RM Project on Icici

8/6/2019 RM Project on Icici

http://slidepdf.com/reader/full/rm-project-on-icici 1/55

New Delhi Institution of management

“Research Methodology”

Project Report on

“A Study on Marketing Strategy adopted by

ICICI Bank with ICICI Prudential in comparison

to Reliance Life and ING VYSYA based on promotional tools”

For

By

Name – Pushpendra Yadav

Roll No. – F-43

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EXECUTIVE SUMMARY

“Marketing Strategy adopted by ICICI Bank with ICICI Prudential in comparison to Reliance Life

and ING VYSYA based on promotional tools”

• In project I want to find the competent companies of ICICI Prudential

• Services of others companies

•

According to the data collected and analysis I come to know that LIC have more customer acquisition as comparative ICICI Prudential

• To find out the entities of respondents and their age of business and turnover they have

because on basis of this find out that how that customer is good for ICICI Prudential

• Most of the respondents gave preference LIC because they have faith on it

• Most of people have already attached with LIC

“Marketing Strategy adopted by ICICI Bank with ICICI Prudential in comparison to Reliance Life

and ING VYSYA based on promotional tools”

• In project I want to find the competent companies of ICICI Prudential

• Services of others companies

• According to the data collected and analysis I come to know that LIC have more customer

acquisition as comparative ICICI Prudential

• To find out the entities of respondents and their age of business and turnover they have

because on basis of this find out that how that customer is good for ICICI Prudential

• Most of the respondents gave preference LIC because they have faith on it

• Most of people have already attached with LIC

2



PREFACE

Theoretical knowledge without practical knowledge is PF little value. In order to achieve the

concrete and positive result practical knowledge must be their. To fulfill these needs, the

management course has a provision for the practical training program. I shall be thankful to the

university to provide such opportunity so that the students can have the actual feeling of industrial

life.

I have done my Project Report in ICICI bank with ICICI Prudential Life.

In the coming pages an attempt has been made to present a comprehensive report concerning

different aspects.

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INTRODUCTION TO THE INDUSTRY

INSURANCE – AN INTRODUCTION

Insurance may be described as a social device to ensure protection of economic value of life and

other assets. Under the plan of insurance, a large number of people associate themselves by sharing

risks attached to individuals. The risks, which can be insured against, include fire, the perils of sea,

death and accidents and burglary. Any risk contingent upon these, may be insured against at a

premium commensurate with the risk involved. Thus collective bearing of risk is insurance.

Insurance is a contract whereby, in return for the payment of premium by the insured, the insurers

pay the financial losses suffered by the insured as a result of the occurrence of unforeseen events.

The term "risk" is used to describe the possibility of adverse results flowing from any occurrence or

the accidental happenings, which produce a monetary loss.

Insurance is a pool in which a large number of people exposed to a similar risk make contributions toa common fund out of which the losses suffered by the unfortunate few, due to accidental events, are

made good. The sharing of risk among large groups of people is the basis of insurance. The losses of

an individual are distributed over a group of individuals.

Definitions

General definition

In the words of John Magee, “Insurance is a plan by themselves which large number of people

associate and transfer to the shoulders of all, risks that attach to individuals.”

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Fundamental definition

In the words of D.S. Hansell, “Insurance accumulated contributions of all parties participating in the

scheme.”

Contractual definition

In the words of justice Tindall, “Insurance is a contract in which a sum of money is paid to the

assured as consideration of insurer’s incurring the risk of paying a large sum upon a given

contingency.”

Characteristics of insurance

♦ Sharing of risks

♦ Cooperative device

♦

Payment on happening of a special event

♦ The amount of payment depends on the nature of losses incurred.

♦ The success of insurance business depends on the large number of people insured against similar

risk.

♦ Insurance is a plan, which spreads the risk and losses of few people among a large number of

people.

♦ The insurance is a plan in which the insured transfers his risk on the insurer.

♦ Insurance is a legal contract which is based upon certain principles of insurance which includes

utmost good faith, insurable interest, contribution, indemnity, causes proxima, subrogation, etc.

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Functions of insurance

Primary functions

1. Provide protection - Insurance cannot check the happening of the risk, but can provide for the

losses of risk.

2. Collective bearing of risk - Insurance is a device to share the financial losses of few among

many others.

3. Assessment of risk - Insurance determines the probable volume of risk by evaluating various

factors that give rise to risk.

4. Provide certainty - Insurance is a device, which helps to change from uncertainty to certainty.

Secondary functions

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1. Prevention of losses- Insurance cautions businessman and individuals to adopt

suitable device to prevent unfortunate consequences of risk by observing safety

instructions.

2. Small capital to cover large risks - Insurance relives the businessman from

security investment, by paying small amount of insurance against larger risks and

uncertainy.

FUNDAMENTALS OF INSURANCE

The fundamental Principles of the Insurance are as follows:

♦ Insurable Interest: Insurable interest means the legal right to insure. Insurable Interest is a must

and only then the insurance contract is enforceable at law. This principle differentiates a Contract

of insurance from wager. Lack of insurable interest renders the contract null and void. For

Insurable Interest to exist there must be Property, Rights, Interest, Life or Liability; this must be

insured and the Insured should have a legally recognizable relationship thereto. The Insured

should be benefited by the safety of the property or is prejudiced by its loss. Insurable Interest

may arise in the following manner:

1. Ownership: Absolute ownership entitles the owner to insure the property. This is the

commonest method whereby Insurable Interest arises.

2. Partial Interest is also insurable e.g. a mortgagee. A creditor can also insure the life of his

debtor but only to the extent of his loan.

3. Administrators and executors i.e. officials appointed by a court of law to take care of a

property may also insure the property.

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4. Relationship does not automatically constitute insurable interest. The only relationship

recognized by law for this purpose is the one between a husband and wife.

5. An employer can insure his employee under a Personal Accident Policy as he has insurable

interest in them.

♦ Proximate cause: Generally, the claims are payable under insurance policies if they arise out of

events which are proximately caused by the insured perils. In other words, the proximate cause

of the event has to be peril covered by the policy, so as to constitute a valid claim.

♦ Contribution: An insured may have several insurance on the same subject matter. If he recovers

his loss under all these insurance, he will obviously make a profit out of loss. This will be an

infringement of the principle of indemnity. Common Law has, therefore, evolved the doctrine of

contribution whereby the insured is prevented from recovering more than his loss, despite his

having several insurance on the subject matter.

♦ Subrogation: The principle of indemnity seeks to prevent the insured from making profit out of

loss. However, it may so happen that that the insured may recover his loss under his policy and

he may also have rights against third parties. If, after the insurance claim is settled, the insured is

allowed to enforce his rights against third parties and to retain whatever damages he receives

from them, he will certainly make a profit and the principle of indemnity will be infringed.

♦ Utmost Good Faith: In all General Insurance contracts we know that a property or interest or

liability or life is offered for insurance and the insured has to take decisions on the acceptance of

the proposal. If he decides to accept the proposal a premium commensurate with the risk has to

be charged. To enable him to take necessary decision in this regard, the insurer must have certain

facts about the risk offered. These facts influence the judgment of the insurer in deciding about

the acceptance or otherwise of the risk and the rate of premium to be charged, if accepted. Such

facts are known as material facts.

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9

Kolkata

Hyderabad



DEVELOPMENT OF INSURANCE IN INDIA

A thriving insurance sector is of vital importance to every modern economy. First because it

encourages the savings habit, second because it provides a safety net to rural and urban enterprises

and productive individuals. And perhaps most importantly it generates long-term investible funds for

infrastructure building. The nature of the insurance business is such that the cash inflow of insurance

companies is constant while the payout is deferred and contingency related.

This characteristic of their business makes insurance companies the biggest investors in long-

gestation infrastructure development projects in all developed and aspiring nations. This is the most

compelling reason why private sector (and foreign) companies, which will spread the insurance habitin the societal and consumer interest, are urgently required in this vital sector of the economy.

Per capita insurance premium in India is a mere US$ 6 , one of the lowest in the world. In South

Korea, the corresponding figure is US$1,338, in USA it is $ 2250 and in UK it is $1589.

Insurance premium in India

accounts for a mere 2 per cent of GDP compared to the world average of 7.8 per cent and G-7

average of 9.2 per cent.

Insurance premium as a percentage of savings is barely 5.95 per cent in India compared to 52.5

per cent in the UK.

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NEED FOR GLOBAL INTEGRATION

Recent economic liberalization started few years ago have started bringing in new investments from

global giants and the government was hard pressed to facilitate global integration by lowering trade

barriers for the free flow of technology, intellectual and financial capital. Additionally, reforms are

essential if the Indian economy is to achieve and sustain a growth rate of 7 to 8 per cent per annum.

Reaching a faster growth path also implies attracting foreign direct investment inflows of $ 10

Billion every year, up from the current level of $ 3 to $ 3.5 Billion. Thus liberalization of insurance

creates an environment for the generation of long-term contractual funds for infrastructural

investments.

PRIVATIZATION: START UP STRATEGY

Potential private entrants therefore expect to score in the areas of customer service, speed and

flexibility. They point out that their entry will mean better products and choice forthe consumer.

Critics counter that the benefit will be slim, because new players will concentrate on affluent, urban

customers as foreign banks did until recently.

This might seem a logical strategy from the point of view of new players. Start-up costs-such as

those of setting up a conventional distribution network-are large and High end niches offer better returns. However, in the long run 'middle-market' offers the greatest potential as in terms of it is the

second largest market in the world. This may still be an urban market but goes beyond the affluent

segment.

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CLASSIFICATION OF INSURANCE

Life is full of uncertainty. Trials and tribulations abound in each and every aspect of life .No one can

truly predict or even estimate what the future has in store for him. Life offers no guarantee by itself;

expect the incidences of death and taxation.

The lack of security present throughout life can be overcome partially through insurance. Insurance

can never replace or repair a loss. But the monetary value offered by insurance helps in adjusting to

new circumstances.

Despite offering the innumerable options and immense scope insurance can be classified into four

major categories.

• Insurance of a person

• Insurance of property

• Insurance of interest.

• Insurance of liability.

Insurance of person

Under the preview of this class of insurance the risk associated with human life in general can becovered up to the limit specified. The person can insure his or her life and his health against any

unplanned contingencies.

The event of his death his dependents will be reimbursed with the full amount that he was insured

for. Or if the insured person meets with the accident or suffers from any illness that cripples him

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forever he will be compensated with complete sum assured. Any way he may not be able to lead a

normal life again.

Insurance of property

Everyone posses material value in the form of tangible assets. Assets can be in the form of the

landed estate or a vehicle, share holdings or plane old paper money.

Since tangible property has a physical shape or consistency it is subject to many risk ranging from

fire allied perils to theft and property. An individual’s lifetime of hard work can be wiped out in a blink of an eye.

But if a person judiciously invest in insurance for his property prior to any unexpected contingency

the he will be suitably compensated for his loss as soon as the extend of damage is ascertained.

Insurance of interest

Every individual has to discharge certain specific duties. Everyone is expected to maintain a standard

of conduct but then it is an intrinsic part of human nature to err. None is infallible and no one will

ever be.

Owing to an occasional error or omission committed by us, our clients or customers might suffer a

loss. In turn we might have to pay those damages for compensation out of our own personal

resources.

However, if our chosen professional qualifies for insurance of interest. Then our insurance policy

will be more than sufficient in arranging the funds and court formalities that might ensue aftermath

of legal libel.

Insurance of liability

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Every person has to regulate his actions and behavior so as not to cause injury or damage to other

people and their property. Every one is personally liable for his or her action.

If due to lack of control over his actions or prejudice behavior, a person incurs any liability then has

to provide compensation out of his personnel resources. Liabilities, Legal, Civil or Criminal can

have severe repercussions on social standing and prestige besides the financial status.

Insurance Regulatory and Development Authority (IRDA) ACT, 1999

Composition of Authority under IRDA Act, 1999

As per the section 4 of IRDA Act' 1999, Insurance Regulatory and Development Authority (IRDA,

which was constituted by an act of parliament) specify the composition of Authority

The Authority is a ten member team consisting of

(a) a Chairman;

(b) five whole-time members;

(c) four part-time members,

(all appointed by the Government of India)

Duties, Powers and Functions of IRDA

Section 14 of IRDA Act, 1999 lays down the duties, powers and functions of IRDA:

(1) Subject to the provisions of this Act and any other law for the time being in force, the Authority

shall have the duty to regulate, promote and ensure orderly growth of the insurance business and re-

insurance business.

(2) Without prejudice to the generality of the provisions contained in sub-section (1), the powers

and functions of the Authority shall include –

(a) Issue to the applicant a certificate of registration, renew, modify, withdraw, suspend or cancel

such registration;

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(b) protection of the interests of the policy holders in matters concerning assigning of policy,

nomination by policy holders, insurable interest, settlement of insurance claim, surrender value of

policy and other terms and conditions of contracts of insurance;

(c) Specifying requisite qualifications, code of conduct and practical training for intermediary or

insurance intermediaries and agents;

(d) Specifying the code of conduct for surveyors and loss assessors;

(e) Promoting efficiency in the conduct of insurance business;

(f) Promoting and regulating professional organizations connected with the insurance and re-

insurance business;

(g) Levying fees and other charges for carrying out the purposes of this Act;

(h) Calling for information from, undertaking inspection of,

Conducting enquiries and investigations including audit of the insurers, intermediaries, insurance

intermediaries and other organizations connected with the insurance business;

( I ) control and regulation of the rates, advantages, terms and conditions that may be offered by

insurers in respect of general insurance business not so controlled and regulated by the Tariff

Advisory Committee under section 64U of the Insurance Act, 1938 (4 of 1938);

(j) Specifying the form and manner in which books of account shall be maintained and statement of

accounts shall be rendered by insurers and other insurance intermediaries;

(k) Regulating investment of funds by insurance companies;

(l) Adjudication of disputes between insurers and intermediaries or insurance intermediaries;

(m) Supervising the functioning of the Tariff Advisory Committee;

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(n) Specifying the percentage of premium income of the insurer to finance schemes for promoting

and regulating professional organizations referred to in clause (f);

INDIAN INSURANCE INDUSTRY

Insurers

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

Life Insurers

Life Insurance Corporation of India (LIC)

General Insurers

• Ge neral Insurance Corporation of India (GIC) (with effect from Dec'2000, a National

Reinsure)

GIC had four subsidiary companies, namely (with effect from Dec'2000, these subsidiaries 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

Yr: 2000-2001: (From 2nd April '2000 to 31st December'2001)

Insurance Industry in the year 2000-2001 had some new entrants in Life insurance as well as in

General insurance, namely:

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http://www.licindia.com/

http://www.gicoi.com/

http://www.orientalinsurance.nic.in/

http://www.niacl.com/


http://www.nationalinsuranceindia.com/

http://www.licindia.com/

http://www.gicoi.com/

http://www.orientalinsurance.nic.in/


http://www.nationalinsuranceindia.com/



Life Insurers

1. ICICI Prudential Life Insurance

2. Max New York Life Insurance

3. HDFC Standard Life

4. Birla Sun Life

5. SBI Life Insurance

6. Kotak Old Mutual Life Insurance

7. Aviva Life Insurance

8. Reliance Life Insurance

9. Tata AIG Life

10. Met Life India Insurance

11. Bajaj Allianz Life Insurance12. ING Vysya Life Insurance

13. Sahara Life Insurance

General Insurers

1. Royal Sundaram Alliance Insurance Company Limited

2. Reliance General Insurance Company Limited.

3. IFFCO Tokyo General Insurance Co. Ltd

4. TATA AIG General Insurance Company Ltd.

5. Bajaj Allianz General Insurance Company Limited

6. ICICI Lombard General Insurance Company Limited.

7. Cholamandalam General Insurance Company Ltd.

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8. Export Credit Guarantee Corporation Ltd.

9. Export Credit Guarantee Corporation Ltd.

INSURANCE BUSINESS

Insurance business is divided into four classes:

1) Life Insurance

2) Fire Insurance

3) Marine Insurance and

4) Miscellaneous Insurance.

Life Insurers transact life insurance business; General Insurers transact the rest.

No composites are permitted as per law.

LEGISLATION (as on 1.4.2000):

Insurance is a federal subject in India. The primary legislation that deals with insurance business in

India is:

Insurance Act, 1938, and Insurance Regulatory & Development Authority Act, 1999.

INSURANCE PRODUCTS (as on 1.4.2000) (for latest information get in touch with the

current insurers – website information of insurers is provided at the web page for insurers):

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Life Insurance

Popular Products: Endowment Assurance (Participating) and Money Back (Participating). More than

80% of the life insurance business is from these products.

General Insurance

Fire and Miscellaneous insurance businesses are predominant. Motor Vehicle insurance is

compulsory.

Tariff Advisory Committee (TAC) lays down tariff rates for some of the general insurance products

New products have been launched by life insurers. These include linked-products. For details, please

visit the websites of life insurers.

COMPANY PROFILE19



ICICI Bank (BSE: ICICI) (formerly Industrial Credit and Investment Corporation of India) is India's

largest private sector bank by market capitalisation and second largest overall in terms of assets.

Bank has total assets of Rs. 3,793.01 billion (US$ 75 billion) at March 31, 2009 and profit after tax

Rs. 37.58 billion for the year ended March 31, 2009.[1]. The Bank also has a network of 1,449

branches and about 4,721 ATMs in India and presence in 18 countries, as well as some 24 million

customers (at the end of July 2007). ICICI Bank offers a wide range of banking products and

financial services to corporate and retail customers through a variety of delivery channels and

specialised subsidiaries and affiliates in the areas of investment banking, life and non-life insurance,

venture capital and asset management. (These data are dynamic.) ICICI Bank is also the largest

issuer of credit cards in India.[2]. ICICI Bank has got its equity shares listed on the stock exchanges

at Kolkata and Vadodara, Mumbai and the National Stock Exchange of India Limited, and its ADRs

on the New York Stock Exchange (NYSE). The Bank is expanding in overseas markets and has the

largest international balance sheet among Indian banks. ICICI Bank now has wholly-owned

subsidiaries, branches and representatives offices in 18 countries, including an offshore unit in

Mumbai. This includes wholly owned subsidiaries in Canada, Russia and the UK (the subsidiary

through which the HiSAVE savings brand[3] is operated), offshore banking units in Bahrain and

Singapore, an advisory branch in Dubai, branches in Belgium, Hong Kong and Sri Lanka, and

representative offices in Bangladesh, China, Malaysia, Indonesia, South Africa, Thailand, the United

Arab Emirates and USA. Overseas, the Bank is targeting the NRI (Non-Resident Indian) population

in particular.

ICICI reported a 1.15% rise in net profit to Rs. 1,014.21 crore on a 1.29% increase in total income to

Rs. 9,712.31 crore in Q2 September 2008 over Q2 September 2007. The bank's current and savings

account (CASA) ratio increased to 30% in 2008 from 25% in 2007.

ICICI 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

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

company has assets held to the tune of over Rs.13000 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.

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 NGO’s, MFIs and corporates for the

distribution of rural policies.

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VISION

To make ICICI Prudential the dominant life and Pensions player built on trust by world-class people

and service.

This can be achieved 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.

VALUES

Every member of ICICI Prudential team is committed to 5 core values: -

Integrity, Customer First, Boundaryless, Ownership, and Passion. These

values shine forth in all they do, and have become the keystones of their success.

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BOARD OF DIRECTORS

The ICICI Prudential Life Insurance Company limited board comprises reputed people from

the finance industry both from India and Abroad.

Mr. K.V.Kamath, Chairman

Mr. Barry Stowe

Mrs. Kalpana Morparia

Ms. Shikha Sharma, Managing Director

Mr. N.S.Kannan, Executive Director

Mr. Bhargav Dasgupta, Executive Director

PRODUCTS OF ICICI PRUDENTIAL

ICICI Prudential Life Insurance offers a range of innovative, customer-centric products that

meet the needs of customers at every life stage. Its products can be enhanced with upto 4

riders, to create a customized solution for each policyholder.

SAVINGS & WEALTH CREATION PRODUCTS

1. Cash Bank

2. Save ‘n’ Protect

3. Life Time Super & Life Time Plus

4. Life Link Super

5. Premier Life Gold

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CHILD PLANS

Education Insurance under Smart kid

RETIREMENT SOLUTIONS

1. Forever Life2. Lifetime Super Pension3. LifeLink Super Pension4. Immediate Annuity

HEALTH SOLUTIONS

1. Health Assure and Health Assure Plus

2. Cancer Care

3. Diabetes Care

GROUP INSURANCE SOLUTIONS

1. Group Gratuity Plan

2. Group Superannuation Plan

3. Group Immediate Annuities

4. Group Term Plan

FLEXIBLE RIDER OPTIONS

1. Accident & Disability Benefit

2. Critical Illness Benefit

3. Income Benefit

4. Waiver of Premium

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Reliance Life Insurance Company Limited is a part of Reliance Capital Ltd. of the Reliance - Anil

Dhirubhai Ambani Group. Reliance Capital is one of India’s leading private sector financial services

companies, and ranks among the top 3 private sector financial services and banking companies, in

terms of net worth. Reliance Capital has interests in asset management and mutual funds, stock

broking, life and general insurance, proprietary investments, private equity and other activities in

financial services.

Reliance Capital sees immense potential in the rapidly growing financial services sector in India and

aims to become a dominant player in this industry and offer fully integrated financial services.

Reliance Life Insurance is another step forward for Reliance Capital Limited to offer need based Life

Insurance solutions to individuals and Corporates.

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BOARD OF DIRECTORS

Chief Executive Officer - Mr. P Nandagopal

Chief Financial Officer - Mr. Rajesh Bahl

Chief Marketing Officer - Mr. Rohit Gaurav Mull

Chief Operating Officer - Mr. K.V. Srinivasan

Chief Investment Officer - Mr. R Rangarajan

Appointed Actuary - Ms. Pournima Gupte

Head-HR - Ms. Maneesha Thakur

INSURANCE PLANS OF RELIANCE LIFE

• Reliance automatic investment plan• Reliance money guarantee plan

• Reliance endowment plan

• Reliance special endowment plan

• Reliance cash flow plan

• Reliance child plan

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• Reliance term plan

• Reliance whole life plan

• Reliance market return plan

•

Reliance golden years plan• Reliance golden years plan value

• Reliance golden years plan plus

• Reliance simple term plan

• Reliance special term plan

• Reliance credit guardian plan

• Reliance special credit guardian plan

• Reliance connect 2 life plan

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ING Vysya Life Insurance Company Limited (the Company) entered the private life insurance

industry in India in September 2001, and in a span of 5 years has established itself as a distinctive

life insurance brand with an innovative, attractive and customer friendly product portfolio and a

professional advisor sales force.

It has a dedicated and committed advisor sales force of over 21,000 people, working from 140 branches located in 74 major cities across the country and over 3,000 employees. It also distributes

products in close cooperation with the ING Vysya Bank network. The Company has a customer base

of over 4, 50,000 & is headquartered at Bangalore. In 2005, ING Vysya Life earned a total income in

excess of Rs. 400 crore and also has a share capital of Rs. 440 crore.

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The Company aims to make customers look at life insurance afresh, not just as a tax saving device

but as a means to add protection to life. The one thing we hold in highest esteem is 'life' itself. We

believe in enhancing the very quality of life, in addition to safeguarding an individual's security. Our

core values are therefore defined as Professional, Entrepreneurial, Trustworthy, Approachable and

Caring.

The Company’s portfolio offers products that cater to every financial requirement, at any life stage.

We believe in continuously developing customer-driven products and services and value being

accessible and responsive to the needs of our customers.

CORPORATE OBJECTIVE

At ING Vysya Life, we strongly believe that as life is different at every stage, life insurance must

offer flexibility and choice to go with that stage. We are fully prepared and committed to guide you

on insurance products and services through our well-trained advisors, backed by competent

marketing and customer services, in the best possible way. It is our aim to become one of the top

private life insurance companies in India and to become a cornerstone of ING’s integrated financial

services business in India.

MISSION

“To set the standard in helping our customers manage their financial future”.

MANAGEMENT TEAM

BOARD OF DIRECTORS

Mr. Rajan Raheja : Chairman

Mr. Kshitij Jain : Managing Director & Chief Executive Officer

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Mr. N.N. Joshi : Director

SENIOR MANAGEMENT TEAM

Kshitij Jain : MD & CEO T K Uthappa : VP, Sales - Tied Agency Rahul Agarwal: VP - Customer Services Amit Gupta: VP & Head - Marketing

INSURANCE PLANS OF ING VYSYA

• Rewarding Life Investment Plan

• Powering Life Investment Plan

• ING Life Plus Plan

•

Platinum Life Investment Plan• New Future Perfect Retirement Plan

• High Life Plus Plan

• Best Years Retirement Plan

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Objectives of the Research

• To know how to face the problem of corporate world.

• To face original market situations and to gain real marketing experience.

• To enhance the knowledge and skills by working in particular company.

• To apply the theoretical knowledge in corporate sector.

• To collect information of other life Insurance Companies.

• To face the problem of corporate world and tackle them in polite way.

• To educate the customers about facilities provided by ICICI Prudential.

• To get suspect convinced and convert into Prospect.

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LITERATURE REVIEW

The literature review includes the academic books, journals, internet access, magazines etc.

• ICFAI reader-October 2006 (Page no. 58-60) It guided me to know about the growth of

the Insurance sector over the last few years.

• “Gupta S.P. ”. The information regarding the statistical tools and their limitations in

different fields the research is given in this section. This section explains why to use

correlation and what are the situations in which correlation can be used, and what does

correlation means.

• Schaums:Statistical Methods- Sultan Chand Publication The information regarding the

statistical tools and their limitations in different fields the research is given in this section.

This section explains why to use trend analysis and what are the situations in whichcorrelation can be used, and what does correlation means.

• Beri G.C.- Marketing Research 3rd edition : This book helped in understanding the

different research designs and analytical tools used here.

• “Kothari C.R.” The information regarding the basics of research and research

methodology , what are the different types of research designs, what is problem

statement, what are the sources of data collection and what are the methods of data

collection is given in this section

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• NaliniProna Tripathy:Insurance Theory & – Introduction of Insurance , their advantages,

disadvantages and various types have been taken from it.

• What’s the need of Life insurance, I read it from The Mc-Graw Hill Investors Desk

Reference,Mc-Graw Hill Publications, Ellie Williams Clinton

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RESEARCH METHODOLOGY

Research is common refers to search for knowledge. It is the pursuit of truth with the help of

study, observation, composition and experiment.

Research methodology is a systematic way to solve the research problems. It helps in

studying the various steps that are adopted by the researcher to study the research problems

along with the logic behind the It describe mail what must be done, how will be done. What data

will be needed and how the data will be analyzed.

Sample Design

Sample size: 150

Source of data: Both primary and secondary data used

Primary data: Filled questionnaires from 150 respondents

Secondary data: Through internet.

Sampling Plan

The following factors have to be decided with in the scope of the sampling plan.

Sampling Unit

The unit refers to the definitions of the particular person who is to be survey.

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DESCRIPTIVE RESEARCH

Descriptive research includes surveys and fact-finding enquires of different kinds. The major

purpose of descriptive research of the sate of affairs as it exits at present. In social science and

business research, we quite often use the term Ex post facto research for descriptive research

studies.

SAMPLING PROCEDURE

This refers to the procedure by which the respondents should be chosen. In order to

obtain a representative sample, a probability sample of the population was drawn. Probability

sampling can be of the following types.

- Simple random sample

- Stratified random sample.

- Cluster (area) sample.

In this case, simple random sampling was done.

FORMATION OF QUESTIONNAIRE

Quite often the questionnaire is considered as the heart of a survey operation. Hence it should be

carefully constructed. in the words of good and Hatt, "In general, the word questionnaire refers to

a device for securing answers to questions by using a form which the respondent fills in himself."

All the questions in a questionnaire are framed with a specific objective in mind and are placed

in logical, sequential order. The questionnaire framed for the purpose of the study consists of a

limited number of questions placed in a logical order. The questions were framed keeping in

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mind the educational and social background of the companies dealers. The questions were both

open and closed ended as well as multiple choices.

ANALYSIS OF DATA

1. ORGANISING THE DATA

The data collected during data collection process are organized and presented in a

comprehensible sequence to make them more meaningful.

2. PRESENTATION OF DATA

After the data has been properly organized, it is ready for presentation. There are different

modes of presentation like tables, charts etc. The main objectives of presentation are to

put collected data into an easy readable form.

3. ANALYSIS OF DATA

After organizing and presenting the data, the researchers then have to proceed towards

conclusion by logical inferences. The raw data is then analyzed:

• By bringing raw data to measured data.

• Summarizing the data.

4. INTERPRETATION

Interpretation means to bring out meaning of data or to convert mere data into

information. From the analysis of data the various conclusions are find out on the basis of

logical inferences.

5. CLASSIFICATION OF DATA

If refers to the process of arranging data into homogenous classes. Subsequent to the collection

of data, the results were sorted out and arranged in different categories like Graph, Table etc.

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1-Entity of business

0

1020

30

40

50

60Soleproprietor ipPartnershi

Job

Other

38

Constitution DataSole proprietorship 43

Partnership 28Job 57

Other 22



Below 10 78

39



10-20 27

20-50 43

More than 50 2

0

10

2030

40

50

60

70

80

Below 10

10--20

20--50

More than

etation: The above data shows that out of 150 peoples the most of the peoples are with the below

10 then 20-50 after that 10-20 and the rest with more than 50.

3.Your Turnover

Below 5 112

5-10 31

10-25 6

More than 25 1

40



Interpretation: The above data shows that out of 150 peoples the highest turnover is below 5 after

that 5-10, than 10-25 and rest with more than 25.

4. Having Insurance

41



Yes 89

No 61

0

10

20

30

40

50

60

70

80

90

Yes

No

Interpretation: The above data shows that out of 150 peoples 89 peoples are having insurance and

61peoples are not having insurance.

5.Company of Insurance

Company Data

ICICI Prudential 56

Reliance Life 9

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Traditional 8

ULIP 48

Interpretation: The above data shows that 8 products are traditional and 48 products

are ULIP.

7. If traditional then which product

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Cash Bak 2

Save ‘n’ Protect 1

Smart Kid 3

Any Other 2

Interpretation: The above data shows that out of 8 products 2 are cash bak 1 are save and

protect 3 are smart kid and 2 are any other

8. If ULIP then which product

Smart Kid 10

Life Time Super 24

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Life Time Super Pension 5

Any Other 9

Interpretation: The above data shows that out of 48 products 10 with smart kid,24 with life

time super, 5 with life time super pension and 9 with any other.

9. Growth of money

46



Yes 10

No 24

Still waiting for the result 5

Can’t say 9

Interpretation: The above data shows that 10 with yes, 24 with no, 5 with still waiting for

result, 9 with cannot say

10. Tell to others

47



Of Course Yes 33

Depends on heir needs 20

Never 3

48



0

5

10

15

20

25

30

35

Of Course Yes

Depends on hneeds

Never

49



Interpretation: The above data shows that 33 with yes, 20 with depends on heir needs and 3

with never.

11. Satisfaction

Yes 135

No 15

Interpretation: The above data shows that out of 150 peoples 135 peoples are satisfied and 15

peoples are not satisfied.

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LIMITATIONS OF THE STUDY

• Shortage of time- The main limitation I come across is shortage of time I have short time

to collect data and analyze the problem and come to the solution.

• Primary data collected totally dependent on the respondents’ view - Data collected

from respondents is totally their opinion and it may be biased in nature and may not

represent the truth.

• Since the study is wide in nature and can’t be taken for consideration- The study is

big in nature and data collected is only from Chandigarh and Panchkula people so it can’t

be taken into consideration for whole ICICI Prudential and its branches.

• People were reluctant to join this job, as it doesn’t provide any fixed salary.

• People perceived this profession as a low status profession.

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RESULTS AND FINDINGS

Analysis of a research project is based on the primary data and secondary data which is being

collected from various sources to take out some conclusions of the research study being taken.

In my project my purpose was to find the market credibility of ICICI Prudential Life Insurance

among various other private life insurance companies. For this a population of 50 people was

being interviewed having different lifestyles, different incomes, different occupations yet the

point which was kept in mind was that this interviewed population was insurable.

The questionnaire filled up by people revealed that nearly 36 people i.e. about 72% people have

life insurance policies. This is due to the fact that people now have started realizing that life is

very uncertain and it is advisable to have a life insurance policy. Nearly, 24 % people had ICICI

policy and 20% people have Reliance Money as their life insurance policy. Firstlyy, when

enquired about the perception of people about insurance policies, nearly 39 people i.e. about 78%

people see it as a security option for their families financially so that if they are not alive some

day, their family does not go in vain. While 11 people i.e. about 22% people see it an investment

option to save taxes and get returns. Secondaly, when asked about their investments in various

alternatives, 18 people gave life insurance policies their first preference for investment.This

clearly shows that people are risk averse to a large extent as largest numbers of people like to

invest in life insurance policies to make sure that there is security. Thirdly, when they were asked

about the criterion of choosing a life insurance company 15 people replied that they see the

security point of view to buy a life insurance company. 5 people chose time span as the criteria to

choose a life insurance company. 2 people chose the market share of the company as the

preferred criteria of choosing the life insurance company. 8 people chose the returns of life

insurance companies as the criteria for choosing a life insurance company. Nearly, 20 people

chose all the above mentioned reasons to choose a life insurance company.

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When the sample population was interviewed about their 1st preference among the pvt. Players,

nearly 46 % people chose Reliance Money as the 1 st insurance company, 24 % people chose

ICICI Prudential as the 1st preference, and 16 % chose ING VYSYA as the 1st insurance

company. Only after 2000, private companies have come in the field of Life Insurance Company.

Proceeding further, when sample population was asked to recognize the punch line of ICICI

nearly 60 % of the population was able to recognize the punch line of ICICI which clearly

indicates that ICICI is a well known life insurance company among the people. Followed by it,

when sample size was interviewed about the reasons of famousness of ICICI 16 % of people

chose its policies as the reason for its famousness, 20% people chose its parent companies as the

reason for its popularity, 24 % agreed for its marketing and advertising strategies to be the prime

cause of its popularity among masses. When asked about the satisfaction with the existing

insurance policies nearly 69% people said that they are satisfied with their policy whereas only

31% people were not satisfied with their policy.

They wanted the additional features of transparency about the returns after when they have

stopped paying the premiums. Also they wanted higher rate of returns at the end of payment of

premiums.

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RECOMMENDATIONS

Agents are the lifeblood of the insurance industry’s distribution channel. They are the main

forces that bring business to the company. Unless and until the agents are qualified and have the

caliber to understand the current market scenario, they cannot remain long in the business.

Hence, an optimally selected sales force is the need for the hour, for the industry like insurance.

The following are the recommendations to the company:

1. There should be weekend batches of training for the people who cannot take their full six

days of the week from their busy schedule.

2. Anything can click in this line of work and hence the company should evaluate the

candidates subjectively.

3. Advertisements should be given in newspapers so that number people should come for

the interview.

4. Various MBA institutes should be targeted to get people with good marketing as well as

interpersonal skills.

5. There should be some fixed salary with some fixed targets.

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RM Project on Icici

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