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SUMMER TRAINING
PROJECT REPORT
ON
COMPARATIVE STUDY OF ICICI
PRUDENTIAL PRODUCTS WITH
HDFC STANDARD LIFE AND BAJAJ ALLIANZ
IN BAREILLY
Submitted in partial fulfillment for the award of Master of
Business Administration (2009-2010).
Submitted To : Submitted By :Mrs.Bushra Khan Vishal Gupta
MBA IIIrd sem
Roll No- 0914270098
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Invertis Institute of Management Studies, Bareilly
Preface
The present management education has two major aspect i.e. practical and
Theoretical approaches. The practical training is the key in management courses,
which has received a vital importance in present scenario. Its exposure to the
potential manager to aware a management student about the actual work situation in
the organization. By this practical training a student rich insight in to what
practically going inside the insurance companies in India.
In fact its the implementation of theory into practice which is the life force of
management. Six weeks summer training is an obligatory requirement of the Master
of Business Administration. It was a great advantage for me of receiving practical
training in ICICI PRUDENTIAL LIFE INSURANCE COMPANY
LIMITED, Bareilly in their Marketing Department.
The management of Company offered an excellent learning situation their have been
considerable change in the technology, operation and structure of the insurance
company due to Globalization, merger and environmental issue and available
insurance policies and also new excellences been imposed by the changing consumer
satisfaction and multiple market requirements are forcing insurance companies to
adapt new technology.
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Acknowledgement
Words are inadequate to express deep sense of gratitude towards the management of
ICICI PRUDENTIAL LIFE INSURANCE COMPANY LIMITED,
Bareilly, and (Uttar Pradesh), who accepted us as winter trainee, in their esteemed
organization.
Its my great privilege to express my regard towards to Mr. Vivek Srivastava,A.S.M. & Sumer Training Officer & Project Guide PRACHI PATHAK
& ALL THE FACULTY MEMBERS, who made my work possible through
his inspiring guidance and constructive criticism throughout the period of training.
I am very thankful to Mr. Saurav Saxena, Sales Development Manager of ICICI
PRUDENTIAL and Mr. Bilal, Financial Consultant, who provided me the sales
guidance needed in the completion of the project.
I am also thankful to our training & Placement Officer of our institute.
This project has been made possible through the direct and indirect motivation of all
my family members, relatives and friends who inspired me to work with full devotion
and consistency.
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LIST OF CONTENT
1. INTRODUCTION- 4-11
About life Insurance
2. ABOUT IRDA - 12-16
3.
ICICI PRUDENTIAL LIFE - 17-454. HDFC STANDARD LIFE PRODUCT - 46-48
5. BAJAJ ALLAINZ- 49-54
6. RESEARCH METHODOLOGY - 55-56
7. DATA INTERPRETATION - 57-71
8. FINDINGS - 72-739. DIFFICULTIES &LIMITATIONS - 74
10. RECOMMENDATION - 75
11. CONCLUSION - 76-77
12. BIBLIOGRAPHY - 78
13. COPY OF QUESTIONNAIRE - 79-80
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SCOPE
The scope of the present report is limited to the COMPARATIVE STUDY OF
INSURANCE COMPANIES. The findings are based solely on primary data
gathered by interviewing the financial consultants, the Sales Development Manager of
the firm and few executive of the firm, besides data obtained from, office records and
other office journals. This project report has been divided into different chapters and
contains different perspective and information about Insurance Companies.
Information collected by the survey conducted for the consumer preference of at
random samples. Thus, the primary data and secondary data both have provided the
basis for completing of his report.
About Life Insurance
What is Life Insurance
Scope of Life Insurance
Need of Life Insurance
Roles of Life Insurance
Benefits of Insurance
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What is Life Insurance?
Life Insurance is a contract between you and a life insurance company, which
provides your beneficiary with a pre-determined amount in case of your death during
the contract term.
Buying insurance is extremely useful if you are the principal earning member in the
family. In case of your unfortunate premature demise, your family can remain
financially secure because of the life insurance policy that you have purchased.
The primary purpose of life insurance is therefore protection of the family in the
event of death. Today, insurance is also seen as a tool to plan effectively for your
future years, your retirement, and for your childrens future needs. Today, the
market offers insurance plans that not just cover your life and but at the same time
grow your wealth too.
Insurance
Uncertain EventFinancial Loss
Insurance Compensates for theLoss
Then What ?
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SCOPE OF INSURANCE
Why does one need Life Insurance?
Life insurance is designed to protect you and your family against financial uncertainties
that may result due to unfortunate demise or illness. You can also view it as a
comprehensive financial instrument as a part of your financial planning offering you
savings & investment facilities along with cover against financial loss. By choosing the
right policy as per your needs i.e. customized solutions, you will be able to plan for a
secure future for yourself and your loved ones.
Choosing the right plan
Identifying the right plan basis your needs is the first crucial step towards insurance
planning.At HDFC SL we help you through this decision by identifying your various needs and
offering plans that are customized for you. You may also choose a plan for yourself by
identifying the life stage you are at.
Analyzing Needs
The following needs of a person can be fulfilled by insurance:-
Protection
Need for a sound income protection in case of your unfortunate demise
Investment
Need to ensure long-term real growth of your money
SavingSave for the milestones and protect your savings too
PensionNeed to save for a comfortable life post retirement
Once you have analyzed your needs as per above classification, you need to then
ascertain important factors such as type of cover, insurance amount as per one's
income, life stage and dependents
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Need for Life Insurance
Risks and uncertainties part of lifes great adventureaccident, illness, theft, natural
disaster- they are all built into the working of the Universe, waiting to happen.
Insurance then is mans answer to the vagaries of life. If you cannot beat man-made
and natural calamities, well, at least be prepared for them and their aftermath.
Insurance is a contract between two parties the insurer and the insured. Wherein
the insurer agrees to pay the insured for financial losses arising out of any unforeseen
events in return for a regular payment of premium. These unforeseen events are
defined as risk and that is why insurance is called a risk cover.
Hence, insurance is essentially the means to financially compensate for losses that life
throws at people corporate and otherwise.
Death (untimely)
Disability
Diseases
Debt
Destitution (Retirement)
..and the way to protect is; only by way of insurance
5 Ds
Uncertainty on Human Life
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Roles of Life Insurance
Role 1: Life Insurance as Investment
Insurance is an attractive option for investment. While most people recognize the risk
hedging and tax saving potential of insurance, many are not aware of its advantage as
an investment option as well. Insurance products yield more compared to regular
investment options, and this is besides the added incentives offered by insurers.
You cannot compare an insurance product with other investment schemes for the
simple reason that it offers financial protection from risks, something that is missing
in non-insurance products.
In fact, the premium you pay for an insurance policy is an investment against risk.
Thus, before comparing with other schemes, you must accept that a part of the total
amount invested in life insurance goes towards providing for the risk cover, while the
rest is used for savings.
In life insurance, unlike non-life products, you get maturity benefits on survival at the
end of the term. In other words, if you take a life insurance policy will come back to
you with added returns. In the unfortunate events of death within the tenure of the
policy, the family of the deceased will receive the sum assured.
Thus insurance is a unique investment avenue that delivers sound returns in addition
to protection.
Role 2: Life insurance as Risk cover
Insurance provides you with that unique sense of security that no other form of
investment provides. By buying life insurance, you buy peace of mind and are
prepared to face any financial demand that would hit the family in case of an
untimely demise.
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Insurance also provides a safeguard in the case of accidents or
a drop in income after retirement. An accident or disability can be devastating, and
an insurance policy can lend timely support to the family in such times. It also comes
as a great help when you retire, in case no untoward incident happens during the
term of the policy.
Role 3: Life insurance as Tax planning
Insurance serves an excellent tax saving mechanism too. You will be eligible for tax
benefits under section 80C and Section 10(10D) of the Income Tax Act 1961.
Under Section 80C, you can save up to Rs. 33,600 from your tax each year as
premiums up to Rs. 100,000 are allowed as a deduction from your taxable
income.
Under Section 10 (10D), the benefits you receive from this policy are
completely tax-free subject to the exclusions.
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BENEFITS OF LIFE INSURANCE
Superior to Any Other Savings Plan
Unlike any other savings plan, a life insurance policy provides full protection
risk of death. In the event of death of a policyholders, near and dear ones. In
comparisons, any other savings plan would amount to the total savings
accumulated till date. If any other incidence occurs prematurely, such savings can
be much lesser than the sum assured. Evidently, the potential financial loss to the
family of the policyholder is cease able.
Encourages and Forces Thrift
A saving deposit can easily be withdrawn. The payment of life insurance
premium, however, is considered sacrosanct and is viewed with the same
seriousness as the payment of interest on a mortgage. Thus, a life insurance policy
in effect brings about compulsory savings.
Easy Settlement and Protection against Creditors
A life insurance policy is the only financial instrument the proceeds of which can
be protected against the claims of a creditor of the assured by effecting a valid
assignment of the policy.
A Ready Marketability and Suitability For Quick BorrowingsA life insurance policy can, after a certain time period (generally 3 years), be
surrendered for a cash value. The policy is also acceptable as a security for a
commercial loan, for example a student loan, it is particularly advisable for housing
loans when an acceptable policy may also cause the lending institution to give loan at
lower interest rates.
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Disability Benefits
Death is not the only hazard that is insured, many policies also provide
disability benefits. Typically, these provide for waiver of future premiums andpayment of monthly installment spread over certain time period.
Accident Death Benefits
Many policies can also provide for an extra sum to be paid (typically equal to
the sum assured) if death occurs as a result of accident.
Tax Relief
Under the Indian tax act, the following tax relies are available
30% of the premium paid can be deductible from your total income-tax
liability.
100% of the premium paid is deductible from your total taxable income.
When these benefits are factored in, it is found that most policies offer return
that are comparable/or even better than older savings modes such as PPF, NSC etc.
Moreover, the cost of insurance is very negligible.
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About IRDA
What is IRDA
Notification
IRDA Journals
Composition of Authority under IRDA Act 1999
Duties, Power and functions of IRDA
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What is IRDA?
The IRDA Regulations, 2002 deals with the vast area of rights of the investors starting
with the rights to obtain a copy of the proposal, the free look in period in respect of
the life policies, a copy of the concluded policy to be furnished to the client and also
the obligations of the insurance company regarding servicing and extending of the
policy, payment of interest in case of delay settlement of the policy claims, etc.
The regulations also prescribe a procedure for settlement of the grievances including
the appointments of the Insurance Ombudsman at specific centers in India. In
addition to this, the IRDA Act empowers the Authority to look into the settlement of
the grievances and in cases where the policyholders approach the Authority directly;
the Authority often intervenes with the insurers for the protection of their rights.
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Duties, Powers and Functions of IRDA
Section 14 of IRDA Act, 1999 lays down the duties, Powers and functions of IRDA.
(1) Subject to the provisions of this Act and any other law for the time being in
force, the authority shall have the duty to regulate, promote and ensure
orderly growth of the insurance business and re-insurance business.
(2) Without prejudice to the generality of the provision contained on sub-section
(1), the powers and functions of the Authority shall include
Issue to the applicant a certificate of registration, renew, modify,
withdraw, suspend or cancel such registration.
Protection of the interests of the policy holders in matters concerning
assigning of policy, nomination by policy holders, insurable interest,
settlement of insurance claim, surrender value of policy and other
terms and conditions of contracts of insurance.
Specifying requisite qualifications, code of conduct and practical
training for intermediary of insurance intermediaries and agents.
Specifying the code of conduct for surveyors and loss assessors.
Promoting efficiency in the conduct of insurance business.
Promoting and regulating professional organizations connected with
the insurance and re-insurance business.
Levying fees and other charges for carrying out the purposes of this
Act.
Calling for information from, undertaking inspection of, conducting
enquiries and investigations including audit of the
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Control and regulation of the rates, advantages,
terms and conditions that may be offered by insurers in respect of
general insurance business but so controlled and regulated by the
Tariff
Advisory Committee under section 64U of the Insurance Act, 1938 (4 of
1938).
Specifying the form and manner in which books of account shall be
maintained and statement of accounts shall be rendered by insurers
and other insurance intermediaries.
Regulating investment of funds by insurance companies.
Regulating maintenance of margin of solvency.
Adjudication of disputes between insurers and intermediaries or
insurance intermediaries.
Supervising the functioning of the Tariff Advisory Committee.
Specifying the percentage of premium income of the insurer to finance
schemes for promoting and regulating professional organizations
referred to in clause (f).
Specifying the percentage of life insurance business and general
insurance business to be undertaken by the insurer in the rural of social
sector
Exercising such other powers as may be prescribed.
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ICICI
Prudential
Life
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ICICI Prudential Life
The Partnership:
ICICI Prudential Life Insurance Company is a joint venture between ICICI Bank, a
premier financial powerhouse, and prudential plc, leading international financial
services group headquartered in the United Kingdom. ICICI Prudential was amongst
the first private sector insurance companies to begin operations in December 2000
after receiving approval from Insurance Regulatory Development Authority.
ICICI Prudential capital stands at Rs. 21.60 billion with ICICI Bank and Prudential
plc holding 78% and 29% stake respectively, As of March 31, 2007, the companygarnered Rs.4, 843 crore of weighted retail + group new business premiums and
wrote over 2.96 million retail policies. The company has assets hold to the tune of over
Rs. 15,000 crore.
ICICI Prudential is also the only private life insurer in India to receive a National
Insurer Financial Strength rating of AAA (Ind) from Fitch ratings. The AAA (Ind)
rating is the highest rating, and is a clear assurance of ICICI Credentials ability to
meet its obligations to customers at the time of maturity or claims.
For the past six years, ICICI Prudential has retained its position as the No. 1 private
life insurer in the country, with a wide range of flexible products that meet the needs
of the Indian customer at every step in life.
Distribution
ICICI Prudential has one of the larges distribution networks amongst private life
insurers in India. As of March 31, 2007 the company has over 580 offices across the
country and over 234,000 advisors. The company has over 22 banc assurance
partners, having tie-ups with ICICI Bank, Federal Bank, Bank of India, Lord
Krishna Bank, Idukki District Co-operative Bank, etc.
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Individual Products
Plans Benefit
Saving plans ICICI Prudential offers a variety of policies that give customer
the benefits of protection and the opportunity to save for
important assets of events, like a home, a car or a wedding.
Childrens plans Childrens plan is especially designed to provide flexibility and
safeguard customers childs future education and lifestyle,
taking all possibilities into account.
Retirement plans ICICI Prudential presents Retirement solutions that combine thebest of insurance and investment.
Group Solutions Employee benefits have proven to be an excellent tool to optimize
the retention of talent and improve an organizations bottom line.
Flexible Rider Options ICICI Prudential Life offers flexible riders, which can be added
to the basic policy at a marginal cost, depending on the specific
needs of the customer.
Protection Plans ICICI Prudential Protection Plan offers LIFE GUARD, which
offers life cover at low cost.
Health Assure Plus ICICI Prudential Health Assure is a regular premium plan which
provides long term cover against 6 critical illnesses by providing
policyholder with financial assistance, irrespective of the added
advantage of an equivalent life insurance cover.
Cancer Care It is a regular premium plan that pays cash benefit on the
diagnosis as well as at different stages in the treatment of variouscancer conditions.
Hospital Care It is a fixed benefit plan covering various stages of treatment.
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ICICI PRUDENTIAL LIFES key strengths
Financial Expertise: As a joint venture of leading financial services groups, ICICIPrudential Life has the financial expertise required to manage your long-term
investments safely and efficiently.
Range of solutions: We have a range of individual and group solutions, which canbe easily customized to specific needs. Our group solutions have been designed to offer
you complete flexibility combined with a low charging structure.
Track Record so far: Our cumulative premium income, including the first yearpremiums and renewal premiums is Rs. 1532.21 Crores Apr-Mar 2005 - 06.
We have covered over 1.6 million individuals out of which over 5, 00,000 lives have been
covered through our group business tie-ups.
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ICICI Limited
ICICI is Indias leading housing finance institution and has helped build more
35,00,000 houses since its incorporation in 1977.
1) In Financial Year 2003-04 its assets under management crossed Rs.56,000 Cr.
2) As at March 31, 2004, outstanding deposits stood at Rs. 9,840 crores. The depositor
base now stands at around 1 million depositors
.
3) Rated AAA by CRISIL and ICRA for the 10th consecutive year
4) Stable and experienced management
5) High service Prudential s
6) Awarded the Economic Times Corporate Citizen of the year Award for its
long-standing commitment to community development.
7) Presented the Dream Home award for the best housing finance provider in 2004
at the third annual outlook money awards. .
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About the group companies of ICICI
ICICI
ICICI Bank
ICICI Mutual Funds
ICICI Securities
ICICI realty.com
Internet
Credit Information Bureau (India) Limited
ICICI Chubb General Insurance Company Limited
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Individual Products
Each of us leads a unique life and so has unique needs. ICICI Prudential Life offers arange of products and invites you to choose the one that suits you best.
Pension Plan
Personal Pension Plan
Unit Linked Pension Plan
Saving Plans
Endowment Assurance Plan
Unit Linked Endowment Plan
Money Back Plan
Childrens Plan
Unit Linked Young star Plan
Investment Plans Single Premium Whole Of Life Plan
Protection Plans
Term Assurance Plan
Loan Cover Term Assurance Plan
What is personal pension plan?
ICICI Personal Pension Plan is an insurance policy that is designed to provide a post-
retirement income fir life with the freedom to choose your retirement date.
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Customer can choose the premium, the Sum Assured and the
retirement date. At the end of the policy term, you will receive the Sum Assured Plus
any attaching bonus, which will provide your post-retirement income.
ICICI Personal Pension Plan is an insurance policy, which can benefit customer in
following ways:
Provides a post retirement income in your golden years.
Gives you the flexibility to plan your retirement date.
Gives you tax benefits on your premiums.
In case of unfortunate demise during the policy term, your nominee will receive the
following benefits:
Demise within first year : 80% of the premium paid
Demise after first year : premium paid to date along with compound interest
calculated at 8% p.a.
What is Retirement Age?
Customer can select age of retirement at between 50 years and 70 years.
The eligibility ages are as follows:
Minimum Age At Entry 18 years
Maximum Age At Entry 60 years
Minimum Term 10 years
Maximum Term 40 years
What are the customer premiums?
Customer agrees to pay a level premium regularly, either quarterly, half
yearly or annually, throughout the term of the policy.
The minimum premium amount is Rs. 5000 each year.
Premiums can be paid by cash, cheque or demand draft.
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Does Personal Pension Plan offer you Tax
Benefit?
Tax benefits described in Section 80C, Section 80D, and Section 10 (10D) of the
Income Tax Act are applicable.
Under Section 80C, you can save up to Rs. 33,660 from your tax each year as
premiums up to Rs. 1,00,000 are allowed as a deduction from your taxable
income.
Under Section 10 (10D), the benefits received from this policy are completely
tax-free.
Exclusions
No death benefit will be paid if the death has occurred directly or indirectly as a
result of suicide within one year from the date of first being covered under the policy.
What is Unit Linked Pension Plan?
The ICICI Unit Linked Pension Plan is an insurance policy that is designed to provide
a retirement income for life with the freedom to maximize your investment returns. It
allows you build up a retirement fund for the future and during that time, give you
the knowledge that your family will receive a cash lump sum to provide for them in
the event of your unfortunate demise.
Customer can choose your premium and the investment fund or funds. In the event of
your unfortunate demise during the policy term, your spouse will receive a cash lump
sum to help him or her manager the retirement years.
What are the customer premiums?
Customer agrees to pay a level premium regularly, either quarterly, half
yearly or annually, throughout the term of the policy.
The minimum premium amount is Rs. 10,000 each year.
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Premiums can be paid by cash, cheque or demand
draft.
Beneficiaries:
Customer will receive the benefits due on maturity at the end of the policy
term.
In the event of your unfortunate demise, your nominee will receive the benefits
due.
What are the Investment Funds?
You can choose from all or any of the following 6 funds:
FUNDS Bank Deposits
& Money
Market
Govt.
Securities
& Bonds
Equity Risk
&
Return Rating
Liquid Funds 100% - - Low
Secure Managed Fund - 100% - Low
Moderate
Defensive Managed Fund - 70% to
85%
15% to
30%
Moderate
Balanced Managed Fund - 40% to
70%
30% to
60%
High
Equity Managed Fund - 0 to 40% 60% to
100%
Very High
Growth Fund - - 100% Very High
What happen if customer surrenders the policy?
The policyholder can surrender the policy at any point of time during the contract
term. The amount payable will be the unitized fund value after applying additional
surrender charges mentioned below:
1. In first three years: - Insurance plans are long-term investments with significant
tax advantages. Therefore, for the first three years of your plan, you may not
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surrender the plan or withdraw any portion of your funds
from it. These funds will be paid out to you only at the end of the third year. If you
stop paying your regular premium before three years have passed, your life cover will
cease and funds will be held in suspense after deduction of surrender charges.
2. From the fourth year onwards:-you can choose to surrender the policy at any
time and the surrender value will be the value of the units in the funds. We will
enforce surrender only if you have stopped paying regular premiums and your fund
value is less than your original annual regular premium amount. You can make lump
sum partial withdrawals from your funds at any time with in the policy term chosen
provided:
The minimum withdrawal amount is Rs. 10,000.
After the withdrawal the fund does not fall below your original annual regular
premium amount.
After the withdrawal, the fund does not fall below the sum of single premium
top-ups paid to date.
Are you eligible?
The eligibility ages for the life assured under the plan are as follows:
Minimum Age At Entry 18 years
Maximum Age At Entry 65 years
Minimum Age At Vesting 50 years
Maximum Age At Vesting 75 years
Minimum Term: 10 years Maximum Term: 40 years
Charges:
ICICI SLIC will deduct charges from the policy to cover ICICI SLIC costs. These
charges are:
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1. Premium Allocation Charge:- This is premium basedcharge. After deducting this charge from premium, the remainder is invested to buy
units. This percentage is called the Allocation Rate.
Premium paid Allocation Rate Allocation chargeRegular- 1st year 75% 25%
Regular- 2nd year 75% 25%
Regular- 3rd year onwards 99% 1%
2. Fund Management Charge:-This charge is 0.80% of the fund value per annumtaken on a daily basis.
3. Switching Charge:- 24 switches will be given free in a policy year and any
additional switch will be charged Rs 100 per switch.
What is Unit Linked Endowment Plan?
The unit linked endowment plan is an insurance policy that is designed to pay a lump
sum on maturity or on earlier death. On maturity customer receive the value of
customer units. On death customer receive the greater of the value of customer units
and customer selected basic sum assured.
What are the benefits?
There are 4 different options available to choose from:
1. Life Option - Death Benefit
On death within the policy term, the greater of the Sum Assured and the valueof fund will be paid to customer nominee. The policy will terminate.
2. Extra Life Option - Death Benefit + Accidental Death benefit
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If death occurs within the policy term as the result of
an accident, an extra benefit equal to the Sum Assured will be paid.
3. Life and Health Option - Death Benefit + Critical illness
Benefit
On death or earlier diagnosis of any one of six common critical illnesses within
the policy term, the greater of the Sum Assured and the value of the unit-linked fund
will be paid to customer nominee. The illnesses covered under this option are cancer,
coronary artery by pass graft surgery, heart attack, kidney failure, major organtransplant and stroke.
If death occurs within the policy term as the result of an accident, an extra benefit
equal to the Sum Assured will be paid.
What are the customer premiums?
Customer agrees to pay a level premium regularly, either quarterly, half
yearly or annually, throughout the term of the policy.
The minimum premium amount is Rs. 10,000 each year.
Premiums can be paid by cash, cheque or demand draft.
What are the levels of protections?
Minimum of the term.
Maximum 40 times.
What are the Investment Funds?
You can choose from all or any of the following 6 funds:
FUNDS Bank
Deposits
Govt.Securities Equity Risk
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&
Money
Market
&
Bonds&
Return
Rating
Liquid Funds 100% - - LowSecure Managed
Fund
- 100% - Low
Moderate
Defensive Managed
Fund
- 70% to 85% 15% to 30% Moderate
Balanced Managed
Fund
- 40% to 70% 30% to 60% High
Equity Managed
Fund
- 0 to 40% 60% to
100%
Very High
Growth Fund - - 100% Very High
What happen if customer surrenders the policy?
The policyholder can surrender the policy at any point of time during the contractterm. The amount payable will be the unitized fund value after applying additional
surrender charges mentioned below:
1. In first three years: - Insurance plans are long-term investments with significant
tax advantages. Therefore, for the first three years of your plan, you may notsurrender the plan or withdraw any portion of your funds from it. These funds will be
paid out to you only at the end of the third year. If you stop paying your regular
premium before three years have passed, your life cover will cease and funds will be
held in suspense after deduction of surrender charges.
2. From the fourth year onwards:- you can choose to surrender the policy at anytime and the surrender value will be the value of the units in the funds. We will
enforce surrender only if you have stopped paying regular premiums and your fund
value is less than your original annual regular premium amount. You can make lump
sum partial withdrawals from your funds at any time with in the policy term chosen
provided:
The minimum withdrawal amount is Rs. 10,000.
After the withdrawal the fund does not fall below your original annual regular
premium amount.
After the withdrawal, the fund does not fall below the sum of single premium
top-ups paid to date.
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Is customer eligible?
The age and term limits for taking out a ICICI Unit Linked Endowment are as shown
below:
Benefit options Term Period (yrs) Age at entry (yrs) Max. Age at
Maturity
(yrs)Min. Max. Min. Max.
Life Option 10 30 18 65 75
Extra Life Option 10 30 18 55 70
Life and Health Option 10 30 18 55 65
Extra Life and Health option 10 30 18 55 65
Does Endowment Assurance Plan offer you Tax Benefit?
Tax benefits described in Section 80C, Section 80D, and Section 10 (10D) of the
Income Tax Act are applicable.
Charges:
ICICI SLIC will deduct charges from the policy to cover ICICI SLIC costs. These
charges are:
1. Premium Allocation Charge:- This is premium based charge. After deductingthis charge from premium, the remainder is invested to buy units. This percentage iscalled the Allocation Rate.
Premium paid Allocation Rate Allocation charge
Regular- 1st year 70% 30%
Regular- 2nd year 70% 30%
Regular- 3rd year onwards 99% 1%
2. Fund Management Charge:- This charge is 0.80% of the fund value per annumtaken on a daily basis.
3. Switching Charge:- 24 switches will be given free in a policy year and anyadditional switch will be charged Rs 100 per switch.
4. Policy Administration Charge:- A charge of Rs. 20 per month is charged tocover regular administration costs.
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Exclusions
No death benefit will be paid if the death has occurred directly or indirectly as
a result of suicide within one year from the date of first being covered under
the policy.
We will not pay Extra Health Benefits if the critical illness has occurred within
6 months of the start of the contract.
We may not pay Extra Health Benefits if we do not receive a duly completed
claim from within 26 weeks of he illness, disability, operation or other
circumstances giving rise to the claim.
What is Money Back Plan?
It is a participating insurance plan that offers the following features:
A proportion of the basic Sum Assured as Cash lump sums at regular 5 years
intervals within the policy term.
A lump sum payment on survival up to maturity date.
In case of the unfortunate death of the life assured within the term of the
policy, the basic sum assured plus any bonus additions is provided. This is over
and above the earlier payouts.
What optional benefits are available with this plan?
You can add 4 optional benefits to customize your policy to suit your needs:
1. Critical Illness Benefits:- It provides an amount, equal to the Sum Assuredselected under this benefit, on diagnosis of any one of the 6 critical illnesses. The Sum
Assured is payable only if you survive for 30 days after date of Critical Illness Benefit
claim.
2. Additional Term Benefit:- It provides an additional amount, equal to the SumAssured selected under this benefit, in case of your unfortunate demise.
3. Accidental Death Benefit:-It providesan additional amount, equal to the SumAssured selected under this benefit, in case of your unfortunate death:
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Due to an accident, and
Within 90 days of the accident.
What are the customer premiums? Customer agrees to pay a level premium regularly, either quarterly, half
yearly or annually, throughout the term of the policy.
The minimum premium amount is Rs. 5000 each year.
Premiums can be paid by cash, cheque or demand draft.
KEY BENEFITS:
POLICYTERM
SURVIVAL BENEFIT DEATHBENEFIT
5th year 10th year 15th year 20th year 25th year 30th year
10 40% 60%+A.B - - - -
100%Su
m
Assured+
Attaching
Bonus
15 30% 30% 40%+A.B - - -
20 25% 25% 25% 25%+A.B - -
25 20% 20% 20% 20% 20%+A.B -
30 15% 15% 15% 15% 15% 15%+A.B
Is customer eligible?
This plan can be taken on a single life basis or a joint life (first claim) basis. The
eligibility ages are as follows:
Benefit options Term Period (yrs) Age at entry (yrs) Max. Age at
Maturity
(yrs)Min. Max. Min. Max.
Basic policy 10 30 12 60 75
Critical Illness Benefit 10 30 18 55 70
Additional Term Benefit 10 30 18 60 75
Accidental Death Benefit 10 30 18 55 65
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Beneficiaries:
Customer will receive the benefits due on maturity at the end of the policy
term.
In the event of your unfortunate demise, your nominee will receive the
benefits.
Does Money Back Plan offer you Tax Benefit?
Tax benefits described in Section 80C, Section 80D, and Section 10 (10D) of the
Income Tax Act are applicable.
Exclusions
No death benefit will be paid if the death has occurred directly or indirectly as
a result of suicide within one year from the date of first being covered under
the policy.
We will not pay Extra Health Benefits if the critical illness has occurred within
6 months of the start of the contract.
We may not pay Extra Health Benefits if we do not receive a duly completed
claim from within 26 weeks of he illness, disability, operation or other
circumstances giving rise to the claim.
We will not pay Accidental Death Benefit if Death occurs after 90 days from
the date of the accident.
We will not pay Additional Term benefit, Accidental Death Benefit if the death
is caused directly or indirectly from taking part or practicing for any
hazardous hobby or pursuit or race unless previously agreed to by us in
writing.
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What is childrens plan?
The ICICI Childrens Plan is designed to secure your childs future by giving your
child a guaranteed lump sum, on maturity or in case of your unfortunate demise,early
in the policy term. Childrens Plan receives simple reversionary bonuses, which are
usually added annually. This is a flexible plan with three options for you to choose
from, depending on your requirements.
What are the options that are available with this plan?You will have the choice of 3 options at the start of the policy:
PLAN OPTION DEATH
BEBEFIT
MATURITY
BEBEFITAccelerated benefit Plan Company will pay the
Sum Assured +
Bonuses Declared.
The policy terminates
immediately.
Company will pay the
Sum Assured + Bonuses
Declared.
Maturity Benefit Plan Future premiumswaived and the policy
continues till maturity.
We will pay the SumAssured + Bonuses
Declared.
Double Benefit Plan Company will pay the
Sum Assured.
Future premiums
waived, and the policy
continues till maturity.
We will pay the Sum
Assured + Bonuses
Declared.
What are the customer premiums?
Customer agrees to pay a level premium regularly, either quarterly, half
yearly or annually, throughout the term of the policy.
The minimum premium amount is Rs. 5000 each year.
Premiums can be paid by cash, cheque or demand draft.
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Are you eligible?
The eligibility ages for the life assured under the plan are as follows:
Minimum Age At Entry 18 years
Maximum Age At Entry 60 yearsMaximum Age At Maturity 75 years
Minimum Term: 10 years Maximum Term: 25 years
Does Childrens Plan offer you Tax Benefit?
Tax benefits described in Section 80C, Section 80D, and Section 10 (10D) of the
Income Tax Act are applicable.
Under Section 80C, you can save up to Rs. 33,660 from your tax each year as
premiums up to Rs. 1,00,000 are allowed as a deduction from your taxable
income.
Under Section 10 (10D), the benefits received from this policy are completely
tax free.
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Exclusions
We will not pay any benefit if the death of the life assured has occurred directly or
indirectly as a result of suicide within one year of the date of commencement or the
date of issue, if later and the policy will lapse without any value.
What is Unit Linked Young Star Plan?
As a parent, your priority is your childrens future and being able to meet their
dreams and aspirations. Today, providing a geed education, establishing a
professional career or even a modest wedding is expensive. To help you save for your
child, we at ICICI Prudential Life, present the ICICI Unit Linked Young Star Plan.
ICICI Unit Linked Young Star Plan is designed to provide a lump sum to the child at
maturity. It also provides financial security to the child in the future, even in case of
the insured parents unfortunate death during the policy term. The Unit Linked
Young Star Plan also gives the option of additional protection against the six common
critical illnesses.
Your premiums are invested in units of the investment funds of your choice, based on
the prevailing unit prices. On maturity the value of the units will be paid. On death
the selected basic sum assured is paid, and the policy continues until maturity.
What are the customer premiums?
Customer agrees to pay a level premium regularly, either quarterly, half
yearly or annually, throughout the term of the policy.
The minimum premium amount is Rs. 10,000 each year.
Premiums can be paid by cash, cheque or demand draft.
What are the levels of protections?
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Minimum 5 times.
Maximum 40 times.
What are the Investment Funds?
You can choose from all or any of the following 6 funds:
FUNDS Bank Deposits
MoneyMarket
Govt.Securities
& Bonds
Equity Risk &
ReturnRating
Liquid Funds 100% - - Low
Secure Managed
Fund
- 100% - Low
Moderate
Defensive Managed
Fund
- 70% to 85% 15% to
30%
Moderate
Balanced Managed
Fund
- 40% to 70% 30% to
60%
High
Equity Managed
Fund
- 0 to 40% 60% to
100%
Very High
Growth Fund - - 100% Very High
What happen if customer surrenders the policy?The policyholder can surrender the policy at any point of time during the contractterm. The amount payable will be the unitized fund value after applying additional
surrender charges mentioned below:
1. In first three years: - Insurance plans are long-term investments with significanttax advantages. Therefore, for the first three years of your plan, you may not
surrender the plan or withdraw any portion of your funds from it. These funds will be
paid out to you only at the end of the third year. If you stop paying your regular
premium before three years have passed, your life cover will cease and funds will be
held in suspense after deduction of surrender charges.
2. From the fourth year onwards:-you can choose to surrender the policy at anytime and the surrender value will be the value of the units in the funds. We will
enforce surrender only if you have stopped paying regular premiums and your fund
value is less than your original annual regular premium amount. You can make lump
sum partial withdrawals from your funds at any time with in the policy term chosen
provided:
The minimum withdrawal amount is Rs. 10,000.
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After the withdrawal the fund does not fall below your original annual regular
premium amount.
After the withdrawal, the fund does not fall below the sum of single premium
top-ups paid to date.
Are you eligible?
The eligibility ages for the life assured under the plan are as follows:
Minimum Age At Entry 18 years
Maximum Age At Entry 65 years
Maximum Age At Maturity 75 years
Minimum Term: 10 years Maximum Term: 25 years
Charges:ICICI SLIC will deduct charges from the policy to cover ICICI SLIC costs. These
charges are:
1. Premium Allocation Charge:- This is premium based charge. After
deducting this charge from premium, the remainder is invested to buy units.
This percentage is called the Allocation Rate.
Premium paid Allocation Rate Allocation charge
Regular- 1st year 70% 30%
Regular- 2nd year 70% 30%
Regular- 3rd year onwards 99% 1%
2. Fund Management Charge:- This charge is 0.80% of the fund value per annum
taken on a daily basis.
3. Switching Charge:- 24 switches will be given free in a policy year and any
additional switch will be charged Rs 100 per switch.
4. Policy Administration Charge:- A charge of Rs. 20 per month is charged to
cover regular administration costs.
Does Unit Linked Young Star Plan offer you Tax Benefit?
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Tax benefits described in Section 80C, Section 80D, and
Section 10 (10D) of the Income Tax Act are applicable.
Under Section 80C, you can save up to Rs. 33,660 from your tax each year as
premiums up to Rs. 1,00,000 are allowed as a deduction from your taxable
income.
Under Section 10 (10D), the benefits received from this policy are completely
tax free.
Exclusions
No death benefit will be paid if the death has occurred directly or indirectly as
a result of suicide within one year from the date of first being covered under
the policy.
We will not pay Extra Health Benefits if the critical illness has occurred within
6 months of the start of the contract.
We may not pay Extra Health Benefits if we do not receive a duly completed
claim from within 26 weeks of he illness, disability, operation or other
circumstances giving rise to the claim.
We will not pay Accidental Death Benefit if Death occurs after 90 days from
the date of the accident.
We will not pay Additional Term benefit, Accidental Death Benefit if the death
is caused directly or indirectly from taking part or practicing for any
hazardous hobby or pursuit or race unless previously agreed to by us in
writing.
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What is Single Premium Whole Life Insurance Plan?
ICICI Single Premium Whole of Life Insurance Plan is a tailor made plan, well suited
to meet your long-term investment needs. This participating plan offers youre the
following benefits:
It provides long-term real growth of your money.
Single premium investment plan.
In case of your unfortunate death during the policy term, this participating
insurance plan will pay your family the Sum Assured and compound
reversionary Bonuses, which are usually added annually. An additional
Terminal Bonus may be paid depending on the performance of the underlying
investments.
During Guaranteed Surrender Periods customer get the Sum Assured and all
bonuses vested as at the date of surrender.
In case of unfortunate death
Your nominee gets the sum assured secured by your premium, plus any attaching
bonuses.
Are you eligible?
The eligibility ages for the life assured under the plan are as follows:
Minimum Age At Entry 18 years
Maximum Age At Entry 65 years
What are the payment options?
A single premium can be paid by cash, cheque or demand draft.
Minimum Sum Assured : 25,000
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Maximum Sum Assured : 50,00,000
Premium Rate: 950 per Rs. 1,000 of Sum Assured.
What happen if customer surrenders the policy?
Customer can terminate the policy any time, after it has been in force for at least 6
months and receive a surrender value. However, after completion of 3 years there will
be a guaranteed surrender value of 50% of premium paid.
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Tax Benefits:
Currently Section 80C benefit is available for the premium paid under the plan to the
extent of 20% of the sum assured. In the event of a death claim the money paid is
exempt as per Section 10(10D), of the income Tax Act 1961. We would recommendyou to consult your tax consultant for further clarifications.
Exclusions:
Company shall not be liable to pay the benefit amount indicated in your policy
schedule if the death of the life assured or the death of the first to die of the lives
assured is caused directly or indirectly by suicide within one year of the date of
commencement, or the date of issue of the policy, if later.
What is Term Assurance Plan?
The ICICI Term Assurance Plan is an insurance policy that is designed to help secure
our familys financial needs. It does this by providing a lump sum to the family of the
life assured in case of death or critical illness of the life assured during the term of the
contract.
Under this plan, a um assured is payable in case of death of the life assured during the
term of the contract. One can choose the lump sum that would replace the income lost
to ones family in the unfortunate event of ones death. Since this non- participating
plan is a pure risk cover plan, no benefits are payable on survival to the end of the
term of the policy.
What optional benefits are available with this plan?
You can add the following optional benefit to customize your policy to suit your
needs:
1. Critical Illness Benefits:- It provides an amount, equal to the Sum Assured
selected under this benefit, on diagnosis of any one of the 6 critical illnesses. The Sum
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Assured is payable only if you survive for 30 days after date of
Critical Illness Benefit claim.
2. Accidental Death Benefit:- It providesan additional amount, equal to the Sum
Assured selected under this benefit, in case of your unfortunate death:
Due to an accident, and
Within 90 days of the accident.
What are the customer premiums?
Customer agrees to pay a level premium regularly, either quarterly, half
yearly or annually, throughout the term of the policy.
The minimum premium amount is Rs. 5000 each year.
Beneficiaries:
Customer will receive the benefits due on maturity at the end of the policy
term.
In the event of your unfortunate demise, your nominee will receive the benefits
due.Are you eligible?
Benefit options Term period
(yrs)
Age at entry
(yrs)
Max. Age At
Maturity
(yrs)Min. Max. Min. Max.
Basic policy 10 30 12 60 65
Critical Illness Benefit 10 30 18 55 65
Accidental Death
Benefit
10 30 18 55 65
Does Term Assurance Plan offer you Tax Benefit?
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Tax benefits described in Section 80C, Section 80D, and
Section 10 (10D) of the Income Tax Act are applicable.
Under Section 80C, you can save up to Rs. 33,660 from your tax each year as
premiums up to Rs. 1,00,000 are allowed as a deduction from your taxable
income.
Under Section 10 (10D), the benefits received from this policy are completely
tax-free.
Exclusions
No death benefit will be paid if the death has occurred directly or indirectly as
a result of suicide within one year from the date of first being covered under
the policy.
We will not pay Extra Health Benefits if the critical illness has occurred within
6 months of the start of the contract.
We may not pay Extra Health Benefits if we do not receive a duly completed
claim from within 26 weeks of he illness, disability, operation or other
circumstances giving rise to the claim.
We will not pay Accidental Death Benefit if Death occurs after 90 days from
the date of the accident.
We will not pay Additional Term benefit, Accidental Death Benefit if the death
is caused directly or indirectly from taking part or practicing for any
hazardous hobby or pursuit or race unless previously agreed to by us in
writing.
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HDFC
Standard Life
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The Partnership:
HDFC and Standard Life first came together for a possible joint venture, to enter the
Life Insurance market, in January 1995. It was clear from the outset that both
companies shared similar values and beliefs and a strong relationship quickly formed.
In October 1995 the companies signed a 3-year joint venture agreement.
In October 1998, the joint venture agreement was renewed and additional resource
made available. Around this time Standard Life purchased 2% of InfrastructureDevelopment Finance Company Ltd. (IDFC). Standard Life also started to use the
services of the HDFC Treasury department to advise them upon their investments in
India.
Towards the end of 1999, the opening of the market looked very promising and both
companies agreed the time was right to move the operation to the next level.
Therefore, in January 2000 an expert team from the UK joined a hand picked team
from HDFC to form the core project team, based in Mumbai.
In a further development Standard Life agreed to participate in the Asset
Management Company promoted by HDFC to enter the mutual fund market. The
Mutual fund was launched on 20th July 2000.
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Incorporation of HDFC Standard Life InsuranceCompany Limited
The company was incorporated on 14th August 2000 under the name of HDFC
Standard Life Insurance Company Limited.
Our ambition from as far back as October 19954 was to be the first private company
to re-enter the life insurance market in India. On the 23rd of October 2000, this
ambition was realized when HDFC Standard Life was the only life company to be
granted a certificate of registration.
HDFC are the main shareholders in HDFC Standard Life, with 81.4%, while
Standard Life owns 18.6%. Given Standard Lifes existing investment in the HDFC
Group, this is the maximum investment allowed under current regulations.
Our Mission:
We aim to be the top new life insurance company in the market.
This does not just mean being the largest or the most productive company in the
market; rather it is a combination of several things like-
Customer service of the highest order
Value for money for customers
Professionalism in carrying out business
Innovative products to improve service standards
Use of technology to improve service standards
Increasing market share.
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Bajaj Allianz
The Partnership:Bajaj Allianz life insurance co. Ltd. is a joint venture between two leading
conglomerates Allianz AG, one of the worlds largest insurance companies, and
Bajaj auto, one of the biggest 2 and 3 wheeler manufacturers in the world.
Bajaj Allianz Life Insurance: No.1 Private Life Insurance Company in India for 2005-06
Growth rate of 216%for financial year 2005-2006
Over 20,00,000 satisfied customers
A countrywide network of 900+ offices
Assets under management Rs. 5,500 cr.
Shareholder capital base of Rs. 700 cr
Individual products
Plan Benefits
Life long Gain Life long Gain comes with a host of
features to allow you to have the best of all
worlds-regular income for you and the
added benefit of providing for customer
loved ones too..
New Unit gain Plus:- This plan offers the unique option of
combining the protection of life insurance
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with the attractive
prospects of investing in securities.
NRI Insurance You can now easily steer customer savings
from overseas to conveniently meet
customer familys needs now and in the
future.
Term Care This plan is a term insurance plan. This
plan is not only offers you life insurance
covers at a low cost, but also provide for
return of premium on maturity.
Loan Protector The Allianz Bajaj Loan Protector plan is a
mortgage term insurance plan that covers
the outstanding principal amount of a
loan. It is an economical way to protect the
family from the burden of repayment of
the loan in case of death of the loanee.
Child Gain Taking care of a child is perhaps the most
important job a parent can have .it is but
natural that you would like to give
customer child customer best, and
therefore, this is the time when careful
financial planning can help you fulfill the
aspirations that you have for customer
children.
Risk Care This plan offers you life insurance cover at
lost possible cost for a selected term .It is
an ideal option to cover customer near &
dear ones against financial risks arising
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out of lifes
adversities.
Lifetime Care This plan provides you with the comfort
that customer near & dear ones will
continue to live their life without financial
worries, even when you are not around.
New Unit Gain Easy Pension Plus Bajaj Allianz New Unit Gain Easy Pension
Plus, is a plan that helps you take control
of your future and ensure a retirement you
can look forward to. This is a regular
premium investment linked deferred
annuity policy. Available as: New Unit
Gain Easy Pension Regular Premium &New Unit Gain Easy Pension Single
Premium.
Health Care This is a three-year health insurance plan,
providing comprehensive health cover
with life insurance benefit. You can choose
the amount of cover for each benefit
separately in multiples of the minimum
cover amount, subject to a maximum
multiple of 10.
SWOT Analysis Of HDFC SLIC
STRENGTH
Covered Vast Area.
High Grade Products.
AAA rated by CRISIL and ICRA for eight consecutive years.
Efficient and effective Management information System Lotus Notes.
On-line program control
HDFC SLIC improves customer orientation on a sustained basis.
WEAKNESS
Not optimum utilization of available resources.
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Poor advertisements.
Opportunities.
OPPORTUNITIES
Availability of lives and resources is sound.
Significant demand pattern and better quality policies like medical policy &
services are more in demand.
Special drive for awareness of literacy and mass education by Government.
Opportunity opened for the technically superior, upgraded and better-
managed mills to go for value added product range, fetching higher
realization.
THREATS Absence of Govt. Policy leads to uncertainties about long-term availability of
the resources.
High power tariff, increasing prices of administrated products have added to
the woes of domestic industry competing with abroad enjoying advantages of
economies of scale, advanced technology, low cost of finance, cheaper power
tariff etc
Current per capital consumption of policies in India is far less, then other
countries.
OBJECTIVE OF THE STUDY
1. To know about the sales policy.
2. To identify the peak sale period of the year.
3. Co-operation level extended from the companys side.
4. Motivational enhancement tools being followed by the company.
5. To study the consumer response towards the policies.
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6. To identify the schemes offered by the company to
there consumers.
7. To know the service level expectations of customers.
RESEARCH METHODOLOGY
When we talk about research methodology, we do not talk only of research method
but also consider the logic behind the method that be used in context research study.
We also evaluate why we are using a particular method and the used technique should
be such that the research is capable of being evaluated by the researcher and as by
others.
This project work involves three types of research:-
DESCRIPTIVE RESEARCH
Descriptive research is one , which involves describing the state of affairs, as they
exist. This type of research was used in the study of marketing strategies for the sale
of companys product also while studying about the parameters, which affect
competitiveness of the product.
APPLIED RESEARCH
A part of this is applied research because it aims at identifying trends among the
customers about the basis expectations so that company get insight into the demand of
customers which if fulfilled will result in complete customer satisfaction.
ANALYTICAL RESEARCH
In this kind of research, the research uses facts or information already available and
analysis these to make a critical evaluation. We have used facts available about the
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marketing strategies policies and information of companys
position in respect of image, quality of product, packaging methods and supply and
distribution and real market situation than we analysis them and made a critical
evaluation of these facts to suggest certain recommendations.
SAMPLING SIZE
For conducting our study I have covered 200 respondents in Bareilly region.
RESEARCH INSTRUMENTS
The contact method used in the study were:
Questionnaire Methods.
DATA COLLECTION
Data collection was done using through both primary and secondary data.
SECONDARY DATA
These data are already existing but might nave been collected originally for some
other purpose like:-
Previous record of company
Research Methodology by C.R. Kothari.
In addition, other official sources.
PRIMARY DATA
Face to face conversation with the consumers/dealers.
With the help of Questionnaire.
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DATA ANALYSIS
Data become useful only after they are properly analyzed. Data analysis involves
converting a series of recorded observation into descriptive statement and inferences
about relationship. This task is helpful in identifying the areas where the company
can improve further by focusing on those attributes in which the industry is
performing ineffectively and inefficiently.
Data has been analyzed on the basis of following:-
Fig. 1 Awareness about life insurance policy
Fig. 2 Priority while taking any policy
Fig. 3 Easy mode of Payment Company
Fig. 4 Affordable premium of insurance company
Fig. 5 Promotional Activities company
Fig. 6 Player in better services
Fig. 7 Player in wide variety of policies
Fig. 8 Company that saves money
Fig. 9 Company for investment
Fig. 10 Good return on maturity
Fig. 11 Company for children future
Fig. 12 Company for money back policy
Fig. 13 Company for endowment policy
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Fig. 14 Most acceptable company
Awareness About Life Insurance
Yes No
55% 45%
No
45%
Yes
55%
INFERENCE: Only 55 % respondent are aware about Life Insurance.
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Major Priority While Taking Any Policy
Security Future Needs Saving Money Rebate in IncomeTax
12 16 28 14
Rebate on
Income Tax
7%
Saving
Money
46%
Future
Needs
27%
Security
20%
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INFERENCE: Majority of customers will take life insurance policy for
saving money followed by future needs, security and rebate in incometax.
Most Expected Easy Mode Of Payment Company
ICICI Prudential HDFC SLIC Bajaj Allianz
35 45 20
HDFC SL 45%
ICICI PRU 35%
Bajaj Allianz
20%
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INFERENCE: HDFC SLIC provides easy mode of paymentfollowed by other insurance companies.
Most Expected Affordable Premium Of Insurance Company
ICICI Prudential HDFC SLIC Bajaj Allianz
35 40 25
HDFC SL40
ICICI PRU,35
Bajaj Allianz,
25
INFERENCE: HDFC SLIC provides affordable premium ofinsurance followed by other insurance companies.
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Most Expected Maximum Promotional Activities ByInsurance Company
ICICI Prudential HDFC SLIC Bajaj Allianz
36 30 34
HDFC SL 30%
ICICI PRU 36%
Bajaj Allianz34%
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INFERENCE: ICICI Prudential does maximumpromotional activities than other insurance companies.
Major Players in Better services
ICICI Prudential HDFC SLIC Bajaj Allianz
33 36 31
HDFC SL 36%
ICICI PRU 33%
Bajaj Allianz
31%
INFERENCE: HDFC SL provides better services followed by
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other insurance companies.
Major Players in Wide Variety of Policies
ICICI Prudential HDFC SLIC Bajaj Allianz
37 32 31
HDFC SL 32%
ICICI PRU 37%
Bajaj Allianz
31%
INFERENCE: ICICI Prudential provides wide varieties ofpolicies followed by other insurance companies.
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Most Appealing Company to Save Money
ICICI Prudential HDFC SLIC Bajaj Allianz
34 37 29
HDFC SL 34%
ICICI PRU 37%
Bajaj Allianz
29%
INFERENCE: ICICI Prudential provides better plans for savingmoney followed by other insurance companies.
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Major Player in Good Return On Maturity
ICICI Prudential HDFC SLIC Bajaj Allianz
38 33 29
HDFC SL 38%
ICICI PRU 33%
Bajaj Allianz
29%
INFERENCE: HDFC SL provides good return on maturityfollowed by other insurance companies.
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Most Expected Company For Children Future
ICICI Prudential HDFC SLIC Bajaj Allianz
44 34 22
INFERENCE: HDFC SL helps to secure childrens future followed byother insurance companies
HDFC SL34%
ICICIPRU
44%
Bajaj Allianz22%
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Most Appealing Company In Money Back Policy
ICICI Prudential HDFC SLIC Bajaj Allianz
36 32 32
INFERENCE: ICICI Prudential provides good plans in money backpolicy followed by other insurance companies.
HDFC SL 32%
ICICIPRU3
6%
Bajaj Allianz
32%
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Major Player Of Endowment Policy
ICICI Prudential HDFC SLIC Bajaj Allianz
32 35 33
INFERENCE: ICICI Prudential leads a major role in endowment policyfollowed by other insurance companies.
HDFC SL 32%
ICICIPRU
35%
Bajaj Allianz33%
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Most Acceptable Company
ICICI Prudential HDFC SLIC Bajaj Allianz
35 32 33
INFERENCE: HDFC SL is the most accepted company followed by other
insurance companies.
Bajaj Allianz33% IC
ICIPRU
35%
HDFC SL 32%
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Most Appealing Company For Investment
ICICI Prudential HDFC SLIC Bajaj Allianz
37 33 30
INFERENCE: HDFC SL provides better plans for investment followedby other insurance companies.
Bajaj Allianz
30%ICICIPRU3
7%
HDFC SL 33%
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FINDINGS
The project report is the compilation of COMPARATIVE STUDY OF PRIVATE
INSURANCE COMPANIES.
1. The maximum respondents get the information about the insurance policy
from the customer executive.
2. HDFC SLIC and ICICI Prudential have the major market share of insurance
services.
3. ICICI Prudential and HDFC SLIC are more preferred by the customers while
purchasing a policy in Bareilly city.
4. More than 60% respondents are satisfied by insurance policy provided by
company.
5. Most of the people dont prefer to invest in private life insurance companies.
6. Those respondents who are not satisfied by insurance policy are due to
incomplete information provided by the financial consultant.
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STRATEGIC RECOMMENDATIONS
HDFC standard Life will have to work hard in the following areas:
1. Change the perception of the about the life insurance product in the mind of
the people.
2. To influence the customer to view it as a protection instrument and not a
savings instrument alone.
3. Position itself as a provider of a social security ad family protection.
4. Strengthen its distribution force especially Banc assurance as a channel ofdistribution. The strategic alliance with banks will convert bank customers
into insurance policy holders.
5. Strategy for reduction in management expenses and operations costs.
6. R & D department of the company should design the products in such a
manner that will generate more revenue with lowest cost.
7. The company should focus in the rural market.
At the end, HDFC Standard Life Insurance Company should take steps to overcome
the threats form the external environment, turn their weaknesses into strengths, and
take benefit of the opportunities to remain the leader among the private players in the
industry.
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DIFFICULTIES AND LIMITATIONS
During my summer training I have got great experience and knowledge about
insurance sector and working procedures over there. I tried to deliver my best to the
company but some difficulties that I faced during that time are as follows:
I was not given particular area to be targeted. I had to make my own choices. I
used to focus mainly on the property dealers and medical shops.
Some persons used to get agreed at the start but after some time they used todeny.
While selling a policy, I had to make persons convinced about each facet
policy, they had full knowledge about policy. But as I did not get a training for
selling policies but only to get an overview to it. Thus, it was difficult to
persuade them.
I used to meet 5 10 customers daily, some of them were co-operative, and
they used to give a positive response while others response was negative.
There wasnt any proper database through which I can make calls to the
targeted people. So I had to figure out the potential customers.
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RECOMMENDATIONS
The survey conducted has provided with ample insight and information. In this
regard, certain recommendations should be made which may prove helpful to the
organization.
1. Sales executive is an important link between the company and customer so
executive should have complete knowledge and should be well trained.
2. Companies should provide good services and flexibilities after the sales of
policy.
3. There should be insurance cum loan scheme.
4. There should be insurance policies with lesser premium.
5. HDFC SLIC and ICICI Prudential have good market share so they should
come with some new policies and benefits.
6. People are taking interest in availing the services of private companies, so
private companies should try to provide better services.
7. Company should provide monthly mode of payment for premium.
8. Some free gifts or any other promotional scheme should be given.
9. Company should go for relation building exercise with their agents and
customers.
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CONCLUSIONS
The Indian Insurance sector in todays scenario has transformed into a buyers
market, where the customer has the choice to select from a variety of products,
services and service providers. More and more customers are now identifying newer
dimension attached to life insurance to match their life-cycle needs. Given uncertainty
about lifes duration and about increasing costs and responsibilities, consumers would
definitely opt for a life Insurance policy, but which one will depend on the competitive
edge of the Life insurance companies as measured on the above Five factors.
The present study looks at customer levels in a Life Insurance product. This kind of
customer orientation is necessary in a market like India, where the market in turning
competitive due to large number of players with varied financial musicale and
expertise of reinvestment. The small investors purchase behavior does not have a high
level of coherence due to the influence of different purchase factors. The buying intent
of a Life Insurance product by a small investor can be due to multiple reasons
depending upon customers risk return trade off. Due to the reduction in the bank
interest rates & high degree of volatility in Indian Stock Market, investors are looking
for an alternative for their small time as well as long time investment which will
provide them a higher return & also safety to their investment. The Stock market is
also passing through a recession due to interest parity with bank instruments. Thus
Life insurance offers the best alternative to small investors in India. A prudent
Product design, by adding the feature expected by investors and spelt out in this
research will make the new Life Insurance Product more attractive for investors. The
factor identified in the study provide key information inputs regarding investors
preference and priorities that will guide future Life Insurance Product Managers.
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The current state of insurance distribution in India is still in
flux. On one hand, insurers are awaiting regulations to be approved for brokerages
and bancassurance to be truly launched. On the other hand they are trying the
corporate model of intermediaries in addition to the traditional models in the market.
There is no right and wrong in all this. The success of marketing insurance depends
on understanding the social and cultural needs of the target
population, and matching the market segment with the suitable intermediary
segment. In addition a major segment of the Indian population has low disposable
income, meaning that every penny won will be obtained after a lot of persuasion and
the expected value for money is high.
As per the study conducted we found that-
Only 55% of people are aware about life insurance policy.
Majority of customers take life insurance policies for saving money followed
by future needs, security and rebate in Income Tax.
ICICI Prudential does maximum promotional activities than other insurance
companies.
HDFC SLIC provides better services followed by the other companies.
ICICI Prudential provides wide varieties of policies followed by other
insurance companies.
HDFC SLIC provides good return on maturity followed by other insurance
companies.
HDFC SLIC is most accepted company followed by other insurance
companies.
More than 60% respondent is satisfied by Insurance policy provided by
company.
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ICICI Prudential and HDFC SLIC are more preferred
by customers while purchasing policies in Bareilly city.
BIBLIOGRAPHY
Websites
www.newstoday.com
www.irdaindia.org
www.omkotakmahindra.com
www.hdfclifeinsurace.com
www.bajajallianz.com
www.iciciprulife.com
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Primary data --- Questionnaire
JournalsIRDA Journal
Books
Consumer behavior - shiffman and knauk
Research Methodology - C.R Kothari
Marketing Management - Phillip Kotler
QUESTIONNAIRE
Name:
Address : .
.
.
Contact No. : .
Occupation : ..
Salary:-
(1) 50000 to 100000 (2) 1,00,000 to 1,50,000
(3) 1,50,000 to 2,00,000 (4) 2,00,000 to 2,50,000
(5) 2,50,000 & Above
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Q1. Do you have Life Insurance Policy?
YES NO
Q2. What are major Priorities while taking any policy for you?
(a) Security (b) Future Needs
(c) Saving Money (d) Rebate in Income Tax
Q3. Which company offers you easy mode of payment?
(a) HDFC SLIC (b) ICICI Prudential (c) Bajaj Allianz
Q4. Which company offers you the affordable premium of insurance?
(a) HDFC SLIC (b) ICICI Prudential (c) Bajaj Allianz
Q5. Which company carries out maximum promotional activities?
(a) HDFC SLIC (b) ICICI Prudential (c) Bajaj Allianz
Q6. Which company offers you better services?
(a) HDFC SLIC (b) ICICI Prudential (c) Bajaj Allianz
Q7. Which company offers wide variety of policies?
(a) HDFC SLIC (b) ICICI Prudential (c) Bajaj Allianz
Q8. Which company does think, would be better to save money?
(a) HDFC SLIC (b) ICICI Prudential (c) Bajaj Allianz
Q9. Which company does think, would be better for investment?
(a) HDFC SLIC (b) ICICI Prudential (c) Bajaj Allianz
Q10. Which company offers you good return on maturity?
(a) HDFC SLIC (b) ICICI Prudential (c) Bajaj Allianz
Q11. Which company do you think is better for your childrens future?
(a) HDFC SLIC (b) ICICI Prudential (c) Bajaj Allianz
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Q12. Which company offers you better money back policy?
(a) HDFC SLIC (b) ICICI Prudential (c) Bajaj Allianz
Q13. Which company has better endowment policy?
(a) HDFC SLIC (b) ICICI Prudential (c) Bajaj Allianz