Marketing Research of ICICI Prudential Products

A SUMMER TRAINING REPORT

ON

“MARKETING RESEARCH

OF ICICI PRUDENTIAL PRODUCTS”

SUBMITTED IN THE PARTIAL FULFILLMENT OF THE

REQUIREMENT OF

BACHELOR OF BUSINESS ADMINISTRATION (BBA)

TRAINING SUPERVISOR: SUBMITTED BY:

ACKNOWLEDGEMENT

Project work is never the accomplishment of one individual. Rather it is an amalgamation

of the efforts, ideas and co-operations of a number of individuals. Each page is written,

discussed and revised with the deepest sense of esteem and gratitude.

It gives me immense pleasure to take this opportunity to thank all those who helped in

successfully completing the project.

First & foremost I would l ike to thank our MR. MANOJ NARANG

(branch manager) who provided me with this opportunity.

Gett ing this project done was a big task but with the cooperation of al l

the Company employees, i t was a smooth sail ing. I specially would l ike

to thank Mr. MANISH KUMAR (unit manager) for al l the assistance he

has provided me in the period of my training.

TABLE OF CONTENTS

CHAPTERNO.

CHAPTER NAME PAGE NO.

1 COMPANY PROFILE

a) About ICICI

b) Market Presence of ICICI Prudential

c) Research on Products and Services

-Life Insurance Plans

-Health Plan

-Retirement Plans

d) Company policies

2 LITERATURE REVIEW

3 RESEARCH METHODOLOGY

a) Objectives of the Research

b) Research design

c) Data Sources

-Primary Data

-Secondary Data

c) Questionnaire Design

d) Sample design

e) Limitations of Research

4 DATA ANALYSIS 70 - 85

5 FINDINGS 86 - 87

6 RECOMMENDATIONS 88

ANNEXURES -Questionnaire

90

BIBLOGRAPHY 91

REFERENCES 92

CHAPTER 1INTRODUCTION

COMPANY PROFILE

HISTORY OF ICICI

ICICI Bank was originally promoted in 1994 by ICICI Limited, an Indian financial

institution, and was its wholly owned subsidiary. ICICI was formed in 1955 at the

initiative of the World Bank, the Government of India and representatives of the Indian

Industry. The principal objective was to create a development financial institution for

providing medium-term and long term project financing to Indian businesses. In the

1990s, ICICI transformed its business from a development financing 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.

ICICI marked its first foray into retail banking by promoting ICICI Bank. The Bank was

registered a banking company on January 5, 1994 and received its banking license from

the Reserve Bank of India on May 17, 1994.

ICICI’s shareholding in ICICI Bank was reduced to 46% through:

A public offering of shares in India in fiscal 1998

An equity offering in the form of ADRs listed on the NYSE in fiscal 2001

ICICI Bank’s acquisition of the Bank of Madura Limited in an all-stock

amalgamation in fiscal 2001

Secondary market sales by ICICI to institutional investors in fiscal 2001 and

fiscal 2002.

The first ICICI Bank branch was started in Madras in June 1994. It is now 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. The branches are fully computerized with

state-of-the-art technology and systems. All of them are fully networked through V-SAT

(Satellite) technology. The Bank is connected to the international SWIFT network since

March 1995. ICICI Bank’s infinity was the first Internet banking service in the country

and a prelude to banking in the next millennium. Currently, the bank has around 150,000

customers.

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. ICICI Bank’s equity

shares are listed in India on stock exchanges at Chennai, Delhi, Kolkota and Vadodara,

the stock Exchange, Mumbai and the National Stock Exchange of India Limited and its

American Depository Receipts (ADRs) are listed on the New York Stock Exchange

(NYSE).

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. After consideration of various corporate

structuring alternatives in the context of the emerging competitive scenario in the Indian

banking industry, and the move towards universal banking, the managements of ICICI

and ICICI bank formed the view that the merger of ICICI with ICICI Bank would be the

optimal strategic alternative for both entities, and would create the optimal legal structure

for the ICICI’s group universal banking strategy. The merger would enhance value for

ICICI shareholders through the merged entity’s access to low-cost deposits, greater

opportunities for earning fee-based income and the ability to participate in the payments

system and provide transaction-banking services. The merger would enhance value for

ICICI bank shareholders through a large capital base and scale of operations, seamless

access to ICICI’s strong corporate relationships built to over five decades, entry into new

business segments, higher market share in various business segments, particularly fee-

based services, and access to vast talent pool of ICICI and its subsidiaries. In October

2001, the Boards of Directors of ICICI and ICICI Bank approved the merger of ICICIC

and two of its wholly owned retail finance subsidiaries, ICICI Personal Financial

Services Limited and ICICI Capital Services Limited, with ICICI Bank. Shareholders of

ICICI and ICICI BANK approved the merger in January 2002, by the High Court of

Judicature at Bombay and the Reserve Bank of India in April 2002.

Consequentially, on March 30, 2002, ICICI Bank became the first universal bank in India

by integrating ICICI group’s financing and banking operations, both wholesale and retail,

into a single-entity. The merger has created the country’s largest private sector bank and

the second largest bank in terms of assets, with a growth model that brings together

complementary capabilities and provides opportunities hither to unavailable as separate

entities.

ABOUT ICICI PRUDENTIAL

It is one of the largest financial investments in India.

Broad spectrum of financial solutions for corporate and retail customers.

Assets in excess of Rs. 1, 00,000 cr.

Better than sovereign rating.

It is first Indian company to be listed on New York Stock exchange.

It is trusted by millions of Indians over the years.

Shares in Market

76%-ICICI

24%-Prudential

Why Insurance

Premature Death

Living too long

Living Death

Children future

Wealth Creation

PRUDENTIAL P/C

Started operation in 1848 and is now one of the largest life insurance companies

in world.

Presence in UK, Europe, US and throughout Asia.

Insurance and Investment funds under management exceed Rs. 1100000 Cr.

Solid reputation built over 150 years.

Already established as one of the biggest private sector mutual fund companies in

India (Prudential ICICI AMC).

A truly global brand.

PRUDENTIAL ASIA

75 years experience in Asia.

Over 60,000 staff advisors.

Over 2 million customers.

In 12 countries throughout Asia.

ORGANISATIONAL STRUCTURE

MD Shikha Sharma

HIMALAYAN PENINSULAR

Head of Sales (HOS)

Zonal Sales Manager (ZSM)

Territory Manager(TM)

Branch Manager (BM)

MARKET PRESENCE

ICICI Prudential life Insurance Company is a joint venture between ICICI Bank, a

premier financial powerhouse and prudential plc, a leading international financial

services group headquartered in United Kingdom. ICICI Prudential was amongst the first

private sector insurance companies to begin the operations in December 2000 after

receiving approval from Insurance Regulatory Development Authority (IRDA).

ICICI Prudential equity base stands at Rs. 675 crore with ICICI Bank and Prudential plc

holding 74% and 26% stake respectively. In the year ended March 31, 2004, the company

had issued over 430,000 policies, for a total sum assured of over Rs. 8,000 crore and

premium income in excess of Rs. 980 crore. Today the company is the #1 private life

insurers in the country.

DISTRIBUTION

Area Sales Manager (ASM)

Senior Agency Manager (SAM)

Agency Manager (AM)

Unit Manager (UM)

Assistant Unit Manager (AUM)

Advisors/Trainees

ICICI Prudential has one of the largest distribution networks amongst private life insurers

in India, having commenced operations in 54 cities and towns in India. The company has

seven banc assurance tie-ups, having agreements with ICICI Bank, Federal Bank, South

Indian Bank, Bank of India, Lord Krishna Bank and some co-operative banks, as well as

over 160 corporate agents and brokers. 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.

ICICI Prudential has recruited and trained about 50,000 insurance advisors to interface

with and advise customers. Further, it leverages its state-of-the-art IT infrastructure to

provide superior quality of service to customers.

RESEARCH ON PRODUCTS AND SERVICES

LIFE INSURANCE

Life insurance is a guarantee that your family will receive financial support, even in your

absence. Put simply, life insurance provides your family with a sum of money should

something happen to you. It thus permanently protects your family from financial crises.

In addition to serving as a protective cover, life insurance acts as a flexible money-saving

scheme, which empowers you to accumulate wealth-to buy a new car, get your children

married and even retire comfortably.

Life insurance also triples up as an ideal tax-saving scheme.

LIFE INSURANCE PLANS

Education Insurance Plans

Wealth Creation Plans

EDUCATION INSURANCE PLANS

One of your most important responsibilities as a parent is to ensure that your child gets

the best possible education that can be provided.

ICICI Prudential offers a wide portfolio of education insurance plans that are designed to

provide peace of mind to you, as a parent, that your child's education will be secure.

These plans ensure that money is made available at the crucial junctures in a child's

education - Class X, Class XII, graduation and post-graduation - to fund crucial

commitments for the child's future.

Importantly, education insurance plans ensure that in the unfortunate event of the death of

a parent, the child's education continues unhampered.

Under the education insurance plans platform, ICICI Prudential brings the following

products to you.

SMARTKID

PLAN NAME PLAN TYPE

Smart Kid New Unit-linked Regular Premium

Unit Linked

Smart Kid New Unit-linked Single Premium

Unit Linked

Smart Kid Regular Premium Traditional

ICICI Prudential's Smart Kid is a fixed-term insurance plan that provides you with funds

at regular intervals. The plan also keeps your family financially secure should an

untoward event ever occur.

FEATURES AND BENEFITS OF SMARTKID.

Smart Kid offers an exclusive choice of 3 education insurance plans: Smart Kid New

Unit-linked Regular Premium, Smart Kid New Unit-linked Single Premium and Smart

Kid Regular Premium. Take a look at the features and benefits of each plan:

1. Smart Kid New Unit-linked Regular Premium

Smart Kid New Unit-linked Regular Premium is a unit-linked plan, which enables you

and your child to accumulate wealth by virtue of the performance of the underlying

market-linked instrument. Take a look at the features of the plan:

Premium: The minimum premium to be invested is Rs. 10,000 per annum. After

deducting premium allocation charges from the premium, the remaining amount will be

invested in a fund of your choice.

Sum Assured: The minimum Sum Assured that the policyholder can opt for is Term *

Annual Premium/2, subject to a minimum of Rs 1 Lac.

Policy term: The term of the policy will be calculated as the difference between your

child's current age and the age of your child when the policy matures.

Mortality, Policy Administration charges: These and other charges will be deducted

from the units in the fund.

2. Smart Kid New Unit-linked Single Premium

Smart Kid New Unit-linked Single Premium works in much the same way as SmartKid

New Unit-linked Regular Premium policy mentioned above. The only different feature is

the premium amount-you will be required to pay only a single premium, which starts at

as low as Rs. 50,000.

Additional Features and Benefits Common to All 3 Plans

Regular payouts: As your child approaches key educational milestones such as 12th

standard or graduation exams, he or she will receive regular payouts, guaranteeing he or

she continues to study, no matter what the circumstance.

Death Benefit: Your child will receive the Sum Assured immediately, should something

happen to you. ICICI Prudential will pay the remaining premiums, ensuring your child

continues to receive policy benefits, as always.

Income Benefit Rider: You can choose to add the benefits of this rider to your child's

education plan. Should you depart before your son's or daughter's education is complete,

you child will receive 10% of Rider Sum Assured, for the balance term of the policy.

Add-on riders: 'Accidental Death and Disability Rider' and 'Waiver of Premium Rider'

ensure your child stays doubly protected, at all times. You can choose to add these to

your child's education policy.

Tax benefits: Premiums you pay for a SmartKid policy are eligible for tax savings [u/s

80(C)]. Maturity and death benefits are eligible for tax exemptions [u/s 10(10D)].

3. SmartKid Regular Premium

Flexible investment option: Choose the amount of premium with which you wish to

safeguard your child's education.

Flexible policy tenure: The tenure of the plan will be calculated as the difference

between your child's current age and his or her age at which the policy matures.

Flexible premium options: The premium will be calculated based on 3 factors: Sum

Assured, policy tenure and your age.

Guaranteed bonus: A guaranteed bonus of 3.5% per annum is declared for the first 4

premium paying years plus an annual vested bonus declared in subsequent years.

WEALTH CREATION PLANS

Wealth Creation Plans give the customer the dual benefit of protection along with the

potentially higher returns of market-linked instruments. The most important benefit of

ULIPs is the flexibility they give the customer in choosing the premium amount and also

choosing the underlying fund in which this money is to be invested. Wealth creation

plans also offer the customer more liquidity options as compared to traditional plans. As

such, ULIPs are ideal for customers who want the protection of a life cover to be allied to

the returns of market linked instrument – giving them an unmatched combination of

benefits.

Under the wealth creation platform, ICICI Prudential brings the following products to

you.

PREMIER LIFE GOLD

PLAN NAME PLAN TYPE

Premier Life Unit LinkedLifetime Plus Unit Linked

Life Stage Unit Linked

Knowing the dynamic nature of the environment and your profession, you certainly

prefer plans that do not require you to make long-term financial commitments. You

would much rather have the freedom to invest for short periods, say three or five years,

and still enjoy good returns for the rest of your life.

ICICI Prudential's Premier Life Gold has been tailored to precisely meet your

requirements. One of the finest wealth creation plans available, Premier Life Gold

provides you with the benefit of paying premiums for a brief period but enjoying the

benefits of cover and potentially higher returns over the long run. Put simply, Premier

Life Gold ensures you enjoy long-term benefits even when you make short-term

investments.

PREMIERLIFE GOLD AT A GLANCE

Premium Payment Term

3 years 5 years

Minimum Premium

Rs 100000 Rs 60000

Minimum Entry Age

0 0

Maximum Entry Age

69 years 65 years

Minimum Policy Term

6 years 10 years

Maximum Policy Term

30 years 30 years

Maximum Age at maturity

75 years 75 years

Minimum Sum Assured

Higher of (5* Annual Premium AND Policy Term/2*Annual Premium)

Tax Benefit Premium paid for the policy and critical illness benefit rider will be eligible for tax benefit under section 80C & 80D respectively, any benefit amount received under this policy will be eligible for the tax benefit under section 10 (10D), as per prevailing Income Tax laws.

LIFETIME PLUS

Invest in ICICI Prudential's LifeTime Plus-the only unit-linked plan that provides your

family with both, Sum Assured AND Fund Value. Both these amounts ensure your loved

ones remain financially secure, regardless of life's uncertainties. This ideal wealth

creation plan also serves as a protective insurance cover.

LIFETIME PLUS AT A GLANCE

Minimum/Maximum Entry Age 10 years and 30 years

Minimum/Maximum Age of Entry

0 years and 65 years

Minimum/Maximum Premium Rs. 20,000 and Rs. 3,00,000 per annum

Minimum Sum Assured Annual Premium x Term/2

Tax Benefit Premium paid for the policy will be eligible for tax benefit under Sec. 80C. Any amount paid to you will be eligible for tax benefits under Sec. 10 (10D) as per prevailing Income Tax laws.

FEATURES AND BENEFITS OF LIFETIME PLUS

ICICI Prudential 's LifeTime Plus is a regular premium unit-l inked

insurance policy that provides you with flexible investment options and

of course, the protective benefit of an insurance cover. Take a look at the

features and benefits of this plan:

6 investment funds: Select among Flexi-Growth, Maximiser, Flexi-

Balanced, Balancer, Protector, and Preserver, based on your financial

goals and risk profile.

Partial withdrawal of money: Withdraw funds in installments from the

4th year onwards.

Maturity benefit : Receive the Fund Value when your policy matures.

Choose to take this value as a single lump-sum amount or in monthly, bi-

annual or annual installments spread over 1 to 5 years.

Death benefit : Your nominee receives the Sum Assured AND Fund Value

should something happen to you.

Additional al location of units: Receive an addit ional al location of units

every 4th year, start ing from the end of the 8th year, at the rate of 5% of

annual premium, into the investment fund.

Tax benefits: Enjoy tax benefits on the premiums you pay (under u/s 80

C) and tax exemptions on maturity and death benefits [under u/s 10 (10

D)].

LIFESTAGE

We have different priorities at different life stages. With such changing priorities, it is

important to adopt Asset Allocation as an investment practice. It helps to strike the right

balance by distributing your investments across different asset classes like equity and

debt. More importantly, it should also change according to our life stage profile – age,

risk tolerance, etc. However, the discipline of making the right Asset Allocation at

various life stages in today’s fast-paced life requires the expertise and dedicated time of

someone who can manage your money on a day-to-day basis.

LIFESTAGE AT A GLANCE

Minimum Premium Rs 15000

Minimum Entry Age 0 years

Maximum Entry Age 65 years

Minimum Age at Maturity

18 years

Maximum Age at maturity

75 years

Minimum Term 10 years

Maximum Term

75 years

Minimum Sum Assured Term / 2 * Annual Premium

Premium Payment Frequency

Yearly, Half-Yearly, Monthly

Tax Benefit Premium paid for the policy and critical illness benefit rider will be eligible for tax benefit under section 80C & 80D respectively, any benefit amount received under this policy will be eligible for the tax benefit under section 10 (10D), as per prevailing Income Tax laws.

FEATURES AND BENEFITS OF LIFESTAGE

Two unique portfolio strategies:

Life Cycle Based portfolio strategy

Age based Asset Allocation (Equity Debt mix)

Quarterly Rebalancing of Asset Allocation

Capital Preservation at maturity

Fixed portfolio strategy

Allocate your investments into different asset classes using your personal judgement

KEY BENEFITS OF LIFESTAGE RP

Option to choose a unique and personalized life-cycle based portfolio strategy to create

ideal balance between Equity and Debt

Option to change in chosen portfolio strategy 4 times in a policy term (CIPS - Change in

Portfolio Strategy)

Additional allocation of units at regular intervals to enhance your investment

Ensure capital preservation at the time of policy maturity by systematic transfer to debt

fund in the last 10 policy quarters

Option to withdraw your money systematically over a period of 5 years on the maturity

of the policy

In the unfortunate event of death, your nominee will receive Sum Assured plus Fund

Value

HEALTH

HEALTHY LIVING

It is the aim of all of us to lead a long and illness free life. Today this has become

possible thanks not just to Medical Technologies that are able to identify and effectively

treat many diseases but also because a great deal of knowledge has become available on

how healthy lifestyles can help us live longer. Healthy living, getting plenty of exercise,

eating right and leading a stress free life are to a large extent responsible for increasing

life spans. In this world of instant food and instant fads what constitutes healthy living?

The key to Healthy Living comprises of

 Nutrition

 Exercise for the Mind & Body

 Home Care

HEALTH COVER CORNER

5 REASONS WHY HEALTH COVERS ARE A MUST

A health cover insures you against several i l lnesses and guarantees you

stay financially secure should you ever require treatment. The cover

ensures you are taken care of by compassionate and competent doctors at

the best hospitals. I t thus safeguards your peace of mind, el iminates all

worries about treatment expenses, and allows you to focus your energy

on more important things, l ike healing.

Indians at greater r isk

Reason 1: Lifestyles have changed: Indians today suffer from high levels

of stress. Long hours at work, l i t t le exercise, disregard for a healthy

balanced diet and a consequent dependence on junk food have weakened

our immune systems and put us at an increased risk of contracting

i l lnesses.

Reason 2: Rare non-communicable diseases now common: Obesity, high

blood pressure, strokes, and heart at tacks, which were earl ier considered

rare, now affect an increasing number of urban Indians-almost every day.

Shocking Truths

18% of the urban population suffers from hypertension, which leads to renal

failure, stroke and cardio vascular diseases

30% of the population suffers heart attacks before age 40 66% of deaths today are

due to cardio vascular diseases

Almost 3.5 million Indians suffer from diabetes

Cardiovascular diseases (CVDs) like heart disease and stroke are the main

causes of death and disability

The Cost Factor

Reason 3: Medical care is unbelievably expensive: Medical breakthroughs have

resulted in cures for dreaded diseases. These cures, however, are available only to a select

few. High operating expenses—therapy for breast cancer costs as much as Rs. 2 lakhs for

3 days—have restricted treatment to the richest. In fact, even among the affluent groups,

20% need to sell their valuable assets so they can accumulate the required amount for

their medication.

Reason 4: Indirect costs add to the financial burden: Indirect sources of expense—

travel, boarding and lodging, and even temporary loss of income— account for as much

as 35% of the overall cost of treatment. Most often, we overlook this fact when planning

for medical expenses.

Graph: 1

Reason 5: Incomplete financial planning: Most of us have insured our home, vehicle,

child’s education, and even our retirement years. Ironically however, we have not insured

our health. We ignore the fact that illnesses strike without warning—and seriously impact

our finances and eat into our savings in the absence of a good health cover.

Health cover: A must-have

No financial plan is complete without a comprehensive health cover. ICICI Prudential

offers the following health insurance plans providing various types of covers for all

health needs.

Crisis Cover: The most comprehensive critical illness cover offering cover against 35

Critical Illnesses along with life and disability cover.

Hospital Care: A long term hospitalization and surgery benefit plan, covering the widest

possible range of the medical conditions.

Diabetes Care/ Diabetes Care Plus: A unique critical illness insurance plan covering 6

critical illnesses and offering a wellness program which is specifically designed for type

2 diabetics and pre diabetics.

Cancer Care: This cancer insurance plan offers a fixed benefit to meet treatment and

surgery related needs of someone afflicted with cancer

Health Assure Plus: The basic critical illness insurance plan which offers you a cover

against 6 critical illnesses along with life cover"

ARE YOU ADEQUATELY INSURED?

Sound health cover planning ensures you receive both, direct medical expenses and

indirect expenses, as soon as the need arises. When investing, choose a range of health

plans that:

Cover a wide spectrum of medical conditions from the most basic to the most

critical

Include reimbursement and benefit-based plans, which enable you to meet

specific health risks and expenses as mentioned in the diagram below

An example: Cancer—although it does not occur as frequently as the common cold or

fever—severely drains one’s finances as its treatment expenses are very high. Hence, it is

imperative to insure ourselves with a health plan that provides cover against Cancer.

Quick tip

when selecting a health plan, ensure the plan:

Provides long-term coverage

Clearly mentions exclusions of cover

Is guaranteed renewable

Is backed by trusted name and gives the assurance of paying claims

HEALTH PRODUCT SUITE

Under Health Product Suite, ICICI Prudential offers plans under the following major

need categories:

Health Assure

Health Assure

Plus

Hospital Care

Cancer Care

Cancer Care Plus

Crisis Cover

Diabetes Care

Diabetes Care

Plus

RETIREMENT

WHY IS RETIREMENT PLANNING IMPORTANT?

Retire from work. Not from life.

A retirement plan is an assurance that you will continue to earn a satisfying income and

enjoy a comfortable lifestyle, even when you are no longer working. To understand why

an increasing number of individuals have already started planning for their retirement,

and why you should too, read on.

Independence is the new way of life: An increasing number of young Indian

professionals are moving away from the traditional joint family structure. Since support

no longer comes easily, parents have realized the need to provide for themselves during

their retirement years.

Costs set to soar: Skyrocketing costs throw even a well-salaried person off balance.

With rates rising everyday, you can imagine how high they will be when you are ready to

retire. A retirement plan provides you with a steady income every month, to arm you in

the face of rising costs.

To understand how inflation can impact your monthly expenses, use our special tool, the

Inflation Index calculator.

Non-earning retirement phase is now longer: Only 4% of India working population-

mostly government employees – are covered by pensions. The remaining 96% comprises

self-employed and salaried professionals who do not have a formal, mandated provision

for pensions.

ICICI Prudential offers two key retirement plans, LifeLink Super Pensionand LifeTime

Super Pension - flexible income cum insurance plans that ensure you meet all your

retirement requirements. So you can retire peacefully from work, but not from life.

START PLANNING FOR RETIREMENT RIGHT AWAY

Both Ramesh and Vikram want to retire at the age of 60 years. To take care of his post-

retirement requirements, Ramesh invests a total amount of Rs. 35 lakhs towards his

retirement corpus. On the other hand, Vikram invests a total of Rs 50 lakh towards his

retirement. Despite investing less, Ramesh accumulates Rs 298 lakh, compared to

Vikram's accumulation of Rs 216 lakh!. Read on to find out how..

What Ramesh had in his favour was TIME. He began investing a sum of Rs 1 lakh p.a.

earlier, at the age of 25 years, up to the age of 60. Ramesh, to compensate for lost time,

saved twice the amount invested by Ramesh i.e. Rs. 2 lakhs every year from the age of

35, till the age of 59 years.

It is for this precise reason you should plan for your retirement now-and not later; so you

get the advantage of investments that multiply quickly each year, giving you the added

advantage!

Graph: 2

The graph above shows the retirement amount both Ramesh and Vikram accumulate by

the age of 60 years. Please note: The assumption is that both investments appreciate at the

rate of 10% per annum.

HOW TO PLAN FOR RETIREMENT?

5 simple steps to arrive at an ideal retirement plan

Step 1: Decide how much income you require to live comfortably in your post-

retirement years. Remember to take into account aspects like increased medical costs,

vacations and gifts for family, but reduce costs like children's education and rent, if you

own your home. Use our easy Inflation Index Calculator to calculate the impact of

inflation.

Step 2: Determine how much you need to save regularly, starting today. Use our

Retirement Calculator to determine how large a kitty you will need and how much you

need to save each year.

Step 3: Select the right retirement plan that enables you to meet your post-retirement

requirements. Preferably invest in market-linked plans, which can provide you with

potentially higher returns in the long run. Our Life Stage Profiler will help you select the

plan that meets your criteria

Step 4: Start saving now so you have time on your side and can enjoy the power of

compounding. Use our simple Power of Compounding Calculator.

Step 5: Systematically invest a fixed amount every month for your post-retirement

years.

LITERATURE REVIEW

Mumbai; October 28, 2006

- Arms India to fight one of its largest health concerns –

ICICI Prudential Life Insurance, India’s No. 1 private life insurer, today announced the

launch of the world’s first critical illness insurance especially meant for people with type

2 diabetes. The product – christened Diabetes Care – gives India a boost in its fight to

tackle a condition that affects one out of 8 Indians, and reaffirms the country’s position 

as a world-class innovator.

Speaking at the launch, Ms. Shikha Sharma, CEO & Managing Director, ICICI

Prudential Life Insurance, said, “With over 20% of the world’s diabetic individuals in

India, there is an urgent need for a solution that both encourages and incentivises them to

manage their condition better, and also offers them a financial cushion should they suffer

from any related critical illnesses. These are the key requirements we have taken into

account while developing Diabetes Care”.

Commenting on the challenges of the product development, she said, “When we scanned

the global environment, we realized that despite the huge need, there was no insurance

product specifically tailored for diabetic individuals. Diabetes Care is truly a milestone

innovation for both us and the global life insurance market and becomes even more

important as it marks a paradigm shift in insurance product structures from cost pooling

to overall cost reduction.” Ms. Sharma added.

“Regular monitoring, healthy eating, exercise and modern medicine, can help a diabetic

individual control his or her condition and live a long and healthy life. The need of the

hour is a comprehensive support system that encourages them to manage their condition”,

said Dr V. Mohan, Chairman and Chief Diabetologist, Dr. Mohan’s Diabetes Specialities

Centre, Chennai. Acknowledging the need for a specialist life insurance product, he

continued, “Diabetes commonly leads to cardiovascular, kidney, eye & foot disorders,

which when detected early can be treated successfully. However, in most cases, diabetic

individuals are not covered by any insurance, and this places a considerable financial

burden, on the patient and family -- this is where the insurance element of ICICI

Prudential’s Diabetes Care comes to the rescue”.

Dr. M. Rema, Managing Director and Chief Ophthalmologist of Dr. Mohan’s Diabetes

Specialities Centre, added “Regular treatment of diabetes is much less expensive than

treatment for its complications. This is where ICICI Prudential’s Diabetes Care could

make a huge difference and I congratulate them on bringing this for the benefit of

millions of people with diabetes in India”.

Diabetes Care is unique from other insurance products in that it specifically covers

existing diabetics. The product is structured to provide a coordinated care proposition to

help the insured manage the diabetic condition, while providing financial support to meet

the cost of health complications. Further, the product rewards policyholders by reducing

their premiums by up to 30%, depending on the extent to which they have been able to

manage their diabetes. Because of this comprehensive approach, Diabetes Care will

encourage policyholders to take the necessary steps to avoid further health complications.

The product’s support system includes:

Comprehensive annual check-ups and consultations with doctors

Home collection of samples for blood tests

Helplines for access to resources, and co-promotion and servicing of support

groups.

To complete its offering, ICICI Prudential is entering into partnerships with leading

pharmaceutical companies and diagnostic labs, gymnasiums and dieticians.

Diabetes Care is available for a term of 5 years for people of 25 to 60 years of agewho

already suffer from adult diabetes or impaired glucose tolerance (IGT). Available under 3

sum assured variants of Rs 3 lakhs, Rs 5 lakhs and Rs 10 lakhs, the product provides

payment of the sum assured on diagnosis of any of 6 critical illnesses. One can also

purchase a rider that makes a payout of 10% of sum assured for diabetes-related eye and

limb complications. Another version, Diabetes Care Plus, provides life cover in addition

to critical illness cover.

Hyderabad; August 24, 2006

First-of-its-kind premium guarantee product in India & immediate annuity product

ICICI Prudential Life Insurance, India’s No. 1 private life insurer, today announced the

launch of two new products aimed at offering greater security to investors and retirees

alike. One product is a unique premium guarantee market-linked plan which ensures that

an investor will only get the benefits of the upsides of the market, without incurring any

loss if the markets go down; and the other is an immediate annuity product that offers a

guaranteed income for life, for retired people above 45 years of age. 

The first-of-its-kind premium guarantee product in the Indian life insurance industry,

Invest Shield Life - New, offers retail investors the opportunity for long-term capital

appreciation through exposure to the markets, while protecting them from any capital

erosion. Speaking at an event to launch the products, Mr Sandeep Batra, Executive Vice

President, ICICI Prudential Life Insurance said, “The majority of Indian investors prefer

to save through traditional instruments as they do not want to risk their hard-earned

monies by investing in the stock markets. However, many of them have seen their friends

and colleagues earn good returns by investing in the markets and are looking for a low-

risk opportunity to do so themselves. The premium guarantee product is the ideal market

entry product for such traditional investors, who do not wish to risk their capital while

investing in the markets”.

InvestShield Life - New is a long-term, transparent investment-cum-insurance plan that

invests in balanced fund with 40% exposure to equity. This provides conservative

investors a safe means to experiment with equity, and yet promises that the policyholder

will not lose any of his invested monies, should the markets go down. The product is

available for a minimum premium of Rs 8,000 per year for a policy term ranging

between10 and 30 years. On death, the policyholder’s nominees receive the sum assured

plus the higher of the fund value and guarantee value (total premium paid); while on

maturity, the higher of the fund value and guarantee value is paid to the policyholder.

The second product, Immediate Annuity, is aimed at providing retirees with a stable and

secure income for life. Commenting on the need for the product, Mr. Batra said, “Social

and demographic trends in India have changed radically over the past decade or so. With

the breakdown of the joint family system, increasing inflation and longer life spans, old

age income security is a challenge for millions of retirees. Our Immediate Annuity

product addresses this growing need by promising a guaranteed income for life”.

A person between the ages of 45 and 80 years can purchase Immediate Annuity by

making a single lump sum payment. He or she can select from ICICI Prudential’s 7

annuity options, depending on the extent to which he or she requires coverage. The

payout options are: annuity for life with and without return of purchase price, joint life

(for annuitant and spouse) with and without return of purchase price and annuity for life

guaranteed for 5/10/15 years.

What makes ICICI Prudential’s Immediate Annuity proposition even more powerful is

the added benefit of an Annuity Card, which offers the annuitant the convenience of

instantly accessing the annuity incomes from over 15,000 Visa locations in 150 locations

across India and cash-free transactions in over 1.5 lakhs Visa member establishments.

Both the products – Invest Shield Life - New and Immediate Annuity – are available for

retail customers through ICICI Prudential vast distribution network across the country.

Customer touch points include over 83,000 advisors, 300 branches, its 19 bank partners

and 200 corporate agents.

CHAPTER 2

RESEARCH METHODOLOGY

OBJECTIVES OF THE RESEARCH

The objectives of this research are as follows:

To know about various policies of ICICI Prudential.

To sell the various policies of ICICI portfolio.

To learn and understand the distribution aspect of insurance products.

To identify the insurance needs of the Indian population with respect to their

emotional, physical and financial conditions.

To match the needs of the population with the products in hand or else design a

new product.

RESEARCH DESIGN

The research is carried on in a proper planned and systematic manner. The

research was particularly a telephonic research .We have to sell products to list of

people which includes their names and contact numbers given by ICICI.

During the telephonic we to sell different products by explaining the benefits of a

particular product, but

The minimum amount for selling a policy to a customer is equal to or more than Rs.

18000 only.

Age limit for selling product/policies was 1 month to 65 years-This mean that a policy

can be sold to person between the age of one month to 65 years and not anything

exceeding or below it.

Basically two kinds of products which were given to sell viz.

Life time - This offer customers the flexibility and control to customize the policy

to meet the changing needs at different life stages. Each offer 4 fund options?

Preserver, Protector, Balancer and Maximiser.

Smart Kid offers an exclusive choice of 3 education insurance plans: Smart Kid

New Unit-linked Regular Premium, Smart Kid New Unit-linked Single Premium

and Smart Kid Regular Premium.

The Life time policy has an edge over the other two policies as it offers a

customer to pay premium for minimum of three years after which the customer

might or might not pay any further premium but still can get investment return

according to the market share , thereby giving a capital guarantee to the customer.

This research methodology also includes:

Familiarization with the concept of insurance and its various terms.

Thorough study of the information collected.

Conclusions based on findings.

DATA SOURCES

TYPES OF DATA USED:-

PRIMARY DATA:-

It is collected directly from people and organization via questionnaires or surveys before

being analyzed to reach conclusions concerning the issues covered in the questionnaire or

survey.

VARIOUS SOURCES

QUESTIONNAIRE

PRODUCT PAMPHLET

PERSONAL OBSERVATION

SECONDARY DATA:-

Secondary data - collected by are others to be "re-used" by the researcher.

VARIOUS SOURCES

NEWSPAPERS

INTERNET

PROSPECTOUS

QUESTIONNAIRE DESIGN

The Questions are not specific, they are general public questions. The objective behind

formulating each question is whether they are satisfied with the services of ICICI

Prudential Life Insurance or not. The questions with are used are open ended questions.

SAMPLE DESIGN

SAMPLE UNIT: The survey includes all the general public who are employed and having salary between Rs.10, 000 to RS.40, 000 per month.

EXTENT: The survey is carried out in the South Extension part of NEW DELHI.

TIME FRAME: 8 weeks

SAMPLE SIZE: 100 persons

LIMITATIONS OF THE RESEARCH

By working on this project I gained a lot of knowledge over the banking sector in India.

But there is a certain no. of problems which I faced while working on this project. These

problems can be illustrated as limitations of study which are as followed:–

Reliability on the primary source of data.

Most of the contents collected were difficult to understand because it was new for

me to work in this field.

It was tricky and time consuming to understand the mysteries of marketing.

Trust of customers was a difficult thing to gain.

Response of customers could be biased.

Convincing people to invest in a new product which is different from their lifestyle was a

tough job.

CHAPTER 4

DATA ANALYSIS

NEED ANALYSIS

First let us look at why one needs insurance and then we will study various needs of the

customers.

NEED FOR HEALTH INSURANCE

Providing quality healthcare to a huge population such as ours encompassing different

strata of society has indeed been a formidable task for the last few decades. WHO

statistics put the healthcare access in India at around 65 percent. The remaining 35

percent do not have any access at all. Government in most parts of the world developed

or otherwise, realizes the limitations when it comes to provide healthcare per se or its

financing aspects. In a globalize market-driven economy, it becomes imperative for each

country to look for the solutions and structure them to suit domestic needs. While there

will be various factors both external and internal influencing this search, there is no doubt

that public and private healthcare providers and financers will have to keep the patient or

customer in focus when formulating a well thought out and highly integrated approach to

cover all sorts of requirements.

It is true that in managing healthcare, the pre-payment route through insurance schemes

rather than out-of-pocket payments are preferable and a fairer form of revenue collection.

But there are loopholes in the present indemnity-based insurance products offered by the

public sector units and pricing of products are mostly non-scientific. It is well known that

Mediclaim is a loss-making preposition with claim ratios being as high as 130 percent.

The opening up of the health insurance sector to private is seen as one that will provide

better solutions. Insurance concepts in healthcare are changing from managed care to

defined care and there is no doubt that the private insurers can provide the customers with

a wide variety of products. But health insurance is still in a limbo at the moment in

absence of any clear-cut guidelines from the IRDA.

Pricing is the key issue and major international players already present in India are sort of

waiting in the wings to see what and hoe their competitors go about their strategies. There

is no doubt that private medical insurance is bound to be dearer than the existing public

sector health policies. And therein lies the problem for the new entrants who are at a

disadvantage as the incumbent players are providing comprehensive coverage at low and

unviable premiums. If experts have worked out to be provided to the entire one billion

Indian populations, experts have worked out the insurance cost to be approximately

Rs.4000 per annum per head. Add to this the insurance company’s establishment costs

plus their profits and have an insurance plan that can be priced at Rs.5000 at the barest.

This figure is going to be debatable, especially as the public sector insurance companies

policies are priced very low. And this sector with its pricing advantage has already given

an indication that it will give a tough competition to the private insurers. The new

entrants should ideally not compete with existing Mediclaim policies, use a better USP

than pricing and design new products suited to the Indian background and succeed in

building a sure but steady market. There is a room for everyone provided there is a

simplicity and transparency, insurers are neutral and willing to control unnecessary

healthcare delivery costs to be patients and make claim procedures simple.

Q1. How many members do you have in your family?

2 3 4 5 6 other (Specify)

Sample size = 100

0

5

10

15

20

25

30

1 2 3 4 5 6 morethan 6

No. OF FAMILY MEMBERS

PERC

ENTA

GE

percentage

Graph: 3

INTERPRETATION

Through the survey it is clear that most of the family having more than 6 members.

Q2. Net Family Income from all sources (monthly in Rs.)

Below 10,000 10,000 to 20,000 20,000 to 40,000 40,000 & above

PERCENTAGE DIVISION

0

10

20

30

40

50

60

BELOW10000

10000-20000

20000-40000

ABOVE40000

INCOME OF PEOPLE

PERCENTAGE DIVISION

Graph: 4

INTERPRETATION

Thus we can see that most of the people earning income between 20000-40000 i.e. 52%

and only few percentages of people earning below 20000.

Q3. How much do you invest yearly in Insurance Plans?

Below 10,000 10,000 to 20,000 20,000 to 40,000 40,000 & above

PERCENTAGE OF PEOPLE

05

10152025303540

BELOW10000

10000-20000 20000-40000 ABOVE40000

ANNUAL INVESTMENT OF PEOPLE

PERCENTAGE OFPEOPLE

Graph: 5

INTERPRETATION

It is clear from the survey that most of the people invest a very less amount of money in

insurance plans because they think that it is insecure to invest in insurance plans.

Q4. Where would u like to insure if given a chance?

LIC ICICI PRU. BAJAJ ALLIANZ TATA AGI SBI

KOTAK MAHINDRA

0%

10%

20%

30%

40%

50%

60%

70%

Series1

Graph: 6

INTERPRETATION

Thus we see that the companies are comfortable in having business with govt.

owned companies as they feel its safe & secure to have business with them which

is followed by SBI as it is the biggest bank and then followed by TATA AIG as

the name TATA is associated with it which commands huge premium in the

market . Whereas in the case of ICICI PRUDENTIAL the figures represent

mediocre performance after compelling and coxing the corporate and creating a

strong impression whether they feel interested in doing business with the

company.

Q5. Are you satisfied with the services of your Insurance Co?

Very Good Good Average Poor

0

2

4

6

8

10

12

14

SATISFIED

NOT SATISFIED

Graph: 7

INTERPRETATION

As we can see that a high percentage of people are satisfied with ICICI PRUDENTIAL

services or through this we can say that ICICI PRUDENTIAL is NO. 1 insurance

company in customer services.

Q6. Have you invested in any sources of investment like?

BONDS MUTUAL FUNDS & SHARES POST OFFICE

OTHER (specify) __________________

PERCENTAG OF PEOPLE

05

10152025303540

BO

ND

S

MU

TUA

LFU

ND

S&

SH

AR

ES

PO

ST

OFF

ICE

OTH

ER

Series1

Graph: 8

INTERPRETATION

After survey I found that most of the people interested to invest in MUTUAL FUNDS

AND SHARES i.e. 36% because they give high rates of return.

Q7. What is people’s main concern while taking an insurance policy?

SECURITY RETURNS TAX RETURNS

Security, 70%

Returns, 10%

Tax rebate, 20%

Security

Returns

Tax rebate

Graph: 9

INTERPRETATION

People invest in insurance mainly because of security concern.

Q8. Are you satisfied with the return that your company gives?

YES NO

0

10

20

30

40

50

60

YES NO

Series1

Graph: 10

INTERPRETATION

55% of people say yes they are satisfied whereas 45% of respondents are not satisfied

with the return.

Q9. Do you know about ICICI PRUDENTIAL CO.?

YES NO

0

20

40

60

80

100

120

YES NO

Series1

Graph: 11

INTERPRETATION

Through the graph it is clear that most of people are aware of ICICI PRUDENTIAL.

Q10. Are you interested in products offered by the ICICI

PRUDENTIAL?

YES NO WILL THINK

Yes , 61%No , 22%

Will think , 17%

Yes

No

Will think

Graph: 12

INTERPRETATION

The good thing is that atleast the corporates were quite eager to find out what ICICI

PRUDENTIAL has to offer whereas the major 39 % of the corporates were not even

interested in the products as they are quite satisfied by the LIC and they are not in

breaking their long relationship with them. The private players will have to play a long

battle in order to ensure that they are serious player in the market. Basically corporates

think that it’s too early to invest in private companies as they have just entered the scene

and they are unsure of the security they will have about their investment.

CHAPTER 5FINDINGS

During the training period in ICICI Prudential, we carried out the telephonic interview of

different people, to check their satisfaction level regarding the policies if have taken and

if they are interested to give the company more business by further investing or buying

more policies. For this a certain set of questions were asked such as:

Whether they are a new customer or an existing customer.

Providing information to customers for the different insurance policies.

To know the interest of customers in different kind of policies.

Asking if the customers are interested to invest in a new policy.

Taking in account satisfaction level of existing customers.

Convincing customers who are interested in a particular policy.

Details of number and kind of policies sold are shown as :--

During the whole training period what was found that convincing customers to buy a

particular policy was really a tough task to accomplish. And from the list of contacted

people I was able to sell policy to only two persons, both of Life time policy.

Further after convincing them on the telephone to buy a Life time policy I personally

went to their place on the particular address being provided by the customers to further

explain them clearly about the policy such as minimum policy amount, benefits from the

policies and also to get the details of the person interested in buying the policy. Later on

these people were further contacted by our executives to complete the final process.

After carrying out the above telephonic interview what was found that people who are

unaware of these insurance policies showed a comparatively more interest to invest in

these policies than aware people. Therefore an analysis of different kind of policies sold

can be made and shown in the graph as followed:--

Graph: 13

From the above diagram it is very much clear that the current scenario of investment in

different policies offered by ICICI Prudential ,the life time policies with a 39% play an

upper hand as far as policies sold are concerned .Customers are more favorable towards

this policy is due to it is compatible to changing needs of different lifestyles

CHAPTER 6

RECOMMENDATIONS

After working on this project its my immense pleasure to say its been most beneficial to

me as it gave a lot of knowledge about the banking sector in India, which also include

how there has been a change in the insurance sector in India over the years with more and

more different kind of insurance policies emerging constantly. Also while working in

ICICI prudential has given me a vast knowledge on marketing which is a creative and

innovative field whose study & usage requires good interaction & communication skills

to encourage more and more people to invest in insurance policies.

Through this I came to know about the mindset of a customer as an investor and their

interest regarding a particular policy but also identifying their insurance need.

Therefore ICICI Prudential has been a successful organization over the past few years

but there is still scope for improvement ,as the insurance sector in India has grown a

lot ,certain parts of scope for improvement which are suggested as followed:-

1. Direct door to door interview.

2. Spreading, expanding the need & awareness of insurance among the people

through different means of communication viz. sms, television etc.

3. Introducing new policies according to the customer needs.

4. Improving the various customer services by using more efficient customer

relation management, thereby which will lead to improvement in the overall

banking of ICICI Bank.

CHAPTER 7ANNEXURES

QUESTIONNAIRE

Name:

Address:

Telephone No.:

Occupation:

Salaried Self Employed Unemployed

Business Others (specify) _____________

Office Address:

Family details:

Q1. How many members do you have in your family?

2 3 4 5 6 other (Specify)

Q2. Net Family Income from all sources (monthly in Rs.)

Below 10,000 10,000 to 20,000 20,000 to 40,000 40,000 & above

Q3. How much do you invest yearly in Insurance Plans?

Below 10,000 10,000 to 20,000 20,000 to 40,000 40,000 & above

Q4. Where would u like to insure if given a chance?

LIC ICICI PRU. BAJAJ ALLIANZ TATA AGI SBI

KOTAK MAHINDRA

Q5. Are you satisfied with the services of your Insurance Co?

Very Good Good Average Poor

Q6. Have you invested in any sources of investment like?

BONDS MUTUAL FUNDS & SHARES POST OFFICE

OTHER (specify) __________________

Q7. What is people’s main concern while taking an insurance policy?

SECURITY RETURNS TAX RETURNS

Q8. Are you satisfied with the return that your company gives?

YES NO

Q9. Do you know about ICICI PRUDENTIAL LIFE INSURANCE CO.?

YES NO

Q10. Are you interested in products offered by ICICI PRUDENTIAL?

YES NO WILL THINK

CHAPTER 8BIBLIOGRAPHY

1. BOOKS AND AUTHORS

Insurance institute of India (IC-02, IC-33)

Research methodology by “C R Kothari”.

Marketing research by “S L Gupta”

2. WEBSITES:

www.iciciprulife.com

www.ICICI.com

www.prupartner.com

3. NEWSPAPERS AND MAGAZINES:

INSURANCE CHRONICAL BY ICFAI

Economic times

Business world (may, 2007 2nd edition)