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  1. 1. AN SUMMER INTERNSHIP REPORT ON “NEED OF INSURANCE” , From ICICI Prudential Life Insurance Pvt. Ltd. In partial fulfillment for the course of Post Graduate Program in Marketing-Finance. (Session 2011-2013) Master Of Business AdministrationSUBMITTED TO:- SUBMITTED BY:-Mrs. Sunita dwivedi ANUJ CHAUHAN MBA- Finance + Marketing Roll No.-MBAN1MG11026
  2. 2. I Express My Sincere And Deepest Gratitude To Mr. ManojSharma, Senior Agency Manager Of ICICI Prudential LifeInsurance Pvt. Ltd. For His Excellent Guidance And PreciseCriticism. It Is Entirely Due To His Blessings VigilantSupervision And Generous Help That I Could Complete ThisProject Work. I Express Special Thanks To My Mentor Mrs.Sunita Dwivedi For Providing Me The Format For PreparingThis Project Work.
  3. 3. I Anuj Kumar Chauhan son/daughter of Ravindra Nath Chauhancertify that the project report entitled NEED OF INSURANCE preparedby me is my personal and an authentic work under the guidance of Mr.Manoj Sharma, Senior Ageny Manager(ICICI Prudential Life InsurancePvt. Ltd., Gwalior).Date : ……………… Signature of the Student:Place : …………….. Anuj Kumar Chauhan MBA(Finance + Marketing) 4th Trimester- G1 Roll No.: MBAN1MG11026
  4. 4. PREFACEGenerally the whole project is based on Human capital, Insurances,Knowledge asset protection, Risk management. The purpose of this paperis to analyze how insurances can be used in the management of humancapital risks. The issue is highlighted in the context of small and medium-sized enterprises (SMEs).Design/methodology/approach – Building onliterature on intellectual liabilities, the paper provides a comprehensivepicture of human capital related risks, emphasizing their effects on SMEs.Findings – The paper divides the identified human capital risks intoinsurable and uninsurable risks, determining a specific insurance solutionfor each insurable risk. Based on the results, pension, accident, health,life, liability and crime insurances are the most useful types of insurancesfor the management of human capital risks. Researchlimitations/implications – The generalisability of the findings is limitedby the methodological choice. Practical implications – This paper createsa basis for the better recognition of the various human capital risks incompanies and describes how insurances can be applied for themanagement of these risks.
  5. 5. Contents1 Chapter - Industry Profile2 Chapter - Organizational Profile3 Chapter - Need for the Study4 Chapter - Literature Survey5 Chapter - Research Methodology6 Chapter - Analysis of the Study7 Chapter - Findings and suggestions Bibliography Appendix
  6. 6. INDUSTRY PROFILEIndian banking is the lifeline of the nation and its people. Banking hashelped in developing the vital sectors of the economy and usher in a newdawn of progress on the Indian horizon. The sector has translated thehopes and aspirations of millions of people into reality. But to do so, ithas had to control miles and miles of difficult terrain, suffer theindignities of foreign rule and the pangs of partition. Today, Indian bankscan confidently compete with modern banks of the world.In the Indian Banking System, Cooperative banks exist side by side withcommercial banks and play a supplementary role in providing need-basedfinance, especially for agricultural and agriculture-based operationsincluding farming, cattle, milk, hatchery, personal finance etc. along withsome small industries and self-employment driven activities.Banking in India originated in the first decade of 18th century with TheGeneral Bank of India coming into existence in 1786. This was followedby Bank of Hindustan. Both these banks are now defunct. After this, theIndian government established three presidency banks in India. The firstof three was the Bank of Bengal, which obtains charter in 1809, the othertwo presidency bank, viz., the Bank of Bombay and the Bank of Madras,were established in 1840 and 1843, respectively. The three presidencybanks were subsequently amalgamated into the Imperial Bank of India(IBI) under the Imperial Bank of India Act, 1920 – which is now knownas the State Bank of India.Indian Insurance Market – HistoryInsurance has a long history in India. Life Insurance in its current form wasintroduced in 1818 when Oriental Life Insurance Company began itsoperations in India. General Insurance was however a comparatively lateentrant in 1850 when Triton Insurance company set up its base in Kolkata.History of Insurance in India can be broadly bifurcated into three eras: a)Pre Nationalisation b) Nationalisation and c) Post Nationalisation. LifeInsurance was the first to be nationalized in 1956. Life InsuranceCorporation of India was formed by consolidating the operations of variousinsurance companies. General Insurance followed suit and was nationalizedin 1973. General Insurance Corporation of India was set up as thecontrolling body with New India, United India, National and Oriental as itssubsidiaries. The process of opening up the insurance sector was initiatedagainst the background of Economic Reform process which commencedfrom 1991. For this purpose Malhotra Committee was formed during thisyear who submitted their report in 1994 and Insurance RegulatoryDevelopment Act (IRDA) was passed in 1999. Resultantly Indian Insurancewas opened for private companies and Private Insurance Companyeffectively started operations from 2001.
  7. 7. Profile of Life Insurance Companies All private life insurance companies and public sector company operating inIndia during 2000-01 to 2009-10 were taken for the study. Life InsuranceCorporation which is the only public sector life insurer and twenty two privatesector life insurers, most of them joint ventures between Indian groups andglobal insurance giants, were taken for the study.PUBLIC SECTORLife Insurance Corporation of IndiaLife Insurance Corporation of India (LIC) is an autonomous body authorized torun the life insurance business in India with its Head Office at Mumbai. About154 Indian insurance companies, 16 non-Indian companies and 75 providentfund societies were operating in India at the time of nationalization.Nationalization was accomplished in two stages; initially the management ofthe companies was taken over by means of an Ordinance, and later, theownership by means of a comprehensive bill. The Parliament of India passedthe Life Insurance Corporation Act on the 19th of June 1956, and the LifeInsurance Corporation of India was created on 1st September, 1956, with theobjective of spreading life insurance much more widely and in particular to therural areas with a view to reach all insurable persons in the country, providingthem adequate financial cover at a reasonable cost. Under Indian conditions there are only two broad classifications ofinsurance companies: life and non-life insurance. The life insurance activitiesare solely managed by Life Insurance Corporation of India in the public sector.The Life Insurance Corporation (LIC) was established about 55 years ago witha view to provide an insurance cover against various risks in life. A monoliththen, the corporation, enjoyed a monopoly status and became synonymous withlife insurance.1964 saw the introduction of computers in LIC of India. Unit Record Machinesintroduced in late 1950‟s were phased out in 1980‟s and replaced byMicroprocessors based computers in Branch and Divisional Offices for BackOffice Computerization. Standardization of Hardware and Softwarecommenced in 1990‟s. Standard Computer Packages were developed andimplemented for Ordinary and Salary Savings Scheme (SSS) Policies.LIC of India had 5 zonal offices, 33 divisional offices and 212 branch offices,apart from its corporate office in the year 1956.Today LIC of India functions with 3250 fully computerized branch offices, 100divisional offices, 7 zonal offices and the corporate office. LIC‟s Wide AreaNetwork covers 100 divisional offices and connects all the branches through aMetro Area Network. LIC of India has tied up with some Banks and Serviceproviders to offer on-line premium collection facility in selected cities. LIC‟sECS and ATM premium payment facility is an addition to customerconvenience. Apart from on-line Kiosks and IVRS, Info Centres have been
  8. 8. commissioned at Mumbai, Ahmedabad, Bangalore, Chennai, Hyderabad,Kolkata, New Delhi, Pune and many other cities. With a vision of providingeasy access to its policyholders, LIC of India has launched its Satellite Samparkoffices. The satellite offices are smaller, leaner and closer to the customer.PRIVATE SECTORThe Government having tried various models for the insurance industry such asprivatization with negligible regulation (pre 1956) and nationalization (1956-2000) and having observed sub optimal performance of the sector, resorted toadopting a hybrid model of both these, resulting in privatization of the sectorwith an efficient regulatory mechanism (post 2000). This was initiated with theaim of making the industry competitive so that there are more players offeringa greater variety of products over a large section of the population. Thefollowing companies are entitled to do insurance business in India. Table : II Private Life Regt No. Date of Regt. Name of the Insurer Insurance Companies Sr.No. 1 101 23/10/2000 HDFC Standard Life Insurance Co. Ltd. 2 104 15/11/2000 Max New York Life Insurance Co.Ltd. 3 105 24/11/2000 ICICI Prudential Life Insurance Co.Ltd. 4 107 10/01/2001 Kotak Mahindra old mutual Life Insurance Co.Ltd. 5 109 31/01/2001 Birla Sun Life Insurance Co.Ltd. 6 110 12/02/2001 TATA AIG Life Insurance Co. Ltd. 7 111 30/03/2001 SBI Life Insurance Co.Ltd. 8 114 02/08/2001 ING Vysya Life Insurance Co.Ltd. 9 116 03/08/2001 Bajaj allianz Li Bajaj Allianz Life Insurance Co.Ltd. 10 117 06/08/2001 Met Life India Insurance Co. Ltd. 11 121 03/01/2002 Reliance Life Insurance Co. Ltd.
  9. 9. 12 122 14/05/2002 Aviva Life Insurance Co. Ltd. 13 127 06/02/2004 Sahara India Life Insurance Co.Ltd. 14 128 17/11/2005 Shriram Life Insurance Co.Ltd. 15 130 14/07/2006 Bharti Axa Life Insurance Co.Ltd. 16 133 04/09/2007 Future Generali India Life Insurance Co.Ltd. 17 135 19/12/2007 IDBI Fortis Life Insurance Co. Ltd. 18 136 08/05/2008 Canara HSBC Oriental Bank of Commerce Life Insurance Co. Ltd. 19 138 27/06/2008 Aegon Religare Life Insurance Co. Ltd. 20 140 27/06/2008 DLF Pramerica Life Insurance Co. Ltd. 21 142 26/12/2008 Star Union Dai-ichi Life Insurance Co. Ltd. 22 143 05/11/2009 India First Life Insurance Co. Ltd. Table : IIIPrivate Life Name Of The Indian Promoter ForeignInsurance Insurer PromoterCompanies AndTheir PromoterSr.No.1 HDFC Standard HDFC Ltd. Standard Life Life Insurance Assurance, UK Co.Ltd.2 Max New York MAX India New York life, Life Insurance USA Co.Ltd.3 ICICI Prudential ICICI Bank Prudential, UK Life Insurance Co.Ltd.4 Kotak Mahindra Kotak Mahindra Old mutual, old mutual Life Bank South Africa Insurance Co.Ltd5 Birla Sun Life Birla Group Sun Life, Canada Insurance Co.Ltd.
  10. 10. 6 TATA AIG Life TATA Group American Insurance Co. International Ltd. Assurance Co., USA7 SBI life State Bank of BNP Paribas Insurance India Assurance, Co.Ltd. France8 ING Vysya Life VYSYA Bank ING insurance Insurance International, Co.Ltd. Netherlands9 Bajaj Allianz Bajaj Auto Allianz, Life Insurance Germany Co.Ltd.10 Met Life India J & K Bank Met life Insurance Co. International Ltd. Holdings Ltd. ,USA11 Reliance Life Reliance Capital - Insurance Co. Ltd.12 Aviva Life Dabour Gruop Aviva Insurance Co. International Ltd.13 Sahara India Life Sahara Group - Insurance Co.Ltd.14 Shriram Life Shriram Group Sanlam Group, Insurance South Africa Co.Ltd.15 Bharti Axa Life Bharti Group AXA Holdings, Insurance France Co.Ltd.16 Future Genrali Future Group Pantaloon Retail India Life Ltd Sain Insurance Co. Marketing Ltd. Network Pvt. Ltd. (SMNPL), Generali, Italy17 IDBI Fortis Life IDBI Bank Fedral Bank Insurance Co. Fortis, Ltd. Netherlands18 Canara HSBC Canara Bank HSBC Insurance Oriental Bank of (Asia Pacific) Commerce Life Holdings Ltd and Insurance Co. Oriental Bank of Ltd. Commerce19 Aegon Religare Religare Aegon, U.S. Life Insurance Enterprises
  11. 11. Co. Ltd. Limited 20 DLF Pramerica DLF Group PFI , U.S. Life Insurance Co. Ltd. 21 StarUnion Dai- Bank of India, Dai-ichi Mutual ichi Life Union Bank of Life Insurance Insurance Co. India Co. Japan Ltd. 22 India First Life Bank of Baroda, Legal General, Insurance Co. Andhra Bank U.K. Ltd. Table : IV Insurer WISE LIFE INSURANCE OFFICES(As on 2000- 2001- 2002- 2003- 2004-05 2005-06 2006-07 2007-08 2008-09 2009-1031st 01 02 03 04March)LifeInsurerHDFC 2 4 18 26 90 150 448 569 609 568standardLifeInsuranceCo. Ltd.MAX 3 15 23 33 64 84 118 194 705 705NEWYORKLifeInsuranceCo. Ltd.ICICI 6 14 29 69 109 175 583 1958 2102 1921PrudentialLifeInsuranceCo. Ltd.Kotak NA 9 28 39 43 46 75 151 198 215MahindraLifeInsuranceCo. Ltd.Birla Sun 2 19 29 41 53 97 148 538 660 652LifeInsuranceCo. LtdTATA NA 6 13 26 40 72 89 283 454 439AIG LifeInsuranceCo. Ltd.SBI Life NA 5 10 19 31 46 138 200 489 494InsuranceCo. LtdING NA 4 16 26 38 68 183 265 265 254VysyaLifeInsurance
  12. 12. Co. LtdBAJAJ NA 17 33 49 153 567 877 1007 1164 1151ALLIANZ LifeInsuranceCo. Ltd.MET Life NA 3 8 16 35 43 53 94 190 255IndiaInsuranceCo. Ltd.Reliance NA 17 35 48 80 157 159 745 1145 1247LifeInsuranceCo. LtdAVIVA NA 3 12 22 50 110 140 213 224 186LifeInsuranceCo.Ltd.SAHARA NA NA NA 2 18 18 33 33 49 49India LifeInsuranceCo.Ltd.SHRIRA NA NA NA NA NA 11 12 53 98 162M LifeInsuranceCo. Ltd.Bharti NA NA NA NA NA 10 16 77 200 203Axa LifeInsuranceCo. Ltd.Future NA NA NA NA NA NA NA 9 93 90GeneraliIndia LifeInsuranceCo. Ltd.IDBI NA NA NA NA NA NA NA 2 33 37Fortis LifeInsuranceCo. Ltd.Canara NA NA NA NA NA NA NA NA 32 33HSBCOrientalBank ofCommerce LifeInsuranceCo. Ltd.DLF NA NA NA NA NA NA NA NA 15 32PremerciaLifeInsuranceCo. Ltd.Star NA NA NA NA NA NA NA NA 2 7UnionDai-IchiLifeInsuranceCo. Ltd.India First NA NA NA NA NA NA NA NA NA 2LifeInsuranceCo. Ltd.
  13. 13. Life 2186 2190 2191 2196 2197 2220 2301 2522 3030 3250InsuranceCorporation ofIndia NAME OF THE PLAYER MARKET SHARE (%) Name of the Player Market share (%) LIFE INSURANCE CORPORATION OF INDIA 82.3 ICICI PRUDENTIAL 5.63 BIRLA SUN LIFE 2.56 BAJAJ ALLIANZ 2.03 SBI LIFE INSURANCE 1.80 HDFC STANDARD 1.36 TATA AIG 1.29 MAX NEW YARK 0.90 AVIVA 0.79 OM KOTAK MAHINDRA 0.51 ING VYSYA 0.37 MET LIFE 0.21
  14. 14. ORGANIZATIONAL PROFILEICICIThe World Bank established ICICI LTD in 1955, the Government ofIndia and t h e I n d i a n Industry, promote Industrial development of India by providing project andcorporate finance to Indian industry. ICICI has grown from adevelopment bank to a financial conglomerate and has become one of thelargest public financial institutions of India. ICICI has financed almostall major sector of the economy, covering 6848 companies and16851projects. In the fiscal year 2002- 2003, ICICI had disbursed a totalof Rs 45673 billion. Assets worth.1676.59 billion as on 31stof march 2005 a n d c u s t o m e r 6 m i l l i o n a n d 5 m i l l i o n p o l i c y h o l d e r a c c o u n t . M u l t i c h a n n e l network, 573branches and 2000+ATMsPRUDENTIALPrudential was founded in 1848. Prudential is the larg e s t l i f e i n s u r a n c e company in the United Kingdom.Provides retail financial services products and services to morethan 20 million customers, policyholder and unit holders and managesover £300 billion of funds worldwide (as of 31 December 2006).InAsia, Prudential is the leading European life insurancecompany with life operations in Chin a, Hong Kong, India,Indonesia, Japan,Korea, Malaysia, the Philippines,Singapore,Taiwan, Thailand,Vietnam. Prudential is the se condo largest retail fund manager for Asian sourced assets ex-Japanas at June 2006. Its fund management business has expandedinto a total of ten markets.ICICI + PRUDENTIAL (JOINT VENTURE)A Joint venture ICICI and Prudential of UKICICI Prudentialstarted its operation in December 2000The key objective ofICICI prudential is to provide the Indian citizen to suit avariety of needs.
  15. 15. ICICI Prudential Life Insurance:ICICI Prudential Life Insurance Company is a joint venture betweenICICI Bank, a premier financial powerhouse and prudential plc, a leadinginternational financial services group headquartered in the UnitedKingdom. ICICI Prudential Life Insurance Company is a joint venturebetween ICICI Bank – one of India‟s foremost financial servicescompanies-and Prudential plc – a leading international financial servicesgroup headquartered in the United Kingdom. Total capital infusion standsat Rs. 47.80 billion, with ICICI Bank holding a stake of 74% andPrudential plc holding 26%.ICICI was established in 1955 to lend money for industrial development.Today, it has diversified into retail banking and is the largest private bankin the country. Prudential plc was established in 1848 and is presently thelargest life insurance company. Total capital infusion stands at Rs. 33.62billion, with ICICI Bank holding a stake of 74% and Prudential plcholding 26%.They began their operations in 24th November, 2000 after receivingapproval from Insurance Regulatory Development Authority (IRDA).Today, their nation-wide team comprises of over 1,000 offices, over263,000 advisors; and 22 bancassurance partners. ICICI Prudential wasthe first life insurer in India to receive a National Insurer FinancialStrength rating of AAA from Fitch ratings. For three years in a row,ICICI Prudential has been voted as Indias Most Trusted Private LifeInsurer, by The Economic Times - AC Nielsen ORG Marg survey ofMost Trusted Brands.It began its operations in December 2000 after receiving approval fromInsurance Regulatory Development Authority (IRDA). Today, theirnation -wide reach includes 1,960 branches (inclusive of 1,096 micro-offices), over 237,000 advisors; and 6 bank assurance partners. For three years in a row, ICICI Prudential has been voted as India‟sMost Trusted Private Life Insurer, by The Economic Times – AC NielsenORG MARG survey of „Most Trusted Brands‟. As they grow theirdistribution, product range and customer base, they continue to tirelesslyuphold their commitment to deliver world-class financial solutions tocustomers all over India.
  16. 16. For the past nine years, ICICI Prudential Life has retained itsleadership position in the life insurance industry with a wide range offlexible products that meet the needs of the Indian customer at every stepin life. ICICI Prudential Life has one of the largest distribution networksamongst private life insurers in India. It has a strong presence acrossIndia with 1,960 branches (including 1,096 micro-offices) and an advisorbase of over 230,000 (as on December 31, 2009). Insurance Solutions for Individuals: ICICI Prudential LifeInsurance offers several novel, customer-centric products for customersat every stage of life. The products and services offered by theorganization are in various fields, such as: Protection Plans:1. Save ‘n’ Protect: It‟s a perfect plan to collect funds as savings and beprotected by the insurance policy.2. Cash back: It‟s a policy with a combination of three benefits periodicliquidity, protection & savings.3. Home Assure: It is a policy where you can cover your homeloan which is a term assurance plan.4. Pure Protect: It secures your life and your family in case of anyunforeseen situation. It is a term plan which is a flexible andinexpensive product.5. Life Guard: It is a cover which is available at a low cost. This plancomes with 2 options –level term assurance with return of premium &single premium. Premium Guarantee Plans:1. Invest Shield Cash Back : It provides a premium guarantee and alsobalancing the returns, safety & liquidity. It is a unit linked plan.2. Invest Shield Life New : A plan where the customer is guaranteedthat he will at least get back his premiums. It is a unit linked plan whichalso provides premium guarantee and the customer gets the benefits ofhigh returns. The policy also offers a protection to the family with a lifeinsurance cover. Education Insurance Plans:
  17. 17. 1. Smart Kid Regular Premium : It is a tradional planwhere funds are provided for the needs of the child inthe future.2. Smart Kid New Unit-linked Regular & Single Premium : Thepolicy is made in such a way that the child receives money at a stage,for his educational needs. Wealth Creation Plans:1. Premier Life Gold: Premier Life Gold helps with long-term wealthcreation .It is a limited premium paying plan. And from the second yearonwards it also provides flexibility of premium reduction.2. Life Stage RP : The Life Stage RP is unit linked plan that providesyou with a portfolio strategy and keeps distributing your funds acrossthe different asset classes depending on your profile.3. Wealth Advantage: It‟s an exclusive whole life single premium unitlinked plan that provides long term coverage up to the age of 70 years.And you have the option of withdrawing your funds systematically.4. Lifetime Gold: This plan is a unit linked plan from which you canget high returns over a long term with easy investment options. It offers8 fund options – Preserver, Protector, Return Guarantee Fund, Balancer,Flexi Balanced Multiplier, R.I.C.H and Flexi Growth.5. Life Stage Assure: A unit linked insurance plan that providesGuaranteed Maturity Addition of 100%- 450% of first year premiumbased on the term and number of premiums paid. Also your funds areallocated across several asset class based on your profile.6. Life Link Super: It‟s a single premium unit linked insurance whichoffers premium allocation along with a chance to get high returns overthe long term, and your family is also protected by this plan. Group Plans:1. Group Term Insurance Plan: It‟s a flexible group term plan whichprovides an inexpensive cover to members of a group. The cover iseither given based on uniform or based on designation/rank or a multipleof salary. The benefit under the policy is paid to the beneficiarynominated by the member on his/her death.2. Group Gratuity Plan: The plan helps employers fund their statutorygratuity obligation in a scientific manner and also avail of tax benefits asapplicable to approved gratuity funds.3. Group Super Annuation Plan: This plan offers a flexible marketlinked scheme that provides substantial benefits to both employers andemployees. Both defined contribution (DC) and defined benefit (DB)schemes are offered to optimize returns for members of the trust and
  18. 18. rationalize cost. Members have the option of choosing from variousannuity options or opting for a partial commutation of the annuity at thetime of retirement.4. Annuity Solutions: This plan has annuity products which give youincome and help you realize your needs. In addition to the annuitiesoffered to existing superannuation customers, the plan alsooffers immediate annuities to superannuation funds managed by theteam. Health Insurance Plans:1. Diabetes Plans: It is a long term insurance policy created forindividuals with Type II diabetes and pre-diabetes. It offers long term(upto 20 years) control over diabetes through a specially designedWellness Program including regular health checkups and a DiabetesCoach to facilitate diabetes management. It also provides you coverageagainst seven major critical illnesses.2. Cancer Plans: It provide a regular premium plan that helps you witha cash benefit on the diagnosis as well as at different stages in thetreatment of various cancer conditions.3. Comprehensive Health coverage: provides comprehensivehospitalization cover and reimburses all other medical expenses bybuilding a health fund.4. Critical Illness Plan: It is a 360-degree product that will providelong-term coverage against 35 critical illnesses, total and permanentdisability, and death.5. Hospitalization Plan: A health insurance policy that providesassured insurability till age 75 years, assured coverage for accepted pre-existing illnesses after 2 years and an assured price for 3 years. Alsothere is another hospital care plan where there is a fixed benefit plancovering various stages of treatment hospitalization, ICU, procedures &recuperating allowance. It covers a range of medical conditions (900surgeries) and has a long term guaranteed coverage up to 20 years. Retirement Plans:1. Forever Life: A traditional retirement product that offers guaranteedreturns for the first 4 years.2. Immediate Annuity: A single premium annuity product that assuresan income for life at the time of your retirement. It has the benefit of 5payout options.3. Life Stage Pension: A regular premium unit linked pension plan thatprovides you with a unique lifecycle-based strategy that continuously re-
  19. 19. distributes your money across various asset classes based on your ageand risk profile.4. Premier Life Pension: It is a unit-linked pension policy with alimited premium paying option for preferred customers.5. Lifetime Super Pension: It is a regular premium unit linked pensionplan that helps one accumulate over the long term and offers 5 annuityoptions (life annuity, life annuity with return of purchase price, joint lifelast survivor annuity with return of purchase price, life annuityguaranteed for 5, 10 and 15 years & for life thereafter, joint life, lastsurvivor annuity without return of purchase pric5. at the time ofretirement.6. Life Link Super Pension : A single premium unit linked pensionplan. Rural Plans:Suraksha & Suraksha Kavach :It‟s a rural plans which offer benefits like life Cover, low and AffordablePremiums and Hassle Free Procedure.Micro Insurance Sarv Jana Suraksha :Sarv Jana Suraksha is a plan to provide protection and security to ruralpopulation at a very affordable cost. The family members are protected inthis plan in case of death of the policyholder.The New Product Launched by ICICI Prudential is as follows-1. Anmol Nivesh for tea tribes in Assam in January 20092. Health Saver in January 20092. Price:Pricing is very important in life insurance as policyholders areattracted towards it more often. ICICI Prudential has some uniquepolicies which is different from other companies.Example: ICICI Prudential- Pure ProtectBelow is the table that shows premium for various age-termcombinations for a SumAssured of Rs.50 lakhs. Age 10 years 15 years 20 years 25 years 30 year Rs.7608 Rs.8378 Rs.9444 Rs.12558 35 year Rs.9889 Rs.11390 Rs.13,327 Rs.18809 40 year Rs.14394 Rs.17064 Rs.20067 Rs.27075
  20. 20. NEED FOR THE STUDYThere Is A Question Based On Insurance i.e.- Who will take care of myfamily if tomorrow something unfortunate happens to me?” If thisquestion bothers you, then Life Insurance is the answer. Of course, under any circumstances, the loss of a loved one is atraumatic experience. But, if your family is also left without sufficientmoney to meet basic living needs or prepare for future goals, they willhave to cope with a financial crisis at the same time. A Life Insuranceplan ensures that your family is financially secure even if tomorrow youare no longer around to care for them.UncertaintyThe basic need of insurance arises as risks are uncertain andunpredictable in nature. Getting insurance for an asset does not mean thatthe asset is protected against risks or its exposure to risk is reduced, but itactually implies that in case the asset suffers any loss in value due to suchrisk, the insurance company bears the loss and compensates the insuredby making payment to him.Life insurance, especially tailored to meet your financial needsNeed for Life Insurance Today, there is no shortage of investment options for a person tochoose from. Modern day investments include gold, property, fixedincome instruments, mutual funds and of course, life insurance. Given theplethora of choices, it becomes imperative to make the right choice wheninvesting your hard-earned money. Life insurance is a unique investmentthat helps you to meet your dual needs - saving for lifes important goals,and protecting your assets.Asset Protection:- From an investors point of view, an investment canplay two roles - asset appreciation or asset protection. While mostfinancial instruments have the underlying benefit of asset appreciation,life insurance is unique in that it gives the customer the reassurance ofasset protection, along with a strong element of asset appreciation.The core benefit of life insurance is that the financial interests of one‟sfamily remain protected from circumstances such as loss of income dueto critical illness or death of the policyholder. Simultaneously, insuranceproducts also have a strong inbuilt wealth creation proposition. Thecustomer therefore benefits on two counts and life insurance occupies a
  21. 21. unique space in the landscape of investment options available to acustomer.Goal based savings:- Each of us has some goals in life for which weneed to save. For a young, newly married couple, it could be buying ahouse. Once, they decide to start a family, the goal changes to planningfor the education or marriage of their children. As one grows older,planning for ones retirement will begin to take precedence.Clearly, as your life stage and therefore your financial goals change, theinstrument in which you invest should offer corresponding benefitspertinent to the new life stage.Life insurance is the only investment option that offers specific productstailormade for different life stages. It thus ensures that the benefitsoffered to the customer reflect the needs of the customer at that particularlife stage, and hence ensures that the financial goals of that life stage aremet.Why life insurance:1. Protection of the interest of the family member.2. Provision for education and marriage of the children.3. Post retirement income for self and dependents.4. Special needs for medical expenses.5. Provision for health /illness.6. Provision for housing.7. Provision for income tax rebate.
  22. 22. SWOT ANALYSIS OF ICICI PRUDENTIALStrengths: ICICI Prudential is the largest private player in the insurance industry in INDIA , with a market share of around 32% amongst the private players. There is a huge pool of skilled professionals to carry out the successful Ventures. ICICI Prudential is one of India‟s leading financial institutions. Offering a complete financial solution that encompasses every sphere of life. From commercial banking To stock broking To mutual funds To life insurance To investment banking, The group caters to the financial needs of individuals and Corporate. ICICI prudential is the first company, which got license of insurance trading from I.R.D.A. (Insurance Regulatory & Development Authority). ICICI Prudential is leading in securities. The company has a network in 74 cities in India and offices in New-York, London and Dubai. The group services a customer base of over 2.7 million.Weaknesses: • Though there is a huge market for insurance policies, the middle class who constitutes bulk of this market is burdened with inflationary pressure and therefore is not able to save for future. • Less popularity of ICICI Prudential in villagers. • Most of the people have faith on LIC as it is a Govt. Organization.Opportunities: • Out of 320 million insurable market only 20% of population is insured. • The ICICI Prudential group is going to open 100 branches of ICICIPr udential in coming 4-5 years. • The insurance sector is growing so there is opportunity for business growth. • Unemployment is today a big problem in our country; therefore people who have the potential should be encouraged to enter in to this sector.Threats : • Competition is growing as new entrants are coming in insurance sector. • Main threat is “COMPETITORS”.
  23. 23. LITERATURE SURVEYService Quality Evaluation in Select Commercial Banks:Today, banking operations are driven by the market, and thecustomer is seen as a consumer of the bank and not of anyparticular branch of the bank. Hence, it is logical that thecustomer will be served by all the branches of the bank and thisnecessitates that each branch serves the customer as if thecustomer belongs to that branch itself. Today, the concept ofcore banking has made „Anywhere and Anytime‟ banking areality. Along with technology, banking services have alsoevolved, and the delivery of various banking products arecarried out through the medium of high technology at a fractionof the cost to the customer. In this scenario, the present studywas conducted to evaluate the service quality of select leadingcommercial banks by identifying the major factors responsiblefor customer satisfaction. To support the objective of the study,SERVQUAL technique, based on service quality which isdelivered to customers.Mall C.P. and Sigh J.P.27 (1998) emphasized the importance ofdiversification and introducing flexibility to reduce risk. Theystated that diversification reduces risks on the one hand andincreases the possibility of large gains on the other. They alsoreviewed insurance as a way-out for reducing the risk. Theimmense schemes help transfer of risks to the insurancecompanies, especially applicable in agricultural business.
  24. 24. RESEARCH METHODOLOGYResearch Methodology deals with, the procedure adopted tocarry out the study. According to GREEN AND TULL:“A researchdesign is the specification of methods and procedures acquiring theinformation needed. It is the overall operational pattern orframework of t h e p r o j e c t t h a t s t i p u l a t e s w h i c h i n f o r m a t i o ni s t o b e c o l l e c t e d f r o m w h i c h sources by what procedures‟‟.For conducting the study, as a researcher I adopted both primary aswell as secondary method of data collection. OBJECTIVES OF STUDYThe purpose of research is to discover answer toq u e s t i o n s t h r o u g h t h e application of scientific procedures.The main aim of research is to find out how much people anindividual get insured and go for it . Though each research study has itsown specific purpose. The objective of the study of “ Preference For UnitLink Investment Plans Over Traditional investment Avenues” was todiscover the answers for the following questions with the help ofQuestionnaire filled by Interview method. To know the consumer responses about ICICI Prudential life insurance policy. To know about the products of ICICI Prudential Life Insurance. To know about the objections of people for not taking the Insurance policy. To know the need for Life Insurance. To know the benefits of Life Insurance To know the market share of ICICI Prudential Life Insurance in the Market. ASSUMPTIONS UNDERLYING THE STUDYThe basic assumptions underlying the study were: All the People/ customers were rational. They will prefer the best avenue to park their funds in the given situation. There was no bias.
  25. 25. TYPE OF RESEARCHResearch refers to the search for knowledge. It can be definedas scientific and systematic search for pertinent information on aspecific topic. It is careful investigation or enquiry especially throughsearch for new facts of any branch of knowledge. In this study I usedExploratory research, which provides insights into and comprehensionof an issue or situation. It helped me to draw some definitive conclusions.Exploratory research is a type of research Conducted when the problemhas not been clearly defined. It helps in determine the best researchdesign, data collection method and selection of subjects. Given itsfundamental nature, exploratory research often concludes that aperceived problem does not actually exist. RESEARCH DESIGNA research design or a structure is the process done before data collectionor analysis can commence. A research design is not just a workplan. A work plan details what has to be done to complete the projectbut the function of a research design is to ensure that the evidenceobtained enables us to answer t h e i n i t i a l q u e s t i o n a sunambiguously as possible.Primary data:The primary data was collected with the help of questionnaire filled usingInterview method. As per the need of the study I formulated thequestionnaire with the help of the experts of insurance sector and someexisting as well as new customers whom I could bank up on. This helpedme to frame the required level of questionnaire needed for the study ofthe stated problem.Secondary data:The secondary data was collected from the database,publications and the websites of the company through Internet.
  26. 26. DATA ANALYSISIn this study a structured Questionnaire was framed for studying theproposed study. The questionnaire was framed in such a way that coversall the aspects of the customers and product profile. In thebeginning some question were asked to know about the tax payment,possession of life insurance, of which company what were the motivesand so on, then the questions were related to traditional plans of LI andthen regarding ULIP. Why they prefer , what benefit they got againsttraditional, was any specific reason for buying, were theysatisfied with ULIP, if not, what additional features they wanted to beadded in that.
  27. 27. BIBLIOGRAPHYSecondary Sources :Sharma G.D ,(1985)“Indicators of Performance of Universities”(National Institute …… NewDelhi .) ICICI Prudential Life Insurance Co. Ltd. (2009), “Unit LinkedProduct Guide” (ICICI Prulife ………,Mumbai), (IRDAs Annual Report- 2008) “Disclosures forming part of Financial Statements” IRDA(Investment) (Amendment) Regulations(Sept, 2008)Life Insurance inIndia 1956(Kothari Cr 2008)“Research Methodology Methods &Techniques”(New Age International (p) Limited) Brochures: ICICIPrudential Life Insurance Company Ltd, UNI: 105v01 L/IC/26, 2004LifeInsurance Company Ltd, UNI: 05l058v01 L/IC/02 1956.Websites:-www.google.comwww.bimaonline.comwww.licindia.comwww.iciciprulife.com