SMU Final Report

8/8/2019 SMU Final Report

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Insurance is defined as a co-operative device to spread the loss

caused by a particular risk over a number of persons who are

exposed to it and who agree to ensure themselves against that risk.Risk is uncertainty of a financial loss. It should not be confused

with the chance of loss, which is the probable number of losses out

of confused with peril, which is de fined as the cause o f loss or with

hazard, which is a condition, may increase the chance of loss.

Every risk involves the loss of one or other kind. The functi on of

insurance is to spread the loss over a large number of persons who

are agreed to co-operate each other at the time of loss. The risk

cannot be over rated but loss occurring due to a certain risk can be

distributed amongst the agreed persons. They are agreed to share

the loss because the chance of loss is there.

Everybodys greatest asset during his/her working years is his/her

ability to earn an income. It is important to adequately safeguardthis asset to ensure his/her cash flow will continue in the event of

an unexpected disaster. His/her insurance policies will help to

protect him/her (if any) against any unforeseen odds.

There are two kinds of insurance available viz. Life Insurance andGeneral Insurance.

Life Insurance

Provides for dependents in case of death.

Replaces earning power, if disabled.

Protects his/her ability to meet accumulation / education

/ marriage goals.


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premium) for a large unknown loss , which may or may

not occur.

1.1 History of Insurance

Historians believe that insurance first developed in Sumer & Babylonia. The

merchants & traders of these societies transferred & pooled their money to protect

themselves from pirates.

In the 18th century BC, Babylonian king, Hammurabi developed a code of law known

as the code of specific rules governing the practices of early risk-sharing activities.

Insurance developed during the 1700s in the North American colonies. In 1730,

Benjamin Frank contributed for the Insurance of Houses from Loss by Fire. The

company collected contributions & this money went into an investment fund. Interest

on this fund went towards paying claims dividends to those who contributed money.

The Industrial Revolution in the US, in the early & mid 1800s prompted dramatic

group. During this time, many companies were establishes to sell life insurance

policies & annuities. Several shared profits among policy holders, also developed. In

addition, some life insurance companies charged premiums according to age of people

& health.

Life insurance, in its present form, came to India from the United Kingdom with the

establishment of a British firm, Oriental Life Insurance Company in Calcutta in 1818,

followed by Bombay Life Insurance Assurance Company in 1823, the Madras

Equitable Life Insurance Society in 1829, & the Oriental Government Security Life

Assurance Company in 1874. Prior to 1871, Indian lives were treated as sub-standard


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& charged extra premium of 15% to 20%. Bombay Mutual Life Assurance Society, an

Indian insurer which came into existence in 1871, was the first to cover Indian lives at

normal rates.

The Indian Life Assurance Companies Act, 1912 was the first statutory measure to

regulate life insurance business. Later in 1928, the Indian Insurance Companies Act

was enacted, to enable the govt. to collect statistical information about both life &

non-life insurance business transacted in India by Indian & foreign insurers, including

the provident insurance society. Comprehensive arrangements were, however, brought

into effect with the enactment of the Insurance Act, 1938. Efforts in this direction

continued progressively & the Act was amended in1950, making far reaching

changes, such as requirement of equity capital for companies carrying on life

insurance business, stricter controls on investment of life insurance companies, ceiling

on the expenses of management & agency commission etc.

By 1956, 154 insurers, 16 non-Indian insurers & 75 provident societies were carrying

on life insurance business in India. On 19th January 1956, the management of the

entire life insurance business of 229 Indian insurers & provident insurance societies &

the Indian life insurance business of 16 non-Indian life insurance companies then

operating in India, was taken over by the central govt. & then nationalized on 1st

September 1956 when Life Insurance Corporation came into existence.

An ordinance was passed in 1968 to amend the Insurance Act to regulate/control non-

life insurance resulting in set up of GIC in 1973. Malhotra committee submitted its

report in 1994 & recommended means to reintroduce an element of competition by

withdrawing the exclusivity of LIC & GIC. In 1997, Insurance Regulatory Authority

(IRA) was established which was later re-styled as IRDA in 1999.


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1.2 Advantages of Life Insurance

1.It is superior to an ordinary saving plan: Unlike other saving plans, it affords full

protection against risk of death. In case of death, the full sum assured is made

available under a life assurance policy; whereas under saving scheme the total

accumulated saving alone will be available. The later will be considerably less than

the sum assured, if death occurs during early years.

2. Easy settlement & protection against creditors: The life assured can name

person(s) called Nominee to whom the policy money would be payable in the event of

his death. The proceeds of a life policy can be protected against the claim of the

creditors of the life assured by effecting a valid assignment of the policy.

3. Ready marketability & suitability for quick borrowing: After an initial period,

if the policy holder finds him unable to continue payment of premiums, he can

surrender the policy for a cash sum. Alternatively, ha can tide over a temporary

difficulty by taking loan on the sole security of the policy without delay. Further, a life

insurance policy is sometimes acceptable as security for a commercial loan.

4. Tax Relief: The Indian Income-Tax Act allows deduction of certain portion of the

taxable income which is diverted to payment of life insurance premiums from the total

income tax liability. When this tax relief is taken into account, it will be found that the

assuredis in effect paying a lower premium for his insurance.


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1.3 Goals should you plan for in advance?

1) Your family's protection - so that your loved ones are secure should an

unfortunate event happen to you. Buying Life insurance assures that your family

receives a lump sum that safely tides them over any financial crises that might occur

in your absence.

2) Child's education: As parent, your primary responsibility is to ensure your

children's future. Our Education Insurance plans ensure your child receives money at

key stages of his or her education even in your absence.

3) Savings: Savings plans allow you to steadily save towards a pre-decided goal in a

secure manner. These plans provide you with a host of benefits. You can choose the

premium, the underlying fund in which you want to invest your money, the ratio

between protection and investment as per your requirements.

4) Retirement: Retirement plans help you secure regular income for your retired life.

During the Accumulation phase, you systematically save while you are working.

When you retire, the Payout stage of the plan begins. You then purchase an annuity,

which will serve as a steady stream of income, for the rest of your life.

5) Health: An integral part for financial planning is protecting oneself against any

medical emergencies as well. Hence, a very prudent decision would be to choose a

combination of plans that look after your finances and offer you a protective health

cover to ensure your financial planning is in track despite any major illnesses.


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2.1 Sharing of Risks

Insurance is a co-operative device to share the burden of risk,

which may fall on happening of some unforeseen events, such as

the death of head of the family, or on happening of marine perils orloss of by fire.

2.2 Co-operative Device

Insurance is a co-operative form of distributing a certain risk over a

group of persons who are exposed to it (Ghosh & Agarwal). A

large number of persons share the losses arising from a particular

risk.

2.3 Evaluation of Risk

For the purpose of ascertaining the insurance premium, the volume

of risk is evaluated, which forms the basis of insurance contract.

2.4 Payment of happening of specified event

On happening of specified event, the insurance company is bound

to make payment to the insured. Happening of the specified eventis certain in life insurance, but in the case of fire, marine or

accidental insurance, it is not necessary. In such cases, the insurer

is not liable for payment of indemnity.

2.5 Amount of payment

The amount of payment in indemnity insurance depends on the

nature of losses occurred, subject to a maximum of the sum insured.

In life insurance, however, a fixed amount is paid on the happeningof some uncertain event or on the maturity of the policy.

2.6 Large number of insured persons

The success of insurance business depends on the large number ofpersons insured against similar risk. This will enable the insurer tospread the losses of risk among large number of pe rsons, thus keepingthe premium rate at the minimum.


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2.7 Insurance is not a gambling

Insurance is not a gambling. Gambling is illegal, which gives gain

to one party & loss to the other. Insurance is a valid contract to

indemnity against losses. Moreover, insurable interest is present ininsurance contracts & it has the element of investment also.

2.8 Insurance is not charity

Charity pays without consideration but in the case of insurance,

premium is paid by the insured to the insurer in consideration of

future payment.

2.9 Protection against risks

Insurance provides protection against risks involved in life,

materials & property. It is a device to avoid or reduce risks.

2.10 Spreading of risk

Insurance is a plan, which spread the risks & losses of few people

among a large number of people. John Magee writes, Insurance is

a plan by which large number of people associates themselves &transfer to the shoulders of all, risks attached to individuals.

2.11 Transfer of risk

Insurance is a plan in which the insured transfers his risk on the

insurer. This may be the reason that Mayerson observes, that

insurance is a device to transfer some economic losses to the

insurer, and otherwise such losses would have been borne by the

insured themselves.

2.12 Ascertaining of losses

By taking a life insurance policy, one can ascertain his future

losses in terms of money. This is done by the insurer to

determining the rate of premium, which is calculated on the basis

of maximum risks.


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2.13 A contract

Insurance is a legal contract between the insurer & insured under

which the insurer promises to compensate the insured financially

within the scope of insurance policy, & the insured promises to paya fixed rate of premium to the insurer.

2.14 Based upon certain principle

Insurance is a contract based upon certain fundamental principles

of insurance, which includes utmost good faith, insurable interest,

contribution, indemnity, subrogation, etc., which are the basis for

successful operation of insurance plan.

2.15 Utmost Good Faith

Insurance is a contract based on good faith between the parties.

Therefore, both the parties are bound to disclose the important facts

affecting to the contract before each other. Utmost good faith is

one of the important principles of insurance.

To conclude, insurance is a device for the transfer of risks from the

insured to the insurers, who agree to it for a consideration (known

as premium), & promises that the specified extent of loss suffered

by the insured shall be compensated. It is a legal contract of a

technical nature.

To conclude, insurance is a device for the transfer of risks from the

insured to the insurers, who agree to it for a consideration (known

as premium), & promises that the specified extent of loss suffered

by the insured shall be compensated. It is a legal contract of a

technical nature.


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3.1 ICICI Prudential Life Insurance Company Limited

ICICI Prudential Life Insurance Company Limited was incorporated on December 12,

2000. The authorized capital of the company is `.2300 Million and the paid up capital

is `. 1500 Million. The Company is a joint venture of ICICI (78%) and Prudential Plc.

UK (22%).

The Company was granted Certificate of Registration for carrying out Life Insurance

business, by the Insurance Regulatory and Development Authority on November 24,2000. It commenced commercial operations on December 12, 2000, becoming one of

the first few private sector players to enter the liberalized arena.

The Company is now operational in Agra, Ahmedabad, Ajmer, Allahabad, Amritsar,

Aurangabad, Bangalore, Bhatinda, Bhopal, Bhubaneswar, Chandigarh, Chennai,

Coimbatore, Dehradun, Goa, Guntur, Gurgaon, Greater Noida, Hyderabad, Hubli,

Indore, Jaipur, Jalandhar, Jamnagar, Jamshedpur, Jodhpur, Kanpur, Karnal, Kochi,

Kolkata, Kota, Kharagpur, Kottayam, Lucknow, Ludhiana, Madurai, Mangalore,

Meerut, Mumbai, Nagpur, Nasik, Noida, New Delhi, Patiala, Pune, Rajkot, Ranchi,

Surat, Thane, Thrissur, Trichy, Trivandrum, Vadodara, Vashi, Vijaywada.

Till March 31,2002 the Company has issued 100,000 polices translating into a

Premium Income of around `. 1,200 Million and a sum assured of over `.15,000

Million.

The Company recognizes that the driving force for gaining sustainable competitive

advantage in this business is superior customer experience and investment behind the

brand. The Company aims to achieve this by striving to provide world-class service


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levels through constant innovation in products, distribution channels and technology-

based delivery. The Company has already taken significant steps to achieve this goal.

3.2 Achievements

In the fiscal year 2009-2010, ICICI had disbursed a total of ` 258 crore.

Private market leader for 9 years in a row.

Over `573.19 billion of assets held as of March 2010.

Over 10 million policies issued since inception.

Renewal premium growth of 19% for FY 2010.

Most customer responsive insurer*: Over 10,000 service touch points.

Awarded The International Service Excellence Award 2009.

*Avaya Global Connect, 2005 & 2007


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3.3 Sponsors

3.3.1 ICICI Ltd

ICICI Ltd was established in 1955 by the World Bank, the Government of India and

the Indian Industry, to promote industrial development of India by providing project

and corporate finance to Indian industry.

Since inception, ICICI has grown from a development bank to a financial

conglomerate and has become one of the largest public financial institutions in India.

ICICI has financed all major sectors of the economy, covering 6,848 companies and

16,851 projects. In the fiscal year 2000-2001, ICICI had disbursed a total of ` 319.65

billion.

ICICI has now developed a whole range of activities to become a Universal Bank.

Some of ICICI spectrum of activities includes:

Commercial Banking - ICICI Bank, India's first internet bank.

Information Technology - ICICI InfoTech, transaction processing, software

developmentInvestment Banking - ICICI Securities, one of the key players in the Indian

Capital Markets

Mutual Fund - Prudential ICICI AMC, leading private sector mutual fund

player in India

Venture Capital - ICICI Venture, leading private equity investor with focus on

IT and HealthCare


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Retail Services - ICICI PFS, Marketing and Distribution of Retail Asset

Products

Distribution - ICICI Capital, Distribution and Servicing of Retail LiabilityProducts

ICICI is listed on the Indian Stock Exchanges and on the New York Stock

Exchange (NYSE). On September 22, 1999, it became the first Indian company to

be listed on the NYSE (symbol: IC and IC.D). The listing of ICICI BANK has

followed this on NYSE (symbol: IBN) on March 28, 2000.

3.3.2 Prudential Plc.

Prudential Plc. was founded in 1848. Since then it has grown to become one of the

largest providers of a wide range of savings products for the individual including life

insurance, pensions, annuities, unit trusts and personal banking. It has a presence in

over 15 countries, and caters to the financial needs of over 10 million customers.

It manages assets of over US$ 259 billion (Rupees 11, 39,600 crore approx.) as of

December 31, 1999. Prudential plc has had its presence in Asia for the past 75 years

catering to over 1 million customers across 11 Asian countries. Prudential is the

largest life insurance company in the United Kingdom. Asia has always been an

important region for Prudential and it has had a presence in Asia for over 75 years. In

fact Prudential's first overseas operation was in India, way back in 1923 to establish

Life and General Branch agencies.

In the US, Prudential owns Jackson National Life, one of the leading life insurance

companies. Prudential controls approximately 4% of all the listed shares on the

second largest stock exchange in the world, the London Stock Exchange, making it


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one of the largest institutional investors in the UK. Prudential is focused on the

Internet generation and is one of the first financial service organizations to use the

Internet on a fully integrated basis.

In October 1998, Prudential launched a "branchless" bank based on the internet.

Unusually titled as " egg:|". The bank has in a short span of its existence become a

leading banking service provider in the UK. Infect in the first six months of its

existence it garnered over 5 billion (US$ 8 billion) in deposits from over 500,000

customers.

Development of superior products and services that offer value for money and security

while producing superior financial returns enables Prudential to maximize the value of

its shareholder's investment and to establish lasting relationships with customers and

policy holders.

ICICI and Prudential came together in 1993 to provide mutual fund products in India

and today are the largest private sector mutual fund company in India. The two

companies bring together two of the strongest financial service brands in Asia known

for their professionalism, excellent quality of service and long term commitment.

3.4 Aim of the Company

Their vision is to make ICICI Prudential Life Insurance Company the dominant new

insurer in the life insurance industry. This they hope to achieve through their

commitment to excellence, focus on service, speed and innovation, and leveraging our

technological expertise.

The success of the organization will be founded on its strong focus on values and

clarity of purpose. These include:


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* Understanding the needs of customers and offering them superior products and

service

* Leveraging technology to serve customers quickly, efficiently, & conveniently.* Developing & implementing superior risk management & investment strategies to

offer sustainable & stable returns to the policy holders.

* Building long lasting relationships with their partners

* Providing an enabling environment to foster growth and learning for their

employees

They believe that they can play a significant role in redefining and reshaping the

sector. Given the quality of their parentage and the commitment of their team, they

feel that there will be no limits to their growth. The success of the company lies in its

unflinching commitment to five core values: - Integrity, Customers first, Boundary

less, Ownership, & Passion.


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K. V. Kamath

Managing Director and Chief Executive Officer

Lalita Gupte

Joint Managing DirectorKalpana Morparia

Joint Managing Director

Chanda Kochhar

Deputy Managing DirectorNachiket Mor

Deputy Managing Director


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Board Committees

Audit CommitteeBoard Governance &

Remuneration Committee

Mr. Sridar Iyengar

Mr. NarendraMurkumbi

Mr. M. K. Sharma

Mr. N. Vaghul

Mr. Anupam PuriMr. M. K. Sharma

Mr. P. M. Sinha

Prof. Marti G. Subrahmanyam

Customer Service

CommitteeCredit Committee

N. Vaghul

Narendra Murkumbi

M.K. Sharma

P.M. Sinha

K. V. Kamath

Mr. N. Vaghul

Mr. Narendra Murkumbi

Mr. M .K. Sharma

Mr. P. M. Sinha

Mr. K. V. Kamath

Fraud Monitoring

CommitteeRisk Committee

Mr. M. K. Sharma

Mr. Narendra

MurkumbiMr. K. V. Kamath

Ms. Kalpana

Morparia

Ms. Chanda D.

Kochhar

Mr. N. Vaghul

Mr. Sridar Iyengar

Prof. Marti G. SubrahmanyamMr. V. Prem Watsa

Mr. K. V. Kamath


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Share Transfer &

Shareholders'/

Investors'

Grievance

Committee

Asset-Liability Management

Committee

Mr. M. K. Sharma

Mr. Narendra

Murkumbi

Ms. Kalpana

Morparia

Ms. Chanda D.

Kochhar

Ms. Lalita D. Gupte

Ms. Kalpana Morparia

Ms. Chanda D. Kochhar

Dr. Nachiket Mor

Committee of

Directors

Mr. K. V. KamathMs. Lalita D. Gupte

Ms. Kalpana

Morparia

Ms. Chanda D.

Kochhar

Dr. Nachiket Mor


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5.1 Insurance solution for individuals..

ICICI Prudential Life Insurance offers a range of innovative,

customer-centric products that meet the needs of customers at every life

stage. Its 17 products cab is enhanced with up to 6 riders, to create a

customized solution for each policyholder.

Savings Solutions..

Secure Plus is a transparent and feature-packed savings plan that

offers 3 levels of protection. Cash Plus is a transparent, feature-packed

savings plan that offers 3 levels of protection as well as liquidity options.

Save n Protect is a traditional endowment savings plan that offers life

protection along with adequate returns. Cash Back is an anticipated

endowment policy ideal for meeting milestone expenses like a childs

marriage, expenses for a childs higher education or purchase of an asset.


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Protection Solutions.

LifeGuard is a protection plan, which offers life cover at very low

cost. It is available in 3 couponslevel term assurance, level term

assurance with return or premium and single premium.

Child Solutions.

Smart kid child plans provide 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. SmartKid child planed are also available with in unit-

linked formboth single premium and regular premium.

Market-linked Solutions

LifeLink is a single premium Market Linked Insurance Plan,

which combines life insurance cover with the opportunity to stay,

invested in the stock market. Life Time offers customers the flexibility

and control to customize the policy to meet the changing needs at


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different life stages. It offers 3 investment optionsGrowth Plan, Income

plan and Balance plan.

Retirement Solutions

Forever Life is a retirement products targeted at individual in there

thirties. Secure Plus Pension is a flexible pension plan that allows one to

select between 3 levels of cover.

Market-linked retirement products

Life Time Pension is a regular premium market-linked pension plan. Life Link

Pension is a single premium market linked pension plan. ICICI Prudential also

launched Salaam Zindagi, a social sector group insurance policy targeted at the

economically underprivileged sections of the society.

Group Insurance Solutions

ICICI Prudential also offers Group Insurance Solutions for

companies seeking to enhance benefits to their employees.


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Group Gratuity Plan

ICICI Prus group gratuity plan helps employers fund their

statutory gratuity obligation in a scientific manner. The plan can also

customize to structure schemes that can provide benefits beyond the

statutory obligations.

Group Superannuation Plan

ICICI Bank offers flexible defined contribution superannuation

scheme to provide a retirement kitty for each member of the group.

Employees have the option of choosing from various annuity options or

opting for partial commutation of the annuity at the time of retirement.


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Group Term Plan

ICICI Prus flexible group term solution helps provides affordable

cover to members of group. The cover could be uniform or based on

designation/rank or a multiple of salary. The benefit under the policy is

paid to the beneficiary nominated by the member on his/her death.

5.2 RIDERS

5.2.1 Flexible Rider Options

ICICI Prudential Life offers flexible riders, which can be added to the basic policy at amarginal cost, depending on the specific needs of the customer.

Accident & disability benefit: If death occurs as the result of an accident

during the term of the policy, the beneficiary receives an additional amount equal to

the sum assured under the policy.

Accident benefit: This rideroption pays the sum assured under the rider on

death due to accident.


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Critical Illness benefit: Protects the insured against financial loss in the event

of specified critical illness. Benefits are payable to the insured for medical expenses

prior to death.

Major Surgical Assistance benefit: Provides financial support in the event of

medical emergencies, ensuring that benefits are payable to the life assured for medical

expenses incurred for surgical procedures. Cover is offered against 43 different

surgical procedures.

Income benefit: This rider pays the 10% of the sum assured to the nominee

every year, till maturity, in the event of the death of the life assured. It is available on

SmartKid, SecurePlus & CashPlus

Waiver of Premium: In case of total & permanent disability due to an

accident, the premiums are waived till maturity. This rider is available with

SecurePlus & CashPlus.


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6.1 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.


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6.2 Marketing

Today the definition of marketing has been changed. The marketing activityof an organization before the product is produced and continues even after the

product is sold. In the buyer market of recent times the sharpest weapon that a

company can develop is globalize marketing place in the value creation and

delivery. The proud and demanding customer of today brings before corporate

a critical fact, when the customer is jury. It is the value generation for the

customer that will separate the victor from vanquished. The value of customer

service cascades all over the company. The aim of customer focus is not just

satisfaction but delight satisfaction.

Till the year 1999 the life insurance business was exclusively conducted by

the Life Insurance Corporation (LIC) while the general insurance business in

India, was exclusive by General Insurance Corporation and its four

subsidiaries. The insurance sector is opened for private participation since

November, 2000.

Before 1999 there was no marketing done by LIC due to its monopoly but now

after 5 years the picture has changed. Now there are private players in market.

With the effective marketing techniques the private players has changed the

whole scenario of the insurance sector. They are slowly and gradually driving

the business out of the hands of the LIC. Before 1999 customer had no option

other than LIC, but now they have got many options. This is the significant

change in insurance industry. Now the customer is back in the center state. All

the companies are trying to please the customer with the innovative schemes

and better service.

6.2.1 Relationship Marketing in Insurance

It is five times more expensive to acquire a new customer than to retain an old

one. Relationship marketing is the practice of building long term satisfying


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relationship with key parties customers and suppliers. They accomplish this by

promoting and delivering high quality, goods, services, and fair prices to other

parties overview. Relationship marketing results in strong economic, technicaland social ties among the parties.

6.2.2 .1 Definition of Relation Marketing:

Relationship marketing can be defined as the process to identify, establish,

maintain and other stakeholders at a profit so that the objective of all parties

involved are net and this is done by mutual exchange and fulfillment of

promises.

The important objectives of relationship marketing to acquire new customers

maintain and enhance relationship with existing customers, re-activities of ex-

customers and handling of customer terminations. The key objective of

relationship marketing is to establish one to one relationship with all the

customers. This may have sound like a day dream few dream few years ago but

thanks to the technological breakthrough and technological solution providers,

it is very much of a reality.

6.2.2.2 How to add value through relationship Marketing

Identify loyal customers

Recognize their special needs

Provide special reward for loyalty

Establish continuing relationship

Ensure increase in customer value


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Relationship marketing is one of the hottest tread in the present marketing

scenario. Satisfied customers not only stay with a company but they are also

walking talking advertisement for the companys product.

6.3 Operations

The Operation department oils the work processes between the customer and

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 under writers, and manages work

processes.

The vision at customer service is to deliver World Class Service at every

opportunity. Units such as the 9 to 9 contact centre, out bound call centre,

customer care. And query reduction unit are all committed across the country.

ICICI Prudential has one of the largest distribution networks amongst private

life insurers in India, having commenced operations in 58 cities and towns in

India.

These are.. Agra, Ahmedabad, Ajmer, Amritsar, Aurangabad, Bangalore,

Bhopal, Calicut, Chandigarh, Chennai, Coimbatore, Dehradun, Gurgaon,

Hyderabad, Hubli, Indore, Jaipur, Jalandhar, Jamnagar, Kanpur, Karnal,

Kochi, Kolkata, Kota, Kolhapur, Kottayam, Lucknow, Ludhiana, Madurai,

Mangalore, Meerut, Mumbai, Nagpur, Nashik, Noida, New Delhi, Patiala,

Pune, Raipur, Rajkot, Ranchi, Surat, Thane, Thrissur, Trichy, Trivendrum,

Udaipur, Vadodara, Vashi, Vijayawada and Vizag.

The Company has twelve banc assurance tie-ups having agreements with

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

Bank, Punjab and maharastra Co-Operative Bank, Goa State Co-operative

Bank, Indoor Paraspar Sahakari Bank, Manipal State Co-Operative and

Jalgaon Peoples Co-Operative Bank, as well as some corporate agents. It has


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tie-up with organizations like Dhan for Distribution of Salaam Zindgi, a Policy

for the socially and economically underprivileged sections of society.

ICICI Prudential has recruited and trained over 32000 insurance advisors tointerface with and advice customers. Further, it leverages is State-of the art IT

infrastructure to provide superior quality of service to customer.

The Operation Department of ICICI Prudential delivers the following services

to the customers such as:

Out Bound Call Centre

Customer Care

Query Resolution Unit

Policy Login Process

9 to 9 Contact Centre

6.3.1 Role of Information Technology in Operation Department:

The Information Technology function at ICICI Prudential is committed to

enables 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 offering to end-

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

customers and is responsible for customer relationship management, IT

Architecture and Corporate Solutions Group 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 organizations. 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


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of efficiency and provide robust, scalable and highly available platform for

development of business application.

With the help of Information Technology, an advisor and managers canlogin the policy from any of the offices of ICICI Prudential Ltd. And also with

the help of IT any employee or management can know any information,

anything about the policy, advisors record, any branchs sales, any new

schemes, any managers record, and other thins at any time any place.

6.4 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.

The joint strengths

A powerful joint venture partnership with each carrying a set of strengthscomplementing each others

Reputation

Insuranceexpertise

Product

Distribution

Operations

Brand strength

Infrastructure

Customer base

Local knowledge

Market Innovators

PRUDENTIALICICI


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6.4.1 PERFORMANCE APPRAISAL

It is the systematic evaluation of the individual with respect to his or herperformance on the job and his or her potential for development.

Objective of Performance appraisal if for Developmental uses for agents and Financial

Consultants, for wages, transfer, promotion, for documentation and for organizational

purpose like Human Resource Planning, Job analysis and for training and

development.

ICICI PRUDENTIAL first set the objective of performance appraisal then in

establish job expectation and then decide whose performance should be rated and who

the raters are. Basically raters are immediate supervisor, subordinates, peers, clients.

For Performance Appraisal modern method is used like MBO (Management By

Objectives) and 360 degree appraisal. But there is some limitation like Hello effect,

Bias, Perception factor, Spill over etc.

6.4.2 Selection Methods:

The selection procedure is concerned with securing relevant information about

an applicant. This information is secured in a number of steps or stages. The

objective of selection process is to determine whether an applicant meets the

qualifications for a specific job and to choose the applicant who is most likely

to perform well in that job.

The hiring procedure is not a single act but it is essentially a series of

methods or steps or stages by which additional information is secured about the

applicant. At each stage, facts may come to light which may lead to the

rejection of the applicant. A procedure may be compared to a series of

successive hurdles or barriers which an applicant must cross. These are

intended as screens, and they are designed to eliminate an unqualified applicant

at any point in the process. This technique is including all these hurdles.


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6.4.3 Placement & Induction:-

Placement at ICICI bank is done very critically. The human resources areconsidered very critical and are said to be main power of the bank. The CEO

Mr. K. V. Kamath says, Human capital is very important at ICICI. Training is

a big thing; each employee spends at least 69 hours during the year recharging

himself. Placement is done on the qualification and merit basis. Generally for

the retail banking and other in house jobs placement is done on the basis of the

interviews by branch and regional heads. They select only those competent

people who are ready to work round the clock and have full dedication towards

the bank.

Induction is a technique by which a new employee is rehabilitated into the

changed surroundings and introduced to the practices, policies and purposes of

the organization. In other words, it is a welcoming process-the idea is to

welcome a new comer, make him feel at home and generate in him a feeling

that his own job, however small, is meaningful and has significance as a part of

the total organization.

When a new comer joins an organization, he is an utter stranger to the

people, work place and work environment. He may feel insecure, shy and

nervous. The first few days may be anxious and disturbing ones for him. He

may have anxiety caused by not following the usual practices prevalent in the

organization, or the haphazard procedures, and lack of information. These may

develop discouragement, disillusionment or defensive behavior. Induction leads

to reduction of such anxieties; dispels the irrational fears

present employees and hold colleagues responsible for assisting the new comer

so that he may feel confident. ICICI says that, newcomers are to be a part of

informal identification of talent apart, there is a formal process. It starts form

induction, where newcomers are subject to the OPQ (occupational personality


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questionnaire). The tests have also been conducted right up to the general

manager and senior general manager.

6.4.4 Training and Development:-

ICICI is a kind of private sector bank where if you are confident and

competent then you can get your carrier advancement and development at a

very high speed. CEO Mr. K. V. Kamath says, There are several young people

in our organization who are on the threshold of making it to the board. He

himself has this habit of dropping in unannounced on people tow or three levels

below him. It helps him to keep a tab on things and also to find out who is

knocking on top management doors. His management by walking about also

takes him to the basement, to see that everything is spick and span. He does like

to get to the bottom of things.

At ICICI executive development programme is more important. Because

they believe that if the executives are properly trained, properly motivated and

fully focused then they can guide any kind of work force. All those persons

who have authority over others and are responsible for their activities and for

the operations of an enterprise are managers. In a business organization, the co-

ordination and direction of the efforts of others is a major part of the

management job. The manager has to deal not only with the staff but also with

others outside his own group, and has decided influence on the organization.


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7.1 Why is retirement planning important?

Retire from work. Not from life.

A retirement plan is an assurance that you will continue to earn a satisfying income

and enjoy a comfortable lifestyle, even when you are no longer working. To

understand why an increasing number of individuals have already started planning for

their retirement, and why you should too, read on.

Independence is the new way of life: An increasing number of young Indian

professionals are moving away from the traditional joint family structure. Since

support no longer comes easily, parents have realized the need to provide for

themselves during their retirement years.

Costs set to soar: Skyrocketing costs throw even a well-salaried person off balance.

With rates rising every day, you can imagine how high they will be when you are

ready to retire. A retirement plan provides you with a steady income every month, to

arm you in the face of rising costs.

To understand how inflation can impact your monthly expenses, we use our special

tool, the Inflation Index calculator.

Non-earning retirement phase is now longer: Only 4% of India working

population- mostly government employeesare covered by pensions. The remaining

96% comprises self-employed and salaried professionals who do not have a formal,

mandated provision for pensions.


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7.2 Why start planning for retirement right away?

Both Ramesh and Vikram want to retire at the age of 60 years. To take care of his

post-retirement requirements, Ramesh invests a total amount of`. 35 lakhs towards

his retirement corpus. On the other hand, Vikram invests a total of`50 lakh towards

his retirement. Despite investing less, Ramesh accumulates `298 lakh, compared to

Vikram's accumulation of`216 lakh!. Read on to find out how.

What Ramesh had in his favor was TIME. He began investing a sum of`1 lakh p.a.

earlier, at the age of 25 years, up to the age of 60. Ramesh, to compensate for lost

time, saved twice the amount invested by Ramesh i.e. `. 2 lakhs every year from the

age of 35 till the age of 59 years.


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It is for this precise reason you should plan for your retirement now-and not later; so

you get the advantage of investments that multiply quickly each year, giving you theadded advantage!

The graph above shows the retirement amount both Ramesh and Vikram accumulate

by the age of 60 years. Please note: The assumption is that both investments

appreciate at the rate of 10% per annum.


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7.3 How to plan for Retirement?

5 simple steps to arrive at an idealretirement plan

Step 1: Decide how much income you require to live comfortably in your post-

retirement years. Remember to take into account aspects like increased medical costs,

vacations and gifts for family, but reduce costs like children's education and rent, if

you own your home. Use our easy Inflation Index Calculator to calculate the impact of

inflation.

Step 2: Determine how much you need to save regularly, starting today. Use

our Retirement Calculator to determine how large a kitty you will need and how much

you need to save each year.

Step 3: Select the right retirement plan that enables you to meet your post-

retirement requirements. Preferably invest in market-linked plans, which can provide

you with potentially higher returns in the long run. Our Life Stage Profiler will help

you select the plan that meets your criteria

Step 4: Start saving now so you have time on your side and can enjoy the power of

compounding. Use our simple Power of Compounding Calculator.

Step 5: Systematically invest a fixed amount every month for your post-retirement

years.


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8.1 Types of Insurance Plans - Traditional or Unit Linked

Insurance Plans - At a glance

Broadly, insurance plans can be distinctly divided into ULIPs and traditional plans. A

brief detail of both segments:

Unit Linked Insurance Product

ULIPs have gained high acceptance due to attractive features they offer. These

include:

1. Flexibility

1. Flexibility to choose Sum Assured.

2. Flexibility to choose premium amount.

3. Option to change level of Premium /Sum Assured even after the plan has

started.

4. Flexibility to change asset allocation by switching between funds

2. Transparency

1. Charges in the plan & net amount invested are known to the customer

2. Convenience of tracking ones investment performance on a daily basis.

3. Liquidity

1. Option to withdraw money after few years (comfort required in case of

exigency)

2. Low minimum tenure.

3. Partial / Systematic withdrawal allowed

4. Fund Options


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1. A choice of funds (ranging from equity, debt, cash or a combination)

2. Option to choose your fund mix based on desired asset allocation

8.1.1 Traditional Plans

These are the oldest types of plans available. These plans cater to customers with a

low risk appetite. Some of the common features of traditional plans are:

Steady Investment

Major chunk of investible funds are in debt instruments.

Steady and almost assured returns over the long term.

Features

Death benefit is Sum Assured + Guaranteed & vested bonus.

Helps in asset creation as they are for a long tenure.

Premium to Sum Assured ratios are fixed for each plan and age.

Generally withdrawals are not allowed before maturity.

8.1.2 Unit Linked Plans

ULIPs: An Introduction

Most importantly, what are ULIPs? Here, you will find all the information you needto set your mind at ease about how to invest in ULIPs, and which ULIP is right foryou.

ULIPs are a category of goal-based financial solutions that combine the safety ofinsurance protection with wealth creation opportunities. In ULIPs, a part of the

investment goes towards providing you life cover. The residual portion of the ULIP is


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invested in a fund which in turn invests in stocks or bonds; the value of investmentsalters with the performance of the underlying fund opted by you.

Simply put, ULIPs are structured in such that the protection element and the savingselement are distinguishable, and hence managed according to your specific needs. Inthis way, the ULIP plan offers unprecedented flexibility and transparency.

8.1.2.1 Working of ULIPs

It is critical that you understand how your money gets invested once you purchase aULIP:

When you decide the amount of premium to be paid and the amount of life cover youwant from the ULIP, the insurer deducts some portion of the ULIP premium upfront.This portion is known as the Premium Allocation charge, and varies from product toproduct. The rest of the premium is invested in the fund or mixture of funds chosen byyou. Mortality charges and ULIP administration charges are thereafter deducted on aperiodic (mostly monthly) basis by cancellation of units, whereas the ULIP fundmanagement charges are adjusted from NAV on a daily basis.

Since the fund of your choice has an underlying investmenteither in equity or debtor a combination of the twoyour fund value will reflect the performance of the

underlying asset classes. At the time of maturity of your plan, you are entitled to

receive the fund value as at the time of maturity. The pie-chart below illustrates the

split of your ULIP premium:


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8.1.2.2 Types of ULIPs

One of the big advantages that a ULIP offers is that whatever be your specificfinancial objective, chances are that there is a ULIP which is just right for you. Thefigure below gives a general guide to the different goals that people have at variousage-groups and thus, various life-stages.

Depending on your specific life-stage and the corresponding goal, there is a ULIP

which can help you plan for it.


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8.1.2.3 Areas of ULIPs

Retirement Planning

Wealth Creation

Children Education

Health

8.1.2.4 ULIPs for Retirement Planning

Retirement is the end of active employment and brings with it the cessation of regular

income. Today an increasing number of people have stated planning for their

retirement for below mentioned reasons

Almost 96% of the working population has no formal provisions for retirement

With the growing nuclearisation of family structure, traditional support system

of the younger earning membersis no longer available

Developments in the healthcare space has lead to an increase in life expectancy

Cost of living is increasing at an alarming rate

Pension plans from insurance companies ensure that regular, disciplined savings in

such plans can accumulate over a period of time to provide a steady income post-

retirement. Usually all retirement plans have two distinctive phases

The accumulation phase when you are saving and investing during your earning

years to build up a retirement corpus and


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The withdrawal phase when you actually reap the benefits of your investment

as your annuity payouts begin

In a typical pension plan you have the flexibility to make a lump sum payment or a

regular contribution every year during your earning years. Your money is then

invested in funds of your choice. You can opt to receive the annuity at any time after

vesting age (age at which you become eligible for pension chosen by you at the

inception of the plan).

Most of the Unit linked pension plans also come with a wide range of annuity

options which gives you choice in structuring the post-retirement benefit pay-outs.

Also at the time of vesting you can make a lump sum tax-exempted withdrawal of up

to 33 per cent of the accumulated corpus.

In a retirement plan, the earlier you begin the greater you gain post retirement due to

the power of compounding.

Let us take an example of Gaurav & Hari. Both of them want to retire at the age of 60.

Gaurav starts investing `. 10,000 every year from the age of 25 till the time that he

retires. In all, he would have invested `. 350,000. If his investments were to earn 7%

return every year, at the time of his retirement, Gaurav will have a retirement corpus

of`. 13, 82,368.

Now, Hari starts investing 10 years later (i.e. at the age of 35) and in order to make up

for the lost time, invests `.15,000 every year (which is 50% more than Gauravs

annual investment).


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So, by the time of his retirement, he would have invested `. 3,75,000. And assuming

the same annual return of 7%, he will end up with a retirement corpus of`9, 48,735.

So, you see how despite setting aside more than 50% of Gauravs annual contribution,

Hari ends up with a retirement corpus which is almost a third lesser than Gauravs.

That is the power of compounding.

Which is why, it is never too early to invest in a ULIP for retirement planning.

8.2 When ULIPs works best

Whether you are in the process of deciding which ULIP to invest in; or whether you

already have a unit linked insurance policy to secure your important financial goals

there are some key principles which should govern any decision related to ULIPs.

Adhering to these key principles will allow you to make optimum utilization of your

ULIP.

Appropriate Life Cover

Right Fund Option

Long Term Investment

Know the Charges

Know the Features


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8.3 Types of annuity

An annuity is a series or stream of payments. In the context ofretirement planning,

an annuity is a contract between you and the insurance company under which the

insurance company promises pays you money for a stipulated period-often for life.

You, the person receiving the payments, is the "annuitant".

Types of annuity options offered by ICICI Prudential:

Life Annuity: In this plan, you receive annuities for as long as you live. Payments

are no longer made after your demise.

Life Annuity with Return of Purchase Price: You receive annuities for as long as

you live and your nominee receives the purchase price of the policy after demise. The

purchase price refers to the value of your investment corpus at the end of the

accumulation phase (with which the annuity was purchased).

Life Annuity Guaranteed for 5, 10 and 15 Years and Life Thereafter: You receive

annuities for a minimum term i.e. 5, 10 or 15 years. Annuities continue for life

thereafter. If death occurs before the end of the pre-decided term, the company pays

the annuity till the end of that term to the nominee.

Joint Life, Last Survivor Annuity without Return of Purchase Price: Both your

spouse and you will receive annuities for life.


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Joint Life, Last Survivor Annuity with Return of Purchase Price: Both your

spouse and you will receive annuities for life. After this, the purchase price is returned

to your nominee.

8.4 Retirement Solutions

To cater to the needs of a customer looking for retirement planning, ICICI

Prudential presents a wide array of products. These products have been designed to

take into account the diverse set of needs that characterize individual customers.

Plan Name Plan Type

ICICI Pru LifeTime Super PensionULIP

8.4.1 ICICI Pru LifeTime Super Pension

Why LifeTime Super Pension

ICICI Pru LifeTime Super Pension

is a complete insurance cum pension plan that performs two crucial roles: it acts as a

protective cover while you earn for your retirement, and provides you with

regular pension once you retire.

Features and benefits of ICICI Pru LifeTime Super Pension

Choice of flexible life cover


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Increased Age at Entry Maximum Cover age increased Pension through Annuity card

Cover continuance option after 3 years

Death Benefit

In case of death before vesting age:

Higher of the Sum Assured or the Fund Value will be paid as the death benefitto the nominee. However, if spouse is nominee, Fund Value or Sum Assured

can be taken as annuity.Investment Options

Choice of Investment Funds

o Pension Flexi Growth II ( Aggressive Equity Fund)o Pension R.I.C.H. II (Equity Fund)o Pension Multiplier II (Equity Fund with NIFTY 50 benchmark)o

Pension Flexi Balanced II ( Aggressive Balanced Fund)o Pension Balancer II (Balanced Fund)o Pension Protector II (Debt Fund)o Pension Preserver (Money Market Fund)o Pension Return Guarantee Fund (Close ended Debt Fund)*

Switches

o 4 switches in a policy year freeo Subsequent switches in that year are charged `. 100 per switch.

Add-on Riders

o Accidental Death & Disability Ridero Waiver of Premium Rider (Permanent Disability)


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How does the policy work?

o Choose an amount that you wish to invest annually subject to a minimum of

`.10,000.

o Choose a term between 10 & 57 years, subject to vesting (retirement age)

between 45 and 75 years.

o You have an option either to choose Zero sum assured or choose any sum

assured between 1 lakh and annual premium x policy term.

o You can opt for add-on riders available under the policy for a nominal extra

amount.

o During the term of the policy, you pay regular premiums and accumulate

savings for your retirement.

Surrender Values

Post payment of 3 years premiums

No of completed years of policy SV as a % of Fund Value

3 Years 96%

4 Years 98%

5 years 100%

Before 3 years premiums are paid

Premiums paid Surrender Value if not reinstated

Less than 1 yr Nil

1 yr to


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Entry Parameters

Minimum age at Entry 18 years

Max Age at Maturity 65 Years

Minimum Term 10 years

Maximum Term 57 years

Max Cover Age 75 Years

Min Premium `. 12,000 p.a

Minimum Vesting age 45 years

Maximum Vesting age 75 Years

Cover Continuance option

o Available after 3 years premium payment

o Ensures that the life cover & rider cover continues, if policy holder stops paying

premiums

o Policyholder can OPT FOR the option, anytime within six months before end of

reinstatement period.

o Alternatively, Policyholder can choose the option at inception.


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o If opted for, life cover is available throughout the policy term.

o If not opted for, life cover continues for a period of 2 yrs from the date of last

unpaid premium, post which policy will be foreclosed & Surrender value paid.

Other Conditions

o Increase/Decrease in Annual PremiumNot Allowed

o Increase/ Decrease in Sum AssuredNot Allowed

o LoansNot Available

o Top ups- You can decide to increase your investment by investing surplus

money over and above your premiums, anytime from inception of policy.

o The minimum amount of top-up is `.2000.


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8.5 Retirement Calculator

Retirement Calculator

Enter your monthly expenses in the fields below to calculate your Retirement

Number.

Current monthly expenses (Rs.)

Food 3000

Transport 5000

Clothing 2000

Medical expenses 1000

Education expenses1500

Rent (if not owned home) 5000

Miscellaneous 1000

Total expenses 18500

Expected annual inflation rate6

%

Current age (yrs.)25

Expected age of retirement (yrs.) 55

Number of years from retirement 30

Calculate


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Retireme

nt can be

a meaningful phase in your life. A phase where you can follow your true passion. But

it is very important to remember that every passion has a cost attached to it. In

addition, there is the cost of maintaining your current lifestyle post-retirement.

Our pension plans give you a monthly income, post-retirement. With financial

worries taken care of, you are free to do what youve always felt passionately

about.

Becoming a cricket coach, owning your own fruit farm or becoming a vineyard owner

etc.

The Retirement Calculator will help you plan better.

As you will see, the key is to start planning early.

Your result

Current age (yrs.) : 25

Age at which you want to retire (yrs.) : 55

Corpus required post retirement (`.) : 89887294


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Objectives

To Study the Brand awareness of the new product i.e. ICICI Pru

LifeTime Super Pension.To know what are the priorities of people for making investment in

Insurance.

To know about the customer satisfaction about the product ICICI Pru

LifeTime Super Pension plan.

To know the standing of the ICICI Prudential Life Insurance Co. in

market.

To know their likings about the product ICICI Pru LifeTime Super

Pension plan.

Data Source:

The data would be collected from both primary as well as secondary source.

Consumers would be asked to fill questionnaires to arrive at the information.

Various secondary sources of data as magazines, journal, Internet etc. would

also be explored.

Sampling Area:

The sampling areas of this research are in Electronic City, Bangalore.

Sampling method:

The convenient sampling method was used for this research and the

respondents were those who have already taken or yet to take life insurance

policy.

Sample Size:

The size of this research is 50 respondents.

Research Instrument:

The research instruments, which was used, for collecting the data is

questionnaire through telephonic interview.


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Method of contact:

The method of contact was done through telephonic interview as this

would help to qualify the customers issues while filling up the questionnaireand also helps them if they do not have the knowledge about any insurance

plan of the company.

Method of making an approach for Sales:

After analyzing the data form the questionnaires the needs of prospects

were identified and the best suitable insurance solution was suggested to them

and the company accordingly.


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9.1 Data Analysis

1. My average annual income is

Particulars No. of Respondents Percentage

Upto 1 lakh 3 6%1 lakh to 3 lakhs 21 42%3 lakhs to 5 lakhs 23 46%5 lakhs and more 3 6%

Total 50 100%

According to Table 1

From the above table and chart it is inferred that

6% earns upto 1 lakh.

42% earns between 1 lakh and 3 lakhs.

46% earns between 3 lakhs and 5 lakhs.

6% earns more than 5 lakhs.

6%

42%46%

6%

analysis of income

upto 1 lakh 1 lakh to 3 lakhs 3 lakhs to 5 lakhs 5 lakhs and more


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2. I am Owner of Insurance.

Particulars No. Of Respondent PercentageYes 31 62%

No 19 38%

Total 50 100%



62% says Yes

38% says No.

62%

38%

Analysis of Insured Customers

yes

no


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3. My favored insurance company

Particulars No. Of Respondents PercentageLIC 20 40%

ICICI Prudential 13 26%HDFC 7 14%Birla Sun Life 4 8%Bajaj Allianz 4 8%Others 2 4%Total 50 100%


From the above table and chart it is inferred that40% prefers LIC.

26% prefers ICICI Pru.

14% prefers HDFC.

8% prefers Birla Sun Life.

8% prefers Bajaj Allianz.

4% prefers Others.

40%

26%

14%

8%

8%

4%

Favored Insurance Company

LIC

ICICI Pru

HDFC

Birla Sun Life

Bajaj Allianz

Others


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4. My satisfaction with my current insurer

Particulars No. Of Respondents Percentage

Yes 41 82%

No 9 18%

Total 50 100%


From the above table and chart it is inferred that82% says Yes.

18% says No.

82%

18%

Satisfaction Level

yes

no


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5. Main concern while taking an insurance policy


Tax benefit 16 32%

Security 9 18%

Investments/Savings 25 50%

Total 50 100%



50% says for Tax benefits.

18% says for Security.

32% says for Investments/Savings.

32%

18%

50%

Concern of respondents

Tax Benefit Security Investments/Savings


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7. Policy satisfaction with regards to financial needs (Ratings as 1- highly

dissatisfied, 2- dissatisfied, 3- neutral, 4- satisfied, 5- highly satisfied)

Ratings No. Of Respondents Percentage

1 7 14%2 9 18%3 9 18%4 11 22%5 14 28%Total 50 100%



14% says Highly Dissatisfied.

18% says Dissatisfied.

18% says Neutral.

22% says Satisfied.

28% says Highly Satisfied.

14%

18%

18%22%

28%

Analysis of Policy Satisfaction

Highly Dissatisfied Dissatisfied Neutral Satisfied Highly satisfied


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8. I pay the premium for ICICI Pru LifeTime Super Pension plan which is

Particulars No. Of respondents PercentageVery High 14 28%

High 11 22%Moderate 13 26%Low 11 22%Very Low 1 2%Total 50 100%


From the above table and chart it is inferred

28% says premium paid is Very High.

22% says premium paid is High.

26% says premium paid is Moderate.

22% says premium paid is Low.

2% says premium paid is Very Low.

28%

22%26%

22%

2%

Premium Paid

Very High High Moderate Low Very Low


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9. I come to know about this policy from..


Advertisement 10 20%

Friends and Relatives 12 24%

Direct selling agents 21 42%

Others 7 14%

Total 50 100%



20% came to know from Advertisements.

24% came to know from Friends and Relatives.

42% came to know from Direct Selling Agent.

14% came to know from Others.

20%

24%42%

14%

Policy source Analysis

advertisement friends and relatives direct selling agent others


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10. I am satisfied with the incentives (tax benefits and Bonuses) associated with

LifeTime Super Pension?


Highly Satisfied 9 18%

Satisfied 12 24%

Moderate 15 30%

Unsatisfied 11 22%

Highly Unsatisfied 3 6%

Total 50 100%


From the above table and charts it is inferred that

18% are Highly Satisfied.

24% are Satisfied.

30% are Moderate.

22% are Unsatisfied.

6% are Highly Unsatisfied.

18%

24%

30%

22%

6%

Satisfactory level about Incentives

highly satisfied satisfied moderate unsatisfied highly unsatisfied


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11. I think Automatic Transfer Strategy option allotted with the plan makes me

Criteria No. Of Respondents PercentageSatisfied 27 54%

Neutral 13 26%

Unsatisfied 7 14%

Unaware 3 6%

Total 50 100%



54% are Satisfied.

26% are Neutral.

14% are Unsatisfied.

6% are Unaware.

54%26%

14%

6%

ATS satisfaction analysis

satisfied neutral unsatisfied unaware


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12. I am finding the Investment Option and Switches associated with this plan as

Opinions No. Of Respondents PercentageVery Good 14 28%

Good 25 50%

Fair 11 22%

Bad 0 0%

Very Bad 0 0%

Total 50 100%



22% says Very Good.

50% says Good.

28% says Fair.

0% says Bad.

0% says Very Bad.

22%

50%

28%

0% 0%

Analysis on Investment option and

Switches

very good good fair bad very bad


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13. I think that services have improved after allowing Private Players in the

insurance sector

Particulars No. of Respondents Percentage

Yes 42 84%

No 8 16%

Total 50 100%



84% says Yes.

16% says No.

84%

16%

Analysis on service

yes no


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Findings are the broader aspects of the analysis.

The findings from the data collected and analysis made is that

From the analysis it was found that 62% of the respondents from our samplespace are insured whereas 38% are not insured.

According to the Indian custom of belief that government bodies are the saferplace; we can see that 40% of the respondents have their insurance in LIC whileICICI Pru (26%) and others are lagging behind.

It was found that most of the people buy life insurance as just a savingsand

investments tool or as a life cover while only a few of the respondent take it as asecurity option.

A Majority of the respondent buy insurance products because of the needreason while rest of the respondents buy for the brand purpose.

After giving the respondents a demo about the product ICICI Pru LifeTime

Super Pension plan it was seen that most were interested in this plan.

From the survey it was found that amongst 50 respondentsa) 84% of the respondents think that services have improved.b) 16% of the respondents think that services have not improved.

A Majority of the people come to know about the policies from the DirectSelling Agents.

A Majority of the people are satisfied by the incentives associated with their

policies.

Most of the respondents are satisfied by the services offered by their insurancecompany while some says that they are not satisfied by the services.

Most of the respondents want more Transparency from the side of the company.


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It is good to see that people are getting aware of their future and insurance. The

fact is that only 3% of the total population of INDIA is insured which gives alot of ground to cover, thus ICICI Pru needs much more work to do in

increasing its Advisor base so to acquire the rest 97% of the total Indian

population.

ICICI Prudential needs to take necessary steps in spreading awareness among

the people for having insurance.

ICICI Pru as already being the market leader in Private Sector still it needs to

put more efforts in sustaining its position and growing in the insurance market.

Though some percentage of people is not satisfied with their insurer, hence

ICICI Pru needs to reach to the extent of the customer needs.

ICICI Pru should take steps in explaining the people that risk in life increases

with the increase in the age, thus charging a level premium will reduce their

premium charges at their later age.

ICICI Pru must also take required measures towards improving the advisors

convincing power.

ICICI Pru has their Financial Planner and Calculator and this should be

provided to each and every people with proper instruction to use them so that

people should become smarter in doing their financial planning.

ICICI Prus agents should take more necessary steps in asking for references to

the customers they visit, as we know that people get moved by their own

relatives and friends rather than any unknown person.


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ICICI Pru should take necessary steps to make their process more transparent so

that the customers get full satisfaction. Step should be taken like

a) SMS alerts about the premium received and payment dates.

b) Information through emails and faxes so that customer should know where their

funds are being invested.

c) Alerts about any new plans according to their needs.

d) Information about the rate of returns, etc.

All these steps will make the system of ICICI Pru more transparent and customerfriendly to achieve their satisfactory level.


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Conclusion

The company is in the regular process of investing considerably in expanding

the advisor base & administration & building infrastructure to meet demand in

the increasing market.

The companys group business is also beginning to show results, with

restructured group gratuity, superannuation & term products attracting many

corporate clients.

The company is still in an ongoing process of launching new products for

people of every age group.

The retirement planner given by ICICI Prudential Life Insurance gives a right

estimation about the needed investments to be done.

The features of the product are customer friendly and the company works

totally prioritizing the customer needs.

ICICI Prudential Life Insurance Companys achievements itself are now

creating a new level of faith among the people of INDIA.

More work need to be done by ICICI Prudential on sustaining their position in

the market in regards of features affiliated with its products with respect to

other Insurer Segment.


84/90

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85/90

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Bibliography

Reference Books

Marketing management by - Philip Kotler.

IC 33 Life Insurance

HANDBOOK for EFFECTIVE SALESICICI Prudential Life Insurance Pvt.Ltd

Websites

www.iciciprulife.com

www.google.co.in

www.irda.gov.in


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Study on Customer Satisfaction of Retirement Plan of ICICI Prudential with

reference to LifeTime Super Pension Plan

Questionnaire

Name

Age

Occupation

Q1. What is your average annual income?

Up to 1 lakh

1 lakh to 3 lakhs

3 lakhs to 5 lakhs

5 lakhs and more

Q2. Are you currently insured?

Yes

No

If yes, please give the detail of the company, plan, premium etc.

Q3. Which one is your favored insurance company?

LIC

ICICI Prudential

HDFC

Birla Sun Life

Bajaj Allianz

Others


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Q4. Are you satisfied with your current insurer?

Yes

No

Q5. What is your main concern while taking insurance policy?

Tax benefits

Security

Investments/savings

Q6. Are you interested in the LifeTime Super Pension plan offered by ICICI

Prudential?

Yes

No

Cant say

Q7. Does this policy satisfy your financial needs? (Please rate on the scale of 1 to

5 with 1 being least satisfied)

Highly Dissatisfied

Dissatisfied

Neutral

Satisfied

Highly Satisfied


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Q8. Please express your opinion for the premiums paid for the above product

plan?

Very High

High

Moderate

Low

Very Low

Q9. How do you come to know about this policy?

Advertising

Friends and relatives

Direct selling agents

Others

Q10. Are you satisfied with the incentives (tax benefits and Bonuses?)

Associated with LifeTime Super Pension?

Highly SatisfiedSatisfied

Moderate

Unsatisfied

Highly Unsatisfied

Q11. What do you think about the Automatic Transfer Strategy option allotted

with the plan?

Satisfied

Neutral

Unsatisfied

Unaware


90/90

Q12. According to you, how you are finding the Investment Option and

Switches?

Very Good

Good

Fair

Bad

Very Bad

Q13. Do you think that services have improved after allowing Private

Players in the insurance sector?

Yes

No

Give reason why?

SMU Final Report

Documents

Transcript of SMU Final Report