age at entry should be between 18 years and
50 years. The minimum term is 5 years and the
maximum term is 25 years, which is subject to a
maximum of 65 years of age. The minimum premium
for the product is Rs. 2400 per annum.
Life Guard Single Premium
What is Life Guard Single Premium policy?
This is a single premium variant of the Level TermAssurance Plan.
How does the Life Guard Single Premium policy work?
You have to make a one-time premium payment,
depending upon the term and the sum assured chose
by you.
What benefit does this plan offer you?
In case of the death of the life assured during
the term, the sum assured under the plan will be
paid to beneficiary. There are no maturity
benefits at the end of the term.
What tax benefits are available for this plan?
The plan offers tax benefits u/s 88.
What are your entry conditions for Life Guard Single Premium?
Your age at entry should be between 18 years and
50 years. The minimum term is 5 year and the
maximum term is 15 years, which is subject to a
maximum of 65 years of age. The minimum sum
assured for the product is Rs. 2 lakhs.
Saving Plans
Most endowment policies are a good way of saving for the
future. A policy can be designed to make your savings grow
and have them available to you at the end of a fixed number
of years. Or, a policy could provide you with an income
every three or four years.
ICICI provides you three savings plans with insuranceprotection
Save ‘n’ Protect
Smart Kid
Cashbak
How these plans work
What is Smart Kid?
A plan which gives child the freedom to pursue their
dreams, the strength to face challenges, the guarantee to
live life to its fullest whatever be the uncertainty. As
parents, your biggest concern is that of securing the
future of your child. In today’s world, with ever
increasing competition, escalating cost of education and
uncertain financial markets, it is very important to plan
for your child’s future. It is a plan that provides
guaranteed benefits to your child along with the life
insurance cover. Smartkid is so designed that it provides
money at all the critical milestones in his/her life,
whatever be the uncertainties.
Who can purchase this policy?
Parents (between 20-60 years) with children in the age
group of 0-12 years can purchase this policy.
What should you buy smart kid?
Because smartkid ensures that you have total peace of
mind as far as your child’s future is concerned. In the
event of death of the Life assured Sum assured of the
plan is paid immediately – assists the family in meeting
the unforeseen expenses incurred because of the
unfortunate loss.
Waiver of premium – no future premia are payable, thereby
ensuring that your family is not burdened financially.
Thus, there will be no financial obstacle in realizing
the dream which the parent or child had.
What are the options for premium payment?
Mode of payment:: Monthly, half yearly and yearly.
What are the limits of Smart Kid?
Minimum premium: Rs. 8,000/- per year
Sum Assured: From Rs. 100,000/- to Rs.3,000,000/-
Maximum limit under Income Benefit Rider: Rs.1,000,000/-
Maximum limit under Accident & DisabilityBenefit Rider: Rs. 1,000,000/-
What tax benefits will you get?
The premium that you will be paying will be tax exempt
under section 88. Save ‘n’ Protect Being the head of the
family requires that you bear quite a few
responsibilities. Some of these include: being able to
fund your child’s higher education, your daughter’s
weeding, your own cozy nest and realize all your other
dreams. This is an ideal plan for those who want to
accumulate funds on a regular basis while enjoying
insurance protection.
What exactly does the Save ‘n’ protect do?
It is a fixed term policy that combines savings with life
cover. It is a fixed term plan in which you pay premium
regularly during the term. On the death of the life
assured, in the beneficiary will get the sum assured, the
guaranteed additions and the vested bonuses. Once the
policy matures, i.e. at the end of the term, you can get
the full sum assured and guaranteed additions as well as
the vested bonuses. In addition, you will get an
extended term insurance cover for five years after the
maturity date of the policy for 50% of the sum assured.
You will not have to pay any premium for the same.
Who can apply?
You can apply if you are in the age group of 0 to 60
years. The maximum cover ceasing age is 70 years. The
minimum sum assured you should apply for is Rs. 50,000
and the minimum term is 10 years. The minimum premium is
Rs. 4,8000 p.a.
Can I take a loan against my policy?
Yes, you can avail of a loan under the policy, to meet
your requirements. This will be dependent on the
surrender value your policy acquires. Interest is charged
on the amount of loan availed.
Can I discontinue my policy?
Your policy acquires a paid up value after premiums are
paid for three years. A guaranteed surrender value is
payable to you, if you decide to terminate the policy
after 3 years premiums are paid. However, the insurance
protection provided under this policy will also cease.
What are the add-on-cover?
Accident & Disability Benefit
Critical Illness Benefit
Major Surgical Assistance
What tax benefits will you get?
The premium that you will be paying will be tax exemptunder section 88.
Cash Bank
As an individual you have to be financially prepared for
various milestones in your life. If you are newly married,
you need to plan for a baby a few years from now. If you
have teenage children you need to plan for their university
education. What you need is a plan to meet your periodic
financial, requirement with the added benefit of insurance
protection.
What exactly does the CashBak do?
Sit is a three in one plan that combines savings,liquidity and protection through the following:
Fixed term of 15 or 20 years
Survival benefit payments at regularintervals
Premiums are payable throughout the term ofthe policy
On the death of the life assured, thebeneficiary will get the sum assured, theguaranteed additions and the vested bonuses.
Who can apply?
You can apply if you are 16 years old and no older than
55 years. The minimum sum assured you should apply for
Rs. 75,000. The minimum premium amount is Rs. 4,800 p.a.
Can I take a loan against my policy?
No loans are available under this policy.
Can I discontinue my policy?
Yes, you can discontinue your policy after premiums are
paid for three years. A guaranteed surrender value is
payable to you, if you decide to terminate the policy
after 3 years premiums are paid. However, the insurance
protection provided under this policy will also case.
What are the add-on cover?
Accident & Disability Benefit
Critical Illness Benefit
Major Surgical Assistance
Retirement Plans
When a person grows old both the physical capacity as well
as the financial capacity of that person become weak and at
some time inefficient and as a result what ever the standard
of living that the person maintained in his young get
deteriorated with span of time. It is not in the power
anybody to returned the physical strength back to the person
but with some retirement plans i.e. pension plans the
financial strength can be regained by the person in order to
maintain his present standard of living. These plans take
care of the inflation as well future requirement of a person
at his old age. At present ICICI Prudential offers four
types of retirement plans for the public. This plans gives a
safety and security o those people who aged and not
involving in any of financial activities and complete
depends on any monetary to sustain their living.
Forever Life
It is a comprehensive retirement solution that is developed
keeping in mind a persons’ various capabilities and needs,
with respect to one’s retirement planning. This is a plan
that ensures you to maintain your lifestyle for a lifetime.
So, whether you are 30 or 60 this is a just the right
retirement plan for a person. Ideally, this plan is suitable
for those peoples who are between 30-35 years of age to take
the maximum benefit of this plan. This gives a person a
longer period for your retirement plan. It is a deferred
annuity plan and it provides regular incomes for life after
a stipulated date.
The amount you receive depends on the premium you pay till
the stipulated date and the annuity option you choose. It
also offers life cover during the deferment phase.
The plan has two phases – The Deferment Period (Policy Term)
and the Annuity Period. Premiums are paid in the deferment
period till the time of vesting. From the vesting date
annuity is paid for the lifetime of the annuitant. The
premium depend upon the age of the person and also the term
of the product, which the deferment period.
The policy attains a value at the end of deferment period,
which is the total of the sum assured under the policy
guaranteed additions (@3.5% compounded for the first 4 years
of the policy) + vested bonuses (depending on the company’s
performance and are not guaranteed) this value is applied
to purchase annuity at the time of vesting.
This plan has two main benefits they are
Spouse Benefits
In case of the unfortunate event of death, the annuity
starts for the spouse. The annuity payable is determined on
the basis of your sum assured plus guaranteed additions plus
the vested bonuses if any at the time of the death. Your
spouse would have the option to either take the accumulated
value of the Sum Assured + Guaranteed Additions + Vested
Bonuses (if any) or opt for an annuity using a desired
portion of the accumulated value and take the rest as lump
sum.
Annuity Benefit
On the date of vesting (retirement), you start receiving a
regular income for life. This amount would depend upon the
annuity option chosen by you and the accumulated value as on
the vesting date. The annuity would also depend upon the
annuity rates offered by the company as on that date and are
not guaranteed. At vesting, you will have the option of
taking up to 25% of the aggregate of the sum assured,
guaranteed additions and vested bonuses (if any) as lump-
sum. The remaining will be used to provide with a regular
stream of income for life.
How this plan can give the customer the tax benefit?
Tax benefit u/s 80CCC the amount you invest is fully
deducted from income subject to the lump sum amount of Rs.1,
00,000
Is this plan is flexible? If yes then in what way?
Yes this plan is quite flexible and it is in the followingway:-
Choice of Retirement Date: You have the flexibility to postpone
the vesting from the originally chosen vesting date up to a
maximum of 70 year of your age. During the postponed period
your accumulated amount will earn interest as determined by
the company from time to time. There will be no life cover
or premium paid during this period. Open market option: This
option gives you the flexibility to buy a pension from any
other insurer of your choice, at the time of vesting. So you
have three freedom to take the best from the market.
Annuity Options: You have the flexibility to choose from fourdifferent annuity options.
Life Annuity : Annuity for Life annuity with return of
purchase price: Life annuity for the annuitant with the
return of the purchase price to the beneficiary. Life
annuity guaranteed for 5, 10, 15 years: Guaranteed annuity
is paid for the chosen term (5/10/15) and after that the
annuity continues if at that time annuitant is alive.
What additional benefit can be draw from this plan?
Critical Illness Benefit
Major Surgical Benefit
Accident and Disability Benefit
Life Link Pension This plan is a complete retirement
solution with total flexibility, total control that gives a
person the power to plan for your own retirement. It
provides regular income for your life from a date, which can
b chosen by you. The amount you receive would depend upon
the premiums you pay, the market value of your investment
and the option of the annuity chosen. It is a pension plan
that provides the benefit to you to invest your money in
market linked funds. During the deferment period when, a
part of the premium is used to pay for the initial charges
and the rest would be invested in the plan of your choice.
Entry into the plan will be based on the Unit Value
applicable on the date of issuance. Some benefits that are
offered by this plan to the customer are as follows: Death
benefit: you have the flexibility of choosing a zero death
benefit or a death benefit of 105% of the premium. In case
of the unfortunate event of death, the spouse would get the
higher of the death benefit (105% or 0% of the premium paid)
chosen by you or the value of your units as on that date.
Your spouse would have the option to either take the
higher of the death benefit or the value of units or opt for
an annuity. Annuity benefit on the date of vesting
(retirement), you start receiving a regular income for life.
This amount would depend upon the annuity option chosen by
you and the value of units as on the vesting date. The
annuity would also depend upon the annuity rates offered by
the company as on that date and are not guaranteed. At
vesting, you will have the option of taking up to 25% of the
value of units at the time of vesting as lump sum. The
remaining will be used to provide with a regular stream of
income for life.
Whether this plan is flexible or not? If yes then what else can acustomer draw from this plan apart from the above benefits?
Choice of retirement date: you have the flexibility to start
your pension whenever you want after a stipulated age. A
choice that lets you make the best of the market conditions
by timing the start of your pension.
CHOICE OF PLANS
You have the option to choose between our Growth plan,
Income plan or balanced plan. Maximize (growth) plan: This
plan offers you the benefit of long term capital
appreciation from a portfolio that is primarily invested in
equity and equity linked securities. Protector (Income)
plan: This plan offers you steady returns with a portfolio
that primarily invested in debt and debt related
securities. Balancer (balanced) Plan: This plan offers you
the flexibility of growth and steady returns with the
portfolio being invested in a mix of equity and fixed income
securities. Switch between funds:
During the deferment period you can switch between the
various plan options to take advantage of the prevailing
market conditions or with the change in your priorities.
You can do one free switch every year. Top-up of
investments: During the deferment period you have the option
of increasing your investment with top-ups (minimum amount
of Rs. 10,000).
Annuity Options: You have the flexibility to choose from fourdifferent annuity options.
Life Annuity: Annuity for Life.
Life Annuity with return or purchase price: Life annuity for the
annuitant with the return of the purchase price to the
beneficiary.
Life annuity guaranteed for 5, 10, 15 years: Guaranteed Annuity is
paid for the chosen
term (5/10/15) and after that the annuity continues if atthat time annuitant is alive.
Joint Life, last survivor with Return of purchase price: In this case the
annuity is first paid to the annuitant, after the death of
the annuitant the spouse starts getting a pension which is
equal in amount of the annuity paid to the annuitant. After
the death of the last survivor the purchase price is
returned back to the beneficiary.
Choice of retirement date: You have the flexibility to postpone
your vesting age upto a maximum of 70 years of age.
Open market option: This option gives you the flexibility to
buy a pension from any other insurer of your choice, at the
time of vesting. So you have the freedom to take the best
from the market.
What tax benefits are available with Life Link Pension?
Tax benefit u/s 80 C the amount of investment or the amount
of premium you pay is fully deducted from your income
subject to Rs.1,00,000
How much you have to pay?
The minimum premium in this plan is Rs. 25,000. What are
your entry conditions? You can apply for this plan if you
are between 18 and 62 years of age. You have the flexibility
of choosing the vesting age between 50 and 70 years of age.
Minimum term of the product is 3 years.
RETIREMENT PLANS
Joint Life, Last Survivor with Return of Purchase Price: In
this case the annuity is first paid to the annuitant, after
the death of the annuitant the spouse starts getting a
pension which is equal in amount of the annuity paid to the
annuitant. After the dearth of the last survivor the
purchase price is returned back to the beneficiary. Choice
of Retirement Date: You have the flexibility to postpone
your vesting age upto a maximum of 70 years of age. Open
Market Option: This option gives you the flexibility to buy
a pension from any other insurer of your choice, at the time
of vesting. So you have the freedom to take the best from
the market.
What tax benefits are available with Life Link Pension?
Tax benefit u/s 80CCC(1): Upto Rs. 10,000 deducted from
your taxable income.
How much you have to pay?
The minimum premium in this plan is Rs. 25,000.
What are your entry conditions?
You can apply for this plan if you are between 18 and 62
years of age. You have the flexibility of choosing the
vesting age between 50 and 70 years of age. Minimum term of
the product is 3 years.
RIDERS
Riders are the additional benefit that you can add on to
your policy. You can opt for riders when taking the basic
policy at a marginally incremental cost. No bonuses are paid
on the riders.
CRITICAL ILLNESS BENEFIT RIDER
A rider added to a life insurance policy to protect the
insured in the event of a critical illness. 9 medical
conditions are covered by this benefit. This ensures living
benefits payable to the insured for medical expenses prior
to death. This rider is available with Save’n’ Protect,
Cash Bak, Forever Life (Regular Premium Deferred Pension),
Life Time and Life Time pension. If the life Assured is
diagnosed to be suffering from a specified Critical Illness
after six months from the date of policy, the Sum assured
under this policy shall be paid together with guaranteed
additions and vestdonu.
CONDITIONS
When the policy is in force for the full sumassured
Any time before the expiry of the policy Before the age of 65 (which ever is earlier) On the payment of the Sum Assured together
with the bonuses and guaranteed additions ifany, allocated to the policy, the policyterminates
EXCLUSIONS
The critical illness shall not have been caused by the
existence of Acquired Immune Deficiency Syndrome or the
presence of any Human Immune deficiency Virus Infection in
the person of the Life Assured. Self inflicted injury. Drug
abuse
Failure to follow medical advice
War, whether declared or not and civil
commotion
Pregnancy
Breach of law
Aviation other than as a fare paying
passenger in a commercial licensed aircraft
(being a multi engine aircraft)
Hazardous sports/pastimes
The benefit shall not be payable in respect of any illness
other than those denied as Critical Illness, nor shall it
apply or be payable in respect of any of those said
illnesses the symptoms of which have occurred or which has
been diagnosed or for which the insured person received
treatment, during the first 6 months from the date of
policy. The maximum aggregate of critical Illness Benefit
granted by the Company under all the policies of the Life
Assured shall not exceed Rs. 10,00,000.
PREMIUM
The premium for this benefit is guaranteed for five years
only from the date of commencement of policy. The company
reserves the right to carry out a general review of the
experience from time to time and change the premium as a
result of such review. The company will give notice in
writing about the change and the Life Assured will have the
option not to pay any increased premium.
In such a case the benefit will be appropriately reduced
from the effective date of the change in premium and the
company will advise the Life Assured accordingly 80D. This
rider is available with Save’n protect, Cash Back Forever
Life (Regular Premium Deferred Pension), Life Time and Life
Time pension. The maximum sum assured under Major Surgical
Assistance Benefit granted by the Company under all the
policies of the Life Assured shall not exceed Rs. 10,00,000.
BENEFITS
Under this the life assured is paid
50% of sum assured in respect of majorprocedures
30% of sum assured in respect of intermediateprocedures
20% of sum assured in respect of minorprocedures this benefit is payable on morethan one occasion when the life assuredundergoes
surgery. However the total benefit payable incase of all the procedures is restricted to a
maximum of 50% of the sum assured.
CONDITIONS
The benefit would be available only for medically necessary
surgical procedures performed at a hospital as in patient
When the policy is in force for the full sum Assured Anytime
before the expiry of the policy or before the age of 65
(whichever is earlier)
EXCLUSIONS
The company shall not be liable to pay any sum under or in
terms of this benefit in the event of Preexisting injuries
or illnesses, treatment that is not taken from recognized
hospitals or doctors. No benefit will be payable in respect
of a claim which, in the opinion of our Chief Medical
officer, results directly or indirectly from a condition for
which the insured person has previously received
treatment, or which had previously been diagnosed, or
which he was aware of, at the commencement of the policy or
within the first 6 months from the date of policy.
HIV/AIDS
Congenital or hereditary diseases or physical
defects
Attempted suicide
Attempted suicide
Self inflicted injury, drug abuse
Injuries from natural disasters
War and civil commotion
Criminal acts
Taking part in flying activity other than as a passenger in
a commercially licensed aircraft, (being a multi – engine
aircraft) By engaging in hazardous sports/pastimes, i.e.
taking part in (or practicing for) boxing, caving, climbing,
horse racing, mountaineering, off piste skiing, pot holing,
power boat racing, underwater diving, yacet racing or any
race, trial or timed motor sport.
ACCIDENT BENEFIT
This benefit is payable in case of death that occurs as a result of anaccident. The death must occur:
When the policy is in force for the full sumassured
Any time before the expiry of the policy
Before the age of 65 (whichever is earlier)
BENEFITS
If you are covered under this benefit and if death occurs as
the result of an accident during the term of the policy,
your beneficiary shall receive an additional amount equal to
the accident cover under the rider. If the accidental death
occurs during the term of the policy, while you are
traveling as a fare paying passenger on an authorized public
mass transport namely bus or train, your beneficiary will
be entitled to twice the accident cover under the rider.
DISABILITY BENEFIT
This benefit is payable in case of disability that occurs as
a result of an accident. The maximum cover under this
benefit is Rs. 10,00,000. This is inclusive of all the
policies you may have taken with us. The disability must
occur.
When the policy is in force for the full Sum
Assured
Any time before the expiry of the policy
Before the age of 65 (whichever is earlier)
BENEFITS
If the Life Assured is totally and permanently disabled as a result of an
accident the following additional benefit paid:
10% of the Sum Assured every year for 10
years commencing from the first anniversary
of the disability date. Premiums under this
rider falling due on or after the disability
date shall be waived.
If there are any other benefits payable under
this rider then all such benefits shall cease
to be available on and after the disability
date
The dearth due to accident should not be
caused By attempted suicide or self inflicted
injuries while sane or insane, or whilst the
Life Assured is under the influence of any
narcotic substance or drug or intoxicating
liquor; or By engaging in aerial flights
(including parachuting and skydiving other
than as a fare paying passenger on a
licensed passenger carrying commercial
aircraft (being a multi engine aircraft)
operating on a regular scheduled route; or
By the Life assured committing any breach oflaw
Due to war, whether declared or not or civilcommotion
By engaging in hazardous sports/pastimes,
i.e. taking part in (or practicing for)
boxing, caving, climbing, horse racing, jet
skiing, martial arts, mountaineering, off
piste skiing, pot holing, power boat racing,
underwater diving, yact racing or any race,
trail of timed motor sport.
WORK DONE AT ICICI PRUENTIAL LIFE INSURANCE COMPANY
ICICI is a company known for its professionalism and survive
that gives value to the customer. Inside story of the
company & are above expectations. At ICICI prudential, my
training was related to marketing of the product of ICICI
prudential and also making agents for the company. I am
dividing my learning experience into two parts relating to
each of the above-mentioned parts.
Marketing or getting people’s perception at
the time of selling policies, about the new
private life insurance companies and also
about the products of ICICI prudential
available in the market.
Whenever I met a person and talked about
ICICI prudential the person told me that he
already has a life insurance policy from LIC.
In almost 100% cases I found such answers.
It’s a very tough job to break the monopoly
as well as the goodwill of LIC in the market,
after serving 47 years in the country with no
competition LIC has created an atmosphere
when people think that life insurance means
LIC, and to this perception, people often say
that I have my LIC instead of saying that I
have my life insurance policy.
At the time of selling the policy what I
found that the most preferred plan is money
back. The reason being availability of funds
after every five year which can be used for
further premium. Whenever I used my contracts
& met the persons for policy selling purpose
what I found that most of the people do not
have faith on private players, they have
doubts on the credibility and long stay of
private insurance companies.
But with good products & value added
services, ICICI prudential emerges as a
leader in the private sector. In the whole
period of my corporate training I met with so
many people and gave seven leads to the
company because of the time constraint. But
out of these seven leads I alone convert one
lead into a full flesh policy within training
period and rest of the leads were in the
pipelines, and the company’s agents were
working on these leads.
Practical experience at the time of making an agent:-
To convince a person to become an agent off any life
insurance company is a very tough job, because after opening
up of the insurance sector the agent force of LIC has
created a mess in the market, by paying the first premium of
client from their own pocket. This type of activities
demoralize people from becoming the agent of a life
insurance company. As data was not provided by the company
so my first target source was my friend circle for the
agent purpose. Out of nine leads of mine I made two agents
over there, and rest of people declined due to reasons
which are as follows:
According to them, it’s not a prestigious job
as they belong to good families (in terms of
money).
According to them LIC has a strong monopoly
in the insurance market and nobody is going
to break it, so it is a time wastage to
become an insurance agent for ICICI
prudential.
They thought that instead of spending their
time on ICICI prudential they should go for
LIC, which is more beneficial.
Since they are not ready to become an
insurance agent but when I explained about
the ICICI bank and about the prudential that
is the number one insurance company in U.K.
and has a good market goodwill with ethics,
two of them get agreed with me for becoming
the agent of ICICI prudential.
LEARNING’S
Based on the work done in the company major findings of the study have
been highlighted below….
Most of the people are satisfied with the
extent of their life insurance cover. They
are not interested in buying more life
insurance.
People do not consider life insurance as a
good savings because of low returns.
As life insurance is a long-term contract.
Maximum people do not have faith on Private
life insurance companies, they still prefer
LIC. Because of less advertising not many
people are aware about private life
insurance companies.
Most of the people do not know about broker,
corporate agents and banc assurance, they
rely on their agents only
The most preferred type of plan is money
back. The reason being availability of funds
after every five years, which can be used for
paying further premium, thus saving the
regular income.
Some people have no idea about what type of
cover they have.
Most of the people feel that life insurance
is essential but they think returns are low.
Some people have their doubts on the
credibility and long stay of private
insurance companies.
SUGGESTIONS
Advertising of the insurance product shouldstress on the need of security.
Insurance should be popularized as the meansof securing future rather than saving tax.
New entrants should come out with innovativeriders.
Policies should be issued quickly and withless formalities
Other service should also be improved.
Newspaper/Magazines and television are themost effective medium of advertising lifeinsurance.
Insurance agents should be well trained.
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��R E S E A R C H M E T H O D O L O G Y
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PRIMARY OBJECTIVES
To study the awareness amongst the people on
life insurance products.
To study the reasons for buying life
insurance products and classify the target
buyer in terms of income and age
To know the type of life cover most preferredby the public
To find out what policies ICICI prudential isproviding
To find out what are the benefits of each ofthe policy
To find out the working process of aninsurance agent
To find out how ICICI prudential recruits theagents.
To understand the functioning of an insurancecompany.
To know the origin and history of lifeinsurance companies
LIMITATIONS OF THE STUDY
It was difficult to get appointment from the
person whom I know because of their busy
schedule.
Since the project had to be completed within
eight weeks, it was too short a time to
convert the prospective buyers into
customers. Since the study involved a through
analysis of the insurance market and relative
study of various players offering the
similar products and that of similar, it
required a dedicated labor in term of both
time and effort. Since the curriculum did not
permit more time, the study had to be very
limited.
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��C A S E S T U D Y
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In spite of the vast potential, the retirement solutions
category remained virtually untapped by the Indian
Insurance players - until ICICI Prudential decided to build
and explore this hidden goldmine. The following case study
discusses how ICICI Prudential used smart marketing
strategy to exploit this opportunity to its advantage.
ICICI Prudential. Market Scenario With increasing life
expectancy on one hand and rising inflation and medical
costs on the other, the need for planning one’s retirement
was emerging as an important one. However, it was quite
surprising to know only 11 per cent of India’s total working
population was adequately covered for post-retirement life.
This was mainly due to low awareness of and attitudinal
barriers with respect to these issues among consumers.
OPPORTUNITIES
About 90 per cent of the working population in India was
without retirement cover. Of this, a sizeable portion
belonged to the age group of 30-40 yrs - a big market left
unexploited so far. Even the market leader LIC, which has
been in the country for decades, had failed to truly drive
growth of the retirement products category.
Proof being the mere 4.16 per cent contribution of pension
products to its entire portfolio (as of end 2002).
BARRIERS
The task of capturing the unexploited market however, turned
out to be an uphill one. The first barrier was low
awareness of the need for early retirement planning among
consumers. Add to it the consumer’s notion that planning for
retirement starts only in your 50s. The bigger issue
however, was the consumer’s perceptions and fears as far as
retirement was concerned. The word ‘retirement’ itself
brought to mind all the negatives associated with old age –
loss of independence (social, financial and physical),
causing ‘avoidance’ or deferment of decisions regarding the
same.
THE CHALLENGE
To re-position the traditional concept of retirement
planning and thus create relevance for it among the 30-40
yrs age group. To change behavior, inducing consumers to
invest in retirement planning early in life.
CAMPAIGN OBJECTIVES
Bring the concept of planning for retirement into the
consideration set of 30-40 year old working men/ women
thereby creating a new market 50 per cent of pensions
contributions to come from persons below 40 years Sales and
market share targets within six months post campaign (for
the period Sep 2002 to Mar 2003):
Sales target: INR 400 million
Share of total pensions market: 10 per cent
3.Contribution of pensions to portfolio: 20per cent
TARGET AUDIENCE
SEC A, B, 30-40 year old, chief wage earner, who: is at the
prime of his working life, with a higher disposable income
and majority of work life still at hand. Currently thinks
that retirement planning holds very low importance, as
compared to other needs of asset acquisition, child’s
education etc.
CREATIVESTRATEGY
Consumer Insight “Retirement is a long way off – why plan
for it now?”“Retirement means the end of all good things in
life” Creative strategy To a younger target group, for whom
retirement is synonymous with growing old, the strategy was
to offer a fresh perspective by mirroring the never say die
attitude of the 35 yr old. If age doesn’t stop him from
sharing in the joys of life now, why should it stop him
later? Proposition
ICICI Prudential Retirement solutions help you plan early
for retirement, ensuring that you will continue to live life
the way you always wanted to. The advertising message
“Retire from work – not life!”
OTHER COMMUNICATIONPROGRAMS
The laddered task of share gain through changing consumer
attitudes and behaviour, called for a multi-dimensional
communication strategy that went beyond traditional mass
media.
Retirement Solutions Seminars: Through a tie
up with The Times of India, full-page
educative advertorials were released in three
metros inviting consumers for a free seminar
on early retirement planning. Over 2000
consumers attended these seminars.
Direct Marketing Campaign: More than 15
databases were carefully chosen to accurately
target the 30-40 yr old. Customers
of/subscribers to ICICI Bank credit card
holders, Safety Bond holders, Money control
and Myiris are few of the databases that were
used.
Retirement Planner: An educative booklet in
the form of a planner was created explaining
why it made better sense to start planning
for retirement several years in advance. The
mode of distribution was an innovation in
Brand Equity (The Economic Times).
Retirement calculator: A user-friendly
calculator was designed to help customers
calculate the current savings required in
order to meet post-retirement expenses. This
was made available on the brand website and
used extensively as a needs analysis tool at
the time of sale.
MEDIASTRATEGY
The overriding objective of the media strategy was customer
interaction through various touch points using a 24-hour
cycle. So a multi media strategy was developed to contact
the target at every possible touch point.
TV: This was the main for reach, impact anddemonstrate the emotional pay off. For the first month oflaunch a high reach, high frequency plan was implemented,followed up with three months of sustained activity. Theactivity started with 40-second commercials and then movedto 20 and 30 seconds edits aimed at increasing frequency.
Print: Press reinforced the rational benefit of savingearly to cushion your retirement by
highlighting the product’s comprehensive features. Vehicleswere chosen based on the best cost per response i.e. thepublication which would generate the maximum no of callins.
Radio: The new FM channels launched in the previousyear were explored to reach
audiences out of home. The spots were aired so as to get themorning and evening office-
going traffic..
Outdoor: A high visibility-high impact outdoor strategy wasimplemented across 21 cities. Morning traffic sites werespecifically selected to target the office going consumer.
Internet: Used innovatively to seek responses via click-throughs. Financial sites and general interest sites werechosen considering the net is used both in office and at
home.
Direct Marketing: Mailers and brochures played the dual role ofeducating the
Consumer on the rationale behind planningearly for retirement and the advantages ofICICI Pru Retirement Solutions.
Public Relations: Was effectively used toeducate consumers on early retirement
Planning, making them more receptive towardsthe brand’s communication. Competitive
Media Spends: The combined spend of just the top 2 competitorsput to- gether amounted to Rs 16 crores approx.Comparatively the spends on the ICICI Pru campaign was Rs4.8crores.
MEDIA
Television
Newspaper
Consumer Magazine
Radio
Point-of-Purchase
Out-of-Home
Public Relations
Sales Promotion
Consumer Seminars
Evidence Of Results Overwhelming Response
To begin with, the campaign triggered a large number of
consumer response calls and e-mails (35000 calls and 3000
emails).The response rate for mailers sent out (Direct
Marketing) varied from five per cent to 7.5 per cent, far
higher than both domestic and international norms across
categories.
Changing Attitudes
The average age of a person investing in ICICI Pruretirement solutions dropped to 38.5
years.
Sales and Market Shares:
The success of the campaign was not limited to phone calls
alone. The campaign contributed greatly to the
organisation’s topline and bottomline as is evident form the
charts below: 1. Sales achieved for the period Sept ‘02 to
Mar ’03, were INR 740 million as compared to a target of INR
400 million. 2. Market share Gain: The brand increased its
share of pensions market to 23 per cent against target of 10
per cent for the period Sep 2002 to Mar 2003. The table
below which compares ICICI Pru’s share in the pensions
market with the overall life insurance category puts the
campaign’s success in perspective.
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��S W O T A N A L Y S I S
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Strengths
ICICI PRUDENTIAL belongs to the ICICI group which isone of the largest financialinstitutions in India, ever sinceit inception in 1986 the ICICIgroup has created numerous successstories in whatever business theylanded. It gives ICICI PRUDENTIALan advantage to enjoy the alreadyexisting goodwill of ICICI group.
The ICICI PRUDENTIAL is a joint venturing of prudential
a Uk based insurance company andICICI Bank. Prudential wasestablished more than 150 years agoand the company is listed on theLondon Stock Exchange with a marketcapitalization of approximately $6billion and is a member of theelite FTSE 100 index. In the 2003rankings of the World's 500 largestcorporations by Fortune magazine,Old Mutual climbed 87 places toposition number 366 and was alsolisted as the 14th largestinsurance company in the world. Thejoint venture enjoys the blend of
one of the most experienced andtrusted companies internationallyas well as nationally.
ICICI PRUDENTIAL has one of the lowest NonPerforming Assets (NPA’s) in theindustry, which is .16%. Itprovides the company a strongfinancial stability as well asdepicts whom cohesively the companymanages itself.
ICICI PRUDENTIAL has been rewarded with FAAA ratingby CRISIL and AAA rating by FITCH,this depicts the actual performanceof the organization in terms of itsefficiency. The company spends lesson marketing so it actually hasmore finances available to sustainthe growth of the company andprovide better returns to thecustomers.
ICICI PRUDENTIAL offers the most flexible andinnovative unique products such askcmp etc, which surely gives it acompetitive edge over thecompetitors. The distributionchannel is amazing with a widereach as the company has officesall over India in more than 60cities.
Weakness
The company doesn’t spend much on marketingand it actually may be a reason for not beinga market leader among the private players.
The company has yet to make any significantpresence in the rural sector, as the brandname is yet not famous in the rural India.
The company has a conservative approach andthey believe in steady and very safeprogress, which actually results them to bein a position where they are behind some ofthe more aggressive market players like ICICI
In India the rural market and middle classsociety still don’t have faith in privateinsurers and their genuinity.
Opportunities
The whole rural market is a kind of nichesegment for insurance business. The onlycompany which has some presence in ruralmarket is LIC. So, I is at par with all otherprivate companies and the its an equalcompetition for all, there is an opportunityto make a mark and be the first among theprivate insurers and capture the ruralmarket.
The ICICI being such a big name has anopportunity to grow its insurance businessusing the goodwill of the group companies andthey can even target the customers of eachcompany of their group to get insurance
through them by offering special incentivesor schemes ,such as providing medicalinsurances along with saving accounts intheir banks. etc.
The good showing at the stock markets andgrowing Indian economy enables the ICICIPRUDENTIAL to give better returns tocustomers, specially in unit link schemes.
The Indian mass is getting more aware aboutthe importance of the insurance so they arerelatively more receptive to insuranceschemes, therefore it gives a chance to
� ICICI PRUDENTIAL
The world trends in distribution channel for
selling insurance are changing, these days
55% insurance in Europe is sold through
banks. ICICI has its own bank spread all over
the nation, this can be used to make cross
selling possible.
� THREATS
The rural India and middle class India still
don’t have faith in private insurers.
The ICICI PRUDENTIAL is competing with
private companies which are spending huge
amounts on marketing, so to maintain a
competitive edge with these companies in
terms of acquiring market shares would be a
tough task.
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��R E C O M M E N D A T I O N S
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There is some of the recommendation we had come up with
while doing this project. It will help to make insurance
more important sector in today’s economy. The need of the
hour is to devise a comprehensive strategy that will help
the firms face the challenges of the future. The financial
services industry around the world over is undergoing a
major transformation. It is very important that trained
marketing professionals who are able to communicate specific
features of the policy should sell the policy.
From our study we could find out that people
are not aware about the policies and features
of insurance. Therefore ICICI are recommended
to shed light on policies and explain the
benefits, thus increasing the awareness.
The penetration of insurance in India is
around 22%. This indicates that a vast
majority of rural population is not covered.
The market player needs to explore this
untapped potential through their marketing
and sales network.
The returns of the policies are not properly
managed and never given in time. So, these
must be looked at.
Pricing of insurance products, as empirically
available in India, shows that pricing is not
in consonance with market realities. Life
Insurance premium is generally perceived, as
being too high while general insurance
(especially motor insurance) is priced too
low.
Some insurance products, which are not
available in India, should, be introduced in
market. There are areas for new product
development: Industry all risk policies,
Large projects risk cover, Risk beyond a
floor level, Extended public and product
liability cover
Insurance companies will also had to get
savvy in distribution. Enhanced marketing
thus will be crucial. Already many companies
have full operation capabilities over a 12-
hour period. Facilities such as customer
service center are already into 24-hour mode.
These will provide services such as motor
vehicle recovery. Technology will also play
an important role on the market. The lines of
distinction between banks insurance companies
and brokerages are getting blurred. The
future seems to belong to financial
supermarkets that will offer a host of
services and products to the consumer. In the
next millennium all these activities would
play a crucial role in the overall
development and maturity of the insurance
industry
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��C O N C L U S I O N S
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There has been tremendous change in the insurance history.
And with it there has been continuous growth in this sector
both in Indian as well as world context. The opening up of
the insurance sector has changed the whole look of the
industry. While the LIC in order to face the competition is
coming with new strategies.
New players like ICICI Pru are leading the sector due to
their strategic management and tailored made projects. From
our study also we conclude that though the awareness and
people opting for LIC plans are more as compare to ICICI
Pru but the later are gaining momentum in the market day by
day. The primary reasons for buying an insurance policy,
whether life or non-life is to protect us from vagaries of
life. We do not invest in insurance for returns; rather we
invest in it for regrettable necessities. Though a large
proportion of policies available in the country provide for
returns, but nobody is looking for returns to the inflation
rate. So what does insurance offer, perhaps peace of mind,
but even that takes time, due to poor claim performance he
demand for insurance is likely to increase with rising per-
capita incomes, rising literacy rates and increase of the
service sector, as has been seen from the example of
several other developing countries. In fact, opening up of
the insurance sector is an integral part of the
liberalization process being pursued by many developing
countries Insurance is a Rs.400 billion business in India
and yet its spread in the country is relatively thin.
Insurance as a concept has not been able to make headway in
India.
There has been a strong fall in insurance business in
recent years. Furthermore, it can be observed that non-life
business is not increasing as strongly as life business. On
the other hand, growth fluctuations have been relatively
small with growth rates varying between 1% and 5%. Life
insurance business by contrast achieved average growth rates
of 6%, although the actual rates ranged from 0% to 13%.
This shows on the one hand the increasing significance of
life insurance as an instrument for old age provisions and
on the other hand indicates the sensitivity of life
insurance to changes in the institutional and economic
environment. So lets conduct this business with utmost
economy with the spirit of trusteeship; thereby making
insurance widely popular.
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��B I B L I O G R A P H Y
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ICICI prudential Life Insurance company.
INTERNET SITES
www.iciciprulife.com
www.icicibank.com
www.bimaguru.com
www.insurancemagic.com
www.indianexpress.com
www.theconomictimes.com
ICICIPRUDENTIALLIFE INSURANCECOMPANY
ADVISORS RECRUITMENT AND HIS CHALLENGING ROLE IN SELLING AND INVESTMENT INTHE ICICI PRUDENTIAL
Student’s Name: Mohd DanishIndustry Guide: Mr. Majid KhanFaculty Guide: Ms.Tweena PandeyMAJOR OBJECTIVES OF THE STUDY ARE LISTEDBELOW:
To know awareness about life insuranceamong earning public.
To establish the reasons of buying lifeinsurance
To know the target buyer in terms ofincome and age
To know the type of life cover mostpreferred by the public
To find out what policies ICICIprudential is providing
To find out the various policies in lifeinsurance
To find out who are the beneficiaries. To find out what are the benefits of each
of the policy To find out the working process of an
insurance agent To find out how ICICI prudential recruits
the agents. To understand the functioning of an
insurance company
MAJOR LEARNINGS AND SUGGESTIONS TO THE COMPANY
This chapter deals with the concluded aspectsof the study carried out on “Generalperception about Life Insurance”. The basicobjective is for the study is for which studywas carried out has been fulfilled in theearlier chapter, based on the objectiveinterview schedule was designed. Datacollected based on schedule was analyzed andsome findings have emerged.Major Findings of the Study
Most of the people are satisfied with theextent of their life insurance cover.They are not interested in buying morelife insurance.
People do not consider life insurance asa good savings because of low returns.
As life insurance is a long termcontract. Maximum people do not havefaith on private life insurancecompanies, they still prefer LIC.
Because of less advertising not manypeople are aware about private lifeinsurance companies.
Most of the people do not know aboutbroker, corporate agents and bancassurance, they rely on their agents only
The most preferred type of plan is moneyback. The reason being availability offunds after every five years which can beused for paying further premium, thussaving the regular income.
Some people have no idea about what typeof cover they have.
Most of the people feel that lifeinsurance is essential but they think
returns are low. Some people have their doubts on the
credibility and long stay of privateinsurance companies.
Suggestions Advertising of the insurance product
should stress on the need of security. Insurance should be popularized as the
means of securing future rather thansaving tax.
New entrants should come out withinnovative riders.
Policies should be issued quickly andwith less formalities
Other service should also be improved. Newspaper/Magazines and television are
the most effective medium of advertisinglife insurance.
Insurance agents should be well trained.
Intern Perception about the industry guide This two months training helped me inimparting skills in all facets of management ,Horne the ability to provide leadership,inspiration & motivation to people, help indecision making through the use of scarceresources, provides a lucrative and satisfyingcarrer. My Industry guide Mr.Majid Khan hashelped in shaping analytical and intellectualcapabilities. He was Very corporative andunderstanding .
Questionnaire
1. Which insurance would you like to prefer?
(a) Private Bank
(b) Public Bank
2. What would you be your tenure for using the insurance?
(a) Less then 4 year
(b) 4-5 years
(c) More than 5 years
3. How is your awareness with the schemes & various facilities ?
(a) Complete information
(b) Essential information
(c) Not aware
4. Do you face any type of problem during the insurance?
(a) Yes
(b) No
(5) Do you think that the advertisement & other promotional scheme have any impact on the customers?
(a) Yes
(b) No
(6) Are you satisfied with the suggestion & complaint procedure of the insurance sector?
(a) Yes
(b) No
(7) Are you aware with the financial position of the insurance sector?
(a) Yes
(b) No
(8) How do you take the decision regarding the selection of a particular insurance?
(a) Yourself
(b) Family decision
(c) With the help of the person
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