A

PROJECT REPORT
ON

UNDERSTANDING THE BASICS OF NATURAL

AND TARGET MARKET

SUBMITTED TO

ALL INDIA MANAGEMENT ASSOCIATION

CENTRE FOR MANAGEMENT EDUCATION
MANAGEMENT HOUSE, 14 INSTITUTION AREA
LODHI ROAD, NEW DELHI-110003

2007- 2009
By
ARINDAM BHOWMICK

REGISTRATION NO-750610347

Guided By
Mr DEBRANJAN MUKHERJEE

ASSISTANT REGIONAL MANAGER

For the partial fulfilment of Post graduation diploma in management

 Table of
CONTENTS

Chapter No. Title

I Introduction

II Research Methodology

III Data Processing and Analysis

IV Findings

V Conclusions

VI Recommendations

Bibliography

Appendices / annexure

A Questionnaire/s, if any

B List of contacts. If any

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 ACKNOWLEDGEMENT

The success of this final report is the outcome of Guidance and valuable suggestions
provided by all the concerned without whom the report could not fide on the right back.

I am deeply indebted to Mr. DEBRANJAN MUKHERJEE for giving me the opportunity

to undergo my project in their esteemed branch and their timely suggestion and valued
guidance. I also want to give my vote of thanks to the employees of ICICI Prudential Life
Insurance. They constantly encouraged me and showed the right path from day first till
the completion of my project.

I would like to express my sincere gratitude to Mr. DEBRANJAN MUKHERJEE. For

giving me an opportunity to do this project works. I also express my sense of deep
gratitude towards employees for introducing the program which enables us to learn more.

Finally, I will be failing in my duty, if I do not thank my parents, friends and well wishers
for their enthusiastic support and who have directly or indirectly helped in some way or
the other in making this final report a success.

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 Chapter – I

Introduction
Background of the study

Mainly, we take the project in our hand to understand something new, something
different and to enhance our knowledge. While working in an organization, we also learn
about the organization culture, how to handle the work pressure and to search study, not
only we manage our professional life and the personal life.

We also do the research to know and to find some unanswered questions. By the help of
research study, we not only get rid of our queries and problems but also got some new
and primary information or data which helps the researcher in the further study.

There should be some purpose, objective and scope of the study because these contents of
the report remain the research alive otherwise the research would be of no use. Not only
are these contents necessary in the research but topics such as data analysis, findings and
conclusions makes the complete research and execute the final result in time.

It is necessary to study the background of the study so that we can understand how to
work on the research study and what should be the content so that the researcher can
achieve its goal and present the findings on time.

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 COMPANY PROFILE

ICICI Prudential Life Insurance Company is a joint venture between ICICI Bank, which
is one of India's foremost financial services companies, and Prudential plc, which is a
leading international financial services group headquartered in the United Kingdom.
ICICI Prudential began the operations in December 2000. ICICI Prudential was amongst
sthe first private sector insurance companies to begin operations in December 2000 after
receiving approval from Insurance Regulatory Development Authority (IRDA).
It has been voted as India's Most Trusted Private Life Insurer for three consecutive years.
ICICI Prudential Life Insurance Company has various insurance plans that have been
designed for different individuals, as every individual has different insurance needs.
It is the first life insurer in India to receive a National Insurer Financial Strength rating of
AAA (Ind) from Fitch ratings. For three years in a row, ICICI Prudential has been voted
as India's Most Trusted Private Life Insurer, by The Economic Times - AC Nielsen ORG
Marg survey of 'Most Trusted Brands'. As we grow our distribution, product range and
customer base, we continue to tirelessly uphold our commitment to deliver world-class
financial solutions to customers all over India.

ICICI Prudential Life is also the only private life insurer in India to receive a National
Insurer Financial Strength rating of AAA (Ind) from Fitch ratings. The AAA (Ind) rating
is the highest rating, and is a clear assurance of ICICI Prudential's ability to meet its
obligations to customers at the time of maturity or claims. For the past eight years, ICICI
Prudential Life has retained its leadership position in the life insurance industry with a
wide range of flexible products that meet the needs of the Indian customer at every step
in life.

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 Chapter - II
Research Methodology

RESEARCH DESIGN:

Research design provides the glue that holds the research project together. A design is
used to structure the research, to show how all of the major parts of the research project -
the samples or groups, measures, treatments or programs, and methods of assignment,
work together to try to address the central research questions.

Research design investigates the process of designing in fields. It is related to Design

methods in general or for particular disciplines. A primary interpretation of research
design is that it is concerned with undertaking research into the design process.
Secondary interpretations would refer to undertaking research within the process of
design. The overall intention is to better understand and to improve the design process.

Primary Data:

The data which is collected by new research is known as primary data. There are four
types of primary data. They are as follows:

 Personal interview
 Close observation
 Survey conduction
 Group discussion

Hence the primary data which is collected for the report is based on close observation and
survey conduction. Survey conduction has been done through the questionnaire.

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Secondary Data:

The data which is already exist or known is known as secondary data. We can collect
secondary data through:

 Internet
 Books
 Newspaper
 Magazines
 Television
 Radio and many more.

The secondary data for the report is taken mainly from the internet and books. They
remained as the best source for the data collection for making the project report.
Newspaper and magazines were also the helpful source for the knowledge.

Sample Design:

Sampling is that part of statistical practice concerned with the selection of individual
observations intended to yield some knowledge about a population of concern, especially
for the purposes of statistical inference.
The sampling process comprises several stages:

• Defining the population of concern

• Specifying a sampling frame, a set of items or events possible to measure
• Specifying a sampling method for selecting items or events from the frame
• Determining the sample size
• Implementing the sampling plan
• Sampling and data collecting
• Reviewing the sampling process

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Population:

A population can be defined as including all people or items with the characteristic one
wish to understand. Because there is very rarely enough time or money to gather
information from everyone or everything in a population, the goal becomes finding a
representative sample (or subset) of that population.

Sometimes that which defines a population is obvious. For example, a manufacturer

needs to decide whether a batch of material from production is of high enough quality to
be released to the customer, or should be sentenced for scrap or rework due to poor
quality. In this case, the batch is the population.

Sample Size:

It means the total number of items which we take out for the sampling process. For an
example, to fill up the questionnaire for a particular survey, we can fill it up by 100
customers or people.
Therefore the sample size would be 100. Customers can be randomly selected or we can
focus on a particular segment (say Hotels, Jewelers, General shops and many more).

Formulas, tables, and power function charts are well known approaches to determine
sample size.

Sampling Method:

A variety of sampling methods can be employed, individually or in combination. Factors

commonly influencing the choice between these designs include:

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• Nature and quality of the frame
• Availability of auxiliary information about units on the frame
• Accuracy requirements and the need to measure accuracy
• Whether detailed analysis of the sample is expected
• Cost/operational concerns

There are various types of sampling methods:

1. Simple random sampling

2. Systematic sampling
3. Stratified sampling
1) Post stratification
2) Oversampling
4. Probability proportional to size sampling
5. Cluster sampling
6. Matched random sampling
7. Quota sampling
8. Mechanical sampling
9. Convenience sampling

Method of data collection:

Good data collection involves:

• Following the defined sampling process
• Keeping the data in time order
• Noting comments and other contextual events
• Recording non-responses

Most sampling books and papers written by non-statisticians focus only in the data
collection aspect, which is just a small though important part of the sampling process.

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sInstrument for data collection:

Data can be collected in various formats. They can be in the written format, pdf file or
may be a presentation or they can be stored in somewhere like computer hard disk, pen
drive and floppy or memory card. We can also collect data in the form of primary data
and secondary data. Through questionnaire method or observation method, we can collect
the information or data related to the primary method whereas newspaper, radio,
television, magazines, pamphlets, internet and many more other things helps us to collect
the information or data which comes under the light of secondary data. These both types
of data help us to execute the final result and solved many of the problems.

Drafting of a questionnaire:

 Introduction and screening questions.

 Asking sensitive screening questions.
 A checklist of do's and don'ts in the questionnaire format.
 Pre-coding questions and planning the physical layout.
 Pre-testing a questionnaire with a workshop in revising questionnaires and pre-
testing to avoid future troubles.

Testing of questionnaire / Pilot survey:

A preliminary piece of research conducted before a complete survey to test the

effectiveness of the research methodology.

This should be completed before the final survey commences. The intention is to alert the
surveyor to any difficulties that were not anticipated at the survey proposal stage. Pilot
surveys are undertaken after pre-tests.
A survey, usually on a small scale, carried out prior to the main survey, primarily to gain
information to improve the efficiency of the main survey. For example, it may be used to

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test a questionnaire, to ascertain the time taken by field procedure or to determine the
most effective size of sampling unit.

The term “exploratory survey” is also used, but in the rather more special circumstance
when little is known about the material or domain under inquiry.

Pilot survey contains clear, detailed questions on learning, teaching quality, teaching
strategy, assessment methods, and workload

As a result, survey provides improved measurement of teaching quality, an important

factor in the faculty tenure process

Provides improved subject teaching and assessment strategy and workload measurements
which, in turn, enables instructors to more easily target subject improvements.

Field work:

Field work is a general descriptive term for the collection of raw data. The term is mainly
used in the natural and social sciences studies, such as in biology, ecology, environmental
science, geology, geography, geophysics, paleontology, archaeology, anthropology,
ethnomusicology, linguistics, and sociology, although it is also used in other subjects,
such as in auditing. It is more technically known to scientific methodologists as field
research.

The interviewing or observation of people to learn their languages, folklore, and social
structures constitutes field work. Especially when humans themselves are the subject of
study, protocols must be devised to reduce the risk of observer bias and the acquisition of
too theoretical or idealized explanations of the actual workings of a culture.

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Fieldwork emphasizes the integration of academic and hands-on learning. It gives the
student an opportunity to apply course work to practical situations. It also allows the
student to explore career options, gain valuable skills, and launch a career.

Field work enables students to examine the way the theories and the practical experiences
of a particular discipline interact. It provides opportunities for observation and
participation which are not ordinarily available in class work. Depending on their
academic interests, students undertake internships in a variety of organizations and
agencies in the local community and other places.

Data- analysis techniques:

Data analysis is a process of gathering, modeling, and transforming data with the goal of
highlighting useful information, suggesting conclusions, and supporting decision making.
Data analysis has multiple facets and approaches, encompassing diverse techniques under
a variety of names, in different business, science, and social science domains.

Data mining is a particular data analysis technique that focuses on modeling and
knowledge discovery for predictive rather than purely descriptive purposes. Business
intelligence covers data analysis that relies heavily on aggregation, focusing on business
information. In statistical applications, some people divide data analysis into descriptive
statistics, exploratory data analysis, and confirmatory data analysis.

The initial data analysis uses descriptive statistics to answer the following four questions:

1. What is the quality of the data?

2. What is the quality of the measurements?
3. Did the implementation of the study fulfill the intentions of the research design?
4. What are the characteristics of the data sample?

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Limitations:

Thought the present study aims to achieve the above mentioned objectives in full earnest
and accuracy, it may be hampered due to certain limitations, some of the limitations of
this study may be summarized as follows,

 This study is limited to one private insurance company only.

 This study is limited to Indore city only.
 And getting accurate responses from the respondents due to their inherent
problems. They may be refusing to co-operate.
 Respondents may have to be contacted repeatedly or alternate respondent may
have to be identified.
 For want of time is restricted.

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 Chapter - III
Data Processing and Analysis

Life Insurance

Insurance vs Assurance

The specific uses of the terms "insurance" and "assurance" are sometimes confused. In
general, in these jurisdictions "insurance" refers to providing cover for an event that
might happen (fire, theft, flood, etc.), while "assurance" is the provision of cover for an
event that is certain to happen. "Insurance" is the generally accepted term, however,
people using this description are liable to be corrected. In the United States both forms of
coverage are called "insurance", principally due to many companies offering both types
of policy, and rather than refer to themselves using both insurance and assurance titles,
they instead use just one.

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Types of life insurance

Life insurance may be divided into two basic classes – temporary and permanent or
following subclasses - term, universal, whole life and endowment life insurance.

Temporary Term Insurance

Term assurance: provides for life insurance coverage for a specified term of years for a
specified premium. The policy does not accumulate cash value. Term is generally
considered "pure" insurance, where the premium buys protection in the event of death
and nothing else.

There are three key factors to be considered in term insurance:

1. Face amount (protection or death benefit),

2. Premium to be paid (cost to the insured), and
3. Length of coverage (term).

Various insurance companies sell term insurance with many different combinations of
these three parameters. The face amount can remain constant or decline. The term can be
for one or more years. The premium can remain level or increase. A common type of
term is called annual renewable term.

It is a one year policy but the insurance company guarantees it will issue a policy of equal
or lesser amount without regard to the insurability of the insured and with a premium set
for the insured's age at that time. Another common type of term insurance is mortgage
insurance, which is usually a level premium, declining face value policy. The face
amount is intended to equal the amount of the mortgage on the policy owner’s residence
so the mortgage will be paid if the insured dies.

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A policy holder insures his life for a specified term. If he dies before that specified term
is up, his estate or named beneficiary receives a payout. If he does not die before the term
is up, he receives nothing. In the past these policies would almost always exclude suicide.

However, after a number of court judgments against the industry, payouts do occur on
death by suicide (presumably except for in the unlikely case that it can be shown that the
suicide was just to benefit from the policy). Generally, if an insured person commits
suicide within the first two policy years, the insurer will return the premiums paid.
However, a death benefit will usually be paid if the suicide occurs after the two year
period.

Permanent Life Insurance

Permanent life insurance is life insurance that remains in force (in-line) until the policy
matures (pays out), unless the owner fails to pay the premium when due (the policy
expires OR policies lapse). The policy cannot be canceled by the insurer for any reason
except fraud in the application, and that cancellation must occur within a period of time
defined by law (usually two years). Permanent insurance builds a cash value that reduces
the amount at risk to the insurance company and thus the insurance expense over time.
This means that a policy with a million dollar face value can be relatively expensive to a
70 year old. The owner can access the money in the cash value by withdrawing money,
borrowing the cash value, or surrendering the policy and receiving the surrender value.

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 Life Insurance Products

Riders are modifications to the insurance policy added at the same time the policy is
issued. These riders change the basic policy to provide some feature desired by the policy
owner. A common rider is accidental death, which used to be commonly referred to as
"double indemnity", which pays twice the amount of the policy face value if death results
from accidental causes, as if both a full coverage policy and an accidental death policy
were in effect on the insured. Another common rider is premium waiver, which waives
future premiums if the insured becomes disabled.

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Joint life: insurance is either a term or permanent policy insuring two or more lives with
the proceeds payable on the first death or second death.

Survivorship life: is a whole life policy insuring two lives with the proceeds payable on
the second (later) death.

Single premium whole life: is a policy with only one premium which is payable at the
time the policy is issued.

Modified whole life: is a whole life policy that charges smaller premiums for a specified
period of time after which the premiums increase for the remainder of the policy.

Group life insurance: is term insurance covering a group of people, usually employees of
a company or members of a union or association. Individual proof of insurability is not
normally a consideration in the underwriting. Rather, the underwriter considers the size
and turnover of the group, and the financial strength of the group. Contract provisions
will attempt to exclude the possibility of adverse selection. Group life insurance often has
a provision that a member exiting the group has the right to buy individual insurance
coverage.

Senior and preneed products:

Insurance companies have in recent years developed products to offer to niche markets,
most notably targeting the senior market to address needs of an aging population. Many
companies offer policies tailored to the needs of senior applicants. These are often low to
moderate face value whole life insurance policies, to allow a senior citizen purchasing
insurance at an older issue age an opportunity to buy affordable insurance. This may also
be marketed as final expense insurance, and an agent or company may suggest that the
policy proceeds could be used for end-of-life expenses.

Preneed (or prepaid) insurance policies: are whole life policies that, although available at
any age, are usually offered to older applicants as well. This type of insurance is designed
specifically to cover funeral expenses when the insured person dies. In many cases, the

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applicant signs a prefunded funeral arrangement with a funeral home at the time the
policy is applied for. The death proceeds are then guaranteed to be directed first to the
funeral services provider for payment of services rendered. Most contracts dictate that
any excess proceeds will go either to the insured's estate or a designated beneficiary.

Investment policies

With-profits policies:

Some policies allow the policyholder to participate in the profits of the insurance
company these are with-profits policies. Other policies have no rights to participate in the
profits of the company, these are non-profit policies.

With-profits policies are used as a form of collective investment to achieve capital

growth. Other policies offer a guaranteed return not dependent on the company's
underlying investment performance; these are often referred to as without-profit policies
which may be construed as a misnomer.

Investment Bonds

Pensions: Pensions are a form of life assurance. However, whilst basic life assurance,
permanent health insurance and non-pensions annuity business includes an amount of
mortality or morbidity risk for the insurer, for pensions there is a longevity risk.

A pension fund will be built up throughout a person's working life. When the person
retires, the pension will become in payment, and at some stage the pensioner will buy an
annuity contract, which will guarantee a certain pay-out each month until death.

Annuities

An annuity is a contract with an insurance company whereby the insured pays an initial
premium or premiums into a tax-deferred account, which pays out a sum at pre-

19
determined intervals. There are two periods: the accumulation (when payments are paid
into the account) and the annuitization (when the insurance company pays out). IRS rules
restrict how you take money out of an annuity. Distributions may be taxable and/or
penalized.

Plans provided by ICICI Prudential Life Insurance Company:

Life Insurance Plans
Education Insurance Plans

• Smart Kid New Unit-linked

• Regular Premium
• Smart Kid New Unit-linked
• Single Premium
• Smart Kid Regular Premium

Wealth Creation Plans

• Wealth Advantage
• Life Stage Assure
• Life Time Gold
• Life Link Super
• Life Stage RP

Premium Guarantee Plans

• Invest Shield Life New

• Invest Shield Cash Bank

Protection Plans

• Pure Protect
• Life Guard
• Save 'n' Protect
• CashBak

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 • Home Assure

Retirement Solutions

• Life Stage Pension

• Life Time Super Pension
• Life Link Super Pension
• Forever Life Plan
• Immediate Annuity

Health Coverage Plans

• Health Saver
• Medi Assure
• Hospital Care
• Crisis Cover

• Cancer Care
• Diabetes Care Active
• Diabetes Assure

ICICI Pru Group Solutions Advantage

• Group Super Annuation

• Group Gratuity Plan
• Annuity Solutions
• Group Term Insurance Plan
• Group Term Insurance in lieu of EDLI

Rural Plans

• ICICI Pru Suraksha

• ICICI Pru Suraksha Kavach

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Micro Insurance Plans

• ICICI Pru Sarv Jana Plan

Products Offered by ICICI Prudential Life Insurance

Endowment Plans

ICICI Pru Save n Protect

ICICI Pru Assure Invest

Money Back Policy Plan

ICICI Pru Cashbak (Anticipated Endowment Assurance)

Retirement Plans

ICICI Pru Forever Life

ICICI Pru Reassure
ICICI Pru Forever Life (Deferred Pension)
ICICI Pru Life Link pension plan
ICICI Pru Lifetime

Children's Plan

ICICI Smart Kid Plan

Term Plan

Protection Plan
ICICI Pru Life Guard Single Premium

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Life Guard Level Term Assurance with Return of Premium
ICICI Pru Life Guard Level Term Assurance

Special Plans

Invest Shield Life

Invest Shield Cash
Invest Shield Gold
Premier Life
Secure Plus

Group Plan

ICICI Pru Group Term Assurance Policy

ICICI Pru Group Gratuity Plan

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 Target Market

A target market is the market segment which a particular product is marketed to. It is
often defined by age, gender and/or socio-economic grouping. A target market is usually
found after segmenting and analyzing the whole market. Target market selection depends
on-

1. Number of competitors in the market

2. The preference/choice of customers

3. Value attached to the product which company wants to convey to the market

Target Marketing involves breaking a market into segments and then concentrating your
marketing efforts on one or a few key segments. Target marketing can be the key to a
small business’s success.

The beauty of target marketing is that it makes the promotion, pricing and distribution of
your products and/or services easier and more cost-effective. Target marketing provides a
focus to all of your marketing activities.

While market segmentation can be done in many ways, depending on how you want to
slice up the pie, three of the most common types are:

• Geographic segmentation – based on location such as home addresses;

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 • Demographic segmentation – based on measurable statistics, such as age or
income;

• Psychographic segmentation – based on lifestyle preferences, such as being urban

dwellers or pet lovers.

Two important factors to consider when selecting a target market segment are the
attractiveness of the segment and the fit between the segment and the firm's objectives,
resources, and capabilities.

The focus of marketing effort is people. The goal is to reach a subset of the population
who may be interested in your particular product. That group of people is your target
market.

Attractiveness of a Market Segment

The following are some examples of aspects that should be considered when evaluating
the attractiveness of a market segment:

• Size of the segment (number of customers and/or number of units)

• Growth rate of the segment
• Competition in the segment
• Brand loyalty of existing customers in the segment
• Attainable market share given promotional budget and competitors' expenditures
• Required market share to break even
• Sales potential for the firm in the segment
• Expected profit margins in the segment

Market research and analysis is instrumental in obtaining this information. For example,
buyer intentions, sales force estimates, test marketing, and statistical demand analysis are
useful for determining sales potential. The impact of applicable micro-environmental and
macro-environmental variables on the market segment should be considered.

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Note that larger segments are not necessarily the most profitable to target since they
likely will have more competition. It may be more profitable to serve one or more smaller
segments that have little competition. On the other hand, if the firm can develop a
competitive advantage, for example, via patent protection, it may find it profitable to
pursue a larger market segment.

Suitability of Market Segments to the Firm

Market segments also should be evaluated according to how they fit the firm's objectives,
resources, and capabilities. Some aspects of fit include:

• Whether the firm can offer superior value to the customers in the segment
• The impact of serving the segment on the firm's image
• Access to distribution channels required to serve the segment
• The firm's resources vs. capital investment required to serve the segment

The better the firm's fit to a market segment, and the more attractive the market segment,
the greater the profit potential to the firm.

Target Market Strategies

There are several different target-market strategies that may be followed. Targeting
strategies usually can be categorized as one of the following:

• Single-segment strategy - also known as a concentrated strategy. One market

segment (not the entire market) is served with one marketing mix. A single-
segment approach often is the strategy of choice for smaller companies with
limited resources.
• Selective specialization- this is a multiple-segment strategy, also known as a
differentiated strategy. Different marketing mixes are offered to different
segments. The product itself may or may not be different - in many cases only the
promotional message or distribution channels vary.

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 • Product specialization- the firm specializes in a particular product and tailors it
to different market segments.
• Market specialization- the firm specializes in serving a particular market
segment and offers that segment an array of different products.
• Full market coverage - the firm attempts to serve the entire market. This
coverage can be achieved by means of either a mass market strategy in which a
single undifferentiated marketing mix is offered to the entire market, or by a
differentiated strategy in which a separate marketing mix is offered to each
segment.

The following diagrams show examples of the five market selection patterns given three
market segments S1, S2, and S3, and three products P1, P2, and P3.

Single Selective Product Market Full Market

Segment Specialization Specialization Specialization Coverage

S1 S2 S3 S1 S2 S3 S1 S2 S3 S1 S2 S3 S1 S2 S3
P1 P1 P1 P1 P1
P2 P2 P2 P2 P2
P3 P3 P3 P3 P3

A firm that is seeking to enter a market and grow should first target the most attractive
segment that matches its capabilities. Once it gains a foothold, it can expand by pursuing
a product specialization strategy, tailoring the product for different segments, or by
pursuing a market specialization strategy and offering new products to its existing market
segment.

Another strategy whose use is increasing is individual marketing, in which the

marketing mix is tailored on an individual consumer basis. While in the past impractical,
individual marketing is becoming more viable thanks to advances in technology.

Examples of target segments that can be created using the above table:

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 • Women business owners between the ages of 25 and 60 earning more than
$25,000 annually form a demographic segment.
• People who drive compact cars due to their fuel efficiency form a benefit
segment.

Type of Market Segment Shared Group Characteristics

Demographic Segment Measurable statistics such as age, income, or

Occupation

Psychographic Segment Lifestyle preferences such as music lovers or urban

dwellers

Use-based Segment Frequency of usage such as recreational drinking or

traveling

Benefit Segment Desire to obtain the same product benefits such as luxury,
thriftiness, or comfort from food.

Geographic Segment Location like home address or business address.

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 Profile of HDFC Life Insurance

Introduction

HDFC Standard Life Insurance Company Limited. is one of India's leading private
insurance companies, which offers a range of individual and group insurance solutions. It
is a joint venture between Housing Development Finance Corporation Limited (HDFC
Limited), India's leading housing finance institution and a Group Company of the
Standard Life Plc, UK. As on February 28, 2009 HDFC Ltd. holds 72.43% and Standard
Life (Mauritius Holding) 2006, Ltd. holds 26.00% of equity in the joint venture, while the
rest is held by others.

Our Key Strengths

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Financial Expertise

As a joint venture of leading financial services groups, HDFC Standard Life has the
financial expertise required to manage your long-term investments safely and efficiently.

Range of Solutions

We have a range of individual and group solutions, which can be easily customised to
specific needs. Our group solutions have been designed to offer you complete flexibility
combined with a low charging structure.

Track Record So Far

Our gross premium income, for the year ending March 31, 2009 stood at Rs. 5,564.69
crores.

As on March 31, 2009, the company has more than 27 lakh polices in force.

Our Parentage

HDFC Limited

HDFC Limited, India’s premier housing finance institution has assisted more than 3.3
million families own a home, since its inception in 1977 across 2400 cities and towns
through its network of over 250 offices. It has international offices in Dubai, London and
Singapore with service associates in Saudi Arabia, Qatar, Kuwait and Oman to assist
NRI’s and PIO’s to own a home back in India. As of December 2008, the total asset size
has crossed more than Rs. 95,000 crores including the mortgage loan assets of more than
Rs. 82,800 crores. The corporation has a deposit base of Rs. 17,551 crores, earning the
trust of more than 9,00,000 depositors. Customer Service and satisfaction has been the
mainstay of the organization. HDFC has set benchmarks for the Indian housing finance
industry. Recognition for the service to the sector has come from several national and
international entities including the World Bank that has lauded HDFC as a model housing
finance company for the developing countries. HDFC has undertaken a lot of

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consultancies abroad assisting different countries including Egypt, Maldives, and
Bangladesh in the setting up of housing finance companies.

Standard Life Group (Standard Life plc and its subsidiaries)

The Standard Life Group has been looking after the financial needs of customers for over
180 years. It currently has a customer base of around 7 million people who rely on the
company for their insurance, pension, investment, banking and health-care needs. Its
investment manager currently administers £125 billion in assets. It is a leading pensions
provider in the UK, and is rated by Standard & Poor's as 'strong' with a rating of A+ and
as 'good' with a rating of A1 by Moody's. Standard Life was awarded the 'Best Pension
Provider' in 2004, 2005 and 2006 at the Money Marketing Awards, and it was voted a 5
star life and pension’s provider at the Financial Adviser Service Awards for the last 10
years running. The '5 Star' accolade has also been awarded to Standard Life Investments
for the last 10 years, and to Standard Life Bank since its inception in 1998. Standard Life
Bank was awarded the 'Best Flexible Mortgage Lender' at the Mortgage Magazine
Awards in 2006.

ICICI Prudential vs HDFC Standard

India’s top two private-sector banks – ICICI Bank and HDFC Bank – has been trading at
a discount to the latter for several years; despite being the larger bank (ICICI Bank is
three times as large as HDFC Bank by balance sheet).

That’s because investors award higher marks to HDFC Bank for consistently delivering a
strong and, more importantly, high-quality performance. In addition, despite being larger,
ICICI Bank, in the past, has posted lower net interest margins and higher non-performing
assets.

Of late, the credit crisis has dealt a blow to ICICI Bank’s operations. While advances –
thanks to a higher proportion of retail and unsecured loans – shrank by 3.2 per cent in

31
FY09, gross non-performing assets also climbed to an alarming 4.5 per cent of advances.
Net profit growth has also been either flat or negative in the past four quarters; on the
other hand, HDFC Bank has grown by more than 30 per cent in the same period.
Not surprisingly, ICICI Bank’s stock price has also been less stable than HDFC Bank’s,
trading at a price-to-book value of 1.5 times for FY09. HDFC Bank’s stock trades at
around 3 times to its FY09 book value.

While HDFC will continue to command a premium for the quality of its earnings and
consistent performance, the valuation gap between the two banks could narrow a wee bit
just for a short while if some positive triggers materialize for ICICI Bank. Currently the
value of ICICI Bank’s insurance business at around Rs 100 per share, equivalent to 19
per cent to its fair value. The bank currently holds a 74 per cent stake in its insurance
joint venture with Prudential UK. It has said that it might look at a listing or a higher
foreign partner stake if investment limits are raised.

32
 Bajaj Allianz Life Insurance Co. Ltd

Bajaj Allianz Life Insurance Co Ltd is a unique joint venture among the global giants
Allianz Group (AG) and Bajaj Auto. Allianz AG's world ranking establishes it among the
top insurance companies in the world. Bajaj is the biggest two and three wheeler
manufacturer in the world. Bajaj Allianz Life Insurance Company boasts of a nationwide
presence with 876 offices and over 4 million satisfied customers. The various insurance
products include
Bajaj Allianz Insurance Online Payment
Bajaj Allianz Insurance Policies

33
 * Unit Gain Insurances
* Term Care Plans
* Lifetime Care Insurance Policy
* Business Insurance Policies
* Savings and Security Policies For You And Your Family

* Rural Insurance Plan

* Healthcare Insurance
* Financial Insurance
* Pension Plus
* Retirement Plans
* Children's Policies
* Endowment Plans and many more.
Group Insurance Schemes

* Insurance For Employee-Employer Groups

* Insurance For Non-Employer - Employee Groups
* Employees Deposit Linked Insurance
* New Group Superannuation Scheme
* New Group Gratuity Care Scheme

Special Insurance Policies for NRI's

* Investgain Endowment Plan

* Cashgain Money Back Plan
* ·Childgain Kids Special Plan
* Swarna Vishranthi

Bajaj Allianz India offers convenient premium payment and receipt options. The
payments can be direct through cheques, DD's or directly from your accounts or through

34
credit card. The premiums can also be paid online. The insurance policy holders who also
have an account with Standard Chartered Bank can avail the direct debit mandate facility.

The Bajaj Allianz Life Insurance website offers human life value estimator, child
education cost calculator, retirement solutions and required pension estimator and
premium calculator online. The Bajaj Allianz insurance agents will guide you about the
general life insurance policies best suited to your needs. The insurance agent also briefs
you about the insurance quote and the terms on the policy quotes.

Comparison:

Insurance Companies
ICICI Prudential Bajaj Allianz

Product Rating:
Customer Service:
Claims Settlement:
Rates/Premium:
Range of Plans:
Staff Attitude:

Product Recommendation: 36% 30%

ICICI Prudential Life Insurance

ICICI Prudential Life Insurance Company is another popular name in the insurance sector
of India. Counted as India's No. 1 life insurance company, ICICI Prudential Life
Insurance is a collaborative venture between ICICI Bank and Prudential plc. The
company wrote about 615,000 policies in the financial year ending on 31st March 2005.
The registered offices of ICICI Prudential Life Insurance are located in Delhi and
Mumbai.

35
Bajaj Allianz

Bajaj Allianz is a big name in the Insurance industry of India. Born as a result of the
collaborative venture of Bajaj Auto and Allianz AG, Bajaj Allianz is involved in general
as well as life insurance. Presently, Bajaj Allianz has offices in more than 550 places.
More than 6000 employees serve this company.

Comparison between ICICI Pru & Bajaj Allianz

Basis ICICI Prudential BAJAJ Allianz

Hospitalization At least For 2days & max for 90 daysAt least for 1day, expense
benefits per policy year , expense cover range upcover range up to 7 lacs
to 20 lacs

3D’s benefit Full sum assured is payable in crisisCare first plan also provide
cover plan if death/disability due to anthe death & disability
accident benefit

(if permanent disability

occur)
Maturity benefit Payable in health assure plus plan if noDoes not provide such
claims made during policy term benefit

Surgery benefit Hospital care gives this benefitMax Rs 50,000 per policy
depending on surgery grade year

Critical illness It covers 35 critical illnesses It cover 11 critical illnesses

benefit
Policy term Policy term varies from 5-50 years in itsIts each policy term are of 3
different plans years.

Entry age Min 1 year & max 60 yrs throughout itsMin 18 yrs & max 57 yrs
different plans throughout its different plan

36
Basis ICICI Prudential Bajaj Allianz

Special It has special plan for diabetes &Such plans are not available here
condition plans Cancer.
Hospital 4583 hospitals allover India 2000 hospitals allover India
networks
Multiple claim One can make multiple claimIt also provide multiple claim
during a policy term but it shouldbenefit for various surgical , hospital
not exceed the benefit limit cash and post hospitalization
benefits
Cashless Only in network hospitals Only in network hospitals
hospitalization
Tax benefit As per the tax laws under sectionAs per the tax laws under section
80C & 80D 80C & 80D
Maximum age 80 yrs in hospital care, 75&65 in65 in all of the plans
of ceasing critical illness plan 70 in all special
condition plan
Renewal In most of the plans Policy term areNecessary after 3 yrs to continue the
quite long to cease the maximumpolicy to the next 3 yrs
age, but wherever needed plan can
be renewed

Conclusion:

37
From the point of view of consumers both the companies have mostly common plans
with common benefits. But ICICI Pru life has some more advantages over Bajaj Allianz
life insurance in the following ways:-

• More specialized plans for special diseases

• Larger network of hospital
• Easier Claim.
• High benefit limit in comparison to Bajaj Allianz.
• Policyholder can claim for benefit amount from this policy as well as from the
other medical Insurance policy.
• Policies are available for the child of 1 yr up to 60 yr old person.
• One of the policies of ICICIPru is a health-cum-life insurance plan i.e. Health
Assure plus Plan.

Life Insurance Corporation of India (LIC)

38
The Life Insurance Corporation (LIC) was established about 44 years ago with a view to
provide an insurance cover against various risks in life. A monolith then, the corporation,
enjoyed a monopoly status and became synonymous with life insurance.

Its main asset is its staff strength of 1.24 lakh employees and 2,048 branches and over six
lakh agency force.

LIC has hundred divisional offices and has established extensive training facilities at all
levels. At the apex, is the Management Development Institute, seven Zonal Training
Centers and 35 Sales Training Centers.

At the industry level, along with the Government and the GIC, it has helped establish the
National Insurance Academy. It presently transacts individual life insurance businesses,
group insurance businesses, social security schemes and pensions, grants housing loans
through its subsidiary; and markets savings and investment products through its mutual
fund. It pays off about Rs 6,000 cr. annually to 5.6 million policyholders.

Objectives of LIC of India

• Spread Life Insurance widely and in particular to the rural areas and to the
socially and economically backward classes with a view to reaching all insurable
persons in the country and providing them adequate financial cover against death
at a reasonable cost.
• Maximize mobilization of people's savings by making insurance-linked savings
adequately attractive.
• Bear in mind, in the investment of funds, the primary obligation to its
policyholders, whose money it holds in trust, without losing sight of the interest
of the community as a whole; the funds to be deployed to the best advantage of
the investors as well as the community as a whole, keeping in view national
priorities and obligations of attractive return.
• Conduct business with utmost economy and with the full realization that the
moneys belong to the policyholders.
• Act as trustees of the insured public in their individual and collective capacities.

39
 • Meet the various life insurance needs of the community that would arise in the
changing social and economic environment.
• Involve all people working in the Corporation to the best of their capability in
furthering the interests of the insured public by providing efficient service with
courtesy.
• Promote amongst all agents and employees of the Corporation a sense of
participation, pride and job satisfaction through discharge of their duties with
dedication towards achievement of Corporate Objective.

Current status

Over its existence of around 50 years, Life Insurance Corporation of India, which
commanded a monopoly of soliciting and selling life insurance in India, created huge
surpluses, and contributed around 7 % of India's GDP in 2006.

The Corporation, which started its business with around 300 offices, 5.6 million policies
and a corpus of INR 459 million (US$ 10 million), has grown to 25000 servicing around
180 million policies and a corpus of over INR 3.4 trillion (US$ 80000 million).

The organization now comprises 2048 branches, 109 divisional offices and 8 zonal
offices, and employs over 1,002,149 agents. The corporate Office of LIC is in Mumbai. It
also operates in 12 other countries, primarily to cater to the needs of Non Resident
Indians.

With the change in the India's economic philosophy from the early 1990s, and the
subsequent relaxation of state control over several sectors of the economy, the
monopolistic position of the Life Insurance Corporation of India was diluted, and it has
had to compete with a number of other corporate entities, Indian as well as transnational
Life Insurance brands. However, it still manages to be the largest player in the Indian
market, with the lion's share of 55%.

The recent Economic Times Brand Equity Survey rated LIC as the No. 1 Service Brand
of the Country.

40
In the financial year 2006-07 Life Insurance Corporation of India's number of policy
holders are said to have crossed a whopping 200 million (fourth in terms of population of
the countries of the world).

Insurance Products and Services:

1. Insurance Plans include:

• Children Plans (such as Jeevan Anurag, Komal Jeevan, CDA Endowment Vesting At
21, Marriage Endowment, CDA Endowment Vesting At 18, Educational Annuity Plan,
Jeevan Kishore, and Jeevan Chhaya)

• Plans for Handicapped Dependents (such as Jeevan Aadhar,Jeevan Vishwas)

• Endowment Assurance Plans [including The Endowment Assurance Policy, The

Endowment Assurance Policy-Limited Payment, Jeevan Mitra(Double Cover
Endowment Plan), Jeevan Mitra(Triple Cover Endowment Plan), and others]

• Plans for High worth Individuals (including Jeevan Shree-I, Jeevan Pramukh)

• Money Back Plans (including The Money Back Policy-20 Years, The Money Back
Policy-25 Years, Jeevan Surabhi-15 Years, Jeevan Surabhi-20 Years, Jeevan Surabhi-25
Years, Bima Bachat)

• Special Money Back Plan for Women (including Jeevan Bharati)

• Whole Life Plans (including The Whole Life Policy, The Whole Life Policy- Limited
Payment, The Whole Life Policy- Single Premium, Jeevan Anand, Jeevan Tarang)

• Term Assurance Plans (including Two Year Temporary Assurance Policy, The
Convertible Term Assurance Policy, Anmol Jeevan-I, Amulya Jeevan)

• Joint Life Plan (including Jeevan Saathi )

41
2. Group Scheme (including Group Term Insurance Schemes, Group Insurance Scheme
in Lieu Of EDLI, Group Gratuity Scheme, and others)

3. Social Security Scheme including JanaShree Bima Yojana (JBY)

Today LIC can boast of great achievements in IT and investment under able
Chairmanship of T S Vijayan. After years of poor performance despite near monopoly,
LIC started showing performance under G N Bajpai and again went into slip under
succeeding chairman till T S Vijayan took over. He faded G N Bajpai into oblivion ably
supported by HR initiatives taken by another Genius K B Saha despite serious internal
war by MDs. People criticise LIC about large scale miss selling and holes in investment
but nobody criticises LIC's superb HR initiatives under sharpest ever HR ED K B Saha
and IT initiatives directly under T S Vijayan, the tallest of the Chairmen of LIC.

SWOT ANALYSIS

Strengths:

a. Dedicated Employees.
b. Well Efficient Management.
c. Technology.
d. Diversification of funds.
e. Strong and popular brand name.
f. Adaptability to changes.

Weakness:

a. Lack of good services.

42
 b. Lack of awareness about insurance among people.
c. Less coverage in Rural Areas.

Opportunities:

a. Fast growing economy.

b. Increasing per –capita income in India.
c. Saving behavior.
d. High growth of ULIP industry.

Threats:

a. Arrival of new entrants in the insurance industry.

b. Cut throat competition within the industry

43
 Chapter - IV
Findings

Insurance is a contract between two parties whereby one party called insurer undertakes
in exchange for a fixed amount of money on the happening of a certain event.” Insurance
is a protection against financial loss arising on the happening of an unexpected event. The
primary purpose of Life Insurance is the protection of the family. Insurance in its various
forms protects against such misfortunes by having the losses of the unfortunate few paid
by the contribution of the many that are exposed to the same risk. This is the essence of
insurance- the sharing of losses and substitution of certainty for uncertainty. Insurance
companies collect premiums to provide for this protection. A loss is paid out of the
premiums collected from the insuring public and the insurance companies act as trustees
of the amount collected. In is a system by which the losses suffered by a few are spread
over many, exposed to similar risks.

In its present form, life insurance has its origin in England and made its debut in
India in the year 1818.Initially, Indians were not considered on par with Europeans as far
as their insurability was concerned. There were also many other failures. It was in the
early part of the 20th century that some kind of legislation was made to regulate the
industry. From then on life insurance made great strides in the country.

On an analysis and evaluation of the data collected from the respondents the
following findings were found.

• Before establishment of private concerns the share of LIC was 22% hence there is
a wide scope for private concerns to enter in to market.

44
• Total 100 respondents have been approached out of which 75 are the potential
respondents who have shown interest for investment and finance plan
• Above 20% of respondents are shown interest for investment and financial plan
• About 33.33% of respondents are not interest to give their personal records.
• About 12.67% of respondents have already been covered by other insurance
companies.
• About 10% of respondents have given invalid records.
• About 10% of respondents are newly employed or trainees.
• About 10% of respondents interested for investment plan after knowing ICICI
PRUDENTIAL LIFE INSURANCE products.

45
1. Age of the respondents

PARTICTULARS NO.OF.RESPONDENT PERCENTAGE

Less than 25 11 11%
25 - 35 40 40%
35 – 45 20 20%
Above 45 29 29%
TOTAL 100 100

Age of the Respondents

NO.OF.RESPONDENT PERCENTAGE

100

80

60

40

20

0
Less 25 - 35 35 - 45 Above TOTAL
than 25 45

ANALYSIS:

From the survey it was found that amongst 100 respondents

a) 11% of the respondents are less than 25 years old.

b) 40% of the respondents are between 25 and 35 years of age.
c) 20% of the respondents are between 35 and 45 years of age.
d) 29% of the respondents are more than 45 years of age.
46
 2. Qualification of the respondents.

PARTICUALR NO.OF.RESPONDENT PERCENTAGE

Graduate 52 52%
Post Graduate 29 29%
Diploma 8 8%
Other discipline 11 11%
TOTAL 100 100%

Qualification of the Respondents

Graduate Post Graduate Diploma
Other discipline TOTAL

100
80
60
40
20
0
PERCENTAGE
NO.OF.RESPONDENT

ANALYSIS:

From the survey it was found that amongst 100 respondents

a) 52% of the respondents were graduate

b) 29% of the respondents were post graduate
c) 8% of the respondents were diploma
d) 10% of the respondents were other discipline

3) Occupation of the respondents

47
 PARTICULARS NO.OF.RESPONDENT PERCENTAGE
Business man 34 34%
Professionals 18 18%
Job holders 37 37%
Others 11 11%
TOTAL 100 100%

Occupation of the Respondents

Business man Professionals Job holders

Others TOTAL

100

80

60

40

20

0
NO.OF.RESPONDENT

ANALYSIS:

From the survey it was found that amongst 100 respondents

a) 34% of the respondents are businessmen.

b) 18% of the respondents are professionals.
c) 37% of the respondents are job holders.
d) 11% of the respondents are background.

4) Average annual income of respondents.

48
 PARTICULARS NO.OF.RESPONDENT PERCENTAGE
Up to 1 lakh 33 33%
1 lakh - 3 lakh 43 43%
3 lakh - 5 lakh 20 20%
5 lakh & above 4 4%
TOTAL 100 100%

Average annual income of

respondents.

100

80
Up to 1 lakh
1 lakh - 3 lakh 60
3 lakh - 5 lakh
40
5 lakh & above
TOTAL 20

0
NO.OF.RESPONDENT

ANALYSIS:

From the survey it was found that amongst 100 respondents

a) 33% of the respondents have an average annual income up to 1

lakh
b) 43% of the respondents have an average annual income from 1
lakh to 3 lakh
c) 20% of the respondents have an average annual income from 3
lakh to 5 lakh
d) 4% of the respondents have an average annual income above 5
lakh

5) Family size of respondents

PARTICULARS NO.OF.RESPONDENT PERCENTAGE

Below 5 members 50 50%

49
 5 - 10 members 32 32%
Above 10 members 28 28%
TOTAL 100 100%

FAMILY SIZE

28%

50%

below 5 members
5- 10 member
above 10 member

32%

ANANLYSIS:

From the survey it was found that amongst 100 respondents

a) 50% of the respondents are below 5 members.

b) 32% of the respondents are between 5 to 10 members.
c) 28% of the respondents are above 10 members.

6) According to life insurance is.

PARTICULARS NO.OF.RESPONDENT PERCENTAGE

Risk Coverage 10 10%
Tax Savings 3 3%

50
Good return 4 4%
Security 3 3%
All the above 80 80%
TOTAL 100

Life Insurance is

Risk Coverage Tax Savings Good return

Security All the above TOTAL

100

80

60

40

20

0
NO.OF.RESPONDENT

ANALYSIS:

From the survey it was found that amongst 100 respondents

a) 10% of the respondents say risk coverage.

b) 3% of the respondents say tax savings.
c) 4% of the respondents say good returns.
d) 3% of the respondents say financial security.
e) 80% of the respondents say all of the above.

7) Awareness of ICICI Prudential life insurance

PARTICULARS NO.OF.RESPONDENT PERCENTAGE

Yes 17 17%
No 83 83%
TOTAL 100 100%

51
 Awareness of ICICI Pru

Yes No TOTAL

100

80

60

40

20

0
NO.OF.RESPONDENT

ANALYSIS:

From the survey it was found that amongst 100 respondents

a) 83% of the respondents say that they are aware of ICICI

Prudential life insurance co.
b) 17% of the say that they are unaware of ICICI Prudential life
insurance co

8) Awareness regarding insurance.

PARTICULARS NO.OF.RESPONDENT PERCENTAGE

Yes 2 2%
No 98 98%
TOTAL 100 100%

52
 INSURANCE AWARENESS

100
90
80
70
60
50 NO.OF.RESPONDENT
40 PERCENTAGE
30
20
10
0
Yes No TOTAL

ANALYSIS:
From the survey it was found that amongst 100 respondents

a) 98% of the respondents say that they are aware of insurance.

b) Only 2% are unaware of insurance.

9) % of respondents who are under different plans of ICICI Prudential life insurance co.

PARTICULARS NO.OF.RESPONDENT PERCENTAGE

Invest gain plan 41 41%
Unit gain plan 36 36%
Child gain plan 8 8%
Whole life plan 15 15%
Pension plan No No
TOTAL 100 100%

53
 INSURANCE PLANS OF ICICI PRUDENTIAL

15%

8% 41%
Invest gain plan
Unit gain plan
Child gain plan
Whole life plan
36% Pension plan

ANALYSIS:

From the survey it was found that amongst 100 respondents

a) 41% of the respondents are under invest gain plan

b) 36% of the respondents are under unit gain plan
c) 8% of the respondents are child gain plan
d) 15% of the respondents are whole life plan
e) No body under pension plan

10) % of respondents benefits of choosing the particular products

PARTICULARS NO.OF.RESPONDENT PERCENTAGE

Risk coverage 60 60%
Additional benefit 20 20%
Maturity date 12 12%
Sum Assured 8 8%
TOTAL 100 100%

54
 Benefits of Particular Products

100
90
80
70 Risk coverage
60 Additional benefit
50
Maturity date
40
Sum Assured
30
20 TOTAL
10
0
1 2

ANALYSIS:
a) 36% of the respondents say that a benefit of choosing the particular
Product is for Safety of life.
b) 20% of the respondents say that a benefit of choosing the particular
products is for additional benefit to family
c) 12% of the respondents say that a benefit of choosing the particular
products is for maturity date
d) 8% of the respondents say that a benefit of choosing the particular
products is for sum assured

11) % of disadvantages in insurance plan

PARTICUALRS NO.OF.RESPONDENT PERCENTAGE

Liquidity 35 35%
Lapsation 20 20%
Unable to decide premium 19 19%
High risk coverage 14 14%
Fixed Term 12 12%
TOTAL 100 100%

55
 Disadvantages in Insurance Plans

100
80
60
40
20
0
NO.OF.RESPONDENT

Liquidity Lapsation
Unable to decide premium High risk coverage
Fixed Term TOTAL

ANALYSIS:
From the survey it was found that amongst 100 respondents

a) 35% of the respondents say that disadvantages in insurance

plan are liquidity.
b) 20% of the respondents say that disadvantages in insurance
plan are lapsation.
c) 19% of the respondents say that disadvantages in insurance
plan is unable decide premium.
d) 14% of the respondents say that disadvantages in insurance
plan are high risk coverage at high premium.
e) 12% of the respondents say that disadvantages in insurance
plan is fixed term

12) % of respondents who want to invest in these different avenues.

PARTICUALRS NO.OF.RESPONDENT PERCENTAGE

Recurring Deposit 40 40%
Equity Fund 25 25%
Balanced Fund 10 10%
Mutual Fund 11 11%
Debt Fund 5 5%
Cash Fund 9 9%
TOTAL 100 100%

56
 INVESTMENT AVENUES

9%
5%
11% 40% R.D
Equity
Balanced fund
Mutual Fund
10% Debt Fund
Cash Fund
25%

ANALYSIS:

From the survey it was found amongst 100 respondents

a) 40% of respondents say that they want to invest in R.D

b) 25% of respondents say that they want to invest in equity
c) 10% of respondents say that they want to invest in balanced fund
d) 11% of respondents say that they want to invest in mutual fund
e) 5% of respondents say that they want to invest in debt market
f) 9% of respondents say that they want to invest in cash

What kind of Insurance Plan you look for, one which

1. (a) Allows you to choose insurance at same premium

(b) Increase premium as per insurance
(c) Increasing premium every year

Option Respons Percenta

e ge
A 75 63

B 36 30

C 9 8

Total 120 57
Observation- Out of total 120 respondents 63% prefer option A
and 30% prefer option B and 8% prefer option C.

Findings- Maximum respondents prefer those insurense

policies which allows them to choose insurance at the same
premium.

2. (a) Allows flexibility in premium payment with minimum

payment term
(b) Compulsion of paying premium till the term ends

Analysis-

Option Response Percentage

A 72 60
B 48 40

58
Observation- Out of total 120 respondents 60% of people
prefer option A and 40% of people prefer option B.

Findings- Maximum respondents prefer those insurense

policies which Allows flexibility in premium payment with
minimum payment term.

3. (a) Allows you to withdraw your investments partially or

fully at the time of need
(b) Allows you to withdraw only at maturity

Analysis-

Option Response Percentage

A 74 62
B 46 38

59
Observation- Out of total 120 respondents 62% of people
prefer option A and 38%of people prefer option B.

Findings- Maximum respondents prefer those policies Allows

you to withdraw your investments partially or fully at the time
of need.

4. (a) Allows you to enjoy returns higher than FD and NSCs still
being safe and tax free
(b) Allows you to enjoy return at par with FD and NSCs

Analysis-

Option Response Percentage

A 120 100
B 0 0

60
Observation- 100% respondents prefer option A.

Findings- All the respondents prefer those insurance policies

which allow enjoying returns higher than FD and NSCs still
being safe and tax free.

5. (a) Allows you to increase or decrease insurance as per need

(b) Should never increase or decrease

Analysis-

Option Response Percentage

A 77 64
B 43 36

61
Observation-Out of total 120 respondents 64% people prefer
option A and 36% people prefer option B.

Findings- Maximum respondents prefer those insurance

policies which Allows to increase or decrease insurance as per
their need.

6. (a) Should allow you to choose investment strategy as per

the need
(b) Should be fixed throughout the tenure

Analysis-

Option Response Percentage

A 68 57
B 52 43

62
Observation-Out of total 120 respondents 57% of people prefer
option A and 43% people prefer option B.

Findings-Maximum respondents prefer those insurense policies

which them to choose investment strategy as per the need.

7. How the bonus should be distributed-

(a) Periodical
(b) On maturity

Analysis-

Option Response Percentage

A 92 77
B 28 23

63
Observation-Out of total 120 respondents 77% of people prefer
option A and 23% of people prefer option B.

Findings- Maximum respondents prefer those insurance

policies which distribute bonuses periodically.

8. How would you like premium payment to be made-

(a) Directly distributed through bank
(b) By company agent

Analysis-

Option Response Percentage

A 82 68
B 38 32

64
 Observation-Out of total 120 respondents 68% people prefer
option A and 32% of people prefer option B.

Findings-Maximum respondents like their premium payment to

be directly distributed through bank.

CROSS ANALYSIS-
Total no. of respondents = 18
age Gender Family Size Income group
41 5 15000
and and 0- 0- 300000
22- 29- abov Mal Femal 3 to 4 to abov 15000 30000 onward
28 40 e e e 4 5 e 0 0 s
Total 10 5 3 16 2 5 7 6 10 7 1
Percenta 55.5 88. 33.3 55.55 38.888 5.5555
ge 6 28 17 9 11 28 38.9 3 6 9 6

65
 Analysis-

Gender Family Size Income group

3 to 4 to 5 and 0- 150000- 300000
Male Female 4 5 above 150000 300000 onwards
Total 14 1 3 6 6 10 5 0
PERCENTA 93.333 6.6666 66.666
GE 33 67 20 40 40 67 33.3333 0

age Family Size Income group

15000
41 0- 0-
22- and 3 to 4 to 5 and 15000 30000 300000
28 29-40 above 4 5 above 0 0 onwards
TOTAL 10 4 2 3 7 6 10 5 1
PERCENTA 18.7 43.7
GE 62.5 25 12.5 5 5 37.5 62.5 31.25 6.25

age Gender Income group

41 and Femal 0- 150000- 300000
22-28 29-40 above Male e 150000 300000 onwards
TOTAL 10 5 3 16 2 10 7 1
PERCENTA 55.555 27.777 16.666 88.888 38.8888
GE 56 78 67 89 11.11 55.5556 9 5.555556

age Gender Family Size

41 and Femal 5 and
22-28 29-40 above Male e 3 to 4 4 to 5 above
Total 10 5 2 15 2 5 6 6
PERCENTA 58.823 29.411 11.7647 88.235 11.764 29.411 35.294 35.2941
GE 5 7 1 2 7 7 12 2

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Finding- Male between the age group 22 to 40 with family size more
than 4 and having income between 1.5 lakh to 3 lakh are more likely to
be a financial advisor.

Chapter - V
Conclusions
The financial markets have continued to witness unprecedented liberalization, growth and
reforms over the last decade prompted by regulatory compulsions and a rapid integration

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between domestic and global markets. And as a result, one has seen substantial growth in
the number of financial firms (insurance companies, mutual funds, brokerages, banks
etc.) and in the number and variety of financial products and services offered by them.

As the need of the people is changing so is changing the investment habits of the people
and this has brought in a spate of new products and schemes where people can invest.
The concept of insurance as an investment option has arrived where people first identify
the varying needs of money then converts the needs into specific amount of money and
time required to achieve the objective of investments plans.

The objective of insurance as an investment is to ensure that investments are driven by

pre determined and well thought out investment plan and that the investments are suitable
and adequate to meet these plans. But for this the planner must understand the universe of
investments options. He/she must be well informed on the risk and return attributes of
these options.

In addition to the above, companies should also innovate to come up with better products
that would suit the Indian population and should also try to market and sell their products
through new channels of distribution that can be effective in selling their products to the
masses. People should identify their needs and then decide on the type of policy they
want to invest in. insurance is a good investment option for those people who do not
know where to invest and who do not want to the risk of capital erosion. But, people who
are financially savvy can opt for term insurance and invest the rest in other options that
may give them higher returns.

Chapter - VI
Recommendations

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Since ICICI Prudential Life Insurance co. ltd is the largest in terms of FDI invested, in
terms of work force, in terms of market share, in terms of no. of customers. All these
positive stands of the company place at the number one position. On second aspect
whatever amount of money ICICI Prudential save, can be used to increase the no. of
policies, which will helpful to increase the market share of the company. Since the
customers think about the companies in the industry, when they invest money in the life
insurance industry. So it’s necessary to increase the market share of the company. There
are some recommendations.

• Open some more branches in semi urban and rural area.

ICICI Prudential has almost its branches in urban area or metros. So in order to
increase the no. of customer, ICICI Prudential should increase the approach
towards potential customers. For that it has to increase the branches in the semi
urban cities like C, D grade cities. And the rural marketing is the best option for
ICICI Prudential to increase its base in the market

• Improve customer services.

In order to take the advantage of being industry leader in private sector, ICICI
Prudential has to improve its customer services. According to my experience in
the company, a good number of customers forget to pay their premium at time so
it causes a big loss to the company. ICICI Prudential has already collaborated
with the ICICI bank for its Bancassurance facility and then can include another
feature in it. ICICI bank can offer a bank account with the life insurance policy in
which an ATM card will be provided. This card will have all the information
regarding the policy as like future premium payment dates, payment made, money
value of the policy at that date, value of the unit linked plan and all other
information what the customer want. This will help the customer to pay premium
on time and save their losses. This will be mutually helpful for both sister

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 companies, ICICI bank will get new account and ICICI prudential will be able to
more efficient services to their customers.

• Bring some unit linked life insurance plans in the market.

Being a market leader doesn’t ensure the leadership in the future. Since after
increment in FDI from 26% to 49% all player will have the opportunity to capture
the market share. So in order to maintain its position ICICI Prudential should

-Introduce some new market linked insurance plan, which will give a competitive
advantage to the ICICI Prudential against its competitors.

• Trained the financial advisors more efficiently.

In the changed scenario, more efficient training will be needed, so ICICI
Prudential should provide good and efficient training to their financial advisors.
Because they are the one who interact directly with the customers. So good
training will give them the right way to deal with the potential customers.

Bibliography

WEBSITES

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  www.iciciprulife.com

 www.licindia.com

 www.google.com

 www.hdfcbank.com

Pamphlets Referred:
 BAJAJ ALLIANZ
 ICICI BANK
 HDFC BANK
 LIC, India

Annexure

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A QUESTIONNAIRES

ICICI PRUDENTIAL LIFE INSURANCE CO. LTD

Name:- Age:-
Gender:- Marital Status:-
Occupation:- Income (per annum):-
Address:-
Contact No.:-

What kind of Insurance Plan you look for, one which

1. (a) Allows you to choose insurance at same premium

(b) Increase premium as per insurance
(c) Increasing premium every year

2. (a) Allows flexibility in premium payment with minimum payment term

(b) Compulsion of paying premium till the term ends

3. (a) Allows you to withdraw your investments partially or fully at the time of need
(b) Allows you to withdraw only at maturity

4. (a) Allows you to enjoy returns higher than FD and NSCs still being safe and tax free
(b) Allows you to enjoy return at par with FD and NSCs

5. (a) Allows you to increase or decrease insurance as per need

(b) Should never increase or decrease

6. (a) Should allow you to choose investment strategy as per the need
(b) Should be fixed throughout the tenure

7. How the bonus should be distributed-

(a) Periodical
(b) On maturity
8. How would you like premium payment to be made-

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 (a) Directly distributed through bank
(b) By company agent
Problems which you are facing:
Suggestions:
Thank You for your co-operation….

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