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  2. 2. 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 2
  3. 3. ACKNOWLEDGEMENT Heartfelt thanks to the following people…. A Few typewritten words of thanks can-not really express the sincerity of mygratitude. But I am still trying to put into words my gratefulness towards all who havehelped & encouraged me in carrying out this project. I would like to thanks Miss Taruna Dureja to give me guidelines and my worthythanks to my teacher (faculty member) for their valuable contribution during theacademic 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 tiringefforts of my colleagues whose constant support feedback, guidance & practicalsuggestions helped me in completing this Project successfully. 3
  4. 4. Company profile of ICICI PRUDENTIAL The company assigned to me is ICICI Prudential Life InsuranceCompany. It is in to selling life insurance products. ICICI Prudential LifeInsurance Company is a joint venture between ICICI Bank, a Premier FinancialPowerhouse and Prudential PLC, a leading international financial services groupheadquartered in the United Kingdom. ICICI Prudential was amongst the firstprivate sector insurance companies to begin operations in December 2000 afterreceiving approval from Insurance Regulatory Development Authority (IRDA). Atpresent it is growing at a tremendous pace. Now we can say there is no closecompetitor to ICICI Prudential. ICICI Prudential’s equity base stands at Rs. 9.25 billion with ICICI Bankand Prudential PLC holding 74% and 26% stake respectively. In the financialyear ended March 31, 2005, the company garnered Rs. 1,584 crores of newbusiness premium for a total sum assured of Rs. 13,780 crores and wrote nearly6,15,000 policies. The company has a network of about 56,000 advisors as wellas 7-bank assurance and 150 corporate agent tie-ups. For the past five years, ICICI Prudential has retained its position as No. 1private life insurance in the country, with a wide range of flexible products thatmeet the needs of Indian customer at every step in life. 4
  5. 5. PREFACEBeginning of the system project is entirely creative. This does not come allof a sudden, but it comes by result of discussion, consultation andcontemplation. Problem unsolved here can never be satisfactory eliminatedlater. 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 oflarge scale organizations.To develop healthy managerial and administration skill in potentialmanagers, it is necessary that theoretical knowledge must be supplementedwith exposure to the real environment. Actually, it is life for, a managementitself is realized.In my case I confronted myself to ICICI prudential Life insurance companyLtd. & the exposure that I could not have gained from the books. I found itvery interesting and challenging. I did my training at Una branch office andmy topic of project is INCLINATION TOWARDS ULIP security andInvestment solution with special reference to ICICI PRUDENTIALLIFE INSURANCE. 5
  6. 6. DECLARATION 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 BBAUnder PTU JALANDHER .The contents of this project are based on the field work and analysis done by me during mytenure at ICICI Prudential, UNA 6
  7. 7. EXECUTIVE SUMMARYThe Winter training is a integrated part of BBA course. In this period of 6 weeks wecome to know about the problem and how to solve those problems. In this we gainedpractical knowledge about the organizational work.I did for 6 weeks in an organization ICICI PRUDENTIAL LIFE INSURANCE, andunder going practical on the topic “(A comparative analysis with regard to investor’sbase & Investment Avenues in case of Insurance Companies-A comparision of postoffice products and icici products and how to solve financial problems. The practicaltraining had provided me the real scenario of financial analysis. I analysis the financialstatus of the organization.I came to the conclusion that the financial position of company very strong and peopleare more interested to invest their earning in ICICI PRUDENTIAL LIFEINSURANCE as compare to other financial institutions. In last three or four yearICICI PRUDENTIAL LIFE INSURANCE constantly ranked no.2 position inInsurance sector. ICICI PRUDENTIAL LIFE INSURANCE satisfied theirconsumers by fulfilling their needs sets. 7
  8. 8. IRDA GUIDELINES ON ULIPSThe Insurance Regulatory and Development Authority (IRDA) recentlyintroduced its much-awaited guidelines to govern unit-linked insurance policies(ULIPs)The new provisionsIRDA has prescribed a minimum sum assured equal to 50 per cent of the totalannualized premium during the entire policy term or five times the annualizedpremium, whichever is higher. This regulation is aimed at maintaining the basiccharacteristic of a life insurance policy, where life cover should be the primarybenefit. Till the policyholder turns 60 years old, the sum assured cannot bereduced by partial withdrawals. This is aimed at protecting the life insurancecover.Time Period:According to new guidelines the time period of investment in ULIPs has beenincreased 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 ina ULIP and invest the entire amount in the market. But this vitiates the basiccharacteristic of the policy by making the insurance component insignificant. Toplug this loophole, IRDA has prescribed that a sum assured must back anydump-in that exceeds 25 per cent of normal premium, which will be constantthroughout the term of the policy. Any appropriation towards a dump-in can takeplace only if the normal premiums are paidWithdrawals 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, 8
  9. 9. resulting in dilution of death benefits to the nominees. Now, withdrawals will beallowed only after three years. The new guidelines provide that except forwithdrawals made during the two years immediately preceding death, no otherwithdrawals can be reduced from the sum assured. But once the customer ispast the age of 60, all withdrawals can be reduced from the sum assured.Lock-in period: A top-up premium cannot be withdrawn for three years. This places ULIPs onpar 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 premiumsmade during the last three years of the policy contract.Settlement options: The policyholder has settlement options, to receive the policy benefits invarious forms, rather than a lump sum. For example, the company can give thepolicyholder an option to receive the maturity benefit in the form of a monthlypension. IRDA has restricted such extended periods of settlement to five yearsfrom the date of maturity. The company should also make clear the inherent riskinvolved in extended periods of settlement.Charges: Charges are costs appropriated by insurance companies from ULIPpremiums. The IRDA has listed the charges that insurance companies canlevy on policyholders, as well as laid out the standard definitions for use inpolicy contracts. This is aimed at clarity and to enable customers tounderstand and compare costs between different insurance companies.Market Conduct: There is an inherent risk in investing in ULIPs, as the performance of thefunds underlying the ULIPs governs their returns. To address these risks, theIRDA has authorized the Life Insurance Council to formulate a Code ofConduct for sale of ULIPs. This includes mandatory training for agents beforethey are authorized to sell ULIPs, documentation to enable the customer tounderstand and acknowledge the risk involved in buying ULIPs, a code ofconduct for their sale, educating policyholders on risk factors, terminology,charges, etc. 9
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  12. 12. Introduction to study:My study is that I have to Analysis with regard to Investors base and Investment avenuesin case of insurance companies-“ICICI PRUDENTIAL NEW CHANNEL TIE UP WITHPOST OFFICE Let’s discuss the concept of insurance and a brief introduction aboutthese 2 companies.“Insurance is a contract between two parties whereby one party calledinsurer undertakes in exchange for a fixed sum called premiums, to paythe other party called insured a fixed amount of money on the happeningof a certain event.”It’s hard to think about those you leave behind if something happens to you. Your familycounts 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 yourfamily: a bigger home, a new business, college education, travel, retirement etc.Life insurance is all about making sure your family has adequatefinancial resources to make those plans and dreams come true, if you wereto die prematurelyIt provides financial protection to help your family to manage after your death. Insurancecompanies collect premiums to provide for this protection. A loss is paid out of thepremiums collected from the insuring public and the insurance companies act as trusteesto the amount collectedMany companies are coming with various plans Ulip plan is one of them which provideshuge benefit to the public. It provides insurance as well as investment. 12
  13. 13. Why Life Insurance?You think twice before taking the plunge into buying insurance. Is buyinginsurance a necessity now? Spending an extra amount as premium atregular intervals where you do not see immediate benefits does not seem anecessity at the moment. Well you could be wrong. Buying Insurance cannot be compared withany other form of investment. Insurance gives you a life long benefit and thereturns will definitely come but only when you need it the most i.e. at theright time. Besides buying insurance early in life is one of the wise decisionsyou could take. Because the premium you would be paying would becomparatively lower. Insurance is not about how much more it can offer you when the stockmarket is at its peak. It may not be an attractive investment option. Butweigh the pros and cons and consider how much more it offers at a smallprice. Most important of all it provides you with that unique sense ofsecurity that no other form of investment provides. It gives you a sense offinancial support especially during that time of crisis irrespective of thefluctuations in the stock market. Insurance provides for your career goalsright from your childhood years. 13
  14. 14. If the earning member of the family is no more your childseducational needs will not suffer. In fact his higher education too will beprovided for. You need not spend sleepless nights thinking about how tosave for your childs marriage. Life Insurance will take care of that typicalonce-in-a-life-time spending on marriages. An accident or a disability may be devastating but an insurance policycan be of utmost support for the family during such times too. Besides itprovides for additional benefits such as bonuses. You need not worry aboutyour retirement years. The rising prices, taxes, and your lifestyle will betaken care of easily. And you can relax and spend your old age in comfortand peace.Need for Life InsuranceThe need for life insurance comes from the need to safeguard our family. Ifyou care for your family’s needs you will definitely consider insurance.Today insurance has become even more important due to the disintegrationof the prevalent joint family system, a system in which a number ofgenerations co-existed in harmony, a system in which a sense of financialsecurity was always there as there were more earning members.Times have changed and the nuclear family has emerged. Apart from otherpitfalls of a nuclear family, a high sense of insecurity is observed in it todaybesides, the family has shrunk. Needs are increasing with time andfulfillment of these needs is a big question mark. Insurance provides a sense 14
  15. 15. of security to the income earner as also to the family. Buying insurance freesthe individual from unnecessary financial burden that can otherwise makehim spend sleepless nights. The individual has a sense of consolation that hehas something to fall back on.From the very beginning of your life, to your retirement age insurance cantake care of all your needs. Your child needs good education to mould himinto a good citizen. After his schooling he needs to go for higher studies, togain a professional edge over the others - a necessity in this age wherecutthroat 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 aninsurance policy at the earliest. INSURANCE PROVIDES:- Insurance provides varies benefits to the people. some of those are listing below - 1Risk Coverage 2Child Solutions 3Whole-Life Plans 4Health Protection 15
  16. 16. 5Superior Saving Instrument 6Investment 7Retirement(Pension Plans)1 Board of DirectorsThe ICICI Prudential Life Insurance Company Limited Board comprises reputed peoplefrom 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 16
  17. 17. PROFILE OF INSURANCE INDUSTRYInsurance is a must because of the uncertain future adversities of life.Accidents, illnesses, disability etc are facts of life that can be extremelydevastating. Other than the hospitalization, medication bills these may runup it’s the aftermath of the incident, the physical well being of the individualthat has to be taken into consideration. Will the individual be in a position toearn as before? A pertinent question. But what if he is not? Disability can be 17
  18. 18. taken care of by insurance. Your family will not have to go through the grinddue to your present inability.You think twice before taking the plunge into buying insurance. Is buyinginsurance a necessity now? Spending an extra amount as premium atregular intervals where you do not see immediate benefits does not seem anecessity at the moment. May be later well you could be wrong. BuyingInsurance cannot be compared with any other form of investment. Insurancegives you a life long benefit and the returns will definitely come but onlywhen you need it the most i.e. at the right time. Besides buying insuranceearly in life is one of the wise decisions you could take. Because thepremium you would be paying would be comparatively lower.INDIAN INSURANCE INDUSTRYInsurance industry, as on 1.4.2000, comprised mainly two players: the stateinsurers:Life Insurers: • Life Insurance Corporation of India (LIC) • HDFC Standard Life Insurance Company Ltd. 18
  19. 19. • Max New York Life Insurance Co. Ltd. • ICICI Prudential Life Insurance Company Ltd. • Kotak Mahindra Old Mutual Life Insurance Limited • 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 Dec2000, a National Reinsurer)GIC had four subsidary companies, namely ( with effect from Dec2000,these subsidaries have been de-linked from the parent company and made asindependent insurance companies. 19
  20. 20. 1. The Oriental Insurance Company Limited 2. The New India Assurance Company Limited, 3. National Insurance Company Limited 4. United India Insurance Company Limited.SAHARA 0.61 0.04 20
  21. 21. Company Profile of POST OFFICE GENERAL PROFILE OF THE ORGANISATION, FUNCTIONS AND DUTIES The Department of Posts comes under the Ministry of Communicationsand Information Technology, Government of India, functions under the Ministerfor Communications and Information Technology, and has a Minister ofState for Communications to assist the Minister of Communicationsand Information Technology in the discharge of various functions. The Secretary,Department of Posts, as the Chief Executive of the Department, isalso the Director General, India Post, and the Chairman of the Postal ServicesBoard. 21
  22. 22. Shri. A. Raja is the Minister of Communications and InformationTechnologyShri. Gurudas Kamat is the Minister of State for Communications andInformation Technology.Shri. Sachin Pilot is the Minister of State for Communications and InformationTechnology.Ms. Radhika Doraiswamy is the Secretary (Posts) to Govt. Of India as well asDirector General, Department of Posts and the Chairman of the Postal ServicesBoard. The Postal Services Board, the apex management body of theDepartment, comprises the Chairman and six MembeINR The Members of theBoard hold portfolios of Operations, Development and Personnel. The JointSecretary and Financial Advisor to the Department is a permanentinvitee to the Board. The Board is assisted by a senior staff officer of theDirectorate as Secretary to the Board. Presently, Deputy Director General (FS) isassisting the Board in this capacity. Deputy Directors General, Directors andAssistant Directors General provide necessary support for the Board atHeadquarteINR The Postal Services Directorate is the Headquartersorganization located at Dak Bhawan, New Delhi, to oversee the operations in theprovision of postal services throughout the country.The Postal Services Board comprises the following at present:Ms. Radhika Doraiswamy Secretary (Posts) Chairman, Postal Board & DirectorGeneralMs. Indira Krishna Kumar Member (Personnel), Postal Services BoardMs. Manjula Prasher Member (Operations), Postal Services BoardS. Samant Member (Technology), Postal Services Board 22
  23. 23. Dr. Uday Balakrishnan Member (PLI) & Chairman Investment Board, PostalServices BoardMaj. Gen. V Sadasivam Member (HRD) Postal Services BoardSri P K Gopinath Member (Planning), Postal Services Board For providing postal services, the whole country has been divided into 22 PostalCircles. These Circles manage the day-to-day functioning of the various HeadPost Offices, Sub - Post Offices and Branch Post Offices, through their Regional andDivisional level arrangements.ObjectivesDepartment of Posts is committed to providing universal access to basic postalservices 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 isresponsible for 23
  24. 24. 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.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 24
  25. 25. 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 servicesthrough more cost effective measures. The Licensed Stamp Vendor Scheme,Licensed Postal Agents Scheme and the Panchayat Sanchar Sewa Yojana(PSSY) wereinitiatives that were taken up in this regard. So far 7,697 Panchayat Sanchar SewaKendras(PSSKs) have been opened, including 2,371 PSSKs under the 10 th Plan.Since an assessment of these schemes indicates the need for restructuring them, notargets 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 insuranceproducts through Post Offices. The Department has entered into an agreement withthe Oriental Insurance Company to function as their Corporate Agent for marketingidentified non-life products. This Scheme was launched on a pilot basis throughselect Post Offices in 2 districts each of 7 Circles. It is being gradually expanded,after providing the requisite training to other Circles. 25
  26. 26. Postal Services Postal operations at the post office encompass the entire gamut of the basicpostal services which interalia include: i) Sale of stamps and stationeryii) Booking of registered articlesiii) Booking of insured articlesiv) Booking of value payable articles Remittance of money through money ordersv) and postal ordersvi) Booking of Parcels Traditionally, these services were being provided at manuallyoperated counte INR Considering the vital need for providing the benefit oftechnology to the customers, the counter operations are now being progressivelycomputerised to provide a greater range of service to the customer from a singlewindow leading to services being more responsive, and error free.Mail Operations Mail processing, transmission and delivery are the core activities of theDepartment. Mail is collected from 0.60 Million letter boxes in the country. This isprocessed by a network of 466 Railway Mail Service Offices, and conveyed by road,rail and airlines all over the country.PhilatelyThe philatelic activities of India Post include:- Designing, printing and distribution of special/commemorative postage i) stamps and other postage stamps/ service postage stamps. Items of postal stationery like Envelope, Inland Letter Card, Postcard,ii) Aerogram and Registered Cover etc. 26
  27. 27. Monitoring and promotion of Philately/conduct of philatelic exhibitionsiii) within the country, participation in international and world exhibitionsiv) 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 27
  28. 28. devastating. Other than the hospitalization, medication bills these may runup it’s the aftermath of the incident, the physical well being of the individualthat has to be taken into consideration. Will the individual be in a position toearn as before? A pertinent question. But what if he is not? Disability can betaken care of by insurance. Your family will not have to go through the grinddue to your present inability.You think twice before taking the plunge into buying insurance. Is buyinginsurance a necessity now? Spending an extra amount as premium atregular intervals where you do not see immediate benefits does not seem anecessity at the moment. May be later well you could be wrong. BuyingInsurance cannot be compared with any other form of investment. Insurancegives you a life long benefit and the returns will definitely come but onlywhen you need it the most i.e. at the right time. Besides buying insuranceearly in life is one of the wise decisions you could take. Because thepremium you would be paying would be comparatively lower. 28
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  32. 32. The company mainly depends on advisors. The advisors areconsidered as the brand ambassadors of the company or the workingpartner who doesn’t have to invest to get returns but just work withthe company to make money. Advisors main job is to sell policy andin return the advisors get huge return like high commission, rewards,recognition etc. He is, for all purposes, an authorized salesman forinsurance. Advisors can become the Unit Manager of the company if theypass the pinnacle program. ICICI Prudential has recruited and trainedabout 56,000 insurance advisors to interface with and advisecustomers. Further, it leverages its state-of-the-art IT infrastructure toprovide superior quality of service to customers. Manager will get a fixed salary and the commission on thepolicies sold by his advisor and the commission of the policies whichhe has already sold. Tiger team manager is one who gets to sell thepolicy and get commission, train the advisors about the product andhe is also a paid up employee of the company. ICICI GROUP 32
  33. 33. VISIONTo be the dominant Life, Health and Pensions player built on trust byworld-class people and servicehope 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 33
  34. 34. VALUESVery member of the ICICI Prudential team is committed to 5 corevalues: Integrity, Customer First, Boundary less, Ownership, andPassion. These values shine forth in all we do, and have become thekeystones of our success Brief Detail of the Company:/History 34
  35. 35. ICICI Prudential Life Insurance Company is a joint part of ICICI Bank, apremier financial powerhouse, and Prudential policy, a leading international financial services group headquartered in the United Kingdom. ICICIPrudential was amongst the first private sector insurance companies to begin operations in December 2000 after receiving approval from Insurance Regulatory Development Authority (IRDA). ICICI Prudentials 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 aNational 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 Prudentials 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. 1private 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 35
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  37. 37. Distribution ICICI Prudential has one of the largest distribution networks amongst private life insurers in India. As of December 31, 2006 it had commencedoperations in over 360 cities and towns in India, stretching from Bhuj in thewest 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 ICICIBank, 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.Product Offered By POST OFFICE & ICICI PRUDENTIAL PRODUCT OFFERED BY POST OFFICE CHANNEL 37
  38. 38. 1 .NSC2 .PPF3 .SENIOR CITIZEN SCHEMES4 .PO MIS5 .TIME DEPOSITS6 .FIXED DEPOSITS7 .KISAN VIKAS PATRA1. NSC,TIME DEPOSITS,FIXED DEPOSITS,KISAN VIKAS PTRAMedium term fixed maturiy schemes2.Senior citizen schemes,po mis Medium term regular incom schemes3.PPF long term fixed maturity schemes1.Kisan vikas patra min/max investment min 100rs 500rs 1000rs 10000rs50000rs there is no maximum limit2. Term 8years7months3. interest rates 8.25%compunded half benefits at the time of investment –no rebate availableInterim withdrawal taxableWithdrawal on maturity taxable 38
  39. 39. office time depositsMin/max investment min200rs and maximum is no limitTerm 1,2,3 and 5yearsInterest rate1years-6.25%2years-6.5%3years-7.25%5years-7.5%Quartely compoundingTax benefits-at the time of investment- rebate available up to 1lac undersec80c for 5year time depositsInterim withdrawal-taxableWithdrawal on maturity-taxable3.NSCMin/max investment-100rs 500rs 1000rs 10000rs there is no maximum limitTerm-6yearsInterest rate-8%per annum half yearly compounded(rs.100 becomes 160.10after maturity period of six years) 39
  40. 40. Tax benefits-at the time of investment rebate available on investment andaccrued interest up to 1 lac under sec 80cInterim withdrawal –N/AWithdrawal 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 TAX benefits-at the time of investment- no rebate available interim payment-taxable SENIOR CITIZEN SCHEMES-MIN/MAX-min1000 max15laks 40
  41. 41. 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 To review the whole system of POST OFFICE and ICICI PRUDENTIAL LIFE INSURANCE in terms of origin, growth and rationale. 41
  42. 42.  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
  43. 43. 2 Insurance PlansICICI Prudential has a wide array of insurance plans that have beendesigned with the philosophy that different individuals are bound to havediffering insurance needs.The ideal insurance plan is one that addresses the exact insurance needs ofthe individual that will depend on the age and life stage of the individualapart from a host of other factors.Life Insurance Plans:Under Life insurance plans, ICICI Prudential offers plans under thefollowing major need categories: • Education Insurance Plans • Wealth Creation Plans • Premium Guarantee plans • Protection Plans 43
  44. 44. Pension & Retirement Solutions:The primary objective of a pension plan is to help you provide for yourfinancial needs in your post retirement years. You will find a PensionPlanning Calculator on the site, meant to make your pension plan review assimple as possible. The calculator is the first step in your Pension Planscheme, there are othe steps towards getting the Indian pension policy youneed.Click here to know more about our pension plan solutions. • LifeStage Pension • LifeTime Super Pension • LifeLink Super Pension • ForeverLife 44
  45. 45. Health Product Suite:Under Health Product Suite, ICICI Prudential offers plans under thefollowing major need categories:Hospitalisation Plans • MediAssure • Hospital CareCritical Illnessl Pans • Crisis CoverCancer Products 45
  46. 46. • Cancer CareDiabetes Products • Diabetes Care Active • Diabetes Assure3 Education Insurance Plans One of your most important responsibilities as a parent is to ensurethat your child gets the best possible education that can be provided. ICICI Prudential offers a wide portfolio of education insuranceplans that are designed to provide peace of mind to you, as a parent, thatyour childs education will be secure. These plans ensure that money is madeavailable at the crucial junctures in a childs education - Class X, Class XII,graduation and post-graduation - to fund crucial commitments for the childsfuture. Importantly, education insurance plans ensure that in the unfortunateevent of the death of a parent, the childs education continues unhampered. 46
  47. 47. Under the education insurance plans platform, ICICI Prudential bringsthe following products to you. Please click on the product name to knowmore about the plans.Plan Name Plan TypeSmartKid New Unit-linked Unit LinkedRegular PremiumSmartKid New Unit-linked Unit LinkedSingle PremiumSmartKid Regular Premium Traditional4 Wealth Creation Plans Wealth Creation Plans give the customer the dual benefit ofprotection along with the potentially higher returns of market-linkedinstruments. The most important benefit of ULIPs is the flexibility they givethe customer in choosing the premium amount and also choosing theunderlying fund in which this money is to be invested. Wealth creation plansalso offer the customer more liquidity options as compared to traditionalplans. As such, ULIPs are ideal for customers who want the protection of a 47
  48. 48. life cover to be allied to the returns of market linked instrument – givingthem an unmatched combination of benefits. Under the wealth creation platform, ICICI Prudential brings thefollowing products to you. Please click on the product name to know moreabout the plans. Plan Name Plan Type ICICI Pru Secure Save Unit Linked ICICI Pru Wealth Advantage Unit Linked ICICI Pru Life Stage Assure Unit Linked ICICI Pru Life Time Gold Unit Linked ICICI Pru Premier Life Gold Unit Linked ICICI Pru Life Link Super Unit Linked ICICI Pru Life Stage RP Unit Linked 48
  49. 49. 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 AnnuityGroup PlansICICI Prudential offers a suite of group insurance plans that are asfollows:• 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
  52. 52. Research Methodology deals with, the procedure adopted to carryout the study.According to green and Tull:“A research design is the specification of methods and proceduresacquiring the information needed It is the overall operational pattern orframework of the project that stipulates which information is to becollected from which sources by what procedures’’. For conducting thestudy, the researcher has adopted both primary as secondary method ofdata cllection.TYPE OF RESEARCHResearch refers to the search for knowledge. It can be defined asscientific and systematic search for pertinent information on a specifictopic. It is careful investigation or enquiry especially through search fornew facts of any branch of knowledge.Research plays an important role in the project work. The result of theproject is completely based upon the research of the facts and figures 52
  53. 53. collected through the different ways of research. That is why it is alsocalled a movement from known to unknown. Research is the originalcontribution 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 DesignIn the data collection method, we have collected both primary andsecondary data to meet our objective.Primary data: The primary data was collected by a survey based on thequestionnaire. It was formulated on the basis of information gathered 53
  54. 54. by me with the help of Miss Taruna Arora who provide usefulguidelines 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 handinformation that is called primary data. The source of primary data inmy research is questionnaire and observation method. The secondarydata were also used in my report preparation. This is collected fromcompany record and from internet.Research Approach: The required information in the form of data is collected throughsurvey method, with the help of personal interview throughquestionnaire method.Sampling plan: 54
  55. 55. There is a stage where the planning is done about the sampleunits, sample size, sampling procedures, etc.Sample units: This means, which is to be surveyed. So as mention earlier that thesample units is potential peoples.Sample size: The sample size means how many peoples should be surveyed. Sothat 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 datain the form of questionnaire from respondents.Research Instruments: Once the source of data collection is decided then comes theinstrument for data collection or the research instrument. In this survey 55
  56. 56. method a questionnaire was framed. This is Philip by the potentialpeople though personal interview SWOT ANALYSEStrength • 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
  57. 57. • Competitors are in the market offer same product offered by the difference in the premium and offering. • Lack of customer awarenessOpportunity . • 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
  58. 58. Results and Disscussions/Findings No. of Respondents Yes No 100 72 28 Do you invest? No. of respondents 80 70 60 50 40 30 20 10 0 Yes No 58
  59. 59.  If not, why? What is the reason for that? No. of Lack of Full of Lack of Lack of Inadequate Respondents knowledge risk guidance interest funds 28 6 3 3 5 11 Lack of knowledge Full of risk 6, 21% 11, 39% Lack of 3, 11% guidence 5, 18% 3, 11% Lack of interest Inadequate funds 59
  60. 60.  If not investing, are you interested in investing? No. of Respondents Yes No 28 20 8 8, 29% Yes No 20, 71% 60
  61. 61.  What comes do you perceive first while investing? No. of Security High saving Tax Others Respondents returns benefits 72 15 24 17 16 0 30 No of respondents 24 25 20 17 16 15 15 Series1 10 5 0 0 Security High saving Tax others returns benefits 61
  62. 62. No. of Respondents Yes No 72 53 19 Are you adequately insured? 62
  63. 63. 19, 26% Yes No 53, 74%  Which Plan do you prefer and invest?No. of Term Endowmen Money Pension Mediclaim ChildRespondents Plan t Plan Back Plan plan plan Plan72 12 10 27 10 8 5 63
  64. 64. No. of Security High saving Tax others Respondents returns benefits 72 15 15 16 21 5 Specify the reasons for investing in a particular plan: 64
  65. 65. 25 21 20 16 No. of respondents 15 15 15 10 5 5 0 Security High returns saving Tax benefits others Are you satisfied with the investment decision? No. of Respondents Highly Satisfied Modera unsatisfied Highly Satisfied te unsatisfied 65
  66. 66. 72 6 39 19 6 2 50 39 No of respondents 40 30 19 Series1 20 10 6 6 2 0 Highly Satisfied Moderate unsatisfied Highly Satisfied unsatisfied  If not, what are the reasons behind that:No. of Lack Of Full of Lack of Lack of Inadequate More thanRespondents knowledge risk guidance interest funds one reason 66
  67. 67. 8 1 1 1 1 1 3 Term Plan Endowment 5 12 Plan 8 10 Money Back 10 Plan Pension Plan 27 Mediclaim plan Child plan 3.5 3 3 2.5 2 1.5 1 1 1 1 1 1 0.5 0 Inadequate Full of risk one reason guidance Lack of interest knowledge More than Lack of Lack Of funds 67
  68. 68.  What do you think who can better guide you for investment? No. of Respondents Broker/agent Banks Investment others consultant 72 13 17 35 7 68
  69. 69. Broker/agent 7, 10% 13, 18% Banks 17, 24% Investment 35, 48% consultant others Which Company do you prefer for investing? No. of Respondents ICICI PRU POST Others OFFICE 72 28 36 8 69
  70. 70.  Are you satisfied with the behavior/knowledge of broker/agent of a company preferred by you? No. of Highly Satisfied Moderat unsatisfie Highly Respondents Satisfied e d unsatisfied 72 8 41 15 7 1 70
  71. 71. 50 41 No of respondents 40 30 Series1 20 15 8 7 10 1 0 Highly Satisfied Moderate unsatisfied Highly Satisfied unsatisfied CONCLUSION Competition will surely cause the market to grow beyondcurrent rates, create a bigger "pie," and offer additional consumerchoices through the introduction of new products, services, and priceoptions. Yet, at the same time, public and private sector companieswill be working together to ensure healthy growth and developmentof the sector. Challenges such as developing a common industry 71
  72. 72. code of conduct, contributing to a common catastrophe reserve fund,and chalking out agreements between insurers to settle claims to thebenefit of the consumer will require concerted effort from bothsectors.The market is now in an evolving phase where one can expect a lotof actions in coming days. The current impediments for foreignparticipation – like 26% equity cap on foreign partner, ill definedregulatory role of IRDA (Insurance Regulatory development Authority-the watchdog of the industry) in pension business etc.—are expectedto be removed in near future. The early-adopters will then have aclear advantage compared to laggards in gaining the market shareand market leadership. The will need to make sure right now that alltheir infrastructure is in place so that they can reap the benefit of an"unlimited potential." 72
  73. 73. BIBLIOGRAPHY Books: 1Insurance(meaning and concept)-Published by IRDA 2The Mc-Grew Hill Investors Desk Reference,Mc-Graw Hill Publications, Ellie Williams Clinton, page-301-303 3Life Insurance, Indiana University Press. Belth M. Joseph 4Statistical Methods by S.P. Gupta, 34th edition, published 73
  74. 74. by Sultan Chand & Sons. 5Research Methodology by C.R. Kothari, Second Edition published by New Age International (P) Ltd. 6Business Research Methodology-Cooper & Sindler,4th Edition 7Brouchers of different products of selected companies 8Handbook of ICICI PrudentiAL 9VISIT IN VARIOUS POST OFFICE DISTT UNAWebsites: 2 74
  75. 75. 4www.irda.org5www. 75