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INDUSTRIAL TRAININGREPORT

An Organizational Study of

ICICI PRUDENTIAL

LIFE INSURANCE,

BANGALORE

&

A study on the re-introduction of an insurance product-

Diabetes care IN ICICI PRUDENTIAL

This Industrial Training Report is being submitted in partial fulfillment of the requirements

for the award of the Degree of

MASTER OF BUSINESS ADMINISTRATION

of

BANGALORE UNIVERSITY.

by

JAYANT M.ALAGAWADI

Reg. No. 10VWCMA015

Under the guidance of

INTERNAL GUIDE EXTERNAL GUIDE

Prof. PRATIBHA RAJ

Faculty

Alliance Business

AcademyacA

SANDEEP S.RAMANATHAN

SALES MANAGER

ICICI PRUDENTIAL

ALLIANCE BUSINESS ACADEMY

BANGALORE - 560 076

Batch: 2010-2012


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ICICI PRUDENTIAL LIFE INSURANCE

DECLARATION

I,Jayant M.A studying at Alliance Business Academy, hereby state that this industrial

training report titled was carried at ICICI PRUDENTIAL LIFE INSURANCE is submitted in

partial fulfillment of the requirement of the MBA Program of Bangalore University is an original.

Work carried out by me under the guidance and supervision of Prof. Pratibha Raj faculty guide

and that the project or any part thereof has not been previously submitted for a degree/diploma of

any University/Institution elsewhere.

Date: 28-08-2011

Place: Bangalore

( Jayant M.A)

Register No. 10VWCMA015

2 Alliance Business Academy


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ACKNOWLEDGEMENTS

The satisfaction that accompanies the successful completion of task would be incomplete without

the mention of the people who have made it possible and whose consent, guidance and

encouragement served as a guiding light for the completion of the study.

I would like to express my profound sense of gratitude to Prof. Sudhir Angur, President,

Alliance Business Academy and P. Prabhakaran, PrincipalAlliance Business Academy for

providing constant source of inspiration and the support to conduct this research.

With a deep sense of gratitude and indebtedness, I sincerely and whole heartedly thank Prof.

Pratibha Raj, my project guide for giving me valuable suggestions, advice and guidance

throughout the execution of this project.

I also thankProf. Smitha Shenoy, program co-ordinator for her constant support and well wishes

during the project.

I am grateful to Mr. Sandeep S.Ramanathan Sales Manager of ICICI Prudential for providing

me an opportunity to take up this project in the organization.

I also express my deep gratitude to my family, friends without whose cooperation, wishes and

help, this project would not have been possible.

Jayant M.A



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EXECUTIVE SUMMARY



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EXECUTIVE SUMMARY

Organization structure involves formal and recognized structure where in each and every

individual and group have a definite relationship with each other, have a specified area of exist

function to perform, authority to mobilize resources, obligation to act, responsibility for achieving

the objective and accountability for their performance.

It is arrangement of activities and assignment of personal to their activities in order to achieve the

organizational goal. Organization structure encompasses six major areas within organization.

They are

Specialization of work.

Departmentalization.

Chain of command.

Span of control.

Centralization and decentralization.

Formalization.

So that, we can say every components of organization structure has direct impact on organization.

NEED FOR THE STUDY

To make M.B.A. program more relevant with respect to the necessities of the corporate or the

industries.

To inculcate students practical knowledge of corporate world.



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To cover various aspects of general managerial such as organizational structure,

functions of respective department in the organization.

OBJECTIVE OF THE STUDY

1) To understand the organization structure / hierarchy of the company.

2) To identify various departments in the organization and the functioning of the same.

3) To understand the various responsibilities and duties carried out by each department.

4) The study is aimed at understanding how an organization practically works in the real

situation

METHODOLOGY ADOPTED FOR THE STUDY

1) Study of the organizational structure, departmentalization, delegation of authority and

responsibility, etc by close observation and reading company brochures, printed materials.

2) Handling of general administration problems and helping out executives in decision-making

process.

3) Observing the working of various departments like Finance department, Marketing

department, H.R. department, etc.

4) Discussion with the company Executives, and Employees.

5) Visiting and surfing Websites of the company and about Insurance sector.

6) Performing the various tasks and jobs assigned by Managers and Project guide. P



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CHAPTER-1

INDUSTRY OVERVIEW

1.INDUSTRY PROFILE



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1.1INTRODUCTION

Life is full of uncertainty and surprises and also involvement of risk with it. To instinct for

security against such risk is one of the basic motivating forces to determine the human attitude.

As a sequel to this quest for security, the concept of life insurance must have been born. The urge

to provide insurance or protection against the life of and property must have promoted people to

some sort of sacrifice willingly in order to achieve security through collective co-operation. In

this sense, the story of insurance is probably as old as the story of mankind.

The business of insurance related to the protection of the economic values of assets. Every asset

has a value for its owner and also for those who are benefited with the existence of that asset.

Insurance is concerned with the protection of economic value of assets.

Every asset has normally an expected lifetime. During this period, it is expected to perform and

provide income/comfort to the owner. The owner, being aware of this, plans the things in such a

way that by the time expected lifetime of the asset expires; he is ready with the value or income

from the asset is not lost. Well, this appears to be a fine arrangement provided the asset completes

its expected lifetime!

All assets carry the risk of being destroyed or damaged. But all assets may not necessarily get

destroyed or damaged. Only in a few instances, the probability turns out to be true and the asset

gets actually lost and destroyed by accident or some other unfortunate event before the completion

of its expected lifetime. The owner and those deriving benefits from the asset will suffer because

the arrangement to make available its substitute is not yet ready. Insurance is helpful in mitigating

such adverse consequences. To sum up, assets are insured, as they are likely to be lost or made

non-functional through an accidental occurrence.

Insurance does not protect the assets. This means that insurance cannot prevent loss to the assets

due to perils. Nor can insurance avoid the occurrence of perils. It only Compensates, may not be

fully, the economic or financial loss resulting to the asset from such damage or destruction.

1.2What is Life Insurance?



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ICICI PRUDENTIAL LIFE INSURANCELife insurance is a contract providing its payment of a sum of money to the person assured or,

failing him, to the person entitled to receive the same, on the happening of certain event.

A family is generally dependent for its food, clothing and shelter on the income brought in at

regular intervals by the breadwinner of the family. So long as he lives and the income is received

steadily the family is secured; but should death suddenly intervene the family may be left in a very

difficult situation and sometimes, in stark poverty. Uncertainty of death is inherent in human life.

It is this uncertainty that is risk, which gives rise to the necessity for some form of protection

against the financial loss arising from death. Insurance substitutes this uncertainty by certainty.

Usually the contract provides for the payment of an amount on the date of maturity or a specified

dates at periodic intervals or at unfortunate death, if it occurs earlier. Among other things, the

contract also provides for the payment of premium periodically to the corporation the assured.

Life insurance is universally acknowledged to be an institution, which eliminates risk,

substituting certainty for uncertainty and comes to the timely aid of the family in the unfortunate

event of death of the breadwinner

Insurance is a visible comfort at the time of an invisible danger of life of individual.

Life Insurance is a protection against risk and uncertainties of an individual.

Insurance is a method of coping with the risk.

Insurance is a collective, co-operative endeavor.

Insurance is helpful in mitigating the loss or the adverse consequences.

Insurance is a mechanism that provides compensation for the financial value of the asset in

case of loss or damage.

WHYISITSUPERIORTOOTHERFORMSOF SAVINGS?

Protection:13 Alliance Business Academy


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Savings through life insurance guarantee full protection against risk of death of the saver. In life

insurance, on death the full sum assured is payable (with bonuses wherever applicable) whereas in

other savings schemes, only the amount saved (with interest) is payable.

Aid to thrift :

Life insurance encourages thrift. Long term saving can be made in a relatively painless manner

because of the easy installment facility built into the scheme (method of paying premium either

monthly, quarterly, half yearly or yearly.

Liquidity:

Loans can be raised on the sole security of a policy, which has acquired loan value. Besides, a

life insurance policy is also generally accepted as security for even a commercial loan.

Tax Relief:

Tax benefits, as premiums paid reduce the liability of tax.

PURPOSE AND NEED FOR INSURANCE

The need for insurance comes from the need to safeguard the family. Today insurance has

become even more important due to the disintegration of prevalent joint family system, a system

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

financial security was always there as they were more earning members. Times have changed and

the nuclear family has emerged. Apart from other pitfalls of a nuclear family, a high sense of

insecurity is observed in it today besides, the family has shrunk. Needs are increasing with

time and fulfillment of these needs is a big question mark. How we will be able to satisfy all those

needs? Better lifestyle, good education, long desired house. But again-we just cannot

fritter away all our earnings; we need to save a part of it for future too a wise decision. This is

where insurance helps us.Factors such as fewer numbers of earning members, stress, pollution,



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ICICI PRUDENTIAL LIFE INSURANCEincreased competition, higher ambitions etc are some of the reasons why insurance has gained

importance and where insurance plays a successful role.

Assets are likely to be destroyed or made non-functional due to accidental occurrences called

perils. Assets can, therefore, be insured. A few examples of perils are: fire, floods, breakdowns,

lightning, and earthquake. Perils are the events. Risks are the consequential losses or damages.

Possibility of damage to asset caused by any peril is the risk that asset is exposed to. Risk means

uncertainty or unpredictability about future loss or damage, which may or may happen. This

refers to the losses, which may happen suddenly and unexpectedly. This is because of uncertainty

about the risk that insurance plays the role. Insurance becomes relevant only if there are

uncertainties of occurrence of event leading to loss/es. Insurance is done against the contingency

of the happening of such events. No uncertainty No insurance.

The human asset

Every Human being in his life time generates and earns something which is having economic

value. So that we can say that a human life is also an income-generating asset. Human life may be

lost due to unexpected early death or become non-functional following sickness or disabilities

caused by accidents. If this happens by the time one is on the verge of retirement when his income

is about to cease, he might have made alternative arrangements to meet his needs. But if this

happens at a younger age when he is not expected to have made adequate alternative arrangement,

those who are dependent on his income, will suffer. Insurance is necessary to help those

dependent on his income.

Human beings are exposed to another type of risk. That is the risk of living too long and long.

A person, who has made necessary arrangement to meet his financial needs after retirement, also

would need insurance. It is because the arrangement would have been made on the basis of certain

assumptions. One assumption can be that he will live for another 20 years. Another assumption

can be that his children will support hum financially. Still another can be that he will earn an

interest of 10% yearly on his investments. If any of these assumptions does not come



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ICICI PRUDENTIAL LIFE INSURANCEout to be true, the original arrangement, which he has made, will be inadequate and he will be

facing financial difficulties. This means that living too long is as much a problem as dying too

young. Insurance provides safeguard against these risks.

Because of the above reasons we can clearly say that Humans are assets as well as income

generation assets. People are exposed to risks the consequences of which are difficult to be borne

by an individual. No person should be in position to make the risk happen and take advantage.

This means that the occurrence has to be random, accidental and not a deliberate creation of the

insured person i.e. the losses must happen suddenly and expectedly. So there is an immense need

to be getting insured in every individual lives.

1.3 HISTORY OF LIFE INSURANCE

THE BEGINING:

The beginning of insurance business is traced to the city of London. It started with the marine

business. Marine traders, who used to gather at Lloyds coffee house in London, agreed to share

losses to goods during transportation by ship. Marine related losses included:-

Loss of ship by sinking due to bad weather in high seas.

Good in transit by ship robbed by sea pirates.

Loss of or damage to the goods in goods in transit by ship due to bad weather in high seas. The

first insurance policy was issued in England in 1583.

LIFE INSURANCE IN INDIA

Life Insurance in its modern form came to India from England as far back as in 1818.The first

insurance company on India soil, namely the Oriental Life Insurance Company was started in

Calcutta mainly by Europeans to help the widows of their community.It was through the efforts

of Babu Muttylal Seal and Prince Dwarkanath Tagore, Rampanu Lahiri, and Rustomji

Lahiri, and Rustomji Coeasji took an active part in the development of insurance business in this

country in the early years.



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THE FIRST INDIAN INSURANCE COMPANY

The Bombay life insurance company in the year 1870 heralds the birth of the first insurance

Assurance society that came into existence to cover Indian lives at normal rates.

In the wake of the Swadeshi Movement in India in the early 1900s, quite a good number of

Indian companies were formed in various parts of the country to transact insurance business. To

name a few

Hindustan Co-operative and National Insurance in Kolkata.

United India in Chennai.

Bombay Life, New India and Jupiter in Mumbai.

Lakshmi Insurance in New Delhi.

LAW AND REGULATIONS

1912: The Indian Life Assurance Companies Act enacted as the first Statute to

regulate the Insurance business.

1928: The Indian Insurance Companies Act enacted to enable the Government to

collect statistical information about both life and non-life insurance businesses.

1938: The insurance act 1938, which came into effect from 1st july 1939, and was

amended in 1950 and later in 1999.

1956: The life insurance corporation act 1956 section 30 gave the L.I.C exclusive

privilege to transact life insurance business in India. This exclusive privilege ceased as a

result of the amendments made in 1999. And In 1956, life insurance business was

nationalized.

1.4 Malhotra Committee recommendations

In 1993, Malhotra Committee, headed by former Finance Secretary and R.B.I. Governor

R.N.Malhotra, was formed to evaluate the Indian insurance industry and recommended its future

direction. and key recommendations included:



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I. STRUCTURE:

Government stake in the insurance companies to be brought down to 50%.

Government should take over the holdings of Government insurance companies and its

subsidiaries. So that these subsidiaries can act as independent corporations.

All the insurance companies should be given greater freedom to operate.

II. COMPETITION:

Private companies with a minimum paid up capital of Rs.1 billon should be allowed to enter

the industry.

No company should be deal in both Life and General Insurance through a single entity.

Foreign companies may be allowed to enter the industry in collaboration with the domestic

companies.

Only one State level Life insurance Company should be allowed to operate in each State.

III.REGULATORTY BODY:

The insurance Act should be changed.

An Insurance Regulatory Body should be set up.



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ICICI PRUDENTIAL LIFE INSURANCEThis Act, passed in December 1999, provided for the establishment of the IRDA to protect the

interest of holder of insurance policies. and LICs monopoly right to transact life insurance

business in India came to an end. At the close of financial year ending 31.3.2004, twelve new

companies were registered with the Insurance Regulatory and Development Authority (IRDA) to

transact life insurance business In India.

1.5 IRDA MISSION

To protect the interests of holders of insurance policies, to regulate, promote and ensure

orderly growth of the insurance industry and for matters connected therewith or incidental

thereto.

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, renews, modify, and withdraw, suspend or

cancel such registration.

(B) Protection of the interests of the policy holders

(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.



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(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) Regulating maintenance of margin of solvency.

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

(N) Specifying the percentage of life insurance business and general insurance business to be

undertaken by the insurer in the rural or social sector. Etc

1.6 INDUSTRY

Insurance is an Rs.4000 Crore business in India, and together with banking services adds about

7% to Indias GDP. Yet more than 75% of Indias insurable population has no life insurance or

pension cover. Health insurance of any kind is negligible and other forms of non-life insurance are

much below international standards.

To tap the vast insurance potential and to mobilize long-term savings we need reforms which

include revitalization and restructuring of the public sector companies, and opening up the sector

to private players. Statutory bodies need to be made to regulate the market and promote a healthy



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ICICI PRUDENTIAL LIFE INSURANCEmarket structure. Insurance Regulatory Authority is such body, which checks on these tendencies.

IRA role comprises of following three functions.

a) Protection of consumers interest.

b) To ensure financial soundness and solvency of the insurance industry.

c) To ensure healthy growth of the insurance market.

An insurance policy protects the buyer at some cost against the financial loss arising from a

specified risk. Different situations and different people require a different mix of risk-cost

combinations. Insurance companies provide these by offering schemes of different kinds.

Unfortunately the concept of insurance is not popular in our country. India is the second largest

populated country in the world but its share is only 0.5% of the total insurance in the World.

Amongst the emerging economies, India is the one least insured country (only less than 25% of

the Insurable population is insured), but the potential for further growth is phenomenal.

The nationalized insurance industry has not offered consumers a variety of products. Opening of

the sector to private firms will foster competition, innovation, and variety of products. It would

also generate greater awareness on the need for buying insurance as a service and merely for tax

exemption, which is currently done. On the demand side, a strong correlation between demand

for insurance and per capita income level suggests that high economic growth can spur growth in

Demand for insurance. Also there exists a strong correlation between insurance density and

socials indicators such as literacy with social development, insurance demand will grow.

Also there exists a strong correlation between insurance density and socials indicators such as

literacy with social development, insurance demand will grow. After the enactment of IRDA Act

of 1999, by the close of financial year ending 31-3-2004, twelve new companies were registered

with the IRDA. At present there are 14 Life Insurance Companies in India, out of which 13 are

Private Insurance Companies and one is Public Sector owned. That is LIC. Most

of the private insurance companies in India are joint ventures. They have established insurance

companies by joint venturing with foreign companies.



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Insurance Industry in the year 2000-2001 had 16 new entrants, namely.


Sl

no

Registration

Number

Date of

Reg.

Name of the Company

1 101 23-10-2000 HDFC Standard Life Insurance Company

Ltd.2 104 15-11-2000 Max New York Life Insurance Co.

Ltd.3 105 24-11-2000 ICICI Prudential Life Insurance

Company Ltd.4 107 10-01-2001 Om Kotak Mahindra Life Insurance

Co.Ltd.5 109 31-01-2001 Birla Sun Life Insurance Company Ltd.

6 110 12-02-2001 Tata AIG Life Insurance Company

Ltd.

7 111 30-03-2001 SBI Life Insurance companyLimited.

8 114 02-08-2001 ING Vysya Life Insurance Company Private

Limited9 116 03-08-2001 Allianz Bajaj Life Insurance

Company Limited.10 117 06-08-2001 Metlife India Insurance Company Pvt.

11 121 03-01-2002 AMP SANMAR Assurance Company Ltd.

12 122 14-05-2002 Aviva life Insurance Co. India Pvt.Ltd.


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FIRST YEAR PREMIUM UNDERWRITTEN BY INSURERS FOR APRIL, 2005

(PROVISIONAL). (Rs lakh)

SL

NO.

INSURER PREMIUMS

COLLECTED

POLICIES

ISSUED

MARKET

SHARE (policy)

1. L.I.C. 1,02,297.47 6.89,055 83.99

2. ICICI

PRUDENTIAL

7,168.37 37,483 4.87

3. TATA AIG 2,745.75 23,485 2.86

4. MAX NEW YORK 1,601.82 19,360 2.36

5. BAJAZ ALLIANZ 2,917.36 14,445 1.76

6. HDFC

STANDARD

3,036.56 12,481 1.52

7. BIRLA

SUN LIFE

1,815.42 7,412 0.90

8. AMP SANMAR 847.65 3,995 0.49

9. AVIVA 1,089.05 3,974 0.48

10. KOTAK

MAHINDRA

642.42 3,131 0.38

11. S.B.I. 1,315.74 2,215 0.31

12. MET LFE 347.11 2,029 0.25

13. ING VYSYA 198.08 718 0.09

14. SAHARA LIFE 7.06 317 0.04

TOTAL 1,26,029.86 8,20,432 1.00.00

Source: The I.R.D.A. Journal, June 2005, (Page no-10 and 11).



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CHART SHOWING THE NUMBER OF

POLICIES ISSUED BY PRIVAYE

INSURANCE COMPANIES FOR THE

YEAR APRIL 2005

ICICI PRUDENTIAL TATA AIG

MAX BAJAJ ALLIANZ

HDFC BIRLA SUNLIFE

AMP SANMAR AVIVA

KOTAK MAHINDRA S.B.I.

MET LIFE ING VYSYA

SAHARA



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1.7 PEST ANALYSIS1.7 PEST ANALYSIS

POLITICAL FACTORS AFFECTING LIFE INSURANCE INDUSTRY:-

Within India political ambitions and rise of communalism, fissiparous tendencies are on the rise

and may well continue for quite some time to time. Therefore, it expected that the insurance

companies might consider offering political risk coverage also. The only area where Indian

insurers consider giving cover is with regard to customs duty change under certain conditions.

Prohibition for Investment: -

The funds of policyholders are prohibited from being directly / indirectly investedoutside India as per section 27 C.

Manner and conditions of investment: -

Subject to the above provisions contained in Section 27 -/ 27- A / 27 B, the

IRDA may,

In the interest of the policyholders, specify the time, manner and otherconditions of investment by insurer.

Give specific directions applicable to all insurers for the time, manner and

other conditions subject to which the policyholders funds should be invested

in the infrastructure and social sectors.

Insurance business in rural / social sector: -

All insurers are required to undertake such percentage of their insurance business ,including

insurance for crops, in the rural social sector as specified by the IRDA. They should

discharge their obligations to providing life insurance policies to persons residing in the

rural sector, workers in the unorganized sector or to economically vulnerable classes of

society and other categories of persons as specified by the IRDA.



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Capital requirement: -

The paid up equity of an insurance company applying for registration to carryon life insurance

business should be Rs 100 Crores.

Renewal of registration: -

An insurer, who has been granted a certificate of registration, should have the registration

renewed annually with each year ending on March 31 after the commencement of the

IRDA Act. The application for renewal should be accompanied by a fee as determined

by IRDA regulations, not exceeding one forth of one percent of the total gross premium

income in India in the preceding year or Rs 5 Crores or whichever is less, but not less

than Rs 50000 for each class of business as per Section 3-A.

Insurance business in Rural Sector: -

After the commencement of the IRDA Act, 1999, every insurer would have to undertake such

percentage of life insurance business in the rural sector as may be specified by the IRDA in this

behalf. It is mandatory for the new companies to meet the obligations relating to the rural and

unorganized sector as per section 32-B.

ECONOMICAL FACTORS AFFECTING LIFE INSURANCE

INDUSTRY:-

Interest rate at bank and interest rate of P.F variation very much affect to life insurance industry,

because people always attract by higher return. Therefore, they do not prefer lower return

policy .Unemployment also affects insurance industry, because the unemployment people will not

have earning, so saving also affect to life insurance sector Life insurance industry will directly

affected by Earthquake, Monsoon, and Natural calamity. Because of these events turns into lots of

death, so the life insurance companies have to pay claim against policy. Infant mortality rate and

maternity mortality rate are also affecting to life insurance. Typical Indian want luxurious product

against low income, so that they prefer installment or annuity (EMI), so that they may not have

extra saving to invest in life insurance.



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Adequacy of capital:

Capital adequacy is a matter of attention in view of the nature of the life insurance business where

in the case a contingency arises, the insurers should be in a position to meet its long-

term contractual obligations and pay up the dues or claims. In that sense, life insurance

is a capital-intensive business and must be backed by an adequate capital base on the

part of the owners and the companies should not be running their business purely on

other peoples money. So minimum start up amounts and long running capital

adequacy norms are absolutely essential, in consideration of this, the Malhotra

committee suggested and subsequently the IRDA stipulated a minimum capital base of

Rs 1 bn for any entity wanting to enter the life insurance business.

Increased Economical Activity:

Although economic activity has slowed down since 1996, sooner or later there will be an

upswing. The increase in the growth rate in various sectors accompanied by thegrowth in trade in

the context of fulfilling of commitments to the WTO will signal a growth in the demand for

insurance covers of new types. For example, aviation insurance cover will be on an increasing

scale in view of the need for more frequentair travel for men and for transporting materials. This

would necessitate substantial property, liability and personal insurance.

Interest Rates:

During the last years the government has rationalized interest rate creates better business

opportunities for the life insurance sector because the substitute products are graded lower by the

customers. On the other hand the value of the holdings of the insurance companies will increase

Rationalized of the interest rates is still expected, and it is an opportunity for the company. Low

interested rates mean low investment return for reinsures causing negative impact on their overall

net profitability as pricing is to a certain extent sensitive to interest rate fluctuations. The negative

impact therefore, lead to higher pricing level for reinsures in order to sustain their profitability.

But, in reinsurance market, which is characterized by over capitalization a resulting intense

competition. The opportunity for such rate increases practically remain even non-existent. As a

result, reinsures are under tremendous pressure to cut their operational cost to safeguard

profitability. Furthermore, low interest rates discourage and even



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ICICI PRUDENTIAL LIFE INSURANCEprevent any outflow of capital from reinsurance business to capital markets, causing current over

capitalization in reinsurance market to continue. A positive outcome is that low inflation rates, if

sustained for a considerable period, usually bring some relief to reinsures from the resulting lower

than forecast claims payment. Also, this can leads stability to reinsures administrative cost.

Inflation rate: -

Inflation can also be one of the causes to change the scenario of the insurance sector. High

inflation for instance, would tend to reduce the insurance business ,particularly life, because the

real value of the money paid back to the policyholder on maturity of the policy would go down

and would, therefore, lose its attraction for the investor. At the most, the insuring public may

prefer pure risk plans (terms insurance), which have a low premium outlay. The response to an

inflationary situation will depend on what benefit the insured is looking for. In a situation of high

inflation, clients would prefer policies where the Savings portion is periodically returned while

the risk portion is maintain for the Duration of the contract. Those who prefer risk protection are

likely to opt for long term policies, which may also be preferred because they are likely to be low

premium policies. A flexible system, under which the sum insured, is increased from time to time

so that the real value of the cover is maintained, and could give a boost to the market under

conditions of high inflation.

SOCIO-CULTURAL FACTORS AFFECTING LIFE

INSURANCE INDUSTRY:

The basic social factors that affect the life insurance sector are as under: -

Population

Life style

Educational level

Level of earning

Societal benefits

These are the major social factors, which affect the life insurance sector. We will

discuss all of them in brief>

Population:



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Growth in the population is a major factor pushing up the demand. It is also going to exert a

special influence on the life insurance market in other ways. Apart from exerting pressure on

demand for goods and services, and through that, ill effects of uncontrolled growth of population

also could spur the growth of demand. For example, overcrowding in public places ofentertainment, public support, or too many vehicles on the road can result in hazards like

stampedes and pollution, which require covers and still are not sold on a large scale today. Thus

the positive as well as the negative aspects of population growth are going to spur demand.

Life style:

The peculiar lifestyle of a country or an age also influences the insurance business. Change therein produces different demands for life insurance. For e.g.All over the world, family size is

shrinking and the fact that in decades to come, both presents are more frequently likely to work

outside the home will mean that there could be a greater possibility of property loss. Similarly, a

larger number of vehicles on the roads for people commuting to their jobs or business would mean

larger incidence of accidents. This will increase the demand for life insurance products. Of course,

there is also the other possibility that wherever it is possible, some people will try to spend a part

of their time working at home either because they would like to be with their families or because

they find it more convenient. Activities like life insurance and financial services are particularly

well suited for such arrangements.

Societal benefits:

In view of the fact that large sections of India have inadequate life insurance cover, an important

social responsibility of the government relates to spreading it far and wide. In addition, the

government attempts to extent life insurance with certain social obligations in view in both urban

and the rural areas through such means special schemes for the weaker sections, and by tilting of

the life insurance companies investments in favour of social developments. The social changes

emerging in the country provide opportunities for insurers to sell financial services products such

as family health care programmed, retirement plans disability insurance, long-term care for senior

citizens and different employee benefit plans.

TECNOLOGICAL FACTORS AFFECTING LIFE



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INSURANCE INDUSTRY:

Internet as an intermediary in the current Indian market customer is not aware about the intrinsic

value of insurance. He thinks of insurance only in the mount of March as a tax saving measure.

The security provide by an insurance cover is rarely thought about. In such a scenario Internet can

be an effective medium for educating the consumers about insurance. It serves as a single windowfor disseminating product, process and procedural information to the consumers. Product

development and target marketing through the Internet: with increase in the number of insurance

companies there will be a need for market segmentation and subsequently product designed for

each of them. In such a scenario Internet can be a effective channel for pushing product specific

information to a particular market segment. Consumer feedback about a particular product as well

as suggestions for different types or covers can also be generated through the Internet.

Maintaining the database:-

The most important facto that is affecting the insurance industry is the maintaining the database of

the customers. The insurance industry having a huge list of the customers. In order to maintain it

in manual format it is really the work of stupidity. With the change in time the computers has

taken the work of this things. Thus with the development of the technology it has becoming

possible to maintain such huge database very easily. A person can switch over to the computer

and get the details of the customer very easily. Thus maintaining the database has really become

easy due to the development in technology.

E-business insurance in India: -

The Internet has played a vital role in transforming the business of the 21st century. Computers are

now being used extensively for creating a storing data ,information with the help of

complex and sophisticated technological tools in every kind of business. This change

having been widely accepted, the advantages are numerous such as fast processing

improved. Efficiency, cost reduction among several other benefits. However, with

every positive change, there is an evil attached and technology is no exception. In

technical is an evil attached and technology is no exception. In technical terms,

increased sophistications of technology brings with it, an

increased factor of risk involved. The risk can be of various attributes, for example ,the risk of

data being lost due to a virus attack, the theft of important and confidential information



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ICICI PRUDENTIAL LIFE INSURANCEand so on, which ultimately results in losses for the business entity. With this change in

the business process, insurers have to devise new methods for assessing, underwriting

and servicing claims for the so-called e-business insurance.

Impact on distribution channels: -

Distribution channels are the most important part of the insurance industry. The scenario is

continuously changing in this industry. In future the customers are expected to be more

technology oriented, better informed, more knowledgeable and more demanding. The insurers

will have to offer all types of channel to customer and it is the customer who will have the right to

choose the channel suiting him/ her. Dual income families with young children, singles with long

working days and flexi-timers all demand high level of sophistication and ease when it comes toservice. Hence the companies have to be very careful and cautious in catering to the needs of

these customers who provides a good amount of business to the insurers.

Thanks to the technological advancement and increased de regulation and sophistication, the

carriers and producers can now reach the customers in different ways as has been proved in the

US market and other developed nations the web is extensively used for the access of information

but when it comes to the purchase of policy, the offline mode is preferred. The private players inIndia seems to have identified this and have put substantial information on there websites

regarding policies, quotes and contact information among other routine stuff.



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CHAPTER-2COMPANY PROFILE

2.COMPANY PROFILE



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ICICI PRUDENTIAL LIFE INSURANCEICICI Prudential Life Insurance Company was established on 24th December 2000, with a basic

investment of 675 Crores. The company has a commitment to expand and reshape the life

insurance industry in India. The company was amongst the first private sector insurance

companies to begin operations after receiving approval from Insurance Regulatory Development

Authority (IRDA) and in the time since, has taken several steps towards realizing its goal.

2.1INTRODUCTION

ICICI Prudential Life Insurance Company is a joint venture between ICICI Bank, a premier

financial powerhouse and prudential plc, a leading international financial services group

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

insurance companies to begin operations in December 2000 after receiving approval from

Insurance Regulatory Development Authority (IRDA).

ICICI and Prudential came together in 1993 to form Prudential ICICI Asset Management

Company, which has today emerged as one of the leading mutual funds in India. The two

companies bring together the strongest financial service brands in Asia, known for their

professionalism, excellent quality of service and long-term commitment to customers. Riding on

the success of this relationship, the two companies joined hands once more in 200, to form ICICI

Prudential Life Insurance, with a commitment to provide leading-edge life insurance solutions.

ICICI Prudentials capital base stands at Rs. 1335 crore with ICICI Bank and Prudential plc

holding 74% and 26% stake respectively. For the year ended March 31, 2006.The company

garnered Rs 2,412 crore of weighted new business premium and wrote 837,963 policies. The sum

assured in force stands at over Rs 56,000 crore.. The company has a network of about 56,000

advisors and For the past four 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.

2.2 PROMOTERS



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ICICI PRUDENTIAL LIFE INSURANCEThe Industrial Credit and Investment Corporation of India Limited (ICICI) incorporated at the

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

Industry, with the objective of creating a developmental financial institution for providing

medium term project financing to Indian businesses and Industries.

Following the market oriented economic policy reforms in the 1991s, ICICI moved away from its

traditional role into a new era of liberalized regulation and intense competition. A series of

initiatives were championed to keep up with keen competition in Indias financial service sector,

and access to international capital markets was crucial to the success of the new mandate.

ICICI Bank is Indias second-largest bank with total assets of about Rs. 2,513.89 bn (US$ 56.3

bn) at March 31, 2006 and profit after tax of Rs. 25.40 bn (US$ 569 mn) for the year ended March

31, 2006 and ICICI Bank has a network of about 614 branches and extension counters and over

2,200 ATMs It offers a wide range of banking products and financial services to corporate andretail customers through a variety of delivery channels and through its specialized


ICICI BANK

Commercial Bank.

ICICI VENTURE

Venture Capital Leading

ICICI SECURITIES

Invest Bank

ICICI PRUDENTIAL

MUTUAL FUND

ICICI LIMITED

(Parent Company)

ICICI WEB TRADE

On-line Brokerage

ICICI PFS ICICI CAPITAL ICICI INFOTECH

ICICI PRUDENTIAL

LIFE INSURANCE COMPANY

A 74% AND 26% VENTUREBETWEEN ICICI AND

PRUDENTIAL PLC OF U.K.


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ICICI PRUDENTIAL LIFE INSURANCEsubsidiaries and affiliates in the areas of investment banking, life and non-life insurance, venture

capital, asset management and information technology.. ICICI Banks equity shares are listed in

India on stock exchanges at Chennai, Delhi, Kolkata and Vadodara, the Stock Exchange, Mumbai

and the National Stock Exchange of India Limited and its American Depositary Receipts (ADRs)

are listed on the New York Stock Exchange (NYSE).

2. 3 PRUDENTIAL

Established in London in 1848, Prudential plc, through its businesses in the UK and Europe, the

US and Asia, provides retail financial services products and services to more than 16 million

customers, policyholder and unit holders worldwide. As of June 30, 2004, the company had over

US$300 billion in funds under management. Prudential has brought to market an integrated range

of financial services products that now includes life assurance, pensions, mutual funds, banking,

investment management and general insurance. In Asia, Prudential is the leading European life

insurance company with a vast network of 24 life and mutual fund operations in twelve countries -

China, Hong Kong, India, Indonesia, Japan, Korea, Malaysia, the Philippines, Singapore, Taiwan,

Thailand and Vietnam.

SOME FACTS ABOUT PRUDENTIAL:

In 1912 the great TITANIC ship sunk into the Atlantic Ocean. Fortunately that ship and

travelers were Insured by Prudential. This disaster claims were settled by Prudential within

a week after the tragedy.

The 1983 Cricket World Cup was sponsored by Prudential. This was called as Prudential

Cup, and India won this world cup successfully under the Captainship of Mr. Kapildev

2.4 CUSTOMER SERVICE AND OPERATIONS

The Operations department oils the work processes between the customer and the company to

ensure consistent and quality service to the customer. To streamline the operations, the Operations

department interfaces between the clients and the agents, the branches and the underwriters, and

manages work processes.



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ICICI PRUDENTIAL LIFE INSURANCEThe Vision at Customer Service is to deliver World Class Service at every opportunity. Units

such as the 9 to 9 contact centre, Outbound Call Centre, Customer Care and Query Resolution

Unit are all committed to providing effective solutions to over lakhs of customers across the

country.

Information Technology

The Information Technology function at ICICI Prudential is committed to enable business through

the use of technology. It is segmented into 4 groups to enable highest levels of delivery to the

customers: Life Asia Solutions Group that provides flexibility in designing better product

offerings to end-users, the Solutions Group- Web that provides real-time information to customers

and is responsible for customer relationship management, IT Architecture & Corporate SolutionsGroup is in charge of developing and maintaining a blueprint for the IT architecture for the

enterprise as a whole. This team works as an in house R&D Solution Group, exploring new

technological initiatives and also caters to information needs of corporate functions in the

organization. IT Infrastructure group is responsible for providing hardware, software, network

services to the whole organization. This group runs the 'Digital Nervous System' of the Enterprise

at the highest levels of efficiency and provide robust, scalable and highly available platform for

deployment of business application.

Marketing

The Marketing function at ICICI Pru covers an array of activities - brand and media management,

channel support, direct marketing and corporate communications. The Brand and

Communications team is in charge of advertising, consumer research, media planning & buying

and Public Relations; that helps develop and nurture ICICI Prudential's corporate identity while

effectively communicating its varied product offerings to the customer. Channel marketing

provides support to the sales force by streamlining the design and development of collaterals and

sales tools across distribution channels. The Direct marketing team was set up to generate high

quality leads for profitable business. The team achieves this through target database acquisition

and communicating customized product information through e-mailers, telemarketing and

innovative direct mailers.



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Finance

Finance function in ICICI Prudential is committed to create an infrastructure that is aligned to

shareholder expectations. Finance basically comprises of four functions. . Corporate Planning and

MIS provide feedback on business strategies. This includes driving the budgeting process, providing strategic inputs for decision-making and management reporting and analysis. The

Accounts function includes preparation and maintenance of financial records, funds management,

and expense processing and treasury operations. Compliance ensures that every action is within

the regulatory framework. This includes reviewing compliance requirements and supporting the

ethical framework of ICICI Pru life. Internal audit provides assurance to the management over the

organizations' control framework and includes process risk management, information security

assessment and business continuity assessment.

Human Resource

The people strategy of ICICI Prudential is To build a committed team with a culture of

innovation, learning and growth. The Human Resource Function at ICICI Prudential drives the

people strategy of the business. With its initial focus on operational excellence to deliver benefits

and services to staff members, HR is now committed to building capability through state of the art

processes. A robust performance management system, compensation system and a segmented

training architecture enable it to deliver value to the organization.

Business Excellence

The Business Excellence function is committed to building a quality mindset across the

organization. ICICI Prudential is the first organization in the Insurance Industry that has adopted

the Six Sigma Methodology for process efficiency and measurement. The team is also driving the

Malcolm Baldrige framework across the organization, an intervention that examines management

of key inputs for Business Excellence.

2.5 NATURE OF BUSINESS CARRIED



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ICICI PRUDENTIAL LIFE INSURANCEICICI 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.

INSURANCE BUSINESS

Insurance business is divided into four classes:

1) Life Insurance.

2) Fire insurance

3) Marine Insurance and

4) Miscellaneous Insurance.

Life Insurers carrys life insurance business;

ICICI prudential is the No. 1 private life insurer

2.6 VISSION, MISSION, QUALITY POLICIES

Our vision: To make ICICI Prudential the dominant Life and Pensions player built on trust by

world-class people and service.

The company is hoping to achieve this by:

Understanding the needs of customers and offering them superior products and service.

Leveraging technology to service customers quickly, efficiently and conveniently.

Developing and implementing superior risk management and investment strategies to offer

sustainable and stable returns to our policyholders.

Providing an enabling environment to foster growth and learning for our employees.

And above all, building transparency in all our dealings.



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The success of the company will be founded in its unflinching commitment to 5

core values:

1. OWNERSHIP

If it is to be, it is up to me

a. Take responsibilities and see tasks through to complision

b. Own mistakes, learn from failures.

c. Pursue goals relentlessly, never give up.

d. Be a team player, take ownership for team performance.

2. INTEGRITY

Be honest and fair in what you say and do

a. Practice what you preach.

b. Stand up honestly and fearlessly for what is right.

c. Act in a consistent and equitable manner.

d. Think and act for long-term impact

e. Do not compromise the future to pay the present.

3. CUSTOMER FIRST

Own the customer, deliver the promise

a. Keep the customer interest in the center in all decision

b. Promise what you can, deliver it to finish.

c. Proactively seek voice of the customer and act on it.

4. PENTION

Boundless energy and enthusiasm

a. Exhibit Winning Instinct.

b. Demonstrate speed and urgency for achieving results.

c. Challenge the status quo and do things differently.d. Nurture and motivate the team members to reach full potential.



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5 BOUNDARYLESS

Never say, It is not my Job

a. Offer help and support across functions to ensure the business success.

b. Seek and share the ideas freely.c. Recognized respect internal customers.

d. Understand and value the contributions from the colleagues.

Each of the values describes what the company stands for, the qualities of their people and the

way they work. They do believe that they are on the threshold of an exciting new opportunity,

where they can play a significant role in redefining and reshaping the sector. Given the quality of

their parentage and the commitment of their team, there are no limits to their growth.

2.7 PRODUCT PROFILE

This is the SLOGAN of the ICICI Prudential Insurance Company. Suraksha Zindagi ke har

kadam par, as interpreted in Hindi. ICICI Prudential was positioned as an enabler of protection

relevant to the needs of the life stage. Different people have different needs at various stages of

life. ICICI Prudential offers a bouquet of insurance solutions to choose from to suit customerslife stage and needs.

Insurance Solutions for Individuals

ICICI Prudential offers a range of innovative, customers centric products that meet the needs of

customers at every human life stages.

SAVINGS & WEALTH CREATION SOLUTIONS

CASH PLUS



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An insurance plan that gives added protection savings, multiple options, plus the power of

liquidity. It is a transparent, feature-packed savings plan that offers 3 levels of protection as well

as liquidity options.

SAVE N PROTECT

A traditional endowment savings plan that offers both high returns and protection.

LIFE TIME SUPER & LIFE TIME PLUS

Are unit-linked plans that offer customers the flexibility and control to customize the policy to

meet the changing needs at different life stages.

LIFE LINK SUPER

Lifeline Super is a unique plan that combines the security of a life insurance policy with the

opportunity of enjoying high returns on your investments, without the market risks compromising

on the protection of your family!

PREMIER LIFE GOLD

A market linked insurance plans that meet your Investment and Protection

needs. It is a limited premium paying plan specially structured for long-term wealth creation.

INVEST SHIELD LIFE

A regular premium unit-linked insurance plan with an assurance of Capital Guarantee* and the

facility of extended insurance cover.

INVEST SHIELD GOLD

A regular premium unit-linked insurance plan with an assurance of Capital Guarantee* along withflexible liquidity options.



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ICICI PRUDENTIAL LIFE INSURANCECASH BACK

An endowment savings plan that allows you to get back substantial survival benefits without

having to wait till the maturity date.

PROTECTION SOLUTIONS

LIFE GUARD

ICICI Prudential Life Insurance offers Life Guard - a set of pure protection plans. Choose from

amongst three different product structures to insure your life and provide total security to your

family, at a very affordable cost. It is available in three different option

Level Term Assurance with return of premium

On death the entire sum assured will be paid.

On maturity, all the premiums paid will be returned.

Level Term Assurance without return of premium


No survival or maturity benefits.

Level Term Assurance - Single premium


No survival or maturity benefits.

HOMEASSURE

It is a mortgage reducing term assurance plan designed specifically to help customers cover theirhome loans in a simple and cost-effective manner.



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ICICI PRUDENTIAL LIFE INSURANCECHILD PLANS

As a responsible parent, you will always strive to ensure a hassle-free, successful life for your

child. However, life is full of uncertainties and even the best-laid plans can go wrong. Heres how

you can give your child a 100% safe and assured tomorrow, whatever the uncertainties. Smart Kid

is especially designed to provide flexibility and safeguard your childs future education and

lifestyle, taking all possibilities into account. Choose from amongst a basket of 4 plans:

1) Smart Kid regular premium

2) Smart Kid unit-linked regular premium

3) Smart Kid unit-linked regular premium II

4) Smart Kid unit-linked single premium II

All these plans offer you:

Financial Benefits: Regular payments at critical stages in your childs

Life, like Board examinations, Graduation and Post-graduation.

EDUCATION INSURANCE

Education insurance under the Smart kid brand provides guaranteed educational benefits to a

child along with life insurance cover for the parent who purchases the policy. The policy is

designed to provide money at important milestones in the childs life. Smartcard plans are also

available in unit-linked form ? both single premium and regular premium.

RETIREMENT PLANS

Life Expectancy has been rising rapidly and today you can expect to live longer than your

earlier generations. For you, this increase will mean a longer retirement life, stretching into a

couple of decades. ICICI Prudential presents Retirement Solutions that combine the best of

insurance and investment. These solutions are developed to ensure your peace of mind for the

years to come

FOR EVER LIFE



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A regular premium pension plan that helps you save for your retirement while providing you with

life insurance protection.

LIFE TIME SUPER PENSION

It is a regular premium unit linked pension plan that helps one accumulate over the long term and

offers an annuity option (guaranteed income for life) at the time of retirement.

LIFE LINK SUPER PENSION

A single premium linked pension plan that gives you the freedom to choose the amount of

premium, and invest in market-linked funds, to generate potentially higher returns.

HEALTH SOLUTION

HEALTH ASSURE AND HEALTH ASSURE PLUS

Health Assure is a regular premium plan which provides long term cover against 6 critical

illnesses by providing policyholder with financial assistance, irrespective of the actual medical

expenses. Health Assure Plus offers the added advantage of an equivalent life insurance cover

CANCER CARE

It is a regular premium plan that pays cash benefit on the diagnosis as well as at different stages in

the treatment of various cancer conditions.

GROUP SOLUTIONS

In an era of competitive parity, the only asset that makes a decisive difference between corporate

success and failure is the quality of human capital. Employee benefits have proven to be an

excellent tool to optimize the retention of talent and improve an organizations bottom-line. The



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ICICI PRUDENTIAL LIFE INSURANCEquality of an organizations employee benefits establishes and maintains a company's image as a

caring employer. Optimum care of employees is a long-term investment that results in a sustained

competitive advantage for an organization in the times to come.

ICICI Pru Group Solutions Advantage

1).An integrated basket of employee benefits solutions that offer incomparable flexible benefits.

2).Sound investment management that focuses on safety, stability and profitability of the

portfolio.

3). Personalized financial planning for your employee that takes care ofhis/her changing financial needs at every stage of life.

4).Quality service initiatives and transparency across all operations, promising superlative

operational efficiency.

GROUP TERM ASSURANCE:

ICICI Pru's flexible group term solution helps provide affordable cover to members of a group.

The cover could be uniform or based on designation/rank or a multiple of salary, and can be

extended to all employees between the ages of 18 and 65 years. The benefit under the policy is

paid on the event of the members death to the beneficiary nominated by the member. It is a one-

year renewable policy where one master policy covers all proposed employees comprising the

group, with a minimum group size of 25 persons. New members can join the group and

outgoing members can leave the group at any point during the policy term

GROUP GRATUITY PLAN:

ICICI Pru's group gratuity plan helps employers fund their gratuity obligation in a scientific

manner. Employers can avail of the tax benefits as applicable to approved gratuity funds. The plan

can also be customized to structure schemes that can provide benefits beyond the statutoryobligations. Highlights include.



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GROUP SUPERANNUATION PLAN

ICICI Prus Superannuation Scheme (for both Defined Benefit and Defined Contribution funds)

offers substantial benefits to both employers and employees. The employer and employee can

avail of tax benefits applicable to an approved superannuation trust. The scheme will provide for aretirement fund for each participating employee. An employee would be able to choose from

various annuity options or opt for partial commutation of corpus at retirement.

Highlights include:

FLEXIBLE RIDER OPTIONS

Critical Illness Benefit Rider

Protects the insured against financial loss in the event of 9 specified critical illnesses. Benefits are

payable to the insured for medical expenses prior to death., namely: Major organ transplants,

Complete renal failure, Stroke, Paralysis, Heart attack, Valve replacement surgery, Major surgery

of the aorta, CAGS (Bypass) and Cancer.

Accident & Disability Benefit Rider

Benefits payable on death due to an accident.

If the policyholder dies due to an accident, 100% of the rider sum assured is paid in

addition to the basic sum assured.

In case the policyholder dies in a land surface, mass public transport system wherein the

policyholder was traveling as a fare-paying passenger, then 200% of the rider sum assured

is paid.

Benefits payable in case of permanent disability due to an accident.

If the policyholder survives an accident but becomes permanently disabled then the

premium for the basic plan is completely waived off to the extent of the rider sum assured.



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Plus, 10% of the rider sum assured is paid for the next 10 years, which helps in providing

that extra money and takes care of sudden financial set back that occurs after a tragic

disability.

Income Benefit Rider

In case of death of the life assured during the term of the policy, 10% of the rider sum assured is

paid annually to the beneficiary, on each policy anniversary till maturity of the rider.

Waiver of Premium Rider (WOP)

In case of total and permanent disability due to an accident, the future premiums continue to be

paid by the company till the time of maturity.

THE VARIOUS PLANS THAT ARE AVAILABLE TO BUY ONLINE ARE

Life expectancy has been rising rapidly and today, you can now expect to live much longer than

your earlier generations. For you, this will mean planning for a longer retirement life, probably

without a regular income. So, it is more critical than ever to plan adequately and wisely for those

incremental retirement years, keeping in mind that your expenses will spiral upward, your cost of

living will increase and inflation will be ever present. Therefore, you need a plan that ensures

safety, risk cover, income security and regular returns for your post-retirement years.ICICI

Prudential Life Insurance presents Life Time Pension II, a retirement plan that combines the bestof investment and insurance and ensures that you get the power to maintain your lifestyle needs,



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ICICI PRUDENTIAL LIFE INSURANCEfor as long as you live. You can now buy the Life Time Pension II plan with no life cover online

through www.icicibank.com, without undergoing any Medical examinations.

- Term plan

Happiness and security for our family is what all of us want. However, the uncertainties of life

often worry us. The thought of unfortunate events befalling us may cause anxiety about our ability

to provide for our loved ones. This is especially the case if we are no longer there to provide for

them. A Term plan (i.e. pure Protection plan) like Life Guard ensures that your loved ones are

adequately provided for and that their lives are not affected, even if you are not around.

ICICI Prudential presents Life Link Super a unique, single premium market-linked investment-

cum-insurance solution that enables you to extract the maximum from your investment. Life Link

Super offers attractive premium allocation along with flexible investment options to give you the

opportunity to enjoy potentially high returns on your investments, without compromising on the

protection of your family

ICICI Prudential presents Health Assure Plus, a plan that covers you against 6 critical illnesses, as

well as provides you with life cover. On diagnosis of any of the 6 critical illnesses covered, the

plan provides for the best possible medical treatment and also compensates for loss of income and

additional expenses like traveling, lodging etc In addition, it also offers a life insurance cover,

which protects your family in the unfortunate event of death



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plan

ICICI Prudential presents HealthAssure, a plan that covers you against 6 critical illnesses. On

diagnosis of any of the 6 critical illnesses covered, the plan provides for the best possible medical

treatment and also compensates for loss of income and additional expenses like traveling, lodging

etc

2.8 AREA OF OPERATION:-

DISTRIBUTION

ICICI Prudential has one of the largest distribution networks amongst private life insurers in Indiawith a network of over 83,000 advisors, and having commenced operations in 207 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. Some are Ahmedabad, Bangalore, Baroda, Bhopal, Bhubaneshwar,

Chandigarh, Chennai, Coimbatore, Cochin, Guntur, Hyderabad, Indore, Jaipur, Jallandar, Jodhpur,

Kanpur, Kochi, Kottayam, Lucknow, Ludhiana, Madhurai, Mangalore, Meerut, Mumbai, Nagpur,

Nasik, Noida, New Delhi, Pune, Vadodhara, Vapi etc.

BANKASSURANCE

The company has 9 bank assurance partners, having tie-ups with ICICI Bank, Bank of India,

Federal Bank, South Indian Bank, Lord Krishna Bank, and some co-operative banks; as well as

over 200 corporate agents and brokers. It has also tied up with NGOs, MFIs and corporates for the

distribution of rural policies.

BANGALORE BRANCHES



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ICICI PRUDENTIAL LIFE INSURANCEIn ICICI Prudential Insurance Company, for the purpose of convenience the entire nations

operations are divided into 2 Major regions. They are called as

I) Himalayan Region. (North India)

II) Peninsula Region. (South India)

The South Indian region is called as Peninsula region. Under this region there are 3 Zones. They

are Karnataka and Goa zone, Tamil nadu and Kerala Zone, and Maharastra Zone. Under

Karnataka and Goa Zone there are various District level Sub Zones. These District level Sub

Zones have various local area branches. Like that, the Bangalore district Zone has 4 local area

branches. They are..

1) Residency Road Branch.

2) Koramangala Branch.

3) Jayanagar Branch.

4) Malleshwaram Branch.

THE HEAD OFFICE

The company has its Registered Office and Head office at Mumbai.

ICICI Prudential Life Insurance Company Ltd.

ICICI Pru Life Towers, 1089 Appasaheb Marathe Marg,

Prabhadevi, Mumbai 400025

Fax us at: (022) 2437 6727.

OWNERSHIP PATTERN

ICICI Prudential's equity base stands at Rs. 11.85 billion with ICICI Bank and Prudential plc

holding 74% and 26% stake respectively.



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SHARE HOLDING PATTERN OF ICICI

PRIDENTIAL INSURANCE COMPANY LTD

26%

74%

ICICI BANK PRUDENTIAL PLC

COMPETITORS

ICICI Prudential faces tough competition from L.I.C, which is one of the oldest insurance

company and also from other Private insurers like Bajaj Aliance, HDFC Standard , Tata A.I.G.,

etc L.I.C It is a oldest insurance company the market leader with 74% - 87% market shares and it

enjoys all the benefits of government as it comes under public sector And in private ICICI

Prudential is the market leader but now faces competition with Bajaj Aliance & HDFC Standard

other are TATA A.I.G, Birla Sunlife,SBI Life, Max new york life, Aviva, and Kotak Mahindra.



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THE AWARDS RECEIVED BY THE COMPANY

a) Out Look Money Award of the BEST LIFE INSURERof 2003-04.

b) 2004 INSTITUTE OF MARKETING AND MANAGEMENT AWARD FOREXCELLENCE.

c) THE MOST TRUSTED PRIVATE LIFE INSURER. - Economic Times, A.C. Nielson

survey 2003.

d) THE SUPER BRAND AWARD.

FUTURE GROWTH AND PROSPECTUS

Future for icici prudential is very bright and how it is doing today will make it the No.1 player in

insurance . It will go beyond L.I.C in future

INSURANCE OPPORTUNITIES

The Company has great opportunities in the growing Insurance Market of India. They are

Only 23% of Insurable Population is insured.

Low Insurance penetration. Premium at 2.2% of total G.D.P.

Rapidly growing economy (G.D.P. grew at rate of 8.2% in 2003-04).

Private sector gaining momentum. Fiscal 2005 private sector market share was 23.2%

(Fiscal 2004-12.4%).

Pensions Opportunities.



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Insurance Landscape: 13 Private sector companies and 1 public sector Company.

2.9 MCKINSEY 7-S FRAMEWORK MODEL FOR COMPANY

ANALYSIS

The 7-s framework of Mckinsey is based Management (VBM) model that describes how one can

holistically and effectively organize a company. Together seven factors determine the way in

which a corporation operates. The model indicates the major aspects in the company and the way

in which they are co-ordinated.The Seven S Framework first appeared in "The Art Of Japanese

Management" by Richard Pascale and Anthony Athos in 1981. They had been looking at how

Japanese industry had been so successful, at around the same time that Tom Peters and Robert

Waterman were exploring what made a company excellent. The Seven S model was born at ameeting of the four authors in 1978. It went on to appear in "In Search of Excellence" by Peters

and Waterman, and was taken up as a basic tool by the global management consultancy

McKinsey: it's sometimes known as the McKinsey 7S model.



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APPLICATION MCKINSEY 7-S MODEL

SHARED VALUE

The interconnecting centre of McKinseys model is: Shared Values, What does the organization

stands for and what it believes in. Central belief and attitudes. The shared values with regard to

ICICI Prudential Life Insurance.

VISION AND MISSION

To make ICICI Prudential the dominant life and pension player built on trust by world class

people and services

To company believes this to be achieved by:

1 .Understanding the needs of customer and offering them superior products and services

2. Leveraging technology to service customer quickly, efficiently and conveniently.

3. Developing and implementing superior risk management and investment strategies to stable

returns to our policyholders.

4. Providing and enabling environment to foster growth and learning for our employees.

5. And above all, building transparency in all our dealings.

The success of the company will be founded in its unflinching commitment to 5 core values

Integrity customer First, Boundary less, Ownership and Passion. Each of the values describe

what the company believes that they are on the threshold of an exciting new opportunity, where

they play they can play a significant role in redefining and reshaping the sector. Given the quality

of their percentage and the commitment of their team, there are no limits to companys growth.

STRATEGY

Plans for the allocation of firms scarce resources, over time to reach identified goals. The strategy

of the ICICI Prulifeis:



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Appointments of Challenging Unit Manager

Appointment of Challenging Unit Manager is the most successful strategy in the ICICI Prudential.

Earlier unit manager was to lead the team which consisting of both performing and non-

performing advisors. But these inactive advisors became bottleneck for the performance of theunit manager. The unit manager was confuse about leading about the team because variation

between perception, attitude and motivational levels among performing and non-performing

advisors.

The job of challenging unit manager is to make active of inactive advisors. His team consisting of

only non-performing advisors. This leads to full focus of unit managers attention to those

advisors. This strategy will save huge amount of expenditure concerned to appointment of new

advisors as well as training to those advisors.

More focus on high net worth individual

The company is targeting high net worth individuals like executives of IT industries. Companys

major work force is concentrated on this segment, which is very beneficial for the collection of

large amount of premium. The smart work will leads to easy achievement of the target fixed by

the organization.

Excellent flexibility in the products and services

The company having such products and service which will target each and every segment of

potential customer. Flexibility concerned to Sum assurance, Premium amount, and mode of

payment, Nominee, Surrender of policy, withdrawal of fund and switch of fund. Other than ICICI

Prudential no one insurance company having this kind of flexibility.



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Minimum Administration Charges

Except LIC, ICICI Prudential has minimum administrative charges in the insurance industry.

These minimum charges are very helpful in convincing the customer. It leads to more trust in the

long period of time and it will reduce risk on the part of the advisors and company.

STRUCTURE

The way the organizations unit relate to each other; centralized, functional division (top down);

decentralized (the trend in larger organizations); matrix, network,, holding, etc.

Management

BOARDOF 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, ChairmanMr. Mark Norbom

Mrs. Lalita D. Gupte

Mrs. Kalpana Morparia

Mrs. Chanda Kochhar

Mr. HT Phong

Mr. M.P. Modi

Mr. R Narayanan

Mr. Keki Dadiseth

Ms. Shikha Sharma, Managing Director

Mr. N.S. Kannan, Executive Director

MANAGEMENT TEAM



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ICICI PRUDENTIAL LIFE INSURANCEMs. Shikha Sharma, Managing Director & CEO

Mr. N.S. Kannan, Executive Director

Mr. V. Rajagopalan, Chief - Actuary

Mr. Sandeep Batra, Chief Financial Officer & Company Secretary

Ms. Anita Pai, Chief - Customer Service and Technology

Mr. Puneet Nanda, Chief - Investments

ORGANISATIONAL STRUCTURE

SWOT ANAL


CEO & MANAGING DIRECTOR

SALES &

DISTRIBUTI-

ON

FINANCEDIRECTO

HUMAN

RESOURCE

DIRECTOR

MIS &

PLANING

DIRECTOR

OPERATIONS

DIRECTOR

HR HERD

T & D

HEAD

PURCHASE

MANAGER

FACILITY

MANAGER

EXPENESES

MANAGER

BRANCH

MANAGER

NATIONAL

MANAGER


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ZONAL MANAGER

BRANCH MANAGER

SALES MANAGER

ASISTENT SALES

MANGER

UNIT MANAGER

FINANCIALADVISORS


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ZONAL MANAGER

BRANCH MANAGER

H.R. MANAGER

ASSISTENT H.R.MANAGER

H.R. DEPARTMENTSTAFF

COMPANYPERSONNELS

CHIEF FINANCIALOFFICER

FINANCE MANAGERASSISTANTFINANCE MANAGER

CHARTEREDACCOUNTANTS

Sr. ACCOUNTANTSACTUARIES


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SYSTEM:

The procedure, processes and routines that characterize how important work is to be done

financial systems; hiring, promotion and performance appraisal system; information system.



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ICICI PRUDENTIAL LIFE INSURANCEICICI Prudential has a Life Asia Solutions Group Team managing Life Asia, companys core

policy system. Life Asia is a proven, reliable system operating on robust software, and on a

hardware platform providing ease of use. It provides the flexibility in designing better product

offerings to end-users. This solution group also, manages the Group solutions software package.

A critical aspect of companys every day work lives is IT infrastructure, and that is managed by

another sub group in the Life Asia solution group.

All the forward thinking businesses are headed for web, as web presence integrated with back end

systems allows for a strong self-service paradigm to be built for customers and partners. Company

has a Solution Group Web System which is constantly trying to provide real-time information to

companys CRM initiative using the Goldmine package, catering to the Sales Force for lead

management, and to customer service, for handling queries/complaints/requests.

Companys group also has an architect who is in charge of developing and maintaining a blueprint

for the enterprise as a whole. This team works as an in house R&D Solution Group caters to the

information needs of the corporate functions like HR and Finance. This team also

works towards running initiatives to drive up usage and derive returns on companys IT

investments.The information Technology section on the Intranet, will keep customers updated

with the latest IT Initiatives ay ICICI Prudential. The UAT corner in this section will help the user

functions in keeping a track of the status of their Enhancement Requests. This section also

provides information about various IT processes and IT Security Policies & Procedures of ICICI

Prudential.

SKILL:

Distinctive capabilities of the organization as a whole.

SELLING SKILLS

Selling skills in includes many aspects:-

1. Provide ongoing financial advice for his/her customer . For this advisors need complete

knowledge about the product and services

2. Identify the future customer life insurance is a business of contact and advisors need to network

constantly to ensure that the business expands.



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ICICI PRUDENTIAL LIFE INSURANCE3. Constantly make appointment just making contact will not be enough to develop a good life

insurance business. It is vital that these contacts are met .And thus s

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