project report

APROJECT REPORT

ICICI PRUDENTIAL LIFE INSURANCE NEW CHANNEL TIE

UP WITH POST OFFICE

Submitted ToDR.IT INSTITUTE OF MANAGEMENT AND

TECHNOLOGY (IMT)In partial fulfillment of the requirement for the degree ofBACHULAR OF BUSINESS ADMINISTRATION (BBA)

(Session 2010-2011)

Submitted to Submitted By MISS. TARUNA DUREJA SANDEEP KUMAR BBA – 5th SEM

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TABLE OF CONTENTS

COMPANY PROFILE

ICICI INTRODUCTION

HISTORY ICICI PRUDENTIAL

BOARD OF DIRECTORS ICICI

PRODUCTS

Profile of the study

Justification of study

Organization Structure

POST OFFICE PRODUCTS

OBJECTIVES OF STUDY

Research Methodology and Analytical Tools

Sampling &Sampling Design

Analytical Tools

– Statistical Tools

Data Collection

Hypothesis Testing

Limitations of Study

Advantages

Recommendations

Policy Implications

Bibliography

Annexure

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ACKNOWLEDGEMENT

Heartfelt thanks to the following people….

A Few typewritten words of thanks can-not really express the sincerity of my

gratitude. But I am still trying to put into words my gratefulness towards all who have

helped & encouraged me in carrying out this project.

I would like to thanks Miss Taruna Dureja to give me guidelines and my worthy

thanks to my teacher (faculty member) for their valuable contribution during the

academic session and guidance in preparation of this project report.

This report conveys my heartiest thanks to MISS ANJALI SHARMA AFSM of

“ICICI PRUDENTIALS LIFE INSURANCE CO. LTD.” for giving me this project

& helping me in completion of this project. No praise is ample for the never tiring

efforts of my colleagues whose constant support feedback, guidance & practical

suggestions helped me in completing this Project successfully.

Company profile of ICICI PRUDENTIAL

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The company assigned to me is ICICI Prudential Life Insurance

Company. It is in to selling life insurance products. ICICI Prudential Life

Insurance Company is a joint venture between ICICI Bank, a Premier Financial

Powerhouse and Prudential PLC, a leading international financial services group

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

private sector insurance companies to begin operations in December 2000 after

receiving approval from Insurance Regulatory Development Authority (IRDA). At

present it is growing at a tremendous pace. Now we can say there is no close

competitor to ICICI Prudential.

ICICI Prudential’s equity base stands at Rs. 9.25 billion with ICICI Bank

and Prudential PLC holding 74% and 26% stake respectively. In the financial

year ended March 31, 2005, the company garnered Rs. 1,584 crores of new

business premium for a total sum assured of Rs. 13,780 crores and wrote nearly

6,15,000 policies. The company has a network of about 56,000 advisors as well

as 7-bank assurance and 150 corporate agent tie-ups.

For the past five years, ICICI Prudential has retained its position as No. 1

private life insurance in the country, with a wide range of flexible products that

meet the needs of Indian customer at every step in life.

PREFACE

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Beginning of the system project is entirely creative. This does not come all

of a sudden, but it comes by result of discussion, consultation and

contemplation. Problem unsolved here can never be satisfactory eliminated

later. It is therefore a slow process.

Moreover practical training is an important part of management courses.

The theoretical studies are not sufficient to get into the corporate world.

Only practical knowledge can help us to understand the complexities of

large scale organizations.

To develop healthy managerial and administration skill in potential

managers, it is necessary that theoretical knowledge must be supplemented

with exposure to the real environment. Actually, it is life for, a management

itself is realized.

In my case I confronted myself to ICICI prudential Life insurance company

Ltd. & the exposure that I could not have gained from the books. I found it

very interesting and challenging. I did my training at Una branch office and

my topic of project is INCLINATION TOWARDS ULIP security and

Investment solution with special reference to ICICI PRUDENTIAL

LIFE INSURANCE.

DECLARATION

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I hereby declare that the project “ICICI PRUDENTIAL LIFE INSURANCE LTD

NEW CHANNEL TIE UP WITH POST OFFICE of Life Insurance

Corporation of India and ICICI Prudential in UNA)” for ICICI

PRUDENTIAL LIFE INSURANCE is original and beneficed work done by me.

The project is being submitted in partial fulfillment requirements for the award degree of BBA

Under PTU JALANDHER .

The contents of this project are based on the field work and analysis done by me during my

tenure at ICICI Prudential, UNA

EXECUTIVE SUMMARY

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The Winter training is a integrated part of BBA course. In this period of 6 weeks we

come to know about the problem and how to solve those problems. In this we gained

practical knowledge about the organizational work.

I did for 6 weeks in an organization ICICI PRUDENTIAL LIFE INSURANCE, and

under going practical on the topic “(A comparative analysis with regard to investor’s

base & Investment Avenues in case of Insurance Companies-A comparision of post

office products and icici products and how to solve financial problems. The practical

training had provided me the real scenario of financial analysis. I analysis the financial

status of the organization.

I came to the conclusion that the financial position of company very strong and people

are more interested to invest their earning in ICICI PRUDENTIAL LIFE

INSURANCE as compare to other financial institutions. In last three or four year

ICICI PRUDENTIAL LIFE INSURANCE constantly ranked no.2 position in

Insurance sector. ICICI PRUDENTIAL LIFE INSURANCE satisfied their

consumers by fulfilling their needs sets.

IRDA GUIDELINES ON ULIPS

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The Insurance Regulatory and Development Authority (IRDA) recently introduced its much-awaited guidelines to govern unit-linked insurance policies (ULIPs)

The new provisions

IRDA has prescribed a minimum sum assured equal to 50 per cent of the total annualized premium during the entire policy term or five times the annualized premium, whichever is higher. This regulation is aimed at maintaining the basic characteristic of a life insurance policy, where life cover should be the primary benefit. Till the policyholder turns 60 years old, the sum assured cannot be reduced by partial withdrawals. This is aimed at protecting the life insurance cover.

Time Period: According to new guidelines the time period of investment in ULIPs has been increased to 5 years. Earlier it was for 3 years.

Top-up Premiums:

Top up premiums are irregular dump-in amounts allowed in a ULIP. Up to now, there were no restrictions; it was possible, for example, to dump in Rs1 crore in a ULIP and invest the entire amount in the market. But this vitiates the basic characteristic of the policy by making the insurance component insignificant. To plug this loophole, IRDA has prescribed that a sum assured must back any dump-in that exceeds 25 per cent of normal premium, which will be constant throughout the term of the policy. Any appropriation towards a dump-in can take place only if the normal premiums are paid

Withdrawals from ULIPs:

Earlier, withdrawals from ULIPs were possible even within a year of issue. Depending on the option selected, they were reduced from the sum assured, resulting in dilution of death benefits to the nominees. Now, withdrawals will be allowed only after three years. The new guidelines provide that except for withdrawals made during the two years immediately preceding death, no other withdrawals can be reduced from the sum assured. But once the customer is past the age of 60, all withdrawals can be reduced from the sum assured.

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Lock-in period:

A top-up premium cannot be withdrawn for three years. This places ULIPs on par with mutual fund contributions under Section 80C of the Income Tax Act, 1961. The only relaxation in this condition is on withdrawal of top-up premiums made during the last three years of the policy contract.

Settlement options:

The policyholder has settlement options, to receive the policy benefits in various forms, rather than a lump sum. For example, the company can give the policyholder an option to receive the maturity benefit in the form of a monthly pension. IRDA has restricted such extended periods of settlement to five years from the date of maturity. The company should also make clear the inherent risk involved in extended periods of settlement.

Charges:

Charges are costs appropriated by insurance companies from ULIP premiums. The IRDA has listed the charges that insurance companies can levy on policyholders, as well as laid out the standard definitions for use in policy contracts. This is aimed at clarity and to enable customers to understand and compare costs between different insurance companies.

Market Conduct:

There is an inherent risk in investing in ULIPs, as the performance of the funds underlying the ULIPs governs their returns. To address these risks, the IRDA has authorized the Life Insurance Council to formulate a Code of Conduct for sale of ULIPs. This includes mandatory training for agents before they are authorized to sell ULIPs, documentation to enable the customer to understand and acknowledge the risk involved in buying ULIPs, a code of conduct for their sale, educating policyholders on risk factors, terminology, charges, etc.

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CHAPTER 1

INTRODUCTION

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Introduction to study:

My study is that I have to Analysis with regard to Investors base and Investment avenues

in case of insurance companies-“ICICI PRUDENTIAL NEW CHANNEL TIE UP WITH

POST OFFICE Let’s discuss the concept of insurance and a brief introduction about

these 2 companies.

“Insurance is a contract between two parties whereby one party called

insurer undertakes in exchange for a fixed sum called premiums, to pay

the other party called insured a fixed amount of money on the happening

of a certain event.”

It’s hard to think about those you leave behind if something happens to you. Your family

counts on you every day for financial support: food, shelter, transportation, education,

and much more. You and your spouse have plans or your future and dreams for your

family: a bigger home, a new business, college education, travel, retirement etc.

Life insurance is all about making sure your family has adequate

financial resources to make those plans and dreams come true, if you were

to die prematurely

It provides financial protection to help your family to manage after your death. Insurance

companies collect premiums to provide for this protection. A loss is paid out of the

premiums collected from the insuring public and the insurance companies act as trustees

to the amount collected

Many companies are coming with various plans Ulip plan is one of them which provides

huge benefit to the public. It provides insurance as well as investment.

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Why Life Insurance?

You think twice before taking the plunge into buying insurance. Is buying

insurance a necessity now? Spending an 'extra' amount as premium at

regular intervals where you do not see immediate benefits does not seem a

necessity at the moment.

Well you could be wrong. Buying Insurance cannot be compared with

any other form of investment. Insurance gives you a life long benefit and the

returns will definitely come but only when you need it the most i.e. at the

right time. Besides buying insurance early in life is one of the wise decisions

you could take. Because the premium you would be paying would be

comparatively lower.

Insurance is not about how much more it can offer you when the stock

market is at its peak. It may not be an attractive investment option. But

weigh the pros and cons and consider how much more it offers at a small

price.

Most important of all it provides you with that unique sense of

security that no other form of investment provides. It gives you a sense of

financial support especially during that time of crisis irrespective of the

fluctuations in the stock market. Insurance provides for your career goals

right from your childhood years.

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If the earning member of the family is no more your child's

educational needs will not suffer. In fact his higher education too will be

provided for. You need not spend sleepless nights thinking about how to

save for your child's marriage. Life Insurance will take care of that typical

once-in-a-life-time spending on marriages.

An accident or a disability may be devastating but an insurance policy

can be of utmost support for the family during such times too. Besides it

provides for additional benefits such as bonuses. You need not worry about

your retirement years. The rising prices, taxes, and your lifestyle will be

taken care of easily. And you can relax and spend your old age in comfort

and peace.

Need for Life Insurance

The need for life insurance comes from the need to safeguard our family. If

you care for your family’s needs you will definitely consider insurance.

Today insurance has become even more important due to the disintegration

of the prevalent joint family system, a system in which a number of

generations co-existed in harmony, a system in which a sense of financial

security was always there as there were more earning members.

Times have changed and the nuclear family has emerged. Apart from other

pitfalls of a nuclear family, a high sense of insecurity is observed in it today

besides, the family has shrunk. Needs are increasing with time and

fulfillment of these needs is a big question mark. Insurance provides a sense

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of security to the income earner as also to the family. Buying insurance frees

the individual from unnecessary financial burden that can otherwise make

him spend sleepless nights. The individual has a sense of consolation that he

has something to fall back on.

From the very beginning of your life, to your retirement age insurance can

take care of all your needs. Your child needs good education to mould him

into a good citizen. After his schooling he needs to go for higher studies, to

gain a professional edge over the others - a necessity in this age where

cutthroat competition is the rule. His career needs have to be fulfilled.

Life insurance today plays a major role in ones life at various stages.

Considering the benefits it offers one cannot but give a thought to buying an

insurance policy at the earliest.

INSURANCE PROVIDES:-

Insurance provides varies benefits to the people. some of those are listing below -

1 Risk Coverage

2 Child Solutions

3 Whole-Life Plans

4 Health Protection

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5 Superior Saving Instrument

6 Investment

7 Retirement(Pension Plans)

1 Board of Directors

The ICICI Prudential Life Insurance Company Limited Board comprises reputed people from the finance industry both from India and abroad.  

Ms. Chanda D. Kochhar, ChairpersonMr. N. S. Kannan, DirectorMr. K. Ramkumar, DirectorMr. Barry Stowe, DirectorMr. Adrian O’Connor, DirectorMr. Keki Dadiseth, Independent DirectorProf. Marti G. Subrahmanyam, Independent DirectorMs. Rama Bijapurkar, Independent DirectorMr. Vinod Kumar Dhall, Independent Direct

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PROFILE OF INSURANCE INDUSTRY

Insurance is a must because of the uncertain future adversities of life.

Accidents, illnesses, disability etc are facts of life that can be extremely

devastating. Other than the hospitalization, medication bills these may run

up it’s the aftermath of the incident, the physical well being of the individual

that has to be taken into consideration. Will the individual be in a position to

earn as before? A pertinent question. But what if he is not? Disability can be

taken care of by insurance. Your family will not have to go through the grind

due to your present inability.

You think twice before taking the plunge into buying insurance. Is buying

insurance a necessity now? Spending an 'extra' amount as premium at

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regular intervals where you do not see immediate benefits does not seem a

necessity at the moment. May be later well you could be wrong. Buying

Insurance cannot be compared with any other form of investment. Insurance

gives you a life long benefit and the returns will definitely come but only

when you need it the most i.e. at the right time. Besides buying insurance

early in life is one of the wise decisions you could take. Because the

premium you would be paying would be comparatively lower.

INDIAN INSURANCE INDUSTRY

Insurance industry, as on 1.4.2000, comprised mainly two players: the state

insurers:

Life Insurers:

Life Insurance Corporation of India (LIC)

HDFC Standard Life Insurance Company Ltd.

Max New York Life Insurance Co. Ltd.

ICICI Prudential Life Insurance Company Ltd.

Kotak Mahindra Old Mutual Life Insurance Limited

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Birla Sun Life Insurance Company Ltd.

Tata AIG Life Insurance Company Ltd.

SBI Life Insurance Company Limited

ING Vysya Life Insurance Company Private Limited

Bajaj Allianz Life Insurance Company Limited

Metlife India Insurance Company Pvt. Ltd.

General Insurers:

General Insurance Corporation of India (GIC)  (with effect from

Dec'2000, a National Reinsurer)

GIC had four subsidary companies, namely ( with effect from Dec'2000,

these subsidaries have been de-linked from the parent company and made as

independent insurance companies.

1. The Oriental Insurance Company Limited

2. The New India Assurance Company Limited,

3. National Insurance Company Limited

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4. United India Insurance Company Limited .

SAHARA 0.61 0.04

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Company Profile of

POST OFFICE

GENERAL PROFILE OF THE ORGANISATION, FUNCTIONS AND DUTIES

         The Department of Posts comes under the Ministry of   Communications

and Information   Technology, Government   of India, functions under the Minister  

for   Communications   and Information Technology, and has   a Minister    of    State  

for   Communications   to    assist    the      Minister      of Communications and

Information Technology in the discharge of   various functions.  The   Secretary,

Department of Posts, as the Chief Executive of the   Department, is   

also the Director   General, India   Post, and   the Chairman of the Postal Services

Board.

Shri. A. Raja  is the   Minister   of   Communications     and     Information  

Technology   

Shri. Gurudas Kamat  is the  Minister   of  State  for Communications and  

Information Technology.     

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Shri. Sachin Pilot  is the  Minister   of  State  for Communications and   Information

Technology.     

Ms. Radhika Doraiswamy  is  the Secretary (Posts) to Govt. Of India as well as

Director General, Department   of Posts and   the Chairman of   the   Postal Services

Board.

     The   Postal   Services   Board, the   apex   management   body   of   the

Department, comprises the Chairman and six MembeINR   The   Members of the

Board hold portfolios of Operations, Development   and Personnel.  The Joint  

Secretary   and   Financial   Advisor   to   the   Department   is    a permanent  

invitee   to   the Board.  The Board is assisted by a senior staff officer   of   the  

Directorate   as   Secretary to the Board.   Presently, Deputy Director General (FS) is

assisting the Board in this capacity.  Deputy   Directors   General, Directors   and   

Assistant Directors General provide necessary support for the   Board   at  

HeadquarteINR   The   Postal Services   Directorate   is   the    Headquarters

organization located at Dak Bhawan, New   Delhi, to oversee the operations in the

provision of postal services throughout the country.

The Postal Services Board comprises the following at present:

Ms. Radhika Doraiswamy Secretary (Posts) Chairman, Postal Board & Director

General

Ms. Indira Krishna Kumar Member (Personnel),  Postal Services Board

Ms. Manjula Prasher Member (Operations), Postal Services Board

S. Samant  Member (Technology), Postal Services Board

Dr. Uday Balakrishnan Member (PLI) & Chairman Investment Board, Postal

Services Board

Maj. Gen. V Sadasivam  Member (HRD) Postal Services Board

Sri P K Gopinath   Member (Planning), Postal Services Board

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     For   providing postal services, the whole country has been divided into 22 Postal

Circles.  These Circles manage the day-to-day functioning of the various   Head  

Post   Offices, Sub - Post Offices and Branch Post Offices, through their Regional and

Divisional level arrangements.

Objectives

Department of Posts is committed to providing universal access to basic postal

services in the country at affordable prices.  Its objectives are to:-

     Ensure availability of basic postal services in all parts of the country,

including tribal, hilly and remote areas.

     Provide efficient reliable and economic service.

     Provide value added services according to market requirements.

     Modernize the services to handle the growing volume of work with

efficiency and thereby enhance customer and employee satisfaction.

     Be a forward looking organization, and

     Generate more resources and improve financial performance.

As per Government of India (Allocation of Business) Rules, 1961, second Schedule,

Rule 3, Distribution of Subjects among the Departments the Department Of Posts is

responsible for 

1.       Execution of works, including purchase of land debitable to the Capital Budget

pertaining to the Department of Posts.

2.       Posts, including Post Office Savings Banks (Administration), Post Office

Certificate (Administration), Post Office Life Insurance Fund (Administration),

printing of public postage stamps/commemorative stamps including postal

stationery, premium postal products and any agency function.  

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3.       International cooperation in matters connected with postal communications,

including matters relating to all international bodies dealing with postal

communications such as Universal Postal Union, Asia Pacific Postal Union

(APU), Commonwealth Postal Union. 

4.       Matters relating to introduction, development and maintenance of all services

by the Post Office including those based on cable, radio and satellite

communications channels:  

          Provided that these matters do not amount to broadcasting, narrow casting,

cable and radio networking services and are also not governed by the Indian

Telegraph Act, 1885 and the rules made there under, and not exclusively

allotted to any other Department.

5.       Promotion of feasibility survey, research and development in the field of

activities allotted to the Department.

6.       Matters relating to administration of the Indian Post Office Act, 1898 and rules

made there under as well as other laws or enactments having a bearing on

postal activities, not specifically allotted to any other Department.

Network

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INDIA HAS THE LARGEST POSTAL NETWORK IN THE WORLD WITH

1,55,669 POST OFFICES OF WHICH 89% ARE IN RURAL AREAS.  AT THE TIME OF

INDEPENDENCE, THERE WERE 23,344 POST OFFICES, WHICH WERE PRIMARILY

IN THE URBAN AREAS.  THUS THE NETWORK HAS REGISTERED A SEVEN FOLD

GROWTH OVER THE LAST FIVE DECADES, THE FOCUS OF THIS EXPANSION

BEING IN THE RURAL AREAS.  ON AN AVERAGE, A POST OFFICE SERVES AN

AREA OF 21.09 SQ. KM. & POPULATION OF 6,585. THROUGH THESE OFFICES IT

ENSURES DAILY DELIVERY OF DAK AT THE DOORSTEP OF EVERY CUSTOMER ALL

OVER THE COUNTRY, COLLECTION OF LETTERS THROUGH LETTERBOXES, AND

ALSO SALE OF STAMPS AND STATIONERY THROUGH VILLAGE POSTMEN AT THE

DOORSTEP OF CUSTOMERS IN RURAL AREAS. POST OFFICES IN URBAN AND

RURAL AREAS PROVIDE A RANGE OF BASIC POSTAL SERVICES TO THE

CUSTOMERS, INCLUDING BANKING AND INSURANCE SERVICES.   BILL

COLLECTION FELICITIES ARE BEING EXTENDED THROUGH ALL POST OFFICES IN

URBAN AREAS, AND IDENTIFYING POST OFFICES IN RURAL AREAS.  CERTAIN

VALUE ADDED SERVICES ARE BEING PROVIDED IN SELECTED OFFICES IN URBAN

AREAS.

           Efforts are also being made to identify means of providing postal services

through more cost effective measures.  The Licensed Stamp Vendor Scheme,

Licensed Postal Agents Scheme and the Panchayat Sanchar Sewa Yojana(PSSY) were

initiatives that were taken up in this regard.  So far 7,697 Panchayat Sanchar Sewa

Kendras(PSSKs) have been opened, including 2,371 PSSKs under the 10th Plan.  Since

an assessment of these schemes indicates the need for restructuring them, no

targets were given in 2004-05 for opening PSSKs.

         Efforts are also underway to optimize the retailing capacity of the network. 

One major initiative taken up in the current year is the retailing of non-life insurance

products through Post Offices.  The Department has entered into an agreement with

the Oriental Insurance Company to function as their Corporate Agent for marketing

identified non-life products.  This Scheme was launched on a pilot basis through

select Post Offices in 2 districts each of 7 Circles.  It is being gradually expanded,

after providing the requisite training to other Circles.

Postal Services

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            Postal operations at the post office encompass the entire gamut of the basic

postal services which interalia include:

i) Sale of stamps and stationery

ii) Booking of registered articles

iii) Booking of insured articles

iv) Booking of value payable articles

v)Remittance of money through money

orders and postal orders

vi) Booking of Parcels 

                  Traditionally, these services were being provided at manually operated

counte INR   Considering the vital need for providing the benefit of technology to the

customers, the counter operations are now being progressively computerised to

provide a greater range of service to the customer from a single window leading to

services being more responsive, and error free.

Mail Operations 

           Mail processing, transmission and delivery are the core activities of the

Department.  Mail is collected from 0.60 Million letter boxes in the country.  This is

processed by a network of 466 Railway Mail Service Offices, and conveyed by road,

rail and airlines all over the country.

Philately

The philatelic activities of India Post include:-

i)Designing, printing and distribution of special/commemorative postage

stamps and other postage stamps/ service postage stamps.

ii)Items of postal stationery like Envelope, Inland Letter Card, Postcard,

Aerogram and Registered Cover etc.

iii) Monitoring and promotion of Philately/conduct of philatelic exhibitions

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within the country, participation in international and world exhibitions

iv) Management of the National Philatelic Museum, Dak Bhavan.

Insurance is a must because of the uncertain future adversities of life.

Accidents, illnesses, disability etc are facts of life that can be extremely

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devastating. Other than the hospitalization, medication bills these may run

up it’s the aftermath of the incident, the physical well being of the individual

that has to be taken into consideration. Will the individual be in a position to

earn as before? A pertinent question. But what if he is not? Disability can be

taken care of by insurance. Your family will not have to go through the grind

due to your present inability.

You think twice before taking the plunge into buying insurance. Is buying

insurance a necessity now? Spending an 'extra' amount as premium at

regular intervals where you do not see immediate benefits does not seem a

necessity at the moment. May be later well you could be wrong. Buying

Insurance cannot be compared with any other form of investment. Insurance

gives you a life long benefit and the returns will definitely come but only

when you need it the most i.e. at the right time. Besides buying insurance

early in life is one of the wise decisions you could take. Because the

premium you would be paying would be comparatively lower.

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29

30

)

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The company mainly depends on advisors. The advisors are

considered as the brand ambassadors of the company or the working

partner who doesn’t have to invest to get returns but just work with

the company to make money. Advisors main job is to sell policy and

in return the advisors get huge return like high commission, rewards,

recognition etc. He is, for all purposes, an authorized salesman for

insurance.

Advisors can become the Unit Manager of the company if they

pass the pinnacle program. ICICI Prudential has recruited and trained

about 56,000 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.

Manager will get a fixed salary and the commission on the

policies sold by his advisor and the commission of the policies which

he has already sold. Tiger team manager is one who gets to sell the

policy and get commission, train the advisors about the product and

he is also a paid up employee of the company.

ICICI GROUP

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VISION

To be the dominant Life, Health and Pensions player built on trust by

world-class people and service

hope to achieve by:

Understanding the needs of customers and offering them

superior products and service

Leveraging technology to service customers quickly, efficiently

and conveniently

Developing and implementing superior risk management and

investment strategies to offer sustainable and stable returns to

our policyholders

Providing an enabling environment to foster growth and

learning for our employees 

And above all, building transparency in all our dealings

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VALUES

Very member of the ICICI Prudential team is committed to 5 core

values: Integrity, Customer First, Boundary less, Ownership, and

Passion. These values shine forth in all we do, and have become the

keystones of our success

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Brief Detail of the Company:/History

ICICI Prudential Life Insurance Company is a joint part of ICICI Bank, a

premier financial powerhouse, and Prudential policy, a leading international

financial services group headquartered in the United Kingdom. ICICI

Prudential was amongst the first private sector insurance companies to begin

operations in December 2000 after receiving approval from Insurance

Regulatory Development Authority (IRDA).

ICICI Prudential's capital stands at Rs. 18.15 billion with ICICI Bank and

Prudential plc holding 74% and 26% stake respectively. For the period

April-December 2006, the company garnered new business weighted

premium of over Rs 2,302 crore and wrote over 1.1 million policies. The

company has assets held to the tune of over Rs 13,000 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

Prudential's 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. To know more

about the company, please visit www.iciciprulife.com.

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Distribution

ICICI Prudential has one of the largest distribution networks amongst

private life insurers in India. As of December 31, 2006 it had commenced

operations in over 360 cities and towns in India, stretching from Bhuj in the

west to Guwahati in the east, and Jammu in the north to Trivandrum in the

south, and had over 175,000 advisors.

The company has 18 bancassurance partners, having tie-ups with ICICI

Bank, Bank of India, Federal Bank, South Indian Bank, Lord Krishna Bank,

all regional rural banks sponsored by Bank of India, as well as some co-

operative banks. It has also tied up with NGOs, MFIs and corporates for the

distribution of rural policies.

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Product Offered By POST OFFICE & ICICI PRUDENTIAL

PRODUCT OFFERED BY POST OFFICE CHANNEL

1 .NSC

2 .PPF

3 .SENIOR CITIZEN SCHEMES

4 .PO MIS

5 .TIME DEPOSITS

6 .FIXED DEPOSITS

7 .KISAN VIKAS PATRA

1. NSC,TIME DEPOSITS,FIXED DEPOSITS,KISAN VIKAS PTRA

Medium term fixed maturiy schemes

2.Senior citizen schemes,po mis Medium term regular incom schemes

3.PPF long term fixed maturity schemes

1.Kisan vikas patra min/max investment min 100rs 500rs 1000rs 10000rs

50000rs there is no maximum limit

2. Term 8years7months

3. interest rates 8.25%compunded half yearly

4.tax benefits at the time of investment –no rebate available

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Interim withdrawal taxable

Withdrawal on maturity taxable

2.post office time deposits

Min/max investment min200rs and maximum is no limit

Term 1,2,3 and 5years

Interest rate

1years-6.25%

2years-6.5%

3years-7.25%

5years-7.5%

Quartely compounding

Tax benefits-at the time of investment- rebate available up to 1lac under

sec80c for 5year time deposits

Interim withdrawal-taxable

Withdrawal on maturity-taxable

3.NSC

Min/max investment-100rs 500rs 1000rs 10000rs there is no maximum limit

Term-6years

39

Interest rate-8%per annum half yearly compounded(rs.100 becomes 160.10

after maturity period of six years)

Tax benefits-at the time of investment rebate available on investment and

accrued interest up to 1 lac under sec 80c

Interim withdrawal –N/A

Withdrawal on maturity-taxable

5. F.D- min/max investment-min rs1000and no limit maximum

Term- min7days max-up to 10 years

Interest rate- present rate-10 to10.5% compounding differs from bank to

bank

Tax benefits-at the time of investment- rebate available up to 1lac under

sec 80c for year deposits

Interim withdrawal-taxable

Withdrawal on maturity-taxable

PO MIS- MIN/MAX investment-min1500 max-450000 for single a/c and

900000 for joint a/c

TERM-6 year

Interest rates-8% per annum payable monthly plus bonus of 5% in case

held till maturity

40

TAX benefits-at the time of investment- no rebate available interim

payment-taxable

SENIOR CITIZEN SCHEMES-MIN/MAX-min1000 max15laks

TERM-5years extended by 3year

Interest rates-9%annual fixed rate which is payable quaterly

TAX BENEFITS-at the time of investment- rebate available up to 1lac

under sec 80c

INTERIM PAYABLE-taxable

PPF-min/max investment- min-500 max 70000 in a finacial year

TERM-15 year

INTEREST RATES-present rates-8% compounded per annum rate in the

year 2000-12%

TAX BENEFITS-rebate available up to 1lac under sec80c

INTERIM WITHDRAWAL-tax free

Withdrawal on maturity-tax free

OBJECTIVE OF THE STUDY

41

To review the whole system of POST OFFICE and ICICI

PRUDENTIAL LIFE INSURANCE in terms of origin, growth and

rationale.

To study the awareness level of private COMPANY among the

GOVT SECTOR POST OFFICE

To study and understand the customers requirement and fulfill these

requirement

To analyze various services provided by ICICI PRUDENTIAL LTD

and POST OFFICE

I

Products Offered By ICICI Prudential

42

2  Insurance Plans

ICICI Prudential has a wide array of insurance plans that have been

designed with the philosophy that different individuals are bound to have

differing insurance needs.

The ideal insurance plan is one that addresses the exact insurance needs of

the individual that will depend on the age and life stage of the individual

apart from a host of other factors.

Life Insurance Plans:

Under Life insurance plans, ICICI Prudential offers plans under the

following major need categories:

 Education Insurance Plans  

 Wealth Creation Plans  

 Premium Guarantee plans  

 Protection Plans  

43

Pension & Retirement Solutions:

The primary objective of a pension plan is to help you provide for your

financial needs in your post retirement years. You will find a Pension

Planning Calculator on the site, meant to make your pension plan review as

simple as possible. The calculator is the first step in your Pension Plan

scheme, there are othe steps towards getting the Indian pension policy you

need.

Click here to know more about our pension plan solutions.

LifeStage Pension

LifeTime Super Pension      

LifeLink Super Pension   

ForeverLife     

44

Health Product Suite:

Under Health Product Suite, ICICI Prudential offers plans under the

following major need categories:

Hospitalisation Plans

MediAssure

Hospital Care  

Critical Illnessl Pans

Crisis Cover  

Cancer Products

Cancer Care  

45

Diabetes Products

Diabetes Care Active

Diabetes Assure  

3 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.

46

Under the education insurance plans platform, ICICI Prudential brings

the following products to you. Please click on the product name to know

more about the plans.

4 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

47

 Plan Name  

Plan Type

 SmartKid New Unit-linked Regular Premium  

SmartKid New Unit-linked Single Premium     

SmartKid Regular Premium 

 Unit Linked  Unit Linked  Traditional 

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. Please click on the product name to know more

about the plans.

 Plan Name 

Plan Type

 ICICI Pru Secure Save ICICI Pru Wealth Advantage  ICICI Pru Life Stage Assure  ICICI Pru Life Time Gold ICICI Pru Premier Life Gold ICICI Pru Life Link Super ICICI Pru Life Stage RP 

 Unit Linked Unit Linked Unit Linked Unit Linked  Unit Linked Unit Linked 

 Unit Linked  

48

Retirement Solutions

ICICI PRUDENTIAL Provide a wide range of retirement plans and

they are as follows

Life Stage Pension

Life Time Super Pension  

Life Link Super Pension  

Fore ver Life

Immediate Annuity

Group Plans

ICICI Prudential offers a suite of group insurance plans that are as

follows:

Group super annuation

Group gratuity period

Annuity solution plan

Group term insurance plan

Group term insurance in lieu of EDL

Organization Structure of ICICI

49

CHIEF MANAGING DIRECTOR (CMD)

CHIEF AREA OFFICER CHIEF AREA OFFICER

(PENINSULAR) (HIMALAYAN)

Sales Head

50

ZONAL MANA

GER

Unit Manager / Area Manager/ Senior Agency Manager

ZONAL MANA

GER ZONAL MANA

GER ZONAL MANA

GER ZONAL MANA

GER

ZONAL MANA

GER ZONAL MANA

GER

AREA SALES MANA

GER

RESEARCH

METHODOLOGY

51

Research Methodology deals with, the procedure adopted to carry

out the study.

According to green and Tull:

“A research design is the specification of methods and procedures

acquiring the information needed It is the overall operational pattern or

framework of the project that stipulates which information is to be

collected from which sources by what procedures’’. For conducting the

study, the researcher has adopted both primary as secondary method of

data cllection.

TYPE OF RESEARCH

Research refers to the search for knowledge. It can be defined as

scientific and systematic search for pertinent information on a specific

topic. It is careful investigation or enquiry especially through search for

new facts of any branch of knowledge.

Research plays an important role in the project work. The result of the

project is completely based upon the research of the facts and figures

52

collected through the different ways of research. That is why it is also

called a movement from known to unknown. Research is the original

contribution to the existing stock of knowledge.

Exploratory or Formulative research: Exploratory research is

conducted to clarify the ambiguous problems

Descriptive research : To portray the characteristics of an

individual, group, situation, etc

Diagnostic research : To determine the frequency of occurrence of

an event.

Research Design

In the data collection method, we have collected both primary and

secondary data to meet our objective.

Primary data:

The primary data was collected by a survey based on the

questionnaire. It was formulated on the basis of information gathered

53

by me with the help of Miss Taruna Arora who provide useful

guidelines and objective of our study.

Secondary data:

The secondary data was collected from books and internet.

Data Source:

The data that is collected from different sources, as the first hand

information that is called primary data. The source of primary data in

my research is questionnaire and observation method. The secondary

data were also used in my report preparation. This is collected from

company record and from internet.

Research Approach:

The required information in the form of data is collected through

survey method, with the help of personal interview through

questionnaire method.

Sampling plan:

54

There is a stage where the planning is done about the sample

units, sample size, sampling procedures, etc.

Sample units:

This means, which is to be surveyed. So as mention earlier that the

sample units is potential peoples.

Sample size:

The sample size means how many peoples should be surveyed. So

that total sample size is 150, which cover from different area of Una.

Sampling Procedures:

I choose convenient and judgmental sampling for my research.

Data collection method:

Personal interview method is used for collection of primary data

in the form of questionnaire from respondents.

Research Instruments:

Once the source of data collection is decided then comes the

instrument for data collection or the research instrument. In this survey

55

method a questionnaire was framed. This is Philip by the potential

people though personal interview

SWOT ANALYSE

Strength

Good Fund Management Team. Stable and experienced management. Innovative Products, Technology, Organization culture and

climate. Excellent services. Less documentation formalities are required. Morally and ethically strong. Huge customer database. Strong networks.

Weakness

Investment Products are slight costly. High operating and commission expenses Less attractive offers. Lack of promotional campaigns

56

Competitors are in the market offer same product offered by the difference in the premium and offering.

Lack of customer awareness

Opportunity .

People are now more health and life conscious. Some Rural markets are still untouched. In the pension field where people want good life after their

retirement. It can piggyback on the brand name of the BIRLA. Highly potential market.

Threats

POST OFFICE , public player acting as a big competitor Others Competitors (ICICI Pru, ) With around 14 private players, it is very difficult to capture

the market share.

57

Results and Disscussions/Findings

Do you invest?

No. of Respondents Yes No

100 72 28

01020304050607080

Yes No

No

. o

f re

sp

on

den

ts

58

If not, why? What is the reason for that?

No. of Respondents

Lack of knowledge

Full of risk

Lack of guidance

Lack of interest

Inadequate funds

28 6 3 3 5 11

6, 21%

3, 11%3, 11%5, 18%

11, 39%

Lack ofknowledge

Full of risk

Lack ofguidence

Lack of interest

Inadequatefunds

59

If not investing, are you interested in investing?

No. of Respondents Yes No

28 20 8

20, 71%

8, 29%

Yes

No

60

What comes do you perceive first while investing?

No. of Respondents

Security High returns

saving

Tax benefits

Others

72 15 24 17 16 0

15

24

17 16

00

5

10

15

20

25

30

Security Highreturns

saving Taxbenefits

others

No

of

resp

on

den

ts

Series1

61

Are you adequately insured?

No. of Respondents Yes No

72 53 19

53, 74%

19, 26%

Yes

No

62

Which Plan do you prefer and invest?

No. of Respondents

Term Plan

Endowment Plan

Money Back Plan

Pension Plan

Mediclaim plan

Child plan

72 12 10 27 10 8 5

63

Specify the reasons for investing in a particular plan:

15 1516

21

5

0

5

10

15

20

25

Security High returns saving Tax benefits others

No.

of r

espo

nden

ts

64

No. of Respondents

Security High returns

saving Tax benefits

others

72 15 15 16 21 5

Are you satisfied with the investment decision?

No. of Respondents Highly Satisfied

Satisfied Moderate

unsatisfied Highly unsatisfied

72 6 39 19 6 2

6

39

19

62

0

10

20

30

40

50

HighlySatisf ied

Satisf ied Moderate unsatisf ied Highlyunsatisf ied

No

of r

espo

nden

ts

Series1

65

If not, what are the reasons behind that:

No. ofRespondents

Lack Of knowledge

Full of risk

Lack of guidance

Lack of interest

Inadequate funds

More than one reason

8 1 1 1 1 1 3

12

10

27

10

8 5

Term Plan

EndowmentPlan

Money BackPlan

Pension Plan

Mediclaim plan

Child plan

66

1 1 1 1 1

3

00.5

11.5

22.5

33.5

Lack

Of

know

ledg

e

Ful

l of r

isk

Lack

of

guid

ance

Lack

of

inte

rest

Inad

equa

tefu

nds

Mor

e th

anon

e re

ason

67

What do you think who can better guide you for investment?

No. of Respondents Broker/agent

Banks Investment consultant

others

72 13 17 35 7

13, 18%

17, 24%35, 48%

7, 10%Broker/agent

Banks

Investmentconsultant

others

68

Which Company do you prefer for investing?

No. of Respondents ICICI PRU POST OFFICE

Others

72 28 36 8

69

Are you satisfied with the behavior/knowledge of broker/agent of a company preferred by you?

No. of Respondents

Highly Satisfied

Satisfied

Moderate

unsatisfied

Highly unsatisfied

72 8 41 15 7 1

8

41

15

71

0

10

20

30

40

50

HighlySatisf ied

Satisf ied Moderate unsatisf ied Highlyunsatisf ied

No

of

resp

on

den

ts

Series1

70

CONCLUSION

Competition will surely cause the market to grow beyond

current rates, create a bigger "pie," and offer additional consumer

choices through the introduction of new products, services, and price

options. Yet, at the same time, public and private sector companies

will be working together to ensure healthy growth and development

of the sector. Challenges such as developing a common industry

code of conduct, contributing to a common catastrophe reserve fund,

and chalking out agreements between insurers to settle claims to the

benefit of the consumer will require concerted effort from both

sectors.

The market is now in an evolving phase where one can expect a lot

of actions in coming days. The current impediments for foreign

participation – like 26% equity cap on foreign partner, ill defined

regulatory role of IRDA (Insurance Regulatory development Authority-

the watchdog of the industry) in pension business etc.—are expected

to be removed in near future. The early-adopters will then have a

clear advantage compared to laggards in gaining the market share

and market leadership. The will need to make sure right now that all

their infrastructure is in place so that they can reap the benefit of an

"unlimited potential."

71

BIBLIOGRAPHY

72

Books:

1 Insurance(meaning and concept)-Published by IRDA

2 The Mc-Grew Hill Investors Desk Reference,Mc-Graw Hill Publications, Ellie Williams Clinton, page-301-303

3 Life Insurance, Indiana University Press. Belth M. Joseph

4 Statistical Methods by S.P. Gupta, 34th edition, published by Sultan Chand & Sons.

5 Research Methodology by C.R. Kothari, Second Edition published by New Age International (P) Ltd.

6 Business Research Methodology-Cooper & Sindler,4th Edition

7 Brouchers of different products of selected companies

8 Handbook of ICICI PrudentiAL

9 VISIT IN VARIOUS POST OFFICE DISTT UNA

73

Websites:

1 www.economywatch.com

2 www.icicipru.com

3 www.licindia.com

4 www.irda.org

5 www. Indiainfoline.com

74