A REPORT

ON
FINANCIAL SERVICES &
A STUDY OF INSURANCE POTENTIAL
WHEN MARKETING OF
INSURANCE PRODUCTS IN REFERENCE TO
ICICI PRUDENTIAL LIFE INSURANCE COMPANY LTD.

BY
VIKAS GONDIKAR
Regd., No:- 8704110

1
 A REPORT
ON
FINANCIAL SERVICES
A STUDY OF INSURANCE POTENTIAL
WHEN MARKETING OF
INSURANCE PRODUCTS IN REFERENCE TO
ICICI PRUDENTIAL LIFE INSURANCE COMPANY LTD.

By
VIKAS GONDIKAR
A report submitted in partial fulfillment of the requirement of
MBA Program of
OSMANIA UNIVERSITY

Distribution List

Mr. M.SRINIVAS MISS. SABITHA

Sr. Agency Manager Faculty Member
ICICI PRUDENTIAL VIVEKVARDHANI P G COLLEGE
LIFE INSURANCE Co.Ltd., HYDERABAD
Secunderabad

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 ACKNOWLEDGEMENT

I would like to begin my report by extending a sincere world of thanks to

VIVEKVARDHANI P G COLLEGE for giving me an opportunity to work on this project, as
apart of my summer internship program. It had been a very knowledgeable experience for
me working on this project. This project help me enhanced my level of confidence a lot.

I would like to show my sincere gratitude to my Sr. Agency Manager–ICICI

PRUDENTIAL LIFE INSURANCE CO LTD: Mr. M.SRINIVAS for giving me the opportunity to
work in his esteemed organization.

I would like to thank him for giving me invaluable suggestion and priceless guidance
without which, my project would have been in complete. His contribution extend beyond the
project, in that he instilled in me a disciplined, systematic and a logical approach.

I also extend my heartfelt thanks to the management and staff of ICICI PRU for creating
an extremely informal, responsible and flexible work culture career prospect. It had been an
excellent experience working with the employees.

I am profoundly grateful to my faculty guide MISS. SABITHA for providing her valuable
suggestion and instruction in completion of the project. It has been a pleasure and
wonderful experience to get the opportunity to be guided by her.

I would like to give special thanks to Mr. SASHI (ASM) ICICI PRU who had given me a
opportunity to work in ICICI prudential.

Last but not the least I would extend my heartiest gratitude to my parents. And friend
for their constant support and endeavor that helped me move ahead with my work and make
it a success.

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 TABLE OF CONTENTS
SR. PAGE
NO PARTICULARS NO
TITLE PAGE 1
TITLE PAGE 1 2
Acknowledgement 3
Table of contents 4
Abstract 7
I. Introduction 8
 Need for the Study, Objectives, Scope, Methodology And Limitations.
II. Introduction on Insurance 12
 Concept of insurance
 Life insurance
 Life insurance in India
 Evaluate ones life insurance needs
 Basic concepts of life insurance
 Insurance sector reforms
 Proactive steps taken by the IRDA
 Company Profile
 ICICI & PRUDENTIAL
 Factors responsible for the success of insurance companies
 Market developments
III. PRODUCTS 37
 ICICI pru lifetime
 ICICI pru life guard
 ICICI pru life link
 ICICI pru forever life

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  ICICI pru cash plus
 ICICI pru cash back
 ICICI pru smart kid
 ICICI pru secure plus
 ICICI pru reassure
 ICICI pru assure invest
IV. The sales process 63
 Prospecting
 Preparation and planning
 Tele calling
 Factors that make Tele calling effective
 Script
 Parts of script
 Sample script
 The sales presentation
 The presentation process
 Handling objections
 Closing the sale
 Follow up and service after the sale
V. Inferences and conclusions at this stage 74
 Market segmentation
 Demographic segmentation
 Product positioning
 Core and Secondary benefits of an insurance products
VI. Insurance
78
 Life insurance market
 Market share and growth
 Sales channels
 The sales process
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 VII. Cold call and reference marketing approach
87
VIII. Consumer behavior
89
IX. Family life cycle
95
X. Overview of some prominent insurance web sites
101
XI. Portal view suggested to be incorporated by ICICI Pru
103
XII. Insurance industry a Swot-Analysis
105
XIII. Findings and Suggestions on INSURANCE POTENTIAL
109
XIV. Annexure
114
XV. Focus group script
XVI. NEWS
XVII. MANAGEMENT
XVIII. Reference

Abstract
As the title of the project suggests the main aim of the project lies in studying
the marketing Potential of insurance and during this process to understand the
psychology-customer behavior and various reactions of the customers as prospects.

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 Insurance business has traditionally been at the mercy of tax savers and
business booms in the financial yearend. However the influx of private players in the
foray has changed the business outlook of this industry.
The project gives an introduction to the concept of insurance followed by its
origin and history in the world and in India and then discusses the current market
scenario. Further the project gives introductions of ICICI prudential life insurance
company ltd. and the various products it has for offering to the public.
The project then briefly discusses about the sales process (sales script, tale
calling etc. ;), product positioning & market segmentation.

SYNOPSIS
Introduction
The main aim of the study can be summarized as a study into the Insurance
Potential in the process of selling, of insurance products and thus it is primarily
based on the study of market i.e. how individuals make decisions to spend their
available resources (time, money, effort) on various items. As marketers, it is
important for us to recognize why & how individuals make their consumption
decisions so that we can make better strategic marketing decisions, if marketers
understand Insurance Potential they are able to predict how consumers are likely to
react to various informational & their marketing decisions concerning product, price,
promotion & distribution can be altered according to consumers perceptions.
Need for the Study :
Insurance now-a days a growing and core sector. Also the respondents are
much aware of LIC which is a monopoly since Fifty years and above.
1. It is aimed to know the insurance potential in the insurance market
and customer.
2. Customer interest towards life insurance.
3. Market potential towards life insurance in the market.
Project objective

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The main objective of this project is to study the
1. To know the number of customers in the market
2. Targets by various companies
3. Product analysis
4. Importance of security and investment
The scope of this study is as follows
 To understand the psychology of customer behavior and the reactions of the
customers when they are approached.
 To develop an overall view of the insurance sector in the company.
 The study covered an estimate of potential demand for private insurance over
LIC
 To understand customers perceptions regarding for opting of life insurance.
 To understand Customers perceptions regarding insurance products (what
features are important for them).
 It also makes an estimation of the competition existing in the insurance sector.
 The study is being conducted only in the twin cities of Hyderabad,
Secunderabad in Andhra Pradesh.
Methodology
The methodology that had been followed and collected the information from two
sources:

a) Primary Data:
1. Questionnaires
2. Survey Sample
3. Personal Contacts
b) Secondary Data:
1. Magazines
2. Journals
3. News Papers

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 The main aim of this project is to study the Insurance Potential and
Competition in reference to ICICI Prudential Life Insurance Co. for this we have
planned to use the methodology adopted is
1) Sales process(Cold Call and Reference marketing)
2) Focus group
3) Dyads
According to the cold call various prospects are identified by acquiring their
contact telephone numbers from some references (given by company superiors,
friends, clients, prospects etc.,) and from database (like yellow pages).
This is followed by approaching the prospect over the phone to fix an
appointment. A telephone script is provided by the company that helps to fix
appointments that should be convenient to the prospect.
In the first meeting the needs of the prospect are identified and analyzed and
a fact finding is done based on which a suitable plan is suggested.
Often more than one meeting is involved and the necessary follow ups are
done with required documents such as a statement of cash flow and other
illustrations till the prospect is convinced and takes up the policy.

All these details from the identification to the convincing and closing the case are
documented and a thorough analysis done of the reasons exhibited by the prospect
for taking up or for refusing the policy and what factors affected his decisions.

Focus group research is a useful exploratory step. Here in focus group we start with
a broad question, such as “what are your perceptions about life insurance?”
questions then move to how people regard different insurance companies, different
existing services, specifically, their perceptions about ICICI Prudential. Here we
encourage free and easy discussion, hoping that the group dynamics will reveal
deep feelings and thoughts. At the same time, we “focus” the discussion. The
discussion is recorded through audiotape. This focus group methodology will help
this project in understanding customer beliefs, attitudes, and behavior.

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Dyads is same as Focus Group Discussion, the only difference between them is that
in Dyads there is scope for further questions.
For example the second question in the Focus Group is to know about Brand
Awareness, here in Focus Group due to because of limitations I cannot ask for
further questions. Whereas in Dyads I can do that. I can go to a certain extent and I
can ask them why they had opted for those Insurance companies, especially this is
the advantage from dyads. So, that’s why I had taken Dyads also into my
Methodology.
The limitations encountered during the process of the study are.
 The scope of the project is limited only to the insurance products of ICICI
Prudential Life Insurance and hence we are unable to cater to the pure
investments needs of the clients and our understanding in other investment
avenues.
 The project does not provide for a comparative study of the schemes and
policies offered by similar firms in the industry.

 The project is limited only to the city of Hyderabad and its surrounding areas
and hence, the results of the study would represent the reaction of the
customers from this region only and is based on a small sample.
 The project is based on the cold call methodology and focus group and the personal
skills of the person undertaking the project also affect the results.

***********************************************************************
*
Introduction
THE CONCEPT OF INSURANCE
The business of insurance is related to the protection of the economic value of
an asset for which a normal life time exists during which it is expected to perform.
However if the asset gets Damaged, Destroyed or is made non functional by the

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occurrence of some unfortunate event the owner of the assets suffers .Insurance is a
mechanism to reduce the financial implications of such consequences.
The mechanism involves people who are exposed to the same risk come
together and agree that if any one of the members suffers a loss the others will share
the loss and make good the loss. Thus people facing common risk come together
and make their contribution towards a common fund whose amount is determined
beforehand on the basis of past data and experiences.

The fundamental underlying principle of insurance

1) Losses must be definite and discreet in time and place
2) Losses must not be fortuitous accidental in nature and beyond the control of the
insured
3) Losses must be large enough to cause a financial burden
4) Losses must be measurable or calculable and a monetary amount should be
determined to compensate the loss
5) Past history of the specific losses should exist to help the actuaries to estimate
frequency severity and costs involved and determine fair rates of insurance.
6) The cost of insurance should be affordable by the parties and should be a
fraction of the value of the insured Item.
Thus we see that a large number of homogenous units (people .companies,
Entitles) with a similar potential for loss exposure must be available for insurance
and this is generally referred to as The Law of large numbers.
Life Insurance
Almost 4,500 years ago, in the ancient land of Babylonia, traders used to bear risk
of the caravan trade by giving loans that had to be later repaid with interest when the
goods arrived safely. In 2100 BC, the Code of Hammurabi granted legal status to the
practice.
That, perhaps, was how insurance made its beginning.

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Life insurance had its origins in ancient Rome, where citizens formed burial clubs
that would meet the funeral expenses of its members as well as help survivors by
making some payments.
As European civilization progressed, its social institutions and welfare
practices also got more and more refined. With the discovery of new lands, sea
routes and the consequent growth in trade, Medieval guilds took it upon themselves
to protect their member traders from loss on account of fire, shipwrecks and the like.
Since most of the trade took place by sea, there was also the fear of pirates.
So these guilds even offered ransom for members held captive by pirates. Burial
expenses and support in times of sickness and poverty were other services offered.
Essentially, all these revolved around the concept of insurance or risk coverage.
That's how old these concepts are, really.
In 1347, in Genoa, European maritime nations entered into the earliest known
insurance contract and decided to accept marine insurance as a practice.

The first step...

Insurance as we know it today owes its existence to 17th century England. In
fact. it began taking shape in 1688 at a rather interesting place called Lloyd's Coffee
House in London, where merchants, ship-owners and underwriters met to discuss
and transact business. By the end of the 18th century, Lloyd's had brewed enough
business to become one of the first modern insurance companies.
Insurance and Myth...
Back to the 17th century. In 1693, astronomer Edmond Halley constructed
the. First mortality table to provide a link between the life insurance premium and the
average life spans based on statistical laws of mortality and compound interest. In
1756, Joseph Dodson reworked the table, linking premium rate to age.
Enter companies...
The first stock companies to get into the business of insurance were chartered
in England in 1720. The year 1735 saw the birth of the first insurance company in the
American colonies in Charleston, SC.

12
 In 1759, the Presbyterian Synod of Philadelphia sponsored the first life
insurance corporation in America for the benefit of ministers and their dependents.
However, it was after 1840 that life insurance really took off in a big way. The
trigger: reducing opposition from religious groups.
The growing years...
The 19th century saw huge developments in the field of insurance, with newer
products being devised to meet the growing needs of urbanization and
industrialization.
In 1835, the infamous New York fire drew people's attention to the need to
provide for sudden and large losses. Two years later, Massachusetts became the
first state to require companies by law to maintain such reserves. The great Chicago
fire of 1871 further emphasized how fires can cause huge losses in densely
populated modern cities. The practice of reinsurance, wherein the risks are spread
among several companies, was devised specifically for such situations.
There were more offshoots of the process of industrialization. In 1897, the
British government passed the Workmen's Compensation Act, which made it
mandatory for a company to insure its employees against industrial accidents.
With the advent of the automobile, public liability insurance, which first made its
appearance in the 1880s, gained importance and acceptance?
In the 19th century, many societies were founded to insure the life and health
of their members, while fraternal orders provided low-cost, members-only insurance.
Even today, such fraternal orders continue to provide insurance coverage to
members as do most labor organizations. Many employers sponsor group insurance
policies for their employees, providing not just life insurance, but sickness and
accident benefits and old-age pensions. Employees contribute a certain percentage
of the premium for these policies.
Life Insurance in India
Although insurance in its present form has been brought to India by the British
and other colonial powers the concept of collective co-operation to share a particular
risk is as old as the dawn of human civilization.

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India was a major trading power in ancient times and some examples of sharing
risks can be found such as ships carried cargo of several traders together instead of
a single individual. In the Mogul army a life annuity was granted to the family on the
demise of a soldier against some regular contribution in his life time. The Joint family
system of India is also an embodiment of the same concept.
Early attempts
Life insurance in its modern form came to India from England in 1818 with the
formation of the Oriental Life Insurance Company in Kolkata and with the passage of
time Indians were also covered by this company. By 1868 there were 285 companies
operating in India and were primarily into insuring the European lives, those Indians
who were offered were charged an extra premium of 15 to 20% and treated as
substandard lives.

First Indian Company

The first insurance company under the title "the Bombay life insurance
society" started its operations in 1870 and started insuring lives of Indians at
standard rates. Later "oriental Govt. life insurance co." was established in 1874
which emerged as the leading insurance company in India.
Pre Independence history
With the various freedom movements various leaders encouraged domestic
life insurance companies to enter the fray. In 1914 there were only 44 companies
and in 1940 this number grew to 195.From here on the growth of life insurance was
quiet steady except in 1947-48 during the partition of India.
Nationalization of Insurance Business 1956
After Independence our nation was moving towards a Socialistic pattern of
society and with the main aim of spreading the concept to rural areas and to channel
the money into nation building activities the government of India Nationalized the life
insurance business and formed "The Life Insurance Corporation of India" by merging
about 250 life insurance companies. The Life Insurance Corporation of India started

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functioning from 1.9.1956 and is today the largest insurer in the country with one
central office, seven zonal offices and over 2048 branch offices with a workforce of
125000 employees and over 800000 life insurance agents.
Evaluate your life insurance needs
Life Insurance is one of the most popular savings/ investment vehicles in
India. Ironically, it’s probably the least understood too. An insurance policy offers
much more than just tax planning and investment returns. It offers the ability to plan
for unforeseen events that could affect family's financial profile adversely.
Factors to consider:
Financial profile and needs are different from person to person, and the same
is true for insurance needs. However, irrespective of the differences, the number of
dependents PH has and their financial needs are the most important factors to
consider.
Issues to consider while evaluating the above factors include:
The wealth, income and expense levels of PH dependents,
1) Their significant foreseeable expenses,
2) The inheritance PH would leave on them, and
3) The lifestyle PH wants to provide for them.
How much insurance does a person need?
Obviously the above factors mean nothing to the insurance planning process unless
they are quantified.
Globally, the time-tested approach used by insurance and financial planners is
the capital needs analysis method.
When should you re-evaluate?
Whenever any of the factors discussed above change.
In Step 2, understand the key concepts underlying life insurance.
Risk cover versus investment returns:
Insurance options range from policies with low premium that offers a PH
almost no returns to those with high premium that effectively offer post-tax returns of
around 8% to 9.5% p.a.

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 These returns are at the lower end of fixed-income returns available today
and hence are relatively unattractive.
I recommend PH buy an insurance policy skewed towards investment returns
only if you are in the high-tax bracket, prefer to invest in low-risk, fixed-income
options and have exhausted all the other such investment options available.
See Financial Investment Options and Government Schemes Directory for details of
low-risk, fixed-income investment options available.
Whole life versus limited period:
As PH grow older, he may not have as many dependents (his children would
become self-dependent) or his wealth may reach a level where it can support his
dependents’ financial needs in the event of his death.
These possibilities bring us to the interesting question on whether he should
insure himself, for whole life or for a limited term. Obviously, the cost of insurance for
the latter is lower.
I recommend him to insure for whole life only if he never expect his wealth to
reach a level where it can support the financial needs of his dependents.
Tax Planning:
The premium paid for an LIC policy also qualifies for tax rebate under Section 88 of
the Income Tax Act. The maximum premium amount that can qualify for rebate is
Rs60, 000 per annum and you get a rebate equivalent to 20% of the premium paid,
from your tax liability for the year.
In step 3, deals about steps in selecting a life insurance policy.

Understand how much insurance PH need:

This is the single most important factor to evaluate before PH select a life
insurance policy. For this, he must consider the current expense profile of his
dependents and the current wealth level of his family. Also, consider what is his
dependent’s risk tolerance level is. Is he adequately Insured, this planning tool can
take him step-by-step in addressing this issue.
Selecting Premium Paying Term (PPT):

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 How long he want to pay his insurance premium for? Key factors this decision
could depend upon are -
1) How many years he see himself earning a regular income
2) The level of his regular savings
3) The amount he can commit to paying regularly as insurance premium
4) How long he want to be insured versus how long he expects to pay a premium
for?
Other important questions to ask besides understanding how much insurance he
need and letting his premium-paying term, he need to consider some other

Key factors, such as -

1) Does he want to participate in bonus/ profit share?
2) What is the primary objective of his seeking insurance –
3) Mainly risk cover, mostly investment returns?
4) Does he want accident cover?
For a detailed understanding of the factors he need to consider while selecting a life
insurance policy, and the rationale for the same, use Insurance Planner.
This planning tool will also take him step by step and arrive him at a shortlist of life
insurance policies appropriate for him, based on his personal profile.
To understand life insurance terms, he can read The Basics of Life Insurance is as
follows....
What is life Insurance?
Life insurance is a contract for payment of money to the person assured (or to the
person entitled to receive the same) on the occurrence of the event insured against.
Usually the contract provides for -
Payment of an amount on the date of maturity or at specified periodic intervals or at
death, if it occurs earlier.
Periodical payment of insurance premium by the assured, to the corporation
who provides the insurance.

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Who can buy a life insurance policy?
Any person above 18 years of age, who is eligible to enter into a
Valid contract. Subject to certain conditions, a policy can be taken on the life of a
spouse Or children.
What is a Whole Life Policy?
When most people think of life insurance, they think of a traditional whole life
policy. These are the simplest policies to understand: You pay a fixed premium every
year based on your age and other factors, you earn interest on the policy's cash
value as the years roll by, and your beneficiaries get a fixed benefit after you die. The
policy takes you into old age for the same premium you started out with. Whole life
insurance policies are valuable because they provide permanent protection and
accumulate cash values that can be used for emergencies or to meet specific
objectives. The surrender value gives you an extra source of retirement money if you
need it.
What is an Endowment policy?
Unlike whole life, an endowment life insurance policy is designed primarily to
provide a living benefit and only secondarily to provide life insurance protection.
Therefore, it is more of an investment than a whole life policy. Endowment life
insurance pays the face value of the policy either at the insured's death or at a
certain age or after a number of years of premium payment.
Endowment life insurance is a method of accumulating capital for a specific
purpose and protecting this savings program against the saver's premature death.
Many investors use endowment life insurance to fund anticipated financial needs,
such as college education or retirement.
Premium for an endowment life policy is much higher than those for a whole
life policy.
What is a Money Back policy?
This is basically an endowment policy for which a part of the sum assured is
paid to the policyholder in the form of survival benefits, at fixed intervals, before the
maturity date. The risk cover on the life continues for the full sum assured even after

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payment of survival benefits and bonus is also calculated on the full sum assured. If
the policyholder survives till the end of the policy term, the survival benefits are
deducted from the maturity value.
What is An Annuity Scheme?
Annuity schemes are those wherein your regular contributions over a period
of time (or a one-time contribution) accumulate to form a corpus with the insurer.
This corpus is used to yield you a regular income that is paid to you until death
starting from your desired retirement age. Some annuity schemes have the option to
pay your survivors a lump sum amount upon your death in addition to the regular
income you receive while you are alive.

What are With Profit and Without Profit Plans?

The insurer distributes its profits among it policyholders every year in the form
of a bonus/ profit share. An insurance policy can be "with" or “without” profit. In the
former, any bonus declared is allotted to the policy and is paid at the time of maturity/
death (with the contracted amount). In a “without” profit plan, the contracted amount
is paid without any profit share. The premium rate charged for a “with” profit policy is
therefore higher than for a "without" profit policy.
What is Bonus?
An insurer distributes its profits among it policyholders every year in the form
of a Bonus. Bonuses are credited to the account of the policyholder and paid at the
time of maturity. Bonus is declared as a certain amount per thousand of sum
assured. The term "bonus" is used interchangeably with "with profit".
What are guaranteed Additions?
In some policies, the insurer guarantees the bonus/ profit declared as a
certain amount per thousand of sum assured. This assured bonus will be credited to
the policyholder irrespective of the performance of insurance company and is known
as Guaranteed Additions. Guaranteed Additions will be payable at the end of the
term of the policy or early death of the policyholders.
What are Loyalty Additions?

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 In some policies, over and above Guaranteed Additions, the insurer will
declare and credit to the policyholder, an additional amount per thousand of sum
assured every 5 years, depending on its performance. This additional amount is
known as Loyalty Addition.
What are Survival Benefits?
In some policies, a part of the sum assured is paid to the policyholder in the
form of Survival Benefits, at fixed intervals before the maturity date. The risk cover
for life continues for the full sum assured even after payment of survival benefits and
bonus is also calculated on the full sum assured. If the policyholder survives till the
end of the term, the survival benefits will be deducted from maturity value.

What are Accident Benefits?

On payment of an additional premium of Re1 per Rs1000 of Sum Assured per
year, the assured is entitled to the following benefits:-
In case of accidental death, the nominee shall receive double the sum assured.
In case of total and permanent disability due to accident, risk coverage continues
without further payment of premium. In addition, an amount equal to the sum
assured is paid to the assured in monthly installments spread over 10 years.
However, subsequent accidental death will not entitle the nominee for double the
sum assured.
What are Disability Benefits?
If the assured becomes totally and permanently disabled due to any accident,
he need not pay future premiums and his policy shall remain in force for the full Sum
Assured.
What are the various modes of payment for premium?
Remiums, other than single premiums, can be paid by the policyholders to the
insurer in yearly, half-yearly, quarterly or monthly installments or through a Salary
Savings Scheme. If the mode of payment is yearly or half-yearly, some insurers give
a rebate of 3% and 1.5% respectively on the premium. If the mode of payment is

20
monthly, some insurers charge an additional 5% (this additional charge is waived for
the Salary Saving Scheme).
What is Salary Savings Scheme?
Salary Savings Scheme provides for payment of premiums through monthly
deductions by the employer from the salary of employees. For this scheme, the
additional charge of 5% of the premium usually added for the monthly mode of
payments will be waived.
What loans are available against life insurance policies?
At present loans are granted on unencumbered polices as follows -
Up to 90% of the Surrender Value for policies, where the premium due is fully paid-
up, and Up to 85% of the Surrender Value for policies where the premium due is
partly paid-up.
The minimum amount for which a loan can be granted under a policy is
Rs150. The rate of interest charged is 10.5% p.a., payable half-yearly. Loans are not
granted for a period shorter than six months, or on the security of lost policies (the
assured must have the duplicate policies) or on policies issued under certain plans.
Certain types of policies are, however, without loan facility.
What is Surrender Value?
The cash value payable by the insurer on termination of the policy contract at
the desire of the policyholder before the expiry of policy term is known as the
surrender value of the policy. Generally, a policy can be surrendered provided the
policy is kept in force for at least 3 years. The bonus is also added to the surrender
value if the policy has been in force, in most cases, for at least 5 years.
What is a Death Claim?
The claim is usually payable to the nominee/assignee or the legal successor, as the
case may be. However, if the deceased policyholder has not nominated/assigned the
policy or not made a will, the claim is payable to the holder of a Succession
Certificate or such evidence of title from a Court of Law.
What is Nomination/Assignment of a Policy?

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When the policy money becomes due for payment on the death of the policyholder,
it can be paid only to that person who is legally entitled to give a valid and effective
discharge to the corporation. If the policy bears nomination, the claim is settled in
favor of the nominee. Similarly, if the policy is assigned, the assignee receives the
claim amount. It should be noted that an assignment of a policy automatically
cancels the existing nomination. Hence, when such a policy is reassigned in favor of
the policyholder, it is necessary to make fresh nomination.
What are Medical and Non-Medical Schemes?
Life insurance is normally offered after a medical examination of the life to be
assured. However, to facilitate greater spread of insurance and also as a measure of
relaxation, some insurers do offer insurance cover without any medical examination,
subject to certain conditions.

How do you effect a Change of Address and Transfer of Policy Records?

When a policyholder wants to change his address in the insurer’s records,
notice of such change should be given to the Branch office servicing his policy.
Policy records can be transferred from the Branch Office that services the policy to
any other Branch Office nearest to the policyholder’s place of residence. The correct
address facilitates better services and quicker settlement of claims.
When does a policy lapse?
When the premium is not paid within the days of grace provided after the due
date, the policy lapses. The grace period in case of yearly, half-yearly and quarterly
modes of payment is one month and in case of the monthly mode of payment, it is
15 days.
How can a lapsed policy be revived?
A lapsed policy may be revived during the lifetime of the assured, but within a
period of 5 years from the due date of the first unpaid premium and before the date
of maturity. Revival of a lapsed policy is considered either on non-medical or medical
basis depending upon the age of the life assured at the time of revival and the sum
to be revived. If the revival of the policy is completed by payment of over-due

22
premium within 14 days from the expiry of the grace period, only the late fee for one
month has to be paid.
Can a policy be altered?
No alteration is permissible in the policy document - the evidence of contract,
unless both the parties to the contract agree. After the policy is issued, a policyholder
in a number of cases finds the terms not suitable to him/her and desires to change
them to suit his/her convenience. As all insurers also realize that insurance is a long
term contract, certain changes under given circumstances might necessitate an
alteration of the contract. Keeping in view the basic principles of insurance and
administrative convenience, most insurers permit some alterations. Though, it is
generally found that as a rule, insurers do not permit alterations resulting in lower
rates of premier and within the 1st year from the commencement of the policy.

What is the difference between Life Insurance and General Insurance?

A Life Insurance deals with various plans connected with the life of a person,
whereas all kinds of non life insurance policies are issued by the General Insurance
companies.
What are the documents to be executed at the time of taking insurance?
A Proposal form should be filled in by the person taking insurance without
concealing any material facts. The values for which insurance is to be taken is also
decide by the party taking insurance. No bills, documentary proofs are taken by the
insurance companies at the time of taking insurance, as the insurance is a contract
of utmost good faith. Premium is to be given along with the proposal form for
completing the insurance transaction after which the insurance company issues the
cover note or policy.
Insurance Sector Reforms
Why It became Inevitable
Despite the phenomenal success of The Life Insurance Corporation of India
the government and the public at large were not satisfied with it and by signing the

23
GATT accord the Government of India was committed to open up the insurance
sector to both domestic and international firms.
A committee under the chairmanship of late Mr. R.N Malhotra was formed (ex
governor RBI) and came to conclude that the monopoly of LIC lead to the lack of
sensitivity towards policy holders and only 22% of the insurable population was
insured.
The committee thus recommended a number of measures to revamp LIC and
to allow foreign companies to operate in India with an Indian partner. It felt that this
would lead to a greater scope in product innovation and service improvement as
well.
In 1999 the Insurance Regulatory and Development Authority Bill was passed
by the government to facilitate the growth and regulate the newly opened insurance
sector and to guarantee the investments made by the people.
On August 15, 2000 the sector was finally opened for foreign sector participation.
Deregulation came with certain conditions:
Firstly, all new foreign players entering the Indian market must set up a joint
venture with a local company.
Secondly, the maximum share the foreign player can hold is 26%, with the
local company (or companies) holding the balance. Regulators are currently
reconsidering the foreign equity cap of 26%.
Proactive steps taken by the IRDA for development of the market:
1) Market regulation by prudential norms.
2) Registration of players who have the necessary financial strength to withstand
the demands of a growing and nascent market.
3) Implementation of a solvency regime that ensures continuous financial stability.
4) Presence of an adequate number of insurers to provide competition and choice to
the customers.
5) Development of market capacity by asking insurers to retain bulk Of the premium
within the country and to exhaust local market
Capacity before reinsuring abroad.

24
 In today’s highly competitive financial services environment, effective
organizations will employ technology in a strategic role to achieve competitive edge.
Technology will play an increasing role in aiding design and administering of
products, as well in efforts to
build life-long customer relationships.
10 TOP PRIVATE LIFE INSURERS IN INDIA
NAME OF THE COMPANY
1 ICICI prudential life Insurance Company Ltd.
2 HDFC Standard Life Insurance Company Ltd.
3 Max New york Life Insurance Co. Ltd.
4 OM Kotak Mahindra Life Insurance Co. Ltd.
5 Birla Sun Life Insurance Company Ltd.
6 TATA Aig Life Insurance Company Ltd.
7 SBI Life Life Insurance Company Ltd.
8 ING Vysaya Life Insurance Company Ltd.
9 Allianze Bajaj Life Insurance Company Ltd.
10 Aviva Life Insurance Company Ltd.

COMPANY PROFILE

INTRODUCTION OF ICICI PRUDENTIAL LIFE INSURANCE CO LTD.

ICICI Prudential Life Insurance Company is a joint venture between ICICI

Bank, a premier financial powerhouse and Prudential plc, a leading international
financial services group headquartered in the United Kingdom. ICICI Prudential was
amongst the first private sector insurance companies to begin operations in
December 2000 after receiving approval from Insurance Regulatory Development
Authority (IRDA).

ICICI Prudential's equity base stands at Rs. 9.25 billion with ICICI Bank and
Prudential plc holding 74% and 26% stake respectively. In the period April-December
2004, the company garnered Rs 8.6 billion of new business premium for a total sum

25
assured of over Rs 73.6 billion and wrote nearly 345,000 policies. The company has
a network of over 56,000 advisors; as well as 7 bancassurance tie-ups. Today, ICICI
Prudential has emerged as the No. 1 private life insurer in the country, with a wide
range of flexible products that meet the needs of the Indian customer at every step in
life.

ICICI NETWORK

ABOUT PRUDENTIAL

Origins:
When Prudential was founded in London in 1848 it provided professional
people with loans secured by life assurance. The market was later broadened when
insurance policies, with penny premiums collected by
agents, were sold by the industrial branch to the working
classes in the second half of the nineteenth century.

26
Industrial assurance was an innovation in insurance. The actuarial methods that until
then had been applied to insurance for the better off social classes were combined
with the traditional method of direct selling through agents that had successfully
been used by friendly societies and burial clubs. The Prudential brand values of
integrity, value for money and security were established and built the company's
reputation. Success in this market meant that by the 1900s Prudential insured one
third of the UK population.

Expansion :
Over the decades Prudential has extended the product portfolio to meet
customers' needs. Following the First World War new policies for single women,
family and home protection were introduced. The establishment of group pensions in
1929 added a further range of products to the business. During the 1950s and
1960s, Prudential's ordinary branch focused on life cover, long term savings products
and retirement annuities. Traditional industrial branch products declined, although
home service was still in demand. By the 1970s Prudential had established a wide
range of assurance, investment and savings products.
The focus on adopting new sales and marketing techniques to promote products
dominated the 1980s. The sales force was restructured to deal better with customer
needs and new channels of communication were opened through telephone sales
and Independent Financial Advisers. The 1990s saw further diversification of
products and methods of communication. In 1997 Scottish Amicable was acquired,
strengthening Prudential's position in the IFA sector.
Recent Events
Prudential's UK business has undergone a
strategic review to meet customer's changing
needs including the closure of the direct
salesforce, the transfer of our general insurance
operations to Winterthur Insurance and the

27
relaunch of a single UK brand with the award-winning ‘Plan from the Pru’ campaign,
an impartial guide to financial planning.
Today Prudential's UK Insurance Operations provide a range of financial products
and services through a diversified distribution model which includes agreements with
Abbey National Bank and Zurich Financial Services. Prudential is the leading
distributor of with-profits bonds through IFAs, and continues to lead the market in its
other chosen product areas, including corporate pensions and bulk and individual
annuities.

Factors responsible success of the insurance Companies

Several factors are responsible for the likely success of the various Insurance
Companies in general ;
1) The change in the attitude of population.
2) An open and transparent environment created under the IRDA.
3) A well established distribution network.

Factors responsible success of the Insurance Companies

Several Factors are responsible for the likely success of the various Insurance
Companies in general; viz.

1) The A change in the attitude of the population

2) An open and transparent environment created under the IRDA.
3) Trained professionals to build and sell the product.
4) A more rationale approach to the investment criteria
5) Encouragement of newer and better products and letting the hackneyed Ones die
out.
6) A stringent accounting practice to prevent failures amongst the insurers.
7) A level playing field at all stages of development in the sector for all the players.

28
Market Developments
Products:
There is a rapid change witnessed in the market in the complexion of
insurance products, with the end of the era of high. assured return insurance
policies. Insurance products that are relevant to people at different life stages and
products that enable an individual to get the best value for the objectives he or she
has in mind are now available in the market.

Marketing:
The entry of aggressive, media-savvy private players in the insurance sector
has created a massive marketing splash. The new entrants have launched their
products with heavy-duty
Advertising and fanfare:
The state owned insurance players have also risen to the challenge and have
come out with their own aggressive campaign.
Customer service:
There has been a tremendous improvement in the services being offered
to the customers. It is largely because of the entry of new players who have created
new benchmarks of customer satisfaction.
Other reasons for Individuals Investing In life Insurance
1) Tax benefit
2) Ability to pay off a debt
3) Consistent income at an elderly age
4) Profits/Higher returns from your policy at the end of the tenure
5) Comfortable lifestyles for your dependents on your death
Livelihood provision in case of disability (Though in most Indian life insurance plans it
is mandatory added)

Products

29
 In order to understand the reaction of the customers it is important to know
the various products offered by the company and their features and which segment
of customers can be approached for each specific product. Thus we know that
various groups of customers will react differently towards various products and
hence thorough knowledge of the products is a must before approaching the
customer.

ICICI Pru life time

Suitability
This policy is a long-term market linked total protection plan. The plans offer
protections for life at the same time allows the policyholder to get market linked
returns. It is a single product combining the benefits of both an investment product
and insurance plan. This apart, the product offers a lot of flexibility.
Salient Features
1) Death benefit will be a multiple of premium paid.
2) Premium paid will be invested in the fund chosen (Maxi miser, Balancer or
Protector Fund)* after deducting mortality charges and administrative
expenses.
3) Policy holder has the option to vary the amount of insurance protection vis-à-
vis investment while maintaining the same premium.
4) The returns depend on the plan chosen- growth, balanced and income and one
can switch from one fund to another depending on the financial priorities. Once
in a year switching is done free of cost.
5) Benefits can be enhanced by adding Accident & Disability Benefit, Major
Surgical Assistance, Critical Illness benefits at a nominal extra premium.
6) Entry into the plan will be based on the Unit Value applicable on the date of
policy issue. The amount of premium towards death benefit decreases with the
increase in the value of the units.

30
7) One has the flexibility to increase the death benefit by 25% subject to a
maximum of Rs.100, 000, every third year up to 3 times, without any
underwriting. Death benefit can be increased beyond this limit with
underwriting.
8) Apart from the above the policy holder can increase the death benefit at
different stages of life such as Marriage, birth of first child and birth of second
child. This is irrespective of when the last increase was done.
9) One can decrease the death benefit in the multiple of Rs.100, 000. However a
minimum death benefit of Rs.100, 000 has to be maintained.
10)Policy holder has the option to increase the investment by the way of top ups
with a lump sum payment at any time
11) If after at least 3 years premium payments are made and then one is unable to
pay the subsequent premiums, the cover under the policy will continue and the
premiums towards the life cover and riders will be debited from the unit fund.
12)Unit value is calculated bi-weekly on a forward pricing basis every Tuesday and
Friday. Unit value = Market/ Fair Value of the relevant Plan's Investments plus
Current Assets less Current Liabilities and Provisions
Number of Units outstanding under the relevant Plan

1) The returns depend on the plan chosen.

2) Maxi miser(Growth) Plan
3) If high growth is your priority this is the plan for you. You can enjoy long-term
capital appreciation from a portfolio that is invested primarily in equity and
equity-related securities.
4) Protector(Income) Plan
5) If on the other hand your priority is steady returns, you can opt for the Income
Plan. Here you can accumulate a steady income at a low risk across a medium
to long term period.
6) Balancer(Balanced) Plan

31
7) If you prefer a balance of growth and steady returns choose our Balanced
Plan. This would ensure that your portfolio is invested in equity and equity-
linked securities as well as in fixed income securities.
Benefits
1) On Death
2) In the event of death of the policyholder, beneficiaries will be paid the higher of
death benefit and value of the units.
On survival
1) There is no maturity period and policy holder has the option to withdraw units
under the plan at anytime after the policy has been in force for three years.
2) Riders
3) Accident & disability benefit
4) 10% of SA each year for 10 years in case of permanent total disability
5) Additional SA, if death is due to an accident while traveling as a passenger in
train or bus
6) Critical illness benefit
7) 9 medical conditions are covered. On admission of a claim, sum assured under
the rider is paid and the rider comes to an end. Claim under this rider is not
admissible during first six months of the policy.
8) Major Surgical Assistance
9) 43 surgical procedures are covered

1. Major Surgical Procedure - 50% of SA

2. Intermediate Surgical Procedure - 30% of SA
3. Minor Surgical Procedure - 20% of SA

1) Claims can be made for more than one surgical procedure, subject to a
maximum of 50% of SA, claim under this rider is not allowed during first 6
months of the policy
2) Other Conditions

32
3) Minimum age at entry: 0 years
4) Maximum age at entry: 60 years (completed years)
5) Minimum premium : Rs.18,000 per annum
6) Minimum sum assured under riders : Rs.100,000
7) Maximum Sum assured under riders : Rs.10,00,000
8) Following are the charges applicable under the policy:
9) The initial administrative charges in the 1st year would be 20% of the premium,
for premium amounts less than Rs.50, 000/-. For premiums equal to or more
than Rs.50, 000/-, it is 18% of the premium.
10)Other Charges: Annual administrative charges of 1.00% p.a. of net assets for
protector (Income) and 1.25% p.a. for Maxi miser (Growth) and Balancer
(Balanced) options. Annual investment charge of 0.5% p.a. of the net assets for
Protector and 1% p.a. of the net assets for Maxi miser and Balanced.
11) Mortality charge towards death benefit
12)Initial charges of 1% on Top-ups
13)One free switch every year after which a switching fee of 1% of the switching
amount will be levied. Any unutilized free switch cannot be carried forward.
14)Note: In case the unit value is inadequate to cover charges, the policy will
terminate.

ICICI PRU LIFE LINK

Suitability
1) The policy is most suitable for people who have an appetite and inclination for
market linked returns at the same time wish that adverse market movement do
not affect their family in unfortunate event of their death.
2) Salient Features
3) It is single premium plan wherein death benefit is 105% of the amount
invested. After deducting initial charges balance premium is invested in units.

33
4) On death higher of the value of units or 105% of the aggregate of the premium
and the top-up single premiums (less 1.05 times any withdrawals) is paid to the
nominee.
5) Policy holder has the option to increase his benefits by paying Top-up
premiums.
6) One can withdraw amount through partial or complete surrender of units after
the first policy year and death benefit will decrease by 1.05 times the amount
withdrawn.
7) Policy holder has the option to choose from Growth Plan, Income Plan or
Balanced Plan based on his risk propensity.

a. While Growth plan aims at capital appreciation by investing in equity and

equity related products, income plan's priority is to provide steady returns.
And balanced fund provides a balance between capital appreciation and
steady returns.

1) One can switch between various plan options, once in every year free of cost.
2) All the premiums paid and benefits received under the plan are exempted from
tax.
3) Unit value is calculated bi-weekly on a forward pricing basis every Tuesday and
Friday. Unit Value = (Market/Fair Value of the relevant Plan's Investments plus
Current Assets less Current Liabilities and Provisions)/Number of units
outstanding under the relevant Plan.
Benefits
1) On Death
2) The nominee/s will receive higher of the value of units or 105% of the
aggregate of the premium and the top-up single premiums (less 1.05 times any
withdrawals).
3) Withdrawal Benefit

34
4) There is no specific maturity date. Anytime after 1 year one can choose to
withdraw money through partial or complete surrender of units. The death
benefit would be reduced by the 1.05 times amount withdrawn.
5) Other Conditions
6) Minimum Premium: Rs 20,000
7) Minimum Top up Single Premium: Rs 10,000
8) Minimum age at entry: 0 yrs(risk commencing from 7 yrs)
9) Maximum age at entry: 62 yrs(completed years)
ICICI PRU LIFE GUARD
Suitability
1) Maximum thrust is on family protection. This policy is suitable for people who
wish to provide large sums for the benefit of their family at an economical cost.
2) Salient Features
3) It is a pure risk or term insurance plan.
4) The policy is offered in three variants:
5) ICICI Pru Life Guard Level Term Assurance

1. ICICI Pru Life Guard Level Term Assurance with Return of Premium
2. ICICI Pru Life Guard Single Premium

1) Under each of the above variants, full sum assured is payable on death.
2) On survival to maturity nothing is payable except under ICICI Pru Lifeguard
Level Term Assurance with Return of Premium, where in premiums paid are
returned without any interest.
3) Riders enhance the benefits under the policy, which can be availed by paying
marginal additional premium. One can avail Accident and Disability rider under
all the above variants except ICICI Pru Lifeguard Single Premium
4) All the premiums paid under the policy are eligible for tax rebate under section
88 of IT Act.
Benefits

35
1) On Survival
2) On survival to maturity nothing is payable except under ICICI Pru Lifeguard
Level Term Assurance with Return of Premium, where in premiums paid are
returned without any interest.
3) On Death
4) Under each of the above variants, full sum assured is payable on death.
5) Other conditions
6) Age at entry: 18 years
7) Maximum age at entry: 50 years.
8) Maximum age at exit : 65
9) Minimum term: 5 years
10)Maximum term : 25 years( For ICICI Pru Life Guard Level Term Assurance &
ICICI Pru Life Guard Level Term Assurance with Return of Premium)
11) Maximum term : 15 years(For ICICI Pru Life Guard Single Premium)
12)Minimum premium - Rs. 2400 per annum. ( For ICICI Pru Life Guard Level
Term Assurance & ICICI Pru Life Guard Level Term Assurance with Return of
Premium)
13)Minimum Sum assured : Rs. 2,00,000(For ICICI Pru Life Guard Single
Premium)

ICICI PRU FORE EVER LIFE

Suitability
1) The plan is suitable for people who are not in any pension schemes and wish
to provide regular income for life after a stipulated date. The amount you
receive depends on the premium you pay till the stipulated date and the option
you choose. It also offers life cover during the deferment (i.e., premium paying)
phase.
2) Salient Features
3) The policy is a deferred pension plan wherein pay premiums during the
deferment period to purchase an annuity at the end of deferment period. The

36
 amount you receive depends on the premium you pay till the stipulated date
and the option you choose. It also offers life cover during the deferment (i.e.,
premium paying) phase.
4) The plan provides for 4 annuity options, which can be exercised at any time
within 6 months of the vesting date.

1. Life annuity: annuity for life

2. Life annuity certain for 5, 10, 15 years: Annuity is paid for chosen term and
for life thereafter
3. Life annuity with return of purchase price: life annuity with return of
purchase price on death to the beneficiary
4. Joint Life, last survivor annuity with return of purchase price: life annuity to
you and then to your spouse with return of purchase price to the beneficiary
on death of last survivor

1) Policy holder has the option to pay a single premium or spread the premium
payment over the deferment period.
2) The policy holder has the option to postpone the vesting age up to a maximum
of 65 years. During the postponed period your accumulated amount will earn
interest as determined by the company from time to time. There will be no life
cover during this period. No premiums will be paid during this period.
3) The policy holder also has an option to the pension from any other insurance
company. If he wishes to buy the pension from another insurance company, a
balance of benefits after commutation, as applicable will be used as purchase
price to buy the immediate annuity from that company.
4) If the policy holder decides to terminate his policy, after 3 years premiums are
paid, a guaranteed surrender value is payable and the insurance protection
provided under this policy will also cease. For a single premium policy -
Surrender during the first year is not permitted. But the policy acquires a
guaranteed surrender value after the first year which will be 70% of the single

37
 premium after one year, 75% of the single premium after two years and 80% of
the single premium after 3 years. Cash value of guaranteed additions already
allocated to the policy will also be payable.
5) Premiums paid under the policy are eligible for tax benefits under section
80CCC (1) of IT Act, 1961.
6) One or more of the following add ones can be opted along with the policy, at
the time of taking the basic policy, at a marginally incremental cost:
1) Accident and Disability Benefit
2) Critical Illness Benefit
3) Major Surgical Assistance Benefit
4) Level Term (Double Life) Insurance Benefit
Benefits
1) On Death
2) On death during the deferment phase, a regular income stream is automatically
provided to the insured's spouse. If the spouse is not alive a lump sum amount
is paid to the nominees. The amount of annuity payable is determined on the
basis of the sum assured plus guaranteed additions plus vested bonuses (if
any) as on the date of death.

On survival
1) On vesting date insured has the option of taking 25% of the aggregate of the
sum assured, guaranteed additions and vested bonuses as an immediate lump
sum. And utilize the remaining 75% to provide an annuity. Annuity payment
depends on the type of option chosen.
2) Riders
3) Accident & Disability benefit
4) Additional SA is payable if death is due to an accident
5) Waiver of payment of premiums on disability due to accident
6) 10% of amount of cover payable every year for 10 years from date of disability

38
7) Additional amount of cover if accidental death occurs while traveling as a
passenger in a train or bus.
8) Major Surgical Assistance
9) 43 surgical procedures are covered

1. Major Surgical Procedure - 50% of SA

2. Intermediate Surgical Procedure - 30% of SA
3. Minor Surgical Procedure - 20% of SA

1) Maximum limit for this benefit is 50% of all claims together

2) No benefit on, any claim within first 6 months of policy

Level Term Assurance

1) Additional life cover - amount payable only in the event of death, during the
term.
Other Conditions
Regular Premium Single Premium Policy
Minimum age to apply 18 32
Maximum age to apply 60 62
Minimum sum assured Rs. 50,000/- Rs. 50,000/-
Minimum term is 5 Years 3 years to max 15 years
Vesting age 45 to 65 years 45 to 65 years

ICICI PRU CASH PLUS

Suitability
1) This is an insurance plan that gives protection, savings along with liquidity.
Suitable for people who are looking at insurance cum investment plan with
good return and the security of the investment and liquidity.
Salient Features
1) This is a flexible investment cum endowment plan offering triple benefits of
insurance protection, good return and security of investment and liquidity.

39
2) The policy offers the flexibility of choosing three levels of cover (in the form of
sum assured) for the same amount of total annual contribution. The
policyholder has the option to choose amongst Basic, Standard and Enhanced
level of cover.
Basic (Term-5) x Annual Premium
Standard (Term) x Annual Premium
Enhanced (Term+5) x Annual Premium
1) The policyholder has the flexibility of shifting between the three levels of cover.
For each level of sum assured, applicable mortality charges would be deducted
from the premium.
2) The premiums paid would be invested after deducting the charges involved in
the product. These costs are related to policy issuance, administration,
servicing and mortality charges
3) At the end of every year, the company would declare a bonus interest that
would be applied on the allocable portion* of your premium. Policy guarantees
a bonus of 4% on the invested premium for the first year. This bonus interest
will have a compounding effect on the value of your policy.
4) Policy offers liquidity, allowing the policyholder to make withdrawals each year
from the 6th year onwards. Policyholder can withdraw up to 10% of the
accumulated value of the policy every year, after the first five years of the
policy.
5) Loans can be availed of under this policy.
6) The policy benefits can be enhanced by taking add-ons by paying additional
premium. The sum assured under the riders cannot exceed the base sum
assured. The riders available with this policy are:
1. Critical Illness Rider (Accelerated)
2. Major Surgical Assistance Rider
3. Accident and Disability Benefit Rider
4. Accident Benefit Cover
5. Income Benefit Rider
6. Waiver of Premium Rider
40
Benefits
On Maturity
1) The accumulated value of the policy is paid at the time of maturity. However, if
the value of the investment is more than the accumulated value of the policy
then that too will be paid at the time of maturity.
2) Policyholder has the flexibility of receiving the maturity proceeds as a lump-
sum or in equal annual installments over 3 or 5 years. In the event of death
during withdrawal period, the remaining amount would be paid to the
beneficiaries. There is no life-cover during this withdrawal period.
On Death
1) An amount equivalent to the sum of the chosen cover level along with the
accumulated value of the policy is paid.
Riders
1) Critical Illness Rider (Accelerated): In the event of the life assured
contracting a critical illness, the sum assured under the rider will be payable
and the life cover will come to an end. However, the accumulation in the policy
value continues and will be paid on maturity or death, whichever is earlier. The
cover is available till a maximum age of 65 years.
2) Major Surgical Assistance Rider: It offers cover against Major Surgical
Procedures. Depending on the surgery, 50%, 30% or 20% of the sum assured
under the rider will be paid. The cover is available till a maximum age of 65
years. Claims are not admitted for the first 6 months of the policy.
3) Accident and Disability Benefit Rider: It offers cover against Accident &
Disability. In the event of death due to accident, the nominee gets an additional
sum assured under the rider. a) In case of accidental death while traveling by
mass surface transport, the nominee will get twice the sum assured under this
rider. b) In the event of total and permanent disability due to an accident, which
impairs one's capacity to earn, 10% of the sum assured is paid out every year
for 10 years.

41
4) Accident Benefit Cover: On death of the life assured due to an accident, the
nominee gets an additional sum assured, under this rider.
5) Income Benefit Rider: In the event of death of the life assured, during the
applicable term under this rider, 10% of the SA is paid to the nominee every
year, till maturity.
6) Waiver of Premium Rider: In case of total and permanent disability due to
accident, this rider would waive future premiums till maturity.
Other Conditions
1) Maximum age: 60 years
2) The maximum age at which cover ceases: 75 years
3) The minimum term of the policy: 10 years
4) The maximum term of the policy: 30 years.
5) Minimum premium
Annual Rs. 8,400
Half yearly Rs. 4,200
Monthly Rs.700

ICICI PRU CASH BACK

Suitability
1) Policy is suitable for people who wish to have combined benefit of savings and
liquidity all the while having insurance protections. Policy provides for the
periodic financial requirements of an individual with the added benefit of
insurance protection.
Salient Features
1) It a money back plan where in the lump sum amounts are payable to life
assured at regular periodic intervals.
2) Premiums are payable through out the term of the policy or till earlier death
3) Guaranteed additions and bonus are payable under the policy
4) In case of death of the life assured within the term, the total sum insured along
with guaranteed additions and bonus are paid to the nominee, irrespective of
earlier survival benefits

42
5) Period of the policy can be 15 or 20 years.
6) Policy holder can opt for the rider at the time of taking the policy at a marginally
additional premium. Riders available are
a. Accident & Disability benefit
b. Critical Illness Benefit
c. Major Surgical Assistance and
d. Level Term Insurance
Benefits
On Survival
Policy Term At the end of Survival Payment as a % of basic sum assured
15 years 3 10%
6 15%
9 20%
12 25%
15(Maturity) 50% plus guaranteed additions plus vested bonuses.
20 years 4 10% of sum assured
8 15%
12 20%
16 25%
20 (Maturity) 50% plus guaranteed additions plus vested bonuses.
On Death:
1) In case of death of the life assured within the term, the total sum insured along
with guaranteed additions and bonus is paid to the nominee, irrespective of
earlier survival benefits
Riders available
1) Accident & disability benefit
e. Waiver of future premiums
f. 10% of SA each year for 10 years.
g. Additional SA, if death is due to an accident while traveling as a passenger
in train or bus
1) Critical illness benefit
9 medical conditions are covered. On admission of a claim, full SA + GA + VB
are paid and policy contract terminates with all riders ceased. Claim under this
rider is not admissible during first six months of the policy.
43
2) Major Surgical Assistance
3) 43 surgical procedures are covered

1. Major Surgical Procedure - 50% of SA

2. Intermediate Surgical Procedure - 30% of SA
3. Minor Surgical Procedure - 20% of SA
Claims can be made for more than one surgical procedure, subject to a
maximum of 50% of SA, claim under this rider is not allowed during first 6
months of the policy
1) Level Term Insurance
Additional cover in the event of death happening within the term.

Other Conditions
1) Minimum amount of Sum Insured - Rs. 50,000
2) Minimum age at entry 16 years
3) Maximum age at entry 55 years

ICICI PRU SMART KID

Suitability
1) It is a plan that provides guaranteed educational benefits to the child along with
life insurance cover and hence is suitable for parents (between 20-60 years)
with children in the age group of 0-12 years.
Salient Features
1) It is a money back plan where in sum assured is paid at regular intervals. The
policy can be so designed that it provides money at important milestones of the
child's education like secondary education, higher secondary, and graduation
and post graduation.
2) On death of the life assured with in the term, full sum assured is paid
immediately and all future premiums are waived. Death benefits are in
additions to the benefits that child is likely to get in the normal course of the

44
 policy i.e., child will be eligible for amounts at important milestones of
education, irrespective of death of the life assured.
3) One has the flexibility to choose the exact age of the child (between 22 to 25
years), at which the policy is to mature. The term of the policy is determined by
Age of the child on maturity - Age of the child on the date of proposal.
4) Policyholder has the option to avail additional benefits such as Income benefit
rider, Accident Disability benefit rider by paying additional premium
Benefits
On Survival
1) Lump sum amounts are payable at regular interval to meet the child's
educational expenses.
On Death during the term
1) Full sum assured is paid and future premiums are waived. Death benefits are
in additions to the benefits that child is likely to get in the normal course of the
policy i.e., child will be eligible for amounts at important milestones of
education, irrespective of death of the life assured.
Riders
Income Benefit Rider
1) Income Benefit Rider pays 10% of sum assured annually to the child on each
policy anniversary following an unfortunate demise, till maturity of the Rider.
Accident and Disability Benefit Rider
This provides cover against an unfortunate death due to an accident. If the
individual gets permanently disabled due to an accident, it will also provide a
regular income for the next 10 years or till maturity of the policy. All future
premiums, in respect of Sum Assured under the basic plan equal to accident
cover, will be waived.
Other Conditions
1) Minimum age of the Parent: 20 years.
2) Maximum age of the Parent: 60 years.
3) Minimum premium: Rs. 8,000 per year.

45
4) Minimum Sum Assured: Rs.1, 00,000.
5) Maximum Sum assured: Rs.30, 00,000.
6) Maximum limit under Income Benefit Rider: Rs.10, 00,000.
7) Maximum limit under Accident and Disability Benefit Rider: Rs.10, 00,000.

ICICI PRU SECURE PLUS

Suitability
1) The policy is an endowment products with some degree of flexibility and
transparency and suitable for people who are looking at investment option with
good return and the security of the investment.
Salient Features
1) This is a flexible investment cum endowment plan.
2) The policy offers the flexibility of choosing three levels of cover (in
the form of sum assured) for the same amount of total annual
contribution. - Basic, Standard and Enhanced.
Basic (Term-5) x Annual Premium
Standard (Term) x Annual Premium
Enhanced (Term+5) x Annual Premium

1) The policyholder has the flexibility of shifting between the three levels of cover.
For each level of sum assured, applicable mortality charges would be deducted
from the premium.
2) The premiums paid would be invested after deducting the charges involved in
the product. These costs are related to policy issuance, administration,
servicing and mortality charges.
3) At the end of every year, the company would declare a bonus interest that
would be applied on the allocable portion* of the premium. Policy guarantees a
bonus of 4% on the invested premium for the first year. This bonus interest will
have a compounding effect on the value of your policy.
4) Loans can be availed of under this policy.

46
5) The policy benefits can be enhanced by add-ons by paying additional premium.
The sum assured under the riders cannot exceed the base sum assured. The
riders available under the policy are:
1. Critical Illness Rider (Accelerated)
2. Major Surgical Assistance Rider
3. Accident and Disability Benefit Rider
4. Accident Benefit Cover
5. Income Benefit Rider
6. Waiver of Premium Rider

Benefits
On Maturity
1) The accumulated value of the policy is paid at the time of maturity. However, if
the value of the investment is more than the accumulated value of the policy
then that too will be paid at the time of maturity.
2) Policyholder has the flexibility of receiving the maturity proceeds as a lump-
sum or in equal annual installments over 3 or 5 years. In the event of death
during withdrawal period, the remaining amount would be paid to the
beneficiaries. There is no life-cover during this withdrawal period.
On Death
1) An amount equivalent to the sum of the chosen cover level along with the
accumulated value of the policy is paid.
Riders
1) Critical Illness Rider (Accelerated): In the event of the life assured
contracting a critical illness, the sum assured under the rider will be payable
and the life cover will come to an end. However, the accumulation in the policy
value continues and will be paid on maturity or death, whichever is earlier. The
cover is available till a maximum age of 65 years.
2) Major Surgical Assistance Rider: It offers cover against Major Surgical
Procedures. Depending on the surgery, 50%, 30% or 20% of the sum assured

47
 under the rider will be paid. The cover is available till a maximum age of 65
years. Claims are not admitted for the first 6 months of the policy.
3) Accident and Disability Benefit Rider: It offers cover against Accident &
Disability. In the event of death due to accident, the nominee gets an additional
sum assured under the rider. a) In case of accidental death while traveling by
mass surface transport, the nominee will get twice the sum assured under this
rider. b) In the event of total and permanent disability due to an accident, which
impairs one's capacity to earn, 10% of the sum assured is paid out every year
for 10 years.
4) Accident Benefit Cover: On death of the life assured due to an accident, the
nominee gets an additional sum assured, under this rider.
5) Income Benefit Rider: In the event of death of the life assured, during the
applicable term under this rider, 10% of the SA is paid to the nominee every
year, till maturity.
6) Waiver of Premium Rider: In case of total and permanent disability due to
accident, this rider would waive future premiums till maturity.
Other Conditions
1) Maximum age:60 years
2) The maximum age at which cover ceases: 75 years
3) The minimum term of the policy: 10 years
4) The maximum term of the policy: 30 years.
5) Minimum premium
Annual Rs. 6,000
Half yearly Rs. 3,000
Monthly Rs.500

ICICI PRU REASSURE

Suitability
1) Policy is suitable for people who are not entitled for any of the pension scheme.
This policy can act as a pension scheme, all the while providing the insurance
coverage.

48
Salient Features
1) It is a single premium policy wherein lump sum amounts as a percentage of
single premiums are paid at the end of every year till the date of maturity. The
percentage depends on amount of single premium.
2) No proof of age, bank statements or any other documents required.
3) Policy can be availed for 5 or 7 years.
Benefits
Survival benefits till maturity:
1) An amount equal to 8.55% to 9.05% of the single premium is paid at the end of
every year as survival benefits till maturity, starting from the end of first year.
2) On maturity date entire amount of premium is paid back to the policy holder.
On Death
1) On death occurring after the first policy year, the nominee will receive 110% of
single premium paid.
2) In case of death during the first policy year an amount equal to single premium
is paid, however if the cause of death is an accident then an amount equal to
110% of single premium is paid.
Other Conditions
1) Minimum sum assured :Rs. 50,000
2) Maximum sum assured:Rs. 50,00,000
3) Minimum age at entry : 07 years
4) Maximum age at entry : 62 years
5) Maximum age at maturity : 65 years

ICICI PRU ASSURE INVEST

Suitability

49
1) This is a single premium policy suitable for people who are looking for a short
to medium term investment plan which is safe, offers high returns, all the while
providing an insurance protection.
Salient Features
1) It is single premium investment policy where in lump sum amount is payable
either on maturity or on death.
2) The policy can be availed for 5, 7 or 10 years.
3) Guaranteed additions are payable under the policy.
4) Loan can be availed under the policy.
Benefits
On Maturity
1) Single premium along with the guaranteed additions between 6.90% and
8.95% (depending on the term and the single premium amount) compounded
annually will be payable.
On Death
1) In the event of death of the life-assured during the term of the policy, the
nominee has the option to take cash value of the amount payable on the
maturity date immediately.
2) In addition to the above, 10% of premium is paid as death benefit in case of
death after first year of policy and this death benefit, in case of death during the
first policy year is payable only if the cause of death is accident
Other Conditions
1) Minimum sum assured : Rs. 25,000
2) Maximum sum assured: Rs. 50,00,000
3) Minimum age at entry : 07 years
4) Maximum age at entry : 62 years
5) Maximum age at maturity : 67 years

The Sales Process

The task of marketing insurance products involves the following:

50
Prospecting:
The various leads of prospects can be obtained from various sources or
number of ways, the most predominant methods used is records of existing
customers, enquiries, database of other concerns and referrals of existing prospects
etc...;

Preparation and planning:

The sales person should try and get as much as possible information about
the client before contacting him and asking for an appointment. He can get this
information easily of the prospect from the person who has referred him. In the case
of a database the various prospects are likely to have some common interests like
they may all be the members of a social service organization and have the similar
interests.
Once you've identified prospects, you'll want to learn all you can before you
approach them. "Fact finding" will help you:

1) Determine your sales approach and plan your sales calls

2) Determine which products and services best suit particular prospects
3) Uncover reasons why you should not pursue some prospects, saving You
valuable time and resources.

Tele Calling:
After the above two stages are complete the next stage Is to contact the
prospect over the phone. This is one of the most crucial stages in the sales process
as it involves the generation of interest by the customer and him/her agreeing to a
fixed appointment.

Factors that Make Tele Calling Effective

51
1) Place of call
2) Effective script
3) Ability to articulate the script correctly
4) Ability to handle costumer queries and resistance
5) Caller’s attitude
6) Availability of a large database
7) Silent surroundings
8) Correct pronunciation of words
9) Moderate pitch and tone
10)Moderate speech rate
11) Absence of any interruptions and noise

Script
The script is a standard set of words used to approach each prospect Over
the phone; it is scientifically designed such that it enables the message to get across
to the prospect over the phone.
Parts of the Script
Opening
Introduction and conformation
Main body
Reasons for Calling
1) Why are you calling?
2) What do you want to do?
3) Why do you want to do?
Close
Alternative close
1) Take details from the prospect

52
2) Conformation of appointment

53
54
DON'T ASK THESE ON PHONE

1) Am I disturbing you?
2) That is exactly the reason I called you up.
3) Because you are busy
4) I called you up so that you can discuss in depth.

I AM NOT INTERESTED
You should not be interested in any thing which has not been explained to you
that's really good, you should not be interested in anything, which you • don't know
you are not interested in "That is why I called up to you" to discuss this proposal in
depth when can we meet

I HAVE NO MONEY. I DON'T HAVE MONEY

Good sir you should not have money for anything that is unimportant in life
this is why I called you, so that we can fix an appointment and discuss in depth.

NO HURRY COME AFTER SOME TIME/NO TIME PLEASE

Good you should not hurry up for anything which might have a profound
important on your life that is why I called you....
Good you should not have time for any thing

NO TRUST I DON'T TRUST PRIVATE PLAYERS

Good sir you should not trust any one which you don't know that's why I called
you up

The Sales Presentation:

The sales person is recognized as a surrogate for the service and in the case
of Life insurance may be perceived as being the service. The sales person should
have thorough knowledge of his products and services and the sales presentation

55
should not offer what cannot be delivered -especially where abstract words are used
to describe the product or service.

Generating interest:
1) What really interests the prospect in the product?
2) What are the needs, concerns, worries of the customer?
3) Refer to a customer who is of similar background and his decisions taking up a
policy.

The presentation Process:

1) Introduction salutation and exchange
2) Reconfirm that it is the right time for the meeting
3) Explain the purpose of the meeting and what they expect at the end of it
4) Propose the next step and carry on with it

Agreement on Need:
You will summarize for your prospect the information you gathered in steps one and
two to verify and clarify these facts. You will be ' demonstrating your understanding of
the prospects' unique problems and needs. Your prospects buy from you not
because they understand your product or service, but because they believe you
understand them. Most of the successes you will have in selling engagements or
software solutions on the job you do in these first three steps.

Sell the Company:

Your prospects' second buying decision is about your company. Does it operate with
integrity? Does it have the competence and capability to perform as promised? In
step four, you will supply your prospects with the information they need to make this
decision positively.

56
Fill the Need:
Your prospects' next two buying decisions are about the product or service
you sell and the price. In step five, you will show your prospects how your product or
service solves their problems or fills their needs precisely and the value they will
receive for their purchase price. In step five, review the key features (for that client)
and related benefits of the product, outline the role your services will play, and other
ways you answer their unspoken question, "What will it do for me?"

Act of Commitment:
There is always a best time to ask for the order and close the sale and that is
when the only buying decision left is when to buy. In the accounting and software
professions, the majority of selling opportunities do not conclude with the seller
asking for the engagement or sale. It concludes with the prospect saying they need
to think over the proposal and will call back. However, the sales professional knows
now Is the time to ask for the older or the act of commitment. In step six, you will ask
for the engagement or software sale more than once, if necessary - without applying
any pressure. In professional selling, when the previous steps are properly handled,
closing the sale becomes the logical conclusion to a well-given presentation. Peak
performers know that closing the sale is no more important or difficult than any other
step in the selling process.

Cement the Sale:

People buy emotionally, then justify their buying decisions logically. In step
seven you will "cement" in your prospects' minds the logical reasons that made their
purchasing decisions wise, sound and intelligent so that your sales will wear well.

Tips about sales presentations are listed below:

1) Don’t be afraid to be excited about your product. If you're not, your prospect
certainly won't be!

57
2) During presentations, focus on the benefits of your products and services.
Benefits are different from features, which are characteristics such as size, color
and functionality. Benefits answer the customer's question; "What's in it for me?
Benefits are what cause people to buy.
3) Set objectives for sales calls. Write the objectives on index cards and keep the
cards handy to make notes as you think of items to add.
4) Be on time for sales appointments. If you are unavoidably delayed, call before the
appointment to let the prospect knows your estimated time of arrival.
5) Be prepared for your call. Have your sales kits, sales tools and answers ready.
6) Be relaxed during sales calls. If you're tense you might make prospects
uncomfortable, which is a state that's not conducive to buying!
7) Let prospects talk 90 percent of the time: they'll tell you how to sell to them. You
just need to listen.
8) Use testimonials. Your best selling tool is a reference from a satisfied customer.
9) Don’t be afraid to ask for the business.
10)Invite prospects to interact with products. For example, encourage customers to
try a watch on, operate a device or smell the bubble bath.
11) Limit the choices during a sales presentation. Most experts advise sales people
to show prospects only three options at a time. Too many options may prove
overwhelming and prospects won't choose anything.
12)Adapt your sales presentation to your prospect. For example, a travel agent
would provide different types of information about a cruise package to a couple
going on their first cruise than to a couple that has been on dozens of cruises.
13)Rate yourself after sales calls. Determine what you did well and what you need to
improve upon. Develop action steps for improvement.
14)Always follow through on promises.
15)Determine your prospect's hot buttons and work them into your follow-up plan.
16)Follow up, follow up, and follow up. It often takes five to 10 exposures to get a
sale.

58
Handling Objections:
During the sales process one probably meets a familiar obstacle: the
objection. Objections are prospects' statements about why they don't plan to buy
your product or service. It may be a statement such as, "I don’t need that service
right now," or, "I already buy those products from ABC Company."

Don't be afraid of an objection; it's simply part of the sales process. In fact,
objections oftentimes are a signal that the sale is progressing and you're getting
closer to "yes." Objections are oftentimes a prospect's way of saying: "I'm not
convinced yet; but I could be!"

Anticipate objections. Rehearse answers to standard objections. Learn to ask

questions of prospects to drill down to their real/ objections.

A few proven techniques for overcoming objections- treat every objection with
respect and diplomacy.

Employ the "yes, but" technique. Agree with your customers (the yes) and then
offer them new information the, but).

1) Question prospects when they make statements about why they won't buy or
what they don't tike about your product. Ask "why" they feel as they do; this will
help you get to the root cause of their concerns.
2) Restate the objection so the customer can hear it. This tends to reduce the
magnitude of an objection or allows prospects to modify your statement (really
theirs) to get closer to the true objection.
3) Tactfully respond directly to the customer's statement. You might even contradict
your customer. Use this approach carefully, however. It will offend some while
proving to be the best approach for others.

59
Closing the Sale:
Although one should never be shy about "asking for the business," prospects will
probably give you some signals when they are ready to become customers'.
Familiarize yourself with the following readiness signals:

1) Asking about availability such as, "How soon can someone be here?"
2) Asking specific questions about rates, prices or statements about affordability.
3) Asking about features, options, quality, guarantees or warranties.
4) Asking positive questions about your business.
5) Asking for something to be repeated.
6) Making statements about problems with previous vendors; they might be seeking
reassurance from you that you won't pose the same problems.
7) Asking about follow-up service or other products you carry.
8) Requesting a sample or asking you to repeat a demonstration for them or for
others in their company or family.
9) Asking about other satisfied customers. You should have a list of satisfied
customers ready to give top prospects who ask.

Techniques that help prospects make the decision to buy:

1) Quit talking when you ask a closing question. Give prospects the opportunity to
say "yes!"
2) Offer an added service, such as delivery.
3) Offer a choice, such as "would you prefer the blue or green one?"
4) Imply that you have the sale with positive statements such as:” I’ll have it gift-
wrapped and delivered for you."
5) Offer an incentive such as a 10 percent discount for purchases made now.
Create urgency because the item is the last one in stock. (This better be true!)
6) Lead the customer through a series of minor decisions that are easier to make
rather than one large decision. For example, a travel agent may get to "yes"
through a series of questions such as: "Would June or July be best for travel?

60
7) Would you prefer a five-day or seven-day cruise?"
8) Don't give up too soon! Learn to understand prospects' buying styles; some
people take longer than others to make a decision.
9) And don't forget, you can ask for the order more than once if necessary.

Step Six; Follow-Up and Service after the Sale:

After the sale follow-up after the sale is just as important as making the sale.
That's when your relationship with a customer really takes hold. It helps to build long
term relationships with the customer and helps in retaining him and referring the
products to his peers.

Inferences and conclusions at this stage:

Market Segmentation

Demographic segmentation:
Hyderabad is a very potential city for the marketing of Insurance products; it
has a mix of High and Middle class, Employees and Business class people. Further
it must be noted that a large number of software companies have emerged or have
set up their branches and are providing handsome compensation packages to their
employees.

Target Segment

Individuals:
The term Individuals refers to any individual who can be a prospect to be insured. He
may be self employed a businessman or from any walk of life who can be made
interested in investing his money and insure his life.

61
Employees:
The characteristic of employees is that they get fixed sums of money and are in a
position to plan their Investment depending on their objectives. Employees generally
prefer to invest in risk adverse schemes and would prefer to take up schemes which
give adequate insurance cover and additional benefits.

Trusts/Associatlons/ClubsfBodies:
Any form of organization which may need to insure their lives of their member may
take up insurance policies for specific individuals or for groups to help them against
any unprecedented loss in case of some risk occurring to some of their members.
Corporate:
Corporate Bodies have to invest surplus profits and surplus working capitol
and look out for avenues to invest them until the money is not required by the
business. Here the industries can invest money in cash funds and debt funds for
short periods of time and gain tax free returns which will be higher than fixed
deposits and will give them adequate liquidity.
The Corporate Bodies are taxed at a fixed rate (35%) and hence the can reduce their
taxable income by taking up key man insurance policies on the name of their
directors and other key personnel.

Product Positioning
1.High Safety
It may be appreciated that tough risk cannot be eliminated it can be reduced
to insignificant propositions. All investments made with insurance companies are
under the regulation of the government of India under the IRDA and hence the
sovereign guarantees the safety of the investment indirectly.
2.Above normal Returns
Insurance schemes provide above normal returns because the entire returns
are tax free and in the case of market related schemes the portfolios are designed to
give adequately high returns as on par with similar funds in the industry.

62
3. High Liquidity
Insurance schemes provide for loans against the premiums paid as well as some
schemes operate with the same liquidity availability like conventional mutual funds
thus giving adequate liquidity to the investor.

4. Life Cover
The persons whose life is insured can plan his future for his family and take
up adequate cover to help his dependants to meet up with the financial loss in the
event of his untimely death.

5. Additional Benefits
The various insurance schemes offer some benefits like pension to family members
and other benefits kike critical illness and so on. This makes the prospect to think
over the possible loss due to the happening of some risk and plan for the same.

Core & secondary benefits of an insurance product!!!!!

Secondary
Services

Features
Branding

Core
services

Peace
Of
Mind Processes
Tangibles

Quality
&
Satisfactio Accessibilit
n y

63
Insurance

A thriving insurance sector is of vital importance to every modern economy.

First because it encourages the savings habit. Second because it provides a safety
net to rural and urban enterprises and productive individuals. And perhaps most
importantly it generates long-term investible funds for infrastructure building. The
nature of the insurance business is such that the cash inflow of insurance companies
is constant while the payout is deferred and contingency related.
The insurance industry in India has registered a growth of 10.5 % in the life
insurance market and a 13% growth in the non life insurance market. This is
primarily because of the liberalization of the insurance sector and the consumer
awareness drive launched by both L.I.C and private sector players. As the consumer
of insurance is waking up to newer needs. The Indian insurer is also getting there to
meet them. Through product and market research and no doubt through observation
of consumer behavior changes are effected in the kind of products and features
coming out into the market.

The concept of Insurance

The business of insurance is related to the protection of the economic value of
an asset for which a normal lifetime exists during which it is expected to perform.
However if the asset gets Damaged, destroyed or is made non functional by the
occurrence of some unfortunate event the owner of the assets suffers. Insurance is a
mechanism to reduce the financial implications of such consequences.
The mechanism involves people who are exposed to the same risk come
together and agree that if any one of the members suffers a loss the others will share
the loss and make good the loss. Thus people facing common risk come together
and make their contribution towards a common fund whose amount is determined
beforehand on the basis of past data and experiences.

64
LIFE INSURANCE MARKET

STATISTICS
Population: 1.07
Billion Economies: 4th largest in the world in terms of Purchasing Power Parity (PPP).
Saving Rate : Around 20 % of GDP
GDP growth Rate : Over 7.3%
Estimated insurable population: 900 million
Insured population : 70 million only
Insurance premium as a percentage of GDP: 2 %
Size of market, life and Non-life: $9.94 billion
Total global insurance premium: $ 2422 billions
Rate of Annual Growth year 2004-05: Life 21.57
Non-life : 13.5 %

Number of Registered Companies:

Type of Business
Life Insurance
Public sector : 1
Private sector : 14
Total : 15

General Insurance
Public insurance : 4
Private : 9
Total : 13
The life Insurance market in India is an underdeveloped market that was only
tapped by the state owned LIC till the entry of private insurers. The penetration of
life insurance products was 19 percent of the total 400 million of the insurable
population. The state owned LIC sold insurance as a tax instrument. Not as a
product giving protection. Most customers were under-insured with no flexibility or
65
transparency in the products. With the entry of the private insurers the rules of the
game have changed.

The 15 private insurers in the life insurance market have already grabbed
nearly 21.57% of the market in terms of premium income. The new business
premiums of the 15 private players had tripled to Rs. 13,153 crore in 2004 with the
business increasing in the year 2004. Meanwhile state owned LIC’s new premium
business has fallen.

Innovative products, aggressive marketing and distribution combination that

has enabled private insurance companies to sign up Indian customers faster than
anyone ever expected. Indians, who have always seen life insurance as a tax saving
device, are now suddenly turning to the private sector and snapping up the new
innovative products on offer.

The growing popularity of the private insurers shows in other ways. They are
coining money in new niches that they have introduced. The state owned companies
still dominate segments like endowments and money back policies. But in the
annuity or pension products business the private insurers have already wrested over
78 percent of the market. And in the popular unit-linked insurance schemes they
have a virtual monopoly, with over 90 percent of the customers.

The private insurers also seem to be scoring big in other ways they are
persuading people to take out bigger policies. For instance, the average size of a life
insurance policy before privatization was around Rs. 50, 000. That has risen to about
Rs. 80,000. But the private insurers are ahead in this game and the average size of
their policies is around Rs.1.1 lakh-way bigger than the industry average.

Market share and growth:

66
 LIC dominated the life insurance market with 87.4% of the total premiums
collected during FY 2003. Its premium income increased 42.8% during FY 2004 from
Rs.348.920 mn in FY 2003 to Rs 498219 mn in FY 2004 by comparison LIC’s
premium income had increased 25.1 % during 2003 and 21.2% during 2004.
The private life insurance companies have improved their market shares while
LIC’s market share is down in the financial year ended 2003-04 during the year the
market share of private life insurers has improved from 12.96% to 21.9% while LIC’s
market share in terms of premium collected is down to 78% as against 87% during
the year before.
The life insurance industry on the whole underwrote first year premium of Rs.
18,710.15 Crores during the year and recorded a growth of 10.48% over the
previous year while LIC witnessed a growth rate of just about 1.93% in the first year
premium at Rs.16284.69 Crores, the growth rate of private insurers is much higher at
153%. The first year premium collected by the 15 private players however is just
about 2425.46 Crores i.e., 14.89% of LIC’s first year premium collected.
Among the private players ICICI prudential led with a market share of 6.25%
(premium collection is about 750.91 Crores) followed by Allianz bajaj at 3.4%
(premium collection is about 449.86 Crores).
Further a comparison of the individual single premium underwritten by the
private players and LIC reveals a decline of 3.42 % and 61.29 % at Rs.287.97
Crores and Rs.1161.71 Crs respectively. Under the group insurance scheme the
premium underwritten by the private players and LIC stood at 376.79 crs and Rs.
3647.82 crores with lives covered at 17.35 lakh and 45.10 lakh respectively the
market share of the private insurers and LIC in terms of premium underwritten for
group insurance was 9.36%, 90.64% respectively.
The entire marketing process results in messages arising out of the
organization to the audience which are in the control of the company where as there
are some messages that reaches the company’s audience which are not entirely in
the hands of the company. These messages can be grouped into

67
 MARKET SHARE OF PRIVATE INSURANCE COMPANY TATA AIG
2% 1%
3% 5%
KOTAK
7%
9%
BIRLA

Max-
11%
NewYork
ING.VYSYA

HDFC
4%
MET LIFE
28%
5% ALLIANZ
BAJAJ
ICICI PRU
9%
SBI LIFE
1%
AVIVA
15%

AMP
SANMAR
SAHARA
LIFE

M AR KET SHAR E OF LIFE INSUR ANC E C O. & PR IVA TE INS.C O.

22%

LIC

PRIVATE

78%

68
 NEW BUSINESS PREMIUM UNDERWRITTEN BY PRIVATE LIFE INSURERS FOR 2003-
04 & 2004-05
7
6.25
2003--04
6

2004--05
5

4.01
4
3.39

3
2.45
2.4
1.92 1.91
2
1.48
1.18 1.11 1.12 1.05
0.96 0.89 0.96
1 0.68 0.7 0.76
0.39 0.41 0.36
0.22
0.12 0.15
00.01
0
U
FE

E
FC

AR
LA

FE
K

R
J
YA
rk

IF
G

A
JA
TA

IP
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Yo

IV
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KO

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AV
ew

N
TA

A
SB
.V

SA

AR
IC
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TA

Z
N

AN
-

H
P
IN
ax

AM

SA
LI
M

AL

NEW BUSINESS PREMIUM UNDERWRITTEN BY PRIVATE INSURERS AND LIC

INDUSTRY FOR 2003-04 & 2004-05

100
PRIVATE
90 87.04

LIC
78.07
80

70

60

50

40

30
21.93

20
12.96

10

0
2003--04 2004--05

69
 MARKET SHARE OF PRIVATE INSURANCE COMPANIES ON THE BASIS OF POLICIES FOR
2003-04 & 2004-05
2.5 2.34
2003--04

2 2004--05

1.52
1.5

1.1
1 0.87 0.83
0.76 0.79
0.71 0.65
0.57 0.54 0.51 0.49
0.5 0.42
0.32 0.3 0.32
0.24 0.25
0.18 0.18 0.16
0.13
0.09
00.04
0

U
FE

E
FC

AR
LA

FE
K

R
YA
rk

IF
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A
JA
TA

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YS

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TA

A
SB
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SA

AR
IC
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TA

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N

AN
-

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P
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ax

AM

SA
LI
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AL

MARKET SHARE OF PRIAVATE INSURANCE INDUSTRY & LIC IDUSTRY ON THE

BASIS OF POLICIES FOR 2003-04 & 2004-05
100 94.21
91.5
PRIVATE
90
LIC
80

70

60

50

40

30

20
8.5
10 5.79

0
2003--04 2004--05

Word of Mouth

70
1) This refers to those messages that a people voluntary convey to their family
friends and peers on their experiences or on their perception of the company
based on what information they have received and what they have perceived
about the company for various reasons.

Media and Editorials

1) Media and Editorials refers to those articles that appear in the press and mass
media that are not generated by the will of the company but independently by the
press and news agencies and hence the possibility of both positive as well as
negative information that can either help to build the image or do otherwise is
possible and hence the company should take all precautions and perform its
operations in an ethical manner.
2) Thus we can see that the entire marketing process depends upon an optimum
combination of the various marketing channels, which are in control by the
company as well as by all those factors, which are not in total control of the
company.
Thus we can conclude that depending on the various messages the audience
receives about the company the consumer’s behavior will vary and hence it is very
important for the company to maintain its image in the eyes of its audience so that
they have a favorable opinion of the company.
The process of market involves a judicious mix of advertising and promotion
coupled with a great deal of effort on the sales front.

The Sales Channel of the company consists of

The front Line Staff – The Branches
1) In order to market its products a company has its own legion of sales force in its
branches which are headed by branch managers assisted by Sales Team
Managers with their respective Insurance Care Consultants. In addition to the
above the branch also has a team of operational managers as well as under
writers etc to carry on the daily activities of the branch.

71
Service outlets
1) The company in addition to its own existing distribution network ties up with other
partners to promote its products such as banks and other financial institutions
and financial and insurance consultancy firms and agencies.
The Marketing Channels of the company however consists of all those measures
undertaken by the company to create a demand for its products and do not directly
contribute to sales but are meant to assist the Sales channels.
1) The Marketing Channels of the company consists of
Advertising
1) The Company to boost sales and its image in the eyes of its customers sends out
communication signals to the public at large through various media like the
newspapers, television and so on.

Sales Promotions
The company in addition to its advertising campaigns conducts some special events
or activities to simulate demands such as setting up kiosks and conducting road
shows etc.

The Sales Process

The two widely followed methods of selling Insurance are
The cold call approach
1) In the cold call approach the Insurance Care Consultant does not know the
prospect personally but has a database or leads of the various prospects and
thus his main aim is to seek an appointment over the phone and then to do a fact
finding on the field as well as make the sales presentation and follow up as the
case may demand. The drawbacks however are fear: getting past assistants,
secretaries. And other gatekeepers: finding the right contact: and finding a way to
make a pitch quickly that will move the sales process forward.

72
The Reference Marketing approach
1) In the case of reference marketing the Insurance Care Consultant approaches his
existing contacts of friends and acquaintances and does not follow any specific
methodology.
2) Here the air lies in developing a vast network of friends and acquaintances by
various means in order to prospect a larger size of the popular to whom he knows
personally and is no longer a stranger to.
3) The main drawback of this process however is that the marketer may soon run
out of references as he would have finished approaching all his close circles of
influence.
Closing the Sale
1) Although one should never be shy about “ asking for the business”. Prospects will
probably give you some signals when they are ready to become customers!
Familiarize yourself with the following readiness signals:

1) Asking about availability such as, “How soon can someone be here?”
2) Asking specific questions about rates, prices or statements about affordability
3) Asking about features, options, quality, guarantees or warranties.
4) Asking positive questions about your business.
5) Asking for something to be repeated.
6) Making statements about problems with previous vendors: they might be seeking
reassurance from you that won’t pose the same problems.
7) Asking about follow-up service or other products you carry.
8) Requesting a sample or asking you to repeat a demonstration for them or for
others in their company or family.
9) Asking about other satisfied customers. You should have a list of satisfied
customers ready to give to prospects who ask. (Make sure you’ve already
contacted your customers and gained their approval for providing their names!)

73
Follow-Up and Service after the Sale
After the sale follow-up after the sake is just as important as making the sale.
That’s when your relationship with a customer really takes hold. It helps to build long
term relationships with the customer and helps in retaining him and referring the
products to his peers.

Consumer Behavior
1) The study of customer behavior is of how individuals make decisions to spend
their available resources (time money effort). It includes the study of what they
buy, when they buy, where they buy it and how often do they use it.

The term customer is often used in two senses.

1) The Individual customer or personal customer who buys good and services for
his own use as in this case for his own investment and tax needs as well as for
his family’s insurance coverage.
2) The Organizational customer which includes government agencies institutions
and commercial establishments and industries who purchase the insurance
policies as key man insurance cover or group cover for their employees.
3) The customers and the markets are diverse and thus for any marketer it is
important to know why and how individual make their consumption decisions thus
to make better strategic marketing decisions. Thus by gaining an insight into
the customer behavior it may be possible to predict how they react towards
various information and thus gaining a competitive advantage in the market. Thus
if we can model behavior, then we can predict it and held us to Examine the
strengths and weakness of brand positions and Develop marketing strategies
designed to maximize attraction/minimize defection as well as identify individuals
of ‘opportunity’ and ‘risk’.
4) As a student of human behavior we are concerned in understanding consumer
behavior with gaining insights into why individuals react in certain consumption
related ways and to gain an insight into the internal and external influences that

74
 impel them to act so thereby helping us to understand our own consumption
related strategies and thereby to become more aware of own purchasing
decisions and consumption.

Market segmentation
1) Market segmentation can be defined as the process of dividing the markets into distinct
subsets of customers with common needs or characteristic and selecting each target
segment with a distinct marketing mix.
2) need for market Segmentatio
3) All customers are not alike and thus the concept of mass marketing-i.e. of offering the
same marketing mix to all the customers cannot be applied here. The strategy of
segmentation allows the marketers to avoid head on competition in the market place by
differentiating their offerings.
Thus after identifying the various and clustering them into homogenous groups
the marketer must select a segment and design a specific product or service as well
a promotional appeal to for each distinct segment and position the same in such a
way that it is perceived by the target segment as satisfying the customers need
better than the competitive offerings.

Market Segments seen in the Insurance Sector:

Demographic segmentation:
1) Demography refers to the vital measurable statistics of a population. It is the most
affordable an accessible method of identifying a target market. Demographic
variables reveals ongoing trends and identify business opportunities.

Some of the Demographic Factors observed during the course of the study were
Age
1) People interested in insurance were all those who were earning and were
between the age group of about twenty-five years to fifty years old. People below

75
 this segment were either still students or who had just started their careers and
people above this segment were people who were no longer insurable.
Gender
1) It has been observed through the course of the study that mostly the male
members of the family were the decision makers in regards of matters relating to
insurance and investments. Even the employed and independent women
voluntary chose the help of their Fathers and husbands before taking up any
purchasing decision. However instances of women taking up these decisions are
not uncommon.
Marital status
1) Traditionally the family has been the focus of most of the insurance companies.
People who are married with children tend to put more money towards securing
their children’s future and invest in child gain policies where as single people are
not very concerned about the insurance coverage but are more interested in the
returns and tax benefits aspects.

Income, Education and Occupation:

1) The market for various insurance companies can also be classified into various
income groups who take up specific policies for a variety of reasons. People with
a very high income who do not get any tax rebates invest for the purpose of tax
free returns and are thus concerned with the interest rates where as middle class
individuals are more concerned with the tax savings aspects as well as the long
term benefits accrued.
2) Education and occupation are another set of factors which can be carved out as
a segment. People who are well educated and qualified tend to have an open
mind to the concept of insurance and have come across the existence of the
company Allianz Bajaj life insurance where as people who are at lower positions
and not very qualified do not have much awareness and sinuously consider it to
be Life Insurance Corporation of India.

76
Constituents of the Respondents
Income of the respondents below 30 30-40 40-50 above 50+

Below 1 lakh 12 0 0 4
1-3 lakhs 18 37 4 9
3-5 lakhs 10 48 53 4
5 lakhs 4 11 22 7

44 96 79 24

DEMOGRAPHIC SEGMENTATION OF THE RESPONDENTS

60

53

50 48

40 37
below 1 lakh
1--3 lakh
30
3--5 lakh
22 5 lakhs+

20 18

12 11
10 9
10 7
4 4 4 4
0 0
0
1 2 3 4

Socio cultural segmentation

77
1) Socio cultural variables are those variables that arise out of individuals social and
cultural influences that affect his decisions of choice. Some of the socio cultural
segmentation factors observed during the study is as follows.

Family life Cycle

1) Families pass through similar phases in their formation growth and final
dissolution and at each stage it has different insurance and investment
objectives. Here again we see that single people take up small policies and
where returns are greater where as people with small children prefer child gain
policies where as older people take up retirement planning plans and thus it is
very important to know the stage of the family. The concept of family life cycle
was developed by consumer researchers and sociologists as a means of
depicting a steady and predictable series of stages that most families progressed
through.

The family
1) Family is defined as two or more persons related by blood marriage or adoption
that reside together and are sometimes referred as a household and in the
course of our study we shall consider households and families synonymously.
The main functions of any family is to see to the economic well being and providing
financial means to its dependents and the life style of the family greatly influences
the consumption patterns and buying behavior.

The family decision making process:

1) A family functions as a cohesive unit and family related roles are constantly
changing as the number of married woman working outside the work has
increased. In most of the families various members played various roles in the
buying decision when they were approached with a insurance proposal some of
these roles are:

78
Influencers:
These are family members who are approached by the company and even if
they were not in a position to take up the same they suggested to there family
members and other relatives about the insurance schemes.

Gate keepers:
These refers to those family members who try to control the flow of
information to the rest of the family about the proposal these people are generally
the older generation whose advice is normally sought before taking up a proposition.

Deciders:
This refers to those family members who unilaterally or jointly decide whether to
take up the insurance policy or not and are usually the bread winners of the family.

1) The number and identity of the family member who fill these roles vary from
family to family and in some cases are single member may perform a number of
roles and others a single role can be jointly carried out by two of the members.
The family life cycle
1) Bachelor Hood: This consisted of single young men and women who establish
households apart from their parents or on the verge of doing so. They tend to
spend their incomes on entertainment, clothing and accessories and are not
really concerned for investing and savings. They usually take up small policies to
avail tax benefits and prefer the assistance of their parents etc. in this regard.
2) Honeymooners: This refers to newly married couples who are yet to have their
children and spend a considerable part of their incomes in establishing their
house. We observe many young couples having a combined income that permits
them a better life style or allows them to save and invest the extra income. They
usually take up insurance policies for the security of their spouse and family.
3) Parent Hood: When people have children the family goes into the parent hood
stage which usually is around 20 years and because of this it is usually divided

79
 into the Pre school stage, elementary school, high school and college phase
during these stages the financial resources of the family changes as one or more
of the parents progress in their career and the child raring responsibilities
gradually increase and finally decrease when the children become self
supporting. Most people in this category prefer to invest money for the Childs
future education needs from when the child is small.
4) Post parent hood: After the children grow up and settle in their own lives the
family enters this stage. Most of the people in this stage are those who are
nearing retirement or have already retired and most of them have crossed the
age limit of most of the insurance schemes. They usually seek to pick up
insurance investment options to bequeath some thing down to their grand
children.
The various stages that the family life cycle explained above are a generalization
and this ignores the older singles childless couples, divorced with or without children.

Social Class:
1) Social class implies a hierarchy in which individuals in the same class have the
same degree of status as compared to other members and thus vary in terms of
value product preference and buying habits. People who are of a lower class
perceive insurance as a small savings scheme where as people of the middle
class understood and took up insurance policies to mitigate risks and in some
cases it is seen that people have taken up policies to match their social status
and position in societies.

1) Hyderabad is a very potential city for the marketing of Insurance products; it has
a mix of High and Middle class, Employees and Business class people. Further it
must be noted that a large number of software companies have emerged or have
set up their branches and are providing handsome compensation packages to
their employees.

80
Cultural Influences:
The cultural factors that influence consumers buying decisions relate to all those
signs that are visible externally as well as those signs that lie in his tradition and
value system and cannot be viewed physically.

1) At the first stage of behavioral norms we see The Artifacts are the visible
symbols that reflects these patterns of behaviors. Example is visible signs of the
prospects like the checkbook, the ATM card and the credit card. These artifacts
will show a particular brand, each of which has been positioned to reflect certain
attributes.
2) These visible signs are driven by deep rooted psychological feelings. Behavior
Norms are the way people think they should or want to behave and
3) We observe that a consumer has his own set of beliefs regarding the concept of
insurance, products the company etc. these are called as the fundamental
assumptions that a person makes and in this case we found that most people
considered insurance to be a like a long term investment plan and a tool to evade
tax and held a notion that the claims made by the company in regards to the
coverage are half true. These are his inherent values and beliefs that cannot be
changed, or only changed over a long period.

SELF FAMILY

RETIREMENT CHILDREN

Investment Goals Number

Self 25
Family 53

81
Children 92
Retirement 73

As seen from the graph above a small number of the prospects proposed to
take up life insurance plans for their own savings and investments and tax purposes.
Most of these people were below the thirty years age group and were single.

1) The next categories of people were those who had the intension to secure the
future of their family members like their parents, spouses. These people were
mainly from the middle income group of 3 to 5 lakh.
2) The largest category of people wanted to take up policies to secure the future of
their children and to provide for their future needs. People in the age groups over
30 had this tendency where as people over 50 had the tendency to invest fort
their grand children and so on.
3) The last category of people who took up retirement policies were those who were
in the upper middle class and who are employees whose children have grown up
and their objective was to plan for their retirement.

Perceived Quality of Insurance Services

It is difficult to valuate the quality of services as they are intangible variable and
perishable and they simultaneously produced and consumed and hence customers
rely on the following techniques.

1) Surrogate cues to evaluate the service quality they note the quality of the office
the room furnishings and the professionalism of the employees serving them.
2) Consistency of quality: As the actual quality of services will vary over a period
of time marketers try to standardize their service however this may reduce the
degree of personalized service.

82
Perceived Risk of Customers:
1) Perceived risk is defined as the uncertainty the customer faces when they cannot
foresee the consequences of their purchases decision and hence they have to
agree to some degree of risk in making this decision. In the case of insurance
products the degree of risk the customers perceive their own tolerance for risk
taking are the factors that affect their behavior.
2) The risk can be categorized into functional risks where in the insurance policy
may not perform as expected in terms of returns or coverage and in terms of
financial risks where in whether purchasing a particular policy is worth is cost.
3) The customer’s perception of risk varies depending on the products, the situation
and his culture and on these lines we can segment the customer into

1) High risk perceives who are often described as narrow, categorizers as they
limit their choices to a few alternatives they consider safe and exclude some
perfectly good alternatives. They are less likely to purchase an innovative product
and are generally brand loyal especially with LIC. Most of the older people in the
study were found to be in this category.
2) Low risk perceives who in other words are broad categorizers and tend to make
decisions from a wider range of alternatives. They lend themselves to new ideas
and products and are ready to try out new brands.
Customers reduce their perceived risk to a great extent by seeking information
through work of mouth and general media. They further seek the reassurance from
the agent and other documents provided by the company.

Overview of some prominent insurance websites

Bimaonline
1) This site is an intermediary for insurance companies which intents to provide
insurance on the net. It is a company a proprietary tool of Bhima consultants and
facilitates online insurance services to consumers. The company has a tie up with
five public sector insurance companies and plans to tie up with 15 private

83
 insurance companies. The company’s revenue model relies heavily on selling
brokerage with a commission, which is an appropriate thing to do. The company
has a focus to cater the needs of 3 specific groups of consumers, namely
corporate, individuals and insurance professional. Such a demarcation and clear
cut idea will help company in the future. The advertising strategy of the company
seems to be in tandem with objectives and strategy.
2) The site is full of various features, which will help the consumer in understanding
insurance as well as taking a policy, premium calculators are a step in the right
direction, but the site needs to be more innovative and interactive, the company
failed to leverage their early entry into area of insurance on the net. The company
needs to pull up its sock in the light of competition and should certain new and
unique features that will attract the customer and fulfill his needs as the future
belongs to those who can satisfy as well as delight their customers by meeting
their needs and requirements.

LIC INDIA
Now lets see LIC site. The venerable LIC of India at licindia.com seems to be
grouping in the dark cyberspace and has managed to put up a site that has a
marked resemblance to a fish market. No neat, structured design, no clear cut
mandate, no serious attempt to leverage the power of the interactive nature of the
Internet. Online premium and bonus calculations, besides online forms, are steppes
in the right direction and the grievance readdressed system is good in intent. The
LIC site is a case of an opportunity lost and the leadership stance is clearly missing.

1) The Rest of the companies operating in this sector also do have their own
insurance portals showing details about their products and policies available but
perhaps for whatsoever reason none of the Indian sites are setting the WWW on
fire.

84
Portal Feature Suggested to be Incorporated by ICICI Prudential

Why Insurance: This is an informative feature that tries to give a reason for taking
up a policy. The various reasons for taking up insurance should be highlighted up
here and emphasis can also be give to the income tax waivers.

Process of Insurance : This feature tries to illustrate the process involved in taking
up a policy and efforts to make this feature graphical and interactive should be
made.

Information about Policies: Here detailed information about the various policies
should be made along with their various features and benefits.

Instant Quotes: The customer can get the exact quotes for various policies with
various combinations of additional benefits instantly by giving in some details such
as age, gender and a few other relevant details.

Premium calculators: This feature helps the customer to decide the exact amount
he has to pay towards premium and how much coverage he can get and what
additional benefits he is entitled to.

Query Readdressed: This feature seeks to answer any queries a customer may
have and this can be divided into two sections

Normal FAQ: A database of all frequency asked questions should be put up. Here
some general questions with their answers should be put up.

1) Response via E-mail: This section deals with those questions that are highly
technical in nature and requires some sort of searching and referring. Here the

85
 aim is to cater to the specific needs of the customer and thus enable
personalized service to each customer.
2) Checklist: This gives a customer a detailed list of all the documents he requires to
produce while taking up a policy and things to check weather he is eligible to take
up an insurance policy.

Online Forms: The customer can fill up the forms online and instantly submit it back
to the company and on processing he may be informed about the details of his offer
weather it is accepted and on what terms.

Change in Address Job or Nomination: Change of Job and residence is a

cumbersome task that haunts all customers and insurance companies, so also is the
case with change in mailing addresses as well as changes of nomination. Thus
details of the change procedures and online forms can be implemented.

Reporting Claims: If the whole business is to become online it would be easier if

the customer reported his claims online.

Medical Checkup Help: This feature spells out the nature of medical examination
the subject has to undergo per the requirements of his policy. A list of doctors who
are entitled to carry out examinations for the company may also be provided.
Insurance Education and career options: This feature is intended for those who
would like to know more about the sector and the various career options available to
them.
News and Developments: The latest news reports of the company, the
performance of its various schemes as well as general news of the entire insurance
sector may be put up.
Relevant Links: The site may alternatively also provide relevant links to other
banking and investment option sites.

86
Search Facility: To help the customer a search facility should be include in order to
search for key term from the website etc.

Transactions: This provision in intended to help those customers of flexible

investment linked or unit linked schemes where under given set of conditions they
can deposit or withdraw money into the scheme and thus linking it closely to e-
banking.

1) Thus the suggested web portal is intended to boost the pace of e-commerce and
the sale of insurance policies over the internet just like that of people who operate
their bank accounts as well as their trading accounts and thus boost the growth of
sales.

INSURANCE INDUSTRY – A SWOT ANALYSIS

Major Strengths:
1) Premium rates are increasing and so are commissions
2) The variety of products is increasing.
3) Prospects expect more services from their brokers
4) Flexibility in payment of premium
5) Flexibility in investment option.
6) Open office structure.
7) Competitive environment.

Major Weaknesses
1) Insurance companies are often slow to respond to changing needs.
2) There is an increasing trend of financial weakness among the companies.
3) There are more competitors for agencies to compete with banks and Internet
players

87
Opportunities
1) The ability to cross sells financial services is barely being tapped and can still be
developed by collaborative efforts.
2) Technology is improving to the point that paperless transactions are available.
3) The client's increasing need for an "insurance consultant" can open new ways to
service the client and generate income.

Threats
1) The increasing cost and need for insurance might hit a point where a backlash
with occur.
2) Government regulations on issues like health care, mold and terrorism can
quickly change the direction of insurance. Increasing expenses and lower profit
margins will hit hard on the smaller agencies and insurance companies.
3) Increasing expenses and lower profit margins will hit hard on the smaller
agencies and insurance companies.
4) Increasing in the number of private players in the market.

Factors Responsible for the Likely success of Insurance Companies.

Several factors are responsible for the likely success of the various Insurance
companies in general; viz.
The A change in the attitude of the population
An open and transparent environment created under the IRDA.
A well-established distribution network.
Trained professionals to build and sell the product.
A more rationale approach to the investment criteria
Encouragement of newer and better products.
A stringent accounting practice to prevent failures amongst the insurers.
A level playing field at all stages of development in the sector for all the players.

88
These Factors can be groped into the following main category.
Market Developments
Product
1) There is a rapid change witnessed in the market in the complexion of insurance
products, with the end of the era of high, assured return insurance policies.
Insurance products that are relevant to people at different life stages and
products that enable an individual to get the best value for the objectives he or
she has in mind are now available in the market.
Marketing
1) The entry of aggressive, media-savvy private players in the insurance sector has
created a massive marketing splash. The new entrants have launched their
products with heavy-duty fanfare to capture the market share.
Advertising
1) The state owned insurance players have risen to the challenge and have come
out with their own aggressive campaign to meet the new trends of advertising
launched by the private players to gain market share.
Customer service:
1) There has been a tremendous improvement in the services being offered to the
customers. It is largely because of the entry of new players who have created
new benchmarks of customer satisfaction.
Other Factors for Individuals investing in life Insurance
1) Tax benefit
2) Ability to pay off a debt
3) Consistent income at an elderly age
4) Profit/Higher returns from your policy at the end of the tenure
5) Comfortable lifestyle for your dependents on your death
Livelihood provisions in case of disability (Through in most Indian life insurance
plans it is mandatory added).

89
Conclusions on Consumer Behavior
Changing customer behavior in insurance buying
1) Customers know generally what a policy covers; they also know that there are
several fine prints in insurance contracts, which they do not know, or perhaps
care to know, at the time of buying. And they also seem to generally conclude
that when it comes to making a claim under an insurance policy, there could be
several issues of which they are just unaware at the time of buying the policy in
the first place.
Changing Expectations
1) While the fresh air of competition in every sector of the economy brings in major
changes in consumer expectations. The insurance industry has witnessed a few
unique aspects, such as regulation-inspired efforts to educate insurance buyers,
and a vast change in the skills and capabilities of the intermediaries involved in
distribution.

Motivating factors
1) In respect of life insurance, potential buyers are driver to buying a policy for one
or more of three major reasons: security of the money invested, saving for one of
more specific purposes, and the availability of tax benefit.
2) Customers are increasingly known to place less reliance on the tax benefit factor,
and stress more on the security aspect and the end-use objective.
3) The challenge of the insurance companies is to address the motivating factors
imaginatively and come up with genuine solutions. Take for example, the
consumer's objective of taking a policy to save money for higher education of a
child.
4) A potential buyer primarily expects that the saving should be a painless process
and that the money saved should be absolutely safe. The challenge is to provide
not only convenient payment options, but also mechanisms that could offer some
measure of protection and relief to the customer if he is forced to disrupt the
payment arrangement for unforeseen reasons.

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5) On the issue of the consumers perception of security of the money invested,
there are two important aspects. One is how the features of the insurance
contract are put across to the buyer (whether it is a unit-linked policy or
endowment oriented). The second is how to address more effectively the
question about the dependability of the new generation companies that potential
new insurance buyers raise during sales calls especially outside metros and in
small towns (referred to in publicity jargon as buyers in the SEC B and C
categories). Both insurance companies and the Regulator need to address this
behavioral challenge more actively.

Customers' experience:
1) There has been a vast change in the approach of the insurance agent from the
pre-liberalization days. While the agent in the past established informal contacts
with potential buyers and often depended on referrals from friends and family
members, the new age companies insist on a professional, and often aggressive
stance on the part of the sales staff.
2) Customer expectations in this regard revolve around two key aspects: first,
whether the customer is getting truthful advice from the agent, or if he is pushing
a product that yields him the highest commission rate. Invariably, the customers
today expect the insurance agent (and other intermediaries such as the bank
assurance sales staff) to provide ready comparison of competitors' products and
how the product the agent is suggesting is superior to the others.
3) Publicity given by new insurance companies about the protection aspect of
insurance, customers in major cities have come to appreciate the need for higher
level of insurance cover with reference to their earning stage in working life.
4) The second aspect of customers' perception about the new generation of
insurance agents is the level of continuing commitment of the agent to arrange
post-sale service. Potential insurance customers increasingly make
arrangements to pay periodical premiums directly through the electronic medium,
or though automatic transfers from their bank accounts, thereby bypassing the

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 need for regular post-sale service by the agents, customers would tend to place
more reliance on the direct standard of service from the company concerned.
5) Instances of customers requiring agents to arrange for loans against their
policies, or change nominations etc. are rare. Therefore companies need to gear
themselves to provide high service standards directly.

Premium shopping
1) Customers have the general feeling that as insurance products become more
complex, and they get bundled with several riders. It is becoming impossible to
make price comparisons between different companies.
2) An increasingly larger segment of customers now questions why the premium
rate should be the same for a policy if bought direct from the company over
Internet. or through a channel considered simpler, such as the bank assurance
channel. There is logic in the insurance companies passing on the cost saving to
customers in such cases.
3) It is time the Regulator seriously considered the customer expectations of
differential premium rates for the same policy bought through different channels
and allowed the practice. For example, it is common for banks abroad to offer a
higher interest rate to exclusive Internet clients.
4) It should therefore be conceivable to offer premium rebate to insurance buyers
who consciously decide to approach the company directly for buying a policy
(after presumably taking the trouble of educating themselves about the product
features and other aspects). and choose to deal with the company directly for
future servicing needs.

High expectations
1) One aspect of customer service from new age insurance companies that remains
to be tested widely is the claim payment record. While consumers seem to be
satisfied that the survival benefits under a life insurance policy would get paid
rather promptly from the tech-savvy new companies, obviating the need for

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 interlocution by the insurance agent, insurance buyers are not yet convinced
about hassle-free payment in the event of a claim. Whether under a life policy or
a general insurance policy. This is especially so in respect of rider benefits such
as critical illness or hospitalization benefits.

Employee Behavior
1) An employee is an individual who works for another or for some organization and
has some characteristic due to the nature if his occupation that affect his buying
decisions and his behavior in general. This is because of their limited incomes
but at a more or less fixed rate. They do not want to take up high risks and prefer
the passively managed schemes and have the ability to save up to 20-30 % of
their incomes for their personal and families safety and contingencies as well as
to evade tax and thus are the most loyal customers of the insurance sector.
2) It is observed that the private sector employees on the overall receive higher
salaries than the government and public sector employees and thus are a very
high potential segment to be tapped.
3) Employees have a limited income at any given point of time and therefore require
more time to make available resources to take up insurance policies along with
detailed tax planning and evaluating the benefits of the scheme thereby the calls
focused on employees have a longer turnaround time. Further employees have a
tenancy to invest in the months just preceding the time of filling income tax
returns and thus they can be convinced to take up schemes which they can pay
the premium in installments and thereby not affecting their prescheduled
commitments to a great extent.
4) Finally employees have a greater change to invest in child care policies as most
of them inhibit a dream to collect small sums of money to meet their children's
education expenses at later stages and are also very keen on the additional
benefits given in a policy.

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Other Conclusions
1) A major limitation as we see is the expanse of our target market (94% of the
Indian market being untapped); though large it is not clearly defined. This makes
the search for our potential customers even more challenging.
2) The willingness of the respondents to divulge information may affect the validity
of the project and the answers given by the respondents would be assumed to be
true.
3) The state of mind as well as the behavior of the respondent at the time time of
conducting the survey can affect the meaning of the project.
4) Life insurance has become synonymous with LIC a major percentage of the
population is reluctant to rely on private life Insurance Player.

Annexure1: Focus Group Questionnaire

A) OPENING

1. Introductions (5 minutes)
Moderator Introduction
Welcome, my name is __________ and we’d like to thank you for taking the time to
share your opinions with us. We have invited you here to talk something about
customer’s perceptions on life insurance.
Before we get started, we’d like to talk about our focus group
 Has anyone ever participated in a focus group before?
 I’d like you all to feel comfortable.
 Everyone’s participation is valuable; we need to hear everyone’s honest
opinions. Feel free to say whatever you think.
 There are a couple of “rules” I’d like us to follow tonight: speak one at a
time, and speak up, there are no right or wrong answers, and we can
“agree to disagree.” (We will welcome all different points)
 For your information, the session will be tape recorded, and (other person)
will be taking notes.
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B) Introduction

1) Warm-up
Could you please tell us something about yourself………name, hobbies or favorite
pastime. What would you be doing if you weren’t sitting here right now? How do you
spend your day? Besides working??? How do you spend your spare time??
2) Brand image
In front of one white paper & pen is there. So, please write 3 insurance companies
names.
Write whatever comes to your mind. Don’t think about it, just write spontaneously.
3) Life insurance Perceptions
As you know, today we have gathered here to talk about life insurance. Do you think
that today people are aware of what a life insurance is?? And can we say what the
importance of life insurance in their lives is??
4) ROLE PLAY
You are a very good financial planner. You strongly believe that every family
should take insurance policies. You want to encourage, motivate your friends in
taking insurance policies. Try to promote all the benefits you think, would motivate
them to take up your advice.
(Moderator looks for the benefits projected by him/her)
For the others, you enjoy life as it is; you have a laid back attitude. Try to come up
with all the reasons why you don’t want to take insurance policies.
(Moderator- Look for hurdles projected by the group)List down all the perceived
benefits of life insurance, which came out during the role-plays on the flip chart.
Would you like to add any other point to this list??
5) Perceptions about private life insurance players
Example: an ‘x’ person is having RS.10000 to save. He want to invest this money in
insurance, he is having two options
1) Government backed insurance co.
2) Private insurance co. but it is also controlled by government
He is totally in confused state because he doesn’t know where to invest this money.

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q) What suggestions we can give him? Where should he invest his money?
6) Activities to promote life insurance among people
You are allocated a budget of 1 crore. If we are the executives of private life
insurance Company, then what steps we will take to promote life insurance among
people in a better way.
(How you will approach prospects, which will be your target audience & what
benefits you will offer to customers etc..,)
As a group: Arrive at an agreement on the campaign you would like to adopt.
(Keep in mind- Reach, impact on the target group)

Could you explain the activities a bit more elaborately (Like if ad then in which magazine, if
on TV, then which channel, what time)?
E) END
Could you give some interesting themes for a life insurance promotion campaign?
THANKS!!!!!!!!!!!!!

FOCUS GROUP SCRIPT

The below one is Focus Group members information.

Members Age Profile
Palnati. Rama Rao 48 Superintend in
Endowments
Gumadupa. Ratha Rao 55 Manager in E.C.I.L
Gumadupu. Ravi 28 Working in wipro
Bonepalli. Srinivas 35 Working in infosys
Garsha. Naveen Kumar 23 Working in infosys
Telugu. Ram Mohan 36 College principal
Mokkarala. Rama Devi 31 Working in G.E
Potlapalli. Madhavi 24 Business

1Q) Warm-Up
What are your names, hobbies/favorite pastime? What would you be doing if
you weren’t sitting here right now? How do you spend your day? Besides working
how do you spend your spare time?
Names Hobbies What you would be doing
now if you are not here
Palnati. Rama Listening music,spending Working in office
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 time at home.
Gumadupa. Ratha rao Watching cricket, playing Working in office
with my grand children
Gumadupu. Ravi Music, singing, chatting. At home
Bonepalli. Srinivas Watching & playing Working in office
tennis
Garsha. Naveen kumar Watching T.V, listening Spending time with
music, making friends. friends
Telugu. Ram mohan Music, reading, writing At college
Mokkarala. Rama devi Cooking, eating, working Working in office
Potlapalli. Madhavi Learning languages, Working in office
music

2Q) Brand image

In front of one white paper & pen is there. So, please write 3 insurance companies
names.
Write whatever comes to your mind. Don’t think about it, just write spontaneously.

Names 3 insurance company names

Palnati. Rama ICICI, LIC, BIRLA SUN LIFE
INSURANCE
Gumadupa. Ratha rao ICICI Prudential Life Insurance, Life
Insurance Corporation of India, Bajaj
Life Insurance
Gumadupu. Ravi ICICI Prudential, LIC, HDFC
Bonepalli. Srinivas LIC, ICICI Prudential, ICICI Lombard
Garsha. Naveen Kumar LIC, ICICI Prudential
Telugu. Ram mohan ICICI Prudential, Met life insurance, LIC
Mokkarala. Rama devi ICICI Prudential Life Insurance, Life
Insurance Corporation of India, Bajaj
Life Insurance
Potlapalli. Madhavi ICICI Prudential, LIC, HDFC
3Q) Life Insurance Perceptions

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 As you know, today we have gathered here to talk about life insurance. Do
you think that today people are aware of what a life insurance is?? And can we say
what the importance of life insurance in their lives is??
Names Awareness of Life Importance of Life
Insurance Insurance
Palnati. Rama No insurance is not fully In life insurance the word
aware in the public (life) is there that shows
the importance of life
insurance in there life’s.
Gumadupa. Ratha rao Awareness is there but After persons death only
people recognize life life insurance knocks the
insurance as LIC only door of that family to give
economical & financial
support.
Gumadupu. Ravi People perceive that life Insurance gives the habit
insurance is there for life of savings to the family.
insurance companies
only, not for the public.
Bonepalli. Nageshwar No insurance is not fully Insurance gives social
aware in the public security to insured people
which perhaps Indian
government is not giving
to Indian’s.
Garsha. Naveen Kumar In cities awareness is
there but, in rural areas
awareness is very less.
Telugu. Ram mohan Public awareness about Insurance is very
life insurance is very less important in one’s life it
they hardly know about not only gives life security
life insurance but it also yield good
returns.
Mokkarala. Rama Devi Public are having very The importance of life

98
 wrong perception about insurance is very much in
life insurance, when any one’s life. It saves the
company approaches family from disasters,
prospect he fells that accidents, etc.; it gives
always that agent is financial support to that
talking about his post- family. It cannot rescue
death benefits only he the unforeseen events
don’t feel that agent is but it protects the family
also explaining him about financially.
savings, investment,
returns, riders etc.,
Potlapalli. Madhavi After the private Insurance is just like
companies influx into the other savings only, for
market insurance young people who want
awareness has become more returns for them
more. insurance is not good
option. Overall it plays
importance role but not
very much.
ROLE PLAY
4Q) you are a very good financial planner. You strongly believe that every family
should take insurance policies. You want to encourage, motivate your friends in
taking insurance policies. Try to promote all the benefits you think, would motivate
them to take up your advice.
For the others, you enjoy life as it is; you have a laid back attitude. Try to come up
with all the reasons why you don’t want to take insurance policies.
Would you like to add any other point to this list??

4ans) in this role play good financial planner is Mr. Ram Mohan. (RM)

Ram Mohan: what are u doing Mrs.Rama devi?

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Rama Devi: I am working in G.E

RM: what is your package?

RD: Rs2,50,000 is my package

RM:very good, then what about your savings?

RD:I am saving 1 lakh rupees.

RM:so where do you invest this money, that means where do you save this money.

RD: I invest in Mutual funds, bank deposits, post office recurring deposits etc.

RM: excellent, then why don’t you invest in life insurance. Here you will get good
returns, life security is available & many more benefits are there.

RD: I am getting same benefits through other investment options also, then why I
should invest in life insurance.

RM: yes whatever you are trying to tell I understand, but the thing is that you will not
get life security option from the above investing options. Will you get that?

RD: she was not having any answer to pretend now.

RAVI: he interrupted above conversation and told RM that I will not take insurance.

RM: why?

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RAVI: I will invest in land.

RM: good, but how you will invest through cash or by any other means.

RAVI: through cash

RM: my dear friend, it’s very good that you will invest in real estate business, but
think practically. How you will get tax benefits? There are no tax benefits in real
estate business.

RAVI: I am getting tax benefits by investing in agriculture, showing my part of income

as agricultural income & also by purchasing infrastructure bonds etc;

RM: but show me one investing option where u will get life security & tax benefits by
investing only at one place.

RAVI: but returns are very less what about that.

RM: no private life insurance companies are giving very good returns also.

RAVI: there you are, where security is in private life insurance companies tell me.

RM: now all these insurance companies are under I.R.D.A & they are also going for
joint ventures.

RAVI: do you forget what has happened with G.T.B bank, so what has happened at
that time, Banking regulation act is also there what had it done at that time.

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RM: do you know all those accounts have been settled & now GTB bank has been
merged into Oriental bank of commerce. So, I want to tell from here is that private life
insurance companies are safe.

MADHAVI: she told every thing depends on thinking

RM: so we will think positively only.

RM to Naveen:

Naveen: sir now my age is 23 years; I will live compulsorily for more 10 years. If I
invest that money in mutual funds & real estate certainly I will get very good results.

RM: good, you are having savings attitude but, tell me how you will live 10 more
years compulsorily? & the above investment options also which you have told is
speculative in nature. Your argument is wrong you are not having valid points to
discuss but, here I can give you conclusions here is that you should compulsorily
invest in insurance.

Srinivas TO RM: sir I am earning Rs30,000 per month. I am not at all interested in
savings; I don’t want to save at all. I just want to enjoy the life so, finally what I want
to say is that, I can earn till 60’s because my health is very good & in future my
salary also will increase.

RM: are you married

Srinivas: yes
RM: how many children you are having
Srinivas: one
RM: what is the age of your child?
srinivas: two years

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RM: so now you are healthy & newly married also, so you are spending whatever
you are earning. Very nice but, what you will do when you are 45 old. You cannot
work like now because your age will not permit you to work day & night, secondly
your child will grow he want to study in U.S he, want to do his M.B.A there only what
you will do at that time from where you will bring money how you are going to finance
him? At that time your wife also be old and she will also face some health hazards,
how you will take up there responsibilities. Do you want to live as an irresponsible
father and husband? So for all the above reasons only I am telling you people to take
insurance policies. They will give you life security, savings habit, planning in your life
& what to say a proper financial life you can have through insurance.

Rama Rao: sir you are telling this much about insurance, so first of all you tell me are
you having insurance?

RM: see friend personal questions we should not rise here, but as if you are asking it
is my duty to tell about myself. I am having seven and half lakhs policy; it is
proportionately divided on my family.

MADHAVI: sir, you are telling about insurance benefits but, there is problem in
insurance industry also. Like a person who takes insurance policy he should pay
insurance for at least 3 years. If for any unforeseen events he discontinue in paying
till three years then that policy will lapse but, take the case of banks if you pay even
for one year also your investment and returns are guaranteed. Then don’t you think
that insurance companies are cheating us. So, when we are getting cheated by
insurance companies then why should we take insurance policies?

RM: it is really a valid point, but I have answer for this question also. You had
invested some amount of money in the bank and after that I should not say, but for
sake of the answer I am quoting this example. You died after you had invested in
bank, then what will happen to your children. Who will knock your door after your

103
death to give economical and financial support? That’s the place insurance plays
vital role in one’s life. It is not just about investing; it is very important part in one’s
life. So how is the answer, nice Na?

RM: so friends, now no one is asking questions. So we can draw a conclusion from
here is that, investing in insurance is very good thing because, it gives us the habit of
savings, planning in life, specially life security benefits and economical support also.
So, all of us will invest in insurance and we will tell about insurance benefits to others
also.
5) Perceptions about private life insurance players
Example: an ‘x’ person is having RS.10000 to save. He want to invest this money in
insurance, he is having two options
1) Government backed insurance co.
2) Private insurance co. but it is also controlled by government
He is totally in confused state because he doesn’t know where to invest this money.
q) What suggestions we can give him? Where should he invest his money?

Awns) for discussion purpose I had divided 8 people into 2 groups. 4 members were
supporting LIC and remaining 4 members supporting private life insurance
companies.
From the discussion every body had told plus and minus points about insurance
companies, but most of the people finally intended, to invest in private life insurance
companies.

6) Activities to promote life insurance among people

You are allocated a budget of 1 crore. If we are the executives of private life
insurance Company, then what steps we will take to promote life insurance among
people in a better way.
(How you will approach prospects, which will be your target audience & what
benefits you will offer to customers etc..,)

104
As a group: Arrive at an agreement on the campaign you would like to adopt.
(Keep in mind- Reach, impact on the target group)

Could you explain the activities a bit more elaborately (Like if ad then in which
magazine, if on TV, then which channel, what time)?

Awns) they have arrived on the campaign that they would like to adopt on the above
topic.
They want to promote life insurance as security with good returns. For this they had
come to conclusions on advertising strategies.
The strategies are
a) Public places hoardings
b) Advertisements on TV channel:
Especially they have selected Gemini TV channel for the above purpose. So, they
will advertise in these timings (cricket matches, serials, news)

About Us

ICICI Prudential Life Insurance Company is a joint venture between ICICI Bank,
a premier financial powerhouse and Prudential plc, a leading international
financial services group headquartered in the United Kingdom. ICICI Prudential
was amongst the first private sector insurance companies to begin operations
in December 2000 after receiving approval from Insurance Regulatory
Development Authority (IRDA).

ICICI Prudential's equity base stands at Rs. 9.25 billion with ICICI Bank and
Prudential plc holding 74% and 26% stake respectively. In the financial year
ended March 31, 2005, the company garnered Rs 1584 crore of new business
premium for a total sum assured of Rs 13,780 crore and wrote nearly 615,000
policies. The company has a network of about 56,000 advisors; as well as 7
bancassurance and 150 corporate agent tie-ups. For the past four years, ICICI
Prudential has retained its position as the No. 1 private life insurer in the
country, with a wide range of flexible products that meet the needs of the Indian
customer at every step in life.
ICICI Prudential Life Insurance Company Limited is owned in part by an
indirect subsidiary of Prudential plc, a company incorporated in the United
105
Kingdom ("Prudential plc"). Neither ICICI Prudential Life Insurance Company
Limited nor Prudential plc is affiliated with Prudential Financial Inc, a company
whose principal place of business is in the United States of America.
NewBranches:
With the launch of the Siliguri and Rourkela Branches, ICICI Prudential now has
78 branches across 60 cities.

Amongst the twelve private life insurers that have launched operations,
ICICI Prudential has emerged as the leading private life insurer, closing the year
ended March 31, 2004 with a retail market share amongst private life insurers of
36%. The company's total received premium income in FY04 was Rs 989 crore,
up 135% from last years total premium income of Rs 420 crore. The company
issued nearly 450,000 policies in the year, taking its total policy count to over
780,000.

Total sum assured since inception has risen to Rs 16,000 crore.

Vision

Ourvision:
To make ICICI Prudential the dominant Life and Pensions player built on trust by
world-class people and service.

This we hope to achieve by:

Understanding the needs of customers and offering them
 superior products and service
 Leveraging technology to service customers quickly, efficiently and
conveniently
 Developing and implementing superior risk management and
investment strategies to offer sustainable and stable returns to our
policyholders
 Providing an enabling environment to foster growth and learning for our
employees
 And above all, building transparency in all our dealings.

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

core values -- Integrity, Customer First, Boundaryless, Ownership and Passion.
Each of the values describe what the company stands for, the qualities of our
people and the way we work.

We do believe that we are on the threshold of an exciting new

opportunity, where we can play a significant role in redefining and reshaping the

106
sector. Given the quality of our parentage and the commitment of our team,
there are no limits to our growth.

Promoters :

ICICI and Prudential came together in 1993 to form Prudential ICICI Asset Management
Company, which has today emerged as one of the leading mutual funds in India. The two companies
bring together two of the strongest financial service brands in Asia, known for their professionalism,
excellent quality of service and long term commitment to YOU. Riding on the success of this
relationship, the two companies joined hands once more in 2000, to form ICICI Prudential Life
Insurance, with a commitment to provide leading-edge life insurance solutions.

ICICI Bank has 74% stake in the company, and Prudential plc has 26%.

ICICI Bank
ICICI Bank (NYSE:IBN) is India''s second largest bank with an asset base of Rs.
106812 crore. ICICI Bank provides a broad spectrum of financial services to
individuals and companies. This includes mortgages, car and personal loans,
credit and debit cards, corporate and agricultural finance. The Bank services a
growing customer base of more than 7 million customer accounts and 5 million
bondholders accounts through a multi-channel access network. This includes
about 450 branches and extension counters, 1675 ATMs, call centres and
Internet banking (www.icicibank.com). ICICI Bank posted a net profit of
Rs.1,206 crore for the year ended March 31, 2003. ICICI Bank is the only Indian
company to be rated above the country rating by the international rating agency
Moody''s and the only Indian company to be awarded an investment grade
international credit rating. The Bank enjoys the highest AAA (or equivalent)
rating from all leading Indian rating agencies.

Prudential plc Established in 1848, Prudential plc is a leading

international financial services company in the UK, with around US$250 billion
funds undermanagement, and more than 16 million customers worldwide.
Prudential has brought to market an integrated range of financial services
products that now includes life assurance, pensions, mutual funds,
banking, investment management and general insurance. In Asia,
Prudential is UK''s largest life insurance company with a vast network of
22 life and mutual fund operations in twelve countries - China, Hong
Kong, India, Indonesia, Japan, Korea, Malaysia, the Philippines,
Singapore, Taiwan, Thailand and Vietnam. Since 1923, Prudential has
championed customer-centric products and services, supported by over
60,000 staff and agents across the region.

Management

107
Board of Directors
The ICICI Prudential Life Insurance Company Limited Board comprises
reputed people from the finance industry both from India and abroad.
Mr. K.V. Kamath, Chairman
Mr. Mark Norbom
Mrs. Lalita D. Gupte
Mrs. Kalpana Morparia
Mrs. Chanda Kochhar
Mr. Kevin Holmgren
Mr. M.P. Modi
Mr. R Narayanan
Ms. Shikha Sharma, Managing Director

Management Team
Ms. Shikha Sharma, Managing Director
Mr. Sandeep Batra, Chief Financial Officer & Company Secretary
Mr. Shubhro J. Mitra, Chief - Human Resources
Mr. Puneet Nanda, Head - Investments
Ms. Anita Pai, Chief - Customer Service and Operations
Mr. V. Rajagopalan, Appointed Actuary
Mr. Dipan Bhattacharya - Chief Information Technology

NEWS

ICICI Pru tops premium income chart

Business Standard: April 15, 2004

Mumbai: ICICI Prudential Life Insurance Company has topped the premium income chart
among private insurance players for the third year in a row. It logged a premium income of
Rs 989 crore in the financial year 2003-04.

This reflects a 135 per cent growth over last year''s (2002-03) income of Rs 420 crore. New
business income rose by 106 per cent to Rs 751 crore and despite a 15 per cent lapse rate in
policy renewals, the company''s renewal premium increased by 325 per cent to Rs 238 crore.

At present ICICI Prudential Life has around a 40 per cent share among the
private insurance industry in retail sales. The total sum assured since its
inception has risen to Rs 16,000 crore with Rs 8,173 crore added in fiscal 2004.

108
ICICI Prudential Lift chief executive officer and managing director Shikha
Sharma said that over 80 per cent of the 4.36 lakh policies sold were unit-linked
plans, with pension plans accounting for just 28 per cent of new businesses.

''We intend to come out with more pension and annuity products in the current fiscal (2004-05) as we find this as an
undeveloped market,'' said Sharma.

Not enough products exist in the market today as the industry continues to await tax reforms. Today policyholders can
get total tax exemption up to Rs 10,000 under Section 10 CCC of the Income Tax Act.

As such, without tax reforms it is not conducive for customers to invest more under pension plans. On the group side,
ICICI Prudential has not been as active as it has been a late entrant.

''We started targeting group insurance this year (2003-04) and have been able to tap around 100 clients. The
premium has been minuscule as the sales cycle is long and varies between six-nine months to close a transaction,''
said Sharma.

Moreover, with the rate war rampant in group term, ICICI Prudential has been choosy on the business it underwrites.
''Group term is a commodity, and as business is purely rate-driven, this is not our focus area,'' she added.

ICICI Prudential Life hikes capital to Rs 675 cr

The Economic Times: March 17, 2004

ICICI Prudential Life has hiked its capital by Rs 50 crore to Rs 675 crore in view of booming business.

Hiking the capital for the ninth time since its inception in December 2000, the 74:26 joint venture between ICICI Bank
and Prudential Plc said the additional capital would be used for meeting capital adequacy norms stipulated by the
Insurance Regulatory and Development Authority.

'ICICI Prudential has grown exponentially over the past three years,' its Managing Director Shikha Sharma said ina
statement.

In the life insurance business, expenses were incurred up front while the revenue (in the form of premia) stream was
staggered, and this necessitated a life insurance company to regularly infuse capital during the first 5-7 yearsin order
to support the growth of business.

With an authorised capital of Rs 1,200 crore, the second generation life insurer''s premium mop up had crossed Rs
1,000 crore in December 2003.

The insurance company, which expanded to 54 locations across the country, so far sold over 5.50 lakh policies for a
sum assured of over Rs 13,000 crore Prudential seeks to replicate ICICI Pru success

The Economic Times: March 13, 2004

Mumbai: Prudential UK''''s largest insurer is looking at replicating ICICI Prudential''''s innovations in other parts of Asia
. The parent company is impressed with the speed in which the Indian venture has been able to launch new products
and build up a professional agency force.

Speaking to ET Dan Bardin, managing director, South Asia and Greater China, Prudential Asia said, ''''Shikha (Sharma,
MD ICICI Prudential Life) and her team have been able to manage growth and expenses. Her team has exceeded our
expectations.''''

He added that ICICI Pru was similar to companies that are mature and is looked up by its peers in the group for its
multi channel distribution and for building up a large professional agency. ICICI Pru''''s agency sales force of over
26,000 agents are one fourth of the Prudential Corporation''''s network of 1.12 agents in Asia .

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While others have decided to tread carefully, ICICI Pru has plunged headlong into the market building up scale rapidly
with over six lakh individual policies. According to Bardin, the rapid growth was not a cause of concern and described
the business as a sustainable one. India is one of the three countries in Asia where Prudential is the leading private
insurer the other two being Vietnam and Indonesia . It is the second largest insurer in Malaysia and the third largest in
Singapore .

''''We are among the top five in eight countries and among the top three in six countries,'''' Mr Bardin said. Asia''''s
share of new business has jumped from just over 5% five years ago to close to a third of Prudential global business
with US and Europe contributing to the remaining two thirds.

Mr Bardin said that Prudential expected its group companies to break even between seven and twelve years of
operations, depending on local operations. Prudential Corporation Asia is expected to become a net contributor to the
Group''''s capital position in 2006 as more of its businesses become net generators of cash after funding their own
development.

Best Life Insurer Award

Outlook Money: March 15, 2004

Winner: ICICI Prudential

In the short span since the insurance sector was opened up, ICICI Prudential Life Insurance has literally dictated the
market''s evolution. Catering to all age and income segments, the company started out with the traditional insurance
policies that were easy to understand. The idea was to entice customers used to LIC''s style of functioning.

Soon, ICICI Prudential began exploring new areas. It introduced modern products, like the market-linked product
where returns are linked to the market performance of the underlying assets.

ICICI Prudential leads in virtually all parameters: size of agent force, number of policies sold, total sum assured,
premium income and productivity of agents. It has set exacting standards for its range of products, riders offered,
quality of information in promotional material and even in the insurance awareness events organised.

What has been in favour of ICICI Prudential is its range of products in each segment of life insurance-traditional, unit-
linked and single-premium options, be they for retirement plans or child plans. With such a comprehensive bouquet, it
caters to all financial goals of a customer.

ICICI Prudential also has a strong sales network and tie-ups with banks to offer bancassurance products. Its
supplementary marketing channels contribute close to 30 per cent of its premium income. The company is now
reaching out to new and untapped markets. ICICI Prudential works closely with NGOs and micro-finance institutions to
spread awareness about the concept of insurance in rural areas. This helps meet the social obligations mandated by
IRDA, but the company has gone a step ahead by actively involving the villagers and working closely with them.

The gap between ICICI Prudential and the second-in-line private insurer is vast. In fact, this hiatus has led some
analysts to wonder if the company isn''t a trifle too aggressive. But others say this has more to do with the company''s
customer-centric focus, its pan-India presence and superior risk management and investment strategies. ICICI
Prudential is not, however, resting on its laurels. The company will continue to innovate and set the standards.

ICICI Pru has 40% of private life insurance market

The Economic Times: March 1, 2004

Mumbai: ICICI Prudential Life Insurance has increased its market share among private life insurers to nearly 40%,
from 33% as of end-December. The company''s first-year premium income in the April-January period stood at Rs
464.6 crore, accounting for 39.3% of the Rs 1,364 crore premium booked by all private life insurers together.

Considering the entire life market, including the Rs 9,780 crore booked by Life Insurance Corporation, ICICI Pru''s
market share works out to around 4.17%. The life insurance market continues to be dominated by LIC which has
about 87.8% share. This is only a marginal dip from its 88.2% share in end-December. These comparisons are only
for first year or new business premium. If renewal premium were to be taken into account, LIC''s share would increase
further to over 96%.

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According to business figures brought out by the Insurance Regulatory and Development Authority (IRDA), the first-
year premium mobilised by ICICI Prudential Life Insurance in the first ten months of `03-04 amounted to Rs 464.4.
This is more than twice the premium income generated by its closest rival Birla Sun Life which raised Rs 195 crore
during the same period.

HDFC Standard Life and Tata AIG have retained their third and fourth positions. Interestingly, there are three
companies that are neck-and-neck in the battle to be among the top five with a marketshare of close to 7% - Allianz
Bajaj, Max New York Life and SBI Life Insurance.

In the group insurance market, LIC''s share in the country is around 93%. Among the private companies, SBI Life,
Birla Sun Life and HDFC Standard Life dominate the group insurance segment. SBI Life, with its group policies for
mortgage loan protection and depositor insurance, has close to 45.8% of the group market among private companies.
Birla Sun Life has a 23.4% share, followed by HDFC Standard Life which has a 18.4% share. Except these three
companies, other players have a negligible presence in the group market.

But, with over a month to go for the close of financial year, the rankings could still change dramatically. More so,
because insurance companies, particularly LIC, go into an overdrive in mobilising new business.

Glossary
Accelerated payment of basic cover
This occurs when the basic cover amount is paid earlier than death or maturity. For example the policy
may provide for the full payment of the death benefit in the event of total and permanent disability

Accident
The term accident is sometimes defined in the policy document as follows - the accident must be caused
by violent, external and visible means and cause of the injury or injuries solely and independently of any
other means.

Accidental death benefit

Benefit, which provides for the payment of an additional sum (usually equal to the sum insured of the
basic policy) in the event of death by an accident.

Amount Payable
This refers to the amount that is payable according to the terms and conditions of the insurance policy
to the legal owner of the insurance policy.

Annuitant
The person whose lifetime is used to measure the contractual period over which annuity payments will
be made.

Annuity
Annuity contract is an agreement under which the insurance company, in return for the payment of a
certain sum, makes a series of agreed payments at regular intervals from a fixed date. This continues
until the death of the individual on whose life the annuity is bought.

Annuity Period
The time span between each of the annuity income benefit payments made under the annuity contract.
Typically annuity income benefits are paid monthly or annually.

Anticipated Endowment
An endowment where you do not have to wait for the maturity date before receiving part of the maturity
amount.

Applicant / owner / life of another

The applicant is the person on whose life insurance cover is sought. Owner is the person who has the
legal title to the policy. Life of another on whose life he or she has an insurable interest.

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Application for reinstatement
This refers to an event when a policy has lapsed or terminated by the policy owner owing to a non-
payment or late payment of a premium. The company will consider a reinstatement of the contract in
the event of an application being made as prescribed by the company in terms of the outstanding
premium, interest or administration fees (if any) and evidence of good health. The reinstatement and
terms are at the discretion of the company.

Appreciation
The increased value of one asset held by the policy, or by the total assets held by the policy over a
period of time.

Ask or offer price

The price at which units or shares can be purchased. The asked or offering price means the current net
asset value (NAV) per share plus sales charge, if any. For a no - load fund, the asked price is the same
as the NAV.

Asset allocation
A system method of investing that distributes assets to a broad array of investments

Assets
The current rupee value of the pool of money shareholders have invested in a fund.

Assignments
This is the process by which, the owner of the rights under the policy known as the assignor transfers
the right to another person known as the assignee by executing a deed of assignment.
Balanced fund
A fund that maintains a balanced portfolio, generally 60% bonds or preferred stocks and 40% commons
stocks.

Bear market
A period of time in which the market, or securities in general lose money.

Benchmark
A reference point that is chosen for the purposes of comparing other related values.

Beneficiary
The person or party the owner of a life insurance policy names to receive the policy benefit.

Bid or sell price

The price at which a funds units or shares are redeemed (bought back) by the fund. The bid or
redemption price means the current net asset value per share, less any redemption fee or back end
load.

Bid / offer spread

The difference between the bid and the offer prices.

Blue chip stock fund

A fund that consists of a portfolio of large or well known companies for the purposes of achieving
growth.

Body mass index (BMI)

Used for underwriting purposes in evaluating build and determining overweight and obesity. It tells us
the person's health constitution. It is expressed as weight in Kg divided by height in meters to the power
of two or Kg/height2

Bond
A bond is security in the form of a convertible loan with a maturity date, where the investor lends money
to a company or government.

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Bull market
A good market in which prices of securities increase greatly over a specific period of time.

Capital Gains Taxes

Taxes that are imposed at the redemption of all capital gains.

Capitalization
The value of a fund derived by the multiplication of the fund's share price by the number of outstanding
shares. Most often, this is applied in order to determine the value of the specific companies.

Cash Surrender Value

The amount that is available to the owner if a life insurance policy is surrendered any time before the
maturity date. The amount represents the cash value minus surrender charges and any outstanding
loans due upon cancellation of the policy.

Claim
Written request by an insured for the insurance company to cover an incurred loss, usually submitted on
the company's standard form.

Claimant
Person who has as interest in the policy and making a claim on the policy.

Closed end fund

A type of fund that offers only a fixed amount of shares, usually sold through a brokerage firm by a
broker. Most funds are not closed - end funds; they offer unlimited shares and may be purchased and
redeemed directly by the individual through the mail by check.

Closing price
The price of stock or other security at the end of the day, after the final trade.

Collateral
A temporary assignment of the monetary value of a life insurance policy as security for a loan. In the
event of default, the creditor would receive proceeds or values only to the extent of his interest.

Commisson
A fee paid by the investor to a broker or other sales agent for investment advice and assistance.

Compounding
Earnings on an investment's earnings. Over time, compounding can produce significant growth in value
of an investment.

Contractual obligation
When parties effect a contract, there are obligation that the parties assume and are legally bound to
fulfill these obligations. If there are not fulfilled, the other part can resort to legal means to seek
redress.

Coroner
The coroner is the person who is legally authorized by the government to determine the cause of death,
when this is in doubt, or if there has been death which is not deemed to be due from normal illnesses.
He or she does it by examining the evidence submitted including autopsy or post mortem reports,
medical reports and statements from witnesses. The coroner is usually a magistrate or someone who
possess legal qualification.

Date of commencement
The date on which cover begins, following acceptance of the risk by the insurer.

Dating Back
For non investment linked policies, the commencement date of the policy can be backdated within the
same financial year. This enables the life assured to take advantage of the lower premium applicable to
a younger age as the premiums is calculated with reference to the date of commencement. The

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insurance cover will however begin only from the date of acceptance. The extra premium on account of
dating back has to be paid upfront.

Death Benefit Payable

The amount payable, as stated in a life insurance policy, to the designated beneficiary(ies) upon the
death of the insured. The amount paid is the face value, plus any riders that are applicable, less any
outstanding loans.

Declaration
This is the statement or section of the form where the person is required to declare that the statements
or answers are given fully and truthfully and that if it were not so, there would be legal consequences.

Deffered Annuity
An annuity contract under which periodic benefits are scheduled to begin at some designated future date
after the date on which the annuity was purchased.

Depreciation
A decline in the investment's value.

Doctrine of Utmost Good Faith

Insurance contract is issued on the basis that the applicant truthfully and fully discloses everything he or
she knows about his or her health. This arises from the recognition that the insurance company is in a
disadvantageous position, as the insurer does not know anything about the applicant. Similarly, the
insurance company should deal with the applicant with honesty and integrity.

Endowment
A type of insurance policy which provides for the face amount stated in the contract to be payable in a
fixed date or on the life insured's earlier death.

Equity
A stock or the interest in capital gains received from the ownership of a stock.

Ex-gratia claim
This occurs where strict liability has not been proved but the insurer may decide that it would be unduly
harsh or cause hardship, not to make some payment. Such payments are made out of goodwill, without
admission of liability.

Ex-gratia payments
These are payments made by a company where the claim is a gray area, doubt exists but it may be to
the benefit of the claimant and the company feels out of goodwill that some form of payment should be
made. The claim is made without any admission of liability. Payment is only made on the understanding
that the claimant accepts the amount in full satisfaction of all claims he or she may have on the policy.

Exclusion
A condition under which the benefit is not paid is referred to as exclusion. This is to avoid any
misunderstanding. For example, for accidental policies, there is usually exclusion for suicide or self-
inflicted injuries by the life insured.

Extended Term Insurance

A provision in some policies which provides the option of continuing the insurance for a particular
insured amount as per the policy condition as term insurance.

Family history
The medical history affecting the applicant's immediate family. It is to look for illness that is hereditary.
Focus should be on illness where the onset is before the age of 50.

Fixed income securities

The category of investment vehicles that offer a fixed periodic return. A fixed income security is a
security or certificate showing that the investor has lent money to the issuer, who is usually a company

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or government, in return for fixed interest income and repayment of the principal at maturity.

FI
Financial Institution.

Fixed annuity
An annuity where the insurer guarantees to credit the annuity account value with a fixed rate of interest
for a specified period of time, for one, three, five or even ten years. At the end of the initial time period,
the insurer sets a new interest rate for the next period.

Fixed Interest
Income, which remains constant and does not fluctuate, such as income derived bonds, annuities and
preferences shares. The percentage return from this income varies dependent on the market price.

Fixed period option

An option on an annuity that provides that annuity payments, each of specified and equal amounts, will
be paid for a certain period of time such as 10 or 15 years, even if the annuitant is still living at the end
of the period.

Fraudulent claims
These are claims where a statement is made by the insured, which he knows or ought to know that it is
false, and he makes it in order to benefit from a life insurance policy by dishonest means.

Fund assets
Amount of assets currently in the fund.

Government Bonds
These are effectively financial instruments used by the government to borrow money from the public.
The rates of interest and term period of government bonds are fixed.

Grace Period
This provision offers the policy holder additional period of time after the due date, during which the
premium can be paid. The policy continues to remain in force during this grace period and the premium
continues to be payable.

Growth Fund
A fund whose primary investment objective is long-term growth of capital. It invests principally in
common stocks with significant growth potential.

Guaranteed insurability option

An option which allows the policy owner to effect additional insurance at later dates without further
evidence of health and irrespective of the date of the health of the life insured.

Hazardous avocation
A hobby that has high risk for insurance purpose. Example: A deep - sea diver or a free-fall skydiver.

Hazardous occupation
An occupation that has high risk for insurance purposes. Example: a window cleaner on high - rise
buildings.

Immediate annuity
An annuity where, income benefits begin one annuity period after the annuity is issued. If it is specified
that benefits are paid annually, then the benefit payments begin one year after issue.

Income fund
A fund that primarily seeks current income rather than growth of capital. It will tend to invest in stocks
and bonds that normally pay high dividend and interest.

Interest rate risk

The possibility that a bond's or bond fund's value will decrease due to rising interest rates.

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Invalid contract
Life insurance is a contract and the law provides that there must be an insurable interest between the
life insured and the insured. If it is subsequently proven that this did not exist when the insurance
contract was effected, it can be declared as not valid and set aside.

Investment
An asset acquired for the purpose if producing income and capital gains to its owner.

Investment objective
The financial goal (long term growth, current income, etc) that an investor or a fund pursues

Investment trust
A corporation, partnership or trust that invests the pooled monies of many investors. It provides greater
professional management and diversification of investments than most investors can obtain
independently. Mutual funds, or "open-ended" investment companies, are the most popular for of
investment company.

Joint and survivor option

An option on an annuity that provides that the annuity payout will continue through the lives if two
people. If one of the payees dies, payments continue to the second payee throughout that payee's
lifetime.

Keyman Insurance
An insurance policy that a company purchases on a key employee whose knowledge, network and
experience is so essential that the untimely death of the employee will have a severe impact on the
profitability of the company.

Lapse
Termination of a life insurance contract because of non-payment of premiums. If there are non forfeiture
values, the policy lapses but may remain effective reduced paid-up insurance.

Large -cap
A large sized company, or a mutual fund that invests in the stock of large, established well known
companies.

Law of large numbers

A large insurance portfolio enables the actuary to predict better the number of claims. The principle
reduces the number of random fluctuations of claims as the number of lives insured slowly grows. There
is substantial decline in standard deviation of claims arising from pure chance with increase in number of
insured.

Lien
At the time the policy is issued or reinstated, as a part of the underwriting decision, the company may
impose a lien on the policy. This would mean that in the event of a claim arising from a specific risk or
within a period, a certain agreed amount would be deducted form the claim. The insured is regarded to
self insure the amount to be deducted as the company has declined to cover the specific risk or the
insured has agreed to this arrangement instead of paying the extra premium.

Life Annuity
An annuity that makes regular (e.g., monthly, quarterly, etc.) income payments for the life of a person
(the annuitant). The annuitant cannot outlive the payments. Upon his/her death, however, all income
payments cease and there are no beneficiary benefits.

Large Assured
Person whose life is covered under a life insurance policy.

Law Expectancy
The number of years a person is expected to live as determined by actuaries using mortality (actuarial)
tables This information is used to calculate annuity payments, life insurance premiums, and annual

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minimum distributions from IRAs.

Life fund
This is a fund set up by an insurance company to which life insurance premiums of certain designated
category of life policies issued are paid into. Claims and expenses occurring on these life polices are paid
out of these funds.
The company actuary does a valuation of the funds periodically before any profits or the company
distributes dividends. The insurance company has a responsibility to exercise fairness in the way it
manages the fund and the actuary will ensure that the fund is solvent at all times.

Liquidity fund
The degree to which an investment may be quickly sold in exchange for cash. Funds are a liquid
investment; at any time-shares may be redeemed. A 30-year savings bond is not liquid. It cannot easily
be sold until the 30-tear, maturity date is reached.

M&A
Mergers and acquisitions

Management Fee
Fee levied for management of the fund and / or shareholder administrative services. Usually a fixed
percentage of the total value of your fund that is assessed once in a year.

Market Risk
Refers to the potential of loss that is possible, as a result of the short-term validity of the stock market.
Owning funds, due to their diversification, shield an investor to some market risk that a stockholder may
be vulnerable to.

Market timing
A method of investing in which an investor may try to predict good or bad markets for the purposes of
determining when to buy and sell a specific security or fund.

Maturity date
The date on which an endowment insurance policy's face amount will be paid to the policy-owner if the
life insured is still living.

MF
Mutual Fund

Misrepresentation of material facts

Providing the wrong facts or not giving the entire truth of a matter. This is more serious that non-
disclosure. It refers to the applicant stating wrong facts or giving half-truths. They are material because
if the underwriter knew of it this information, the decision might be different.

Money Market Instrument

Include short term - investments such as CD's. T-Bills, and short-term commercial bonds. Money market
mutual funds invest in these types of short-term investments; as a result, there is little to no risk of
losing any portion of the principle investment.

Moral hazard
Underwriting the risk affecting an application based on factors such as the personal reputation and
character of the applicant, business ethics or the existence of a criminal record. It concerns the intention
or motivation behind the buying of a life insurance policy.

Morbidity
The probability of disability of a life or group of lives.

Mortality
The probability of death of a life or group of lives.

Mortgage

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This is a form of assignment used in connection with a loan. The policy is mortgaged by the mortgager
to the mortgaged who will hold it as a security for the duration of the loan until the loan and the interest
is paid. In the event, the policy must be reassigned to the mortgagor if the amount is not paid by the
required date, the mortgagee has the right to liquidate the policy and recover the amount and return the
balance amount to the mortgagor.

Net Asset Value (NAV)

The value of a fund share. Determined by dividing the total value of the fund's assets by the number of
outstanding shares. This value is calculated daily by the fund.

Non-disclosure of material facts

An applicant fails to disclose facts that have an impact on the decision of the underwriter (had the
underwriter known of this fact, the decision would have been different)

Non - medical cases

Cases where a medical examination is not necessary. Large number of cases are straightforward and do
not have any medical problems. For cases within limits on age and the amount on cover, a medical
examination is not necessary.

Non-participating policy
Non-participating policy is also known as a without-profit or non-par policy. The policy owner does not
share in any divisible surplus made by the life insurance company. No bonus is paid on this policy.

NPA
Non-performing Asset

NSE
National Stock Exchange

Offer-price
The price to buy one share of a specific kind.

Open-end fund
A fund that does not have a fixed number of shares (as does a closed end fund or stock). The mutual
fund will offer as many shares, as investors are willing to buy. These funds need to be bought through a
broker. Most funds are open-ended unless otherwise noted.

Option
A financial instrument that gives the investor the right to buy or sell a given number of shares of the
underlying stock at a fixed price within a specified time period.

Ordinary shares
A share that gives the holder part ownership of a company and entitle thee holder to share in the
company profits in the form of dividends.

Participating Policy
A participating policy is also known as a with-profits or par policy. A participating policy charges a higher
premium than a non-participating policy. In return, the policy owner shares in the life insurance
company's divisible surplus, in the form of bonus allotted to the policy. The bonus is allotted in addition
to the guaranteed sum assured. This bonus is paid along with the basic sum assured.

Partnership Insurance
Cross-insuring partners in a partnership business to effect a buyout of the deceased partner's family
from the business.

Physical hazards
Features or facts that can be observed or evaluated. This includes reports from agents, medical
consultants or through investigations

Policy Bonus

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In participating policies the company gives the policyholders a share in the profits of the company in the
form of bonuses.
Generally, there are two types of bonuses for insurance policies. Reversionary bonus is a guaranteed
addition to your insured amount and is paid when the policy matures (i.e. when the sum assured
becomes payable) or when the life assured dies. Cash Bonuses are paid out at periodical intervals.

Policy face amount

This refers to the amount stated in the policy payable in the event of death or maturity.

Policy loans
Loans are granted on the security of the surrender value if a policy. The amount is usually restricted to a
certain percentage of the surrender value and interest is payable. Loans can be repaid at any time
before the policy becomes a claim, when the total indebtness is deducted and the balance is paid. If the
total indebt ness exceeds the surrender value, then the policy is declared as terminated and the indebt-
ness is written off.

Policy Term
The period of coverage provided by an insurance policy.

Portfoilo
The collection of all holdings of a fund, such as bond's and stocks. In a fund's annual report, a list of the
fund's current portfolio will usually be contained

Portfolio Manager
A specialist employed by a fund's advisor to invest the fund's assets in accordance with pre determined
investment objectives

Premium
This is the contribution / payment that a policyholder makes to a life insurance company to obtain
insurance cover. He or she has a responsibility to ensure that the correct amount states is paid as and
when it falls due as stated in the policy document.

Premium waiver
This refers to all premiums due after the incident of claim is waived without any loss of benefits
whatsoever unless specifically stated.

Principal
The total amount of the initial investment plus subsequent investments.

Prospectus
A document, usually in the form of a booklet, that provides information about a specific mutual fund;
such as the funds investment and the redemption policies. The prospectus, according to law, must
always is accompanied with the application. Prospective investors should always read the mutual fund's
prospectus before sending money.

Purchase money
This is the initial amount paid to the insurance company to purchase the annuity.

Pure endowment
An endowment, which provides for the payment of the sum insured only on survival to the maturity
date. On earlier death, nothing is usually paid out although some contracts may provide for the
premiums paid to be refunded either with or without interest, after deducting appropriate expenses
incurred.

Quality
The creditworthiness of a bond issuer, which indicates the likelihood that it will be able to repay its debt.

Redemption fee
Fee levied for-selling shares of your index fund. Usually a fixed percentage of the total value of your
fund.

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RBI
Reserve Bank of India

Reduced paid up insurance

Reduced paid up insurance can be offered on a policy that has been in force long enough to acquire a
cash value and where the policy holder does not wish to continue paying further premiums. The policy is
converted with the consent of the policyholder whereby a reduced sum assured is payable on similar
terms and conditions of the original basic policy.

Reduced sum assured

Where the sum insured proposed or existing is reduced. If such underwriting terms are offered, you are
not reducing the risk but just the liability.

Reinstatement / Revival
This refers to the process where the policy that has terminated for example due to a lapse of non-
payment of premium and the owner has applied for the policy to be reinstated and the company has
agreed to do so on certain conditions.

Renewal Premiums
Premiums that are payable after the initial premium and that are a condition for the continuation of the
policy.

Repudiation of a claim
This process takes place when the claims examiner looks at the policy document and the evidence
submitted to him or her and makes a decision to reject it.

Return
The value received (income plus capital) annually from an investment, usually expressed as a
percentage.

Reversionary annuity
An annuity provides that in the event of death of a person "A" during the lifetime of a person "B", the
latter will receive an annuity for the remainder of his or her life. If "B" dies before "A", nothing is
payable.

Reversionary bonus
This refers to the portion of surplus distributed to with profit policyholders. They are declared annually
and increase the value of the policy. It is usually expressed as a percentage of the sum insured. It can
be either simple based purely in the sum insured or compound based on the sum insures plus previous
bonus. Once allocated, the bonuses cannot be removed or reduced by the company.

Riders
Additional or supplementary benefits that are bought together with a main life policy on the same life
and are combined for the purposes of collecting one premium. They ride on and are considered as part
of the main policy. They could be added, amended or deleted from the main policy, any time, subject to
risk assessment. Details and the terms and conditions of the benefits are clearly indicated in the main
policy document.

Risk assessment
This part of the underwriting process whereby the risk of the happening of the insured event to the life
insured in evaluated and a decision is made if the case can be accepted on terms applied for by the
insured. It is done by examining all information in hand and obtained as its request and using the weight
of experience and statistical evidence and studies.

Risk classification
The process whereby applicants with similar levels of risk are placed in a separate basket so that the
appropriate pricing is charged for the individuals within each respective basket.

Risk selection

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The process whereby you determine whether a risk proposed such as an application for life insurance to
the company is insurable or not insurable.

Risk tolerance
The willingness of an investor to tolerate the risk if losing money for the potential to make money.

Rule of 72
The formula for approximating the time it will take for a given amount of money to double at a given
compound interest rate. The formula is simply 72 divided by the interest rate. In six years, Rs. 1000/-
will double at a compound annual rate of 12% (72 divided by 12 equals 6)

Rupee Cost Averaging

A system of investing in which an individual reinvests money into the same fund on a regular basis
usually monthly. Often investors can choose an option in which money is automatically withdrawn from
their banking account and invested into the fund at a specified time of the month.

SEBI
Securities and Exchange Board of India

Securities
The holdings of a fund, such as stocks or bonds.

Short term
The period of time in which market volatility may subject an investment to market risk of loss. The short
term may be considered to be a period of two years or less.

Speculative risk
Derived from an intention to obtain an undue benefit from an insurance policy. Similar to a gambling
wager, it is illegal.

Statutory presumption of death

The laws in most countries provide that in the event of a person who has gone missing for a certain
number of years a court order can be made to declare the person as legally dead. This is usually set as
seven years. It has to be proved to the court that he or she has not been heard of by anyone including
those who would naturally have heard if he or she had been alive.

Surrender value
The surrender or cash value is the amount payable to the policyholder should the policyholder decide to
discontinue the policy. However, the insurance protection provided under the policy will also cease. Not
all insurance policies have surrender or cash values.

TDS
An endorsement or attachment to a life insurance policy that provides additional term coverage for the
amount specified. If the insured dies during this time, the designated beneficiary(ies) can receive death
benefit proceeds..

Terminal Bonus
This part of the surplus distributed is added only when the policy becomes a claim in most cases by
maturity or death. It is usually expressed as a percentage of the reversionary bonuses.

Third Party
This is when a person or a company takes a policy on the life on another.

Trust
This occurs when a person(s), known as settlor sets up an obligation, known as a trust for the benefit of
person(s) known as beneficiaries. Trustees are appointed to carry out the terms of trust.

UTI
Unit Trust of India

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Utmost good faith
The principle of utmost good faith requires the applicant to disclose all material facts.

Vesting age
This is the age when the rights under the policy vests with the name individual.

Violent, external and visible

This is used, as a guideline to determine when death or disability is caused by an event deemed as an
accident. Violence is usually present and this includes physical violence, person exerting themselves
physically, carrying heavy weights or injury caused by drowning, suffocation by inhalation of gas or
smoke. External is where the cuse us nit an internal injury and any cause which is external is visible.

Volatility
The degree to which a mutual fund's share price will change in value.

Waiting Period
This applies when the benefit is payable after a specified period. For certain benefits, cover may only
commence after a specified period. For example, if a diagnosis of cancer or heart attack is made within
180 days of the commencement of the policy the critical illness benefit is not payable.

Will
This is a document drawn up by a person indicting how he or she wishes the assets to be distributed
among the various beneficiaries. The last will drawn up according to the laws of the country is valid. It is
only valid on death and certified by the courts to be so in the form of a probate.

Willful Misrepresentation
This occurs where the applicant completing the form willfully misrepresents the facts, so as to gain
advantage.

Withdrawal
To redeem shares of a fund or stock. In a mutual fund, partial or full redemptions may be made. Some
funds may impose an extra redemption fee to discourage market timers from pulling their money
immediately after investing. If this is a fund's policy, it will stated in the prospectus.

Without Profit Policies

These are policies which do not participate in the profits of the company

With Profit Policies

These are policies that are issued on the basis that they participate in the profits of the company and are
entitled to receive bonuses as a result. The actuary determines profits after valuing the assets and
liabilities if the company and setting aside the necessary reserves and expenses. The profits are then
shared by the shareholders and with the profit policyholders.

Yield
Income or dividends received from a security or fund

YTM
Yield to maturity.

***********************************************************************************

FACT SHEET

THE COMPANY

ICICI Prudential Life Insurance Company is a joint venture between ICICI Bank, a premier financial powerhouse, and
Prudential plc, a leading international financial services group headquartered in the United Kingdom. ICICI Prudential
was amongst the first private sector insurance companies to begin operations in December 2000 after receiving
approval from Insurance Regulatory Development Authority (IRDA).

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ICICI Prudential?s equity base stands at Rs. 925 crore with ICICI Bank and Prudential plc holding 74% and 26% stake
respectively. In the period April-December 2004, the company garnered Rs 860 crore of new business premium for a
total sum assured of over Rs 7,360 crore and wrote nearly 345,000 policies. Today the company is the No.1 private
life insurer in the country.

DISTRIBUTION

ICICI Prudential has one of the largest distribution networks amongst private life insurers in India, having commenced
operations in 69 cities and towns in India. These are: Agra, Ahmedabad, Ajmer, Allahabad, Amritsar, Aurangabad,
Bangalore, Bareilly, Bhatinda, Bhopal, Bhubhaneshwar, Calicut, Chandigarh, Chennai, Coimbatore, Dehradun,
Durgapur, Faridabad, Goa, Guntur, Gurgaon, Guwahati, Gwalior, Hyderabad, Hubli, Indore, Jaipur, Jalandhar,
Jamnagar, Jamshedpur, Jodhpur, Kanpur, Karnal, Kochi, Kolkata, Kolhapur, Kota, Kottayam, Lucknow, Ludhiana,
Madurai, Mangalore, Meerut, Mumbai, Mysore, Nagpur, Nasik, Noida, New Delhi, Patiala, Pune, Raipur, Rajkot, Ranchi,
Rourkela, Salem, Siliguri, Surat, Thane, Thrissur, Trichy, Trivandrum, Udaipur, Vadodara, Vapi, Varanasi, Vashi,
Vijayawada and Vizag.

The company has seven bancassurance tie-ups, having agreements with ICICI Bank, Federal Bank, South Indian
Bank, Bank of India, Lord Krishna Bank and some co-operative banks, as well as over 160 corporate agents and
brokers. It has also tied up with organisations like Dhan for distribution of Salaam Zindagi, a policy for the socially and
economically underprivileged sections of society.

ICICI Prudential has recruited and trained about 50,000 insurance advisors to interface with and advise customers.
Further, it leverages its state-of-the-art IT infrastructure to provide superior quality of service to customers.

PRODUCTS

Insurance Solutions 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 20 products can be enhanced with up to 6 riders, to create a customized solution for
each policyholder.

Savings Solutions

 SecurePlus is a transparent and feature-packed savings plan that offers 3 levels of protection.
 CashPlus 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.
 CashBak is an anticipated endowment policy ideal for meeting milestone expenses like a child?s marriage,
expenses for a child?s higher education or purchase of an asset.
 LifeTime & LifeTime II offer customers the flexibility and control to customize the policy to meet the
changing needs at different life stages. Each offer 4 fund options ? Preserver, Protector, Balancer and
Maximiser.
 LifeLink II is a single premium Market Linked Insurance Plan which combines life insurance cover with the
opportunity to stay invested in the stock market. Premier Life is a limited premium paying plan that offers
customers life insurance cover till the age of 75.
 InvestShield Life is a Market Linked plan that provides capital guarantee on the invested premiums and
declared bonus interest.
 InvestShield Cash is a Market Linked plan that provides capital guarantee on the invested premiums and
declared bonus interest along with flexible liquidity options.
 InvestShield Gold is a Market Linked plan that provides capital guarantee on the invested premiums and
declared bonus interest along with limited premium payment terms.

Protection Solutions
LifeGuard is a protection plan, which offers life cover at very low cost. It is available in 3 options ? level term
assurance, level term assurance with return of premium and single premium.
Child Plans

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SmartKid education 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 child?s life.
SmartKid plans are also available in unit-linked form ? both single premium and regular premium.
Retirement Solutions
 ForeverLife is a retirement product targeted at individuals in their thirties.
 SecurePlus Pension is a flexible pension plan that allows one to select between 3 levels of cover.

Market-linked retirement products

 LifeTime Pension II is a regular premium market-linked pension plan
 LifeLink Pension II is a single premium market-linked pension plan.
 InvestShield Pension is a regular premium pension plan with a capital guarantee on the investible
premium and declared bonuses.

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.
ICICI Pru Group Gratuity Plan: ICICI Pru?s group gratuity plan helps employers fund their statutory gratuity
obligation in a scientific manner. The plan can also be customized to structure schemes that can provide benefits
beyond the statutory obligations.
ICICI Pru Group Superannuation Plan: ICICI Pru offers a 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 a partial commutation of the annuity at the time of retirement.
ICICI Pru Group Term Plan: ICICI Pru?s flexible group term solution helps provide affordable cover to members of a
group. The cover could be uniform or based on designation/rank or a multiple of salary. The benefit under the policy is
paid to the beneficiary nominated by the member on his/her death.
Flexible Rider Options
ICICI Pru Life offers flexible riders, which can be added to the basic policy at a marginal 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. If the death occurs
while traveling in an authorized mass transport vehicle, the beneficiary will be entitled to twice the sum
assured as additional benefit.
 Accident Benefit: This rider option pays the sum assured under the rider on death due to accident.
 Critical Illness Benefit: protects the insured against financial loss in the event of 9 specified critical
illnesses. Benefits are payable to the insured for medical expenses prior to death.
 Major Surgical Assistance Benefit: provides financial support in the event of medical emergencies,
ensuring benefits are payable to the life assured for medical expenses incurred for surgical procedures. Cover
is offered against 43 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 SmarKid, SecurePlus and CashPlus
 Waiver of Premium: In case of total and permanent disability due to an accident, the premiums are waived
till maturity. This rider is available with SecurePlus and CashPlus.

ABOUT THE PROMOTERS

ICICI Bank is India's second-largest bank with total assets of about Rs.112,024 crore and a network of about 450
branches and offices and about 1750 ATMs. It offers a wide range of banking products and financial services to
corporate and retail customers through a variety of delivery channels and through its specialised subsidiaries and
affiliates in the areas of investment banking, life and non-life insurance, venture capital, asset management and
information technology. ICICI Bank posted a net profit of Rs.1,637 crore for the year ended March 31, 2004. ICICI
Bank's equity shares are listed in India on stock exchanges at Chennai, Delhi, Kolkata and Vadodara, the Stock
Exchange, Mumbai and the National Stock Exchange of India Limited and its American Depositary Receipts (ADRs) are
listed on the New York Stock Exchange (NYSE).

Established in London in 1848, Prudential plc, through its businesses in the UK and
Europe, the US and Asia, provides retail financial services products and services to
more than 16 million customers, policyholder and unit holders worldwide. As of June
30, 2004, the company had over US$300 billion in funds under management.
Prudential has brought to market an integrated range of financial services products

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 that now includes life assurance, pensions, mutual funds, banking, investment
management and general insurance. In Asia, Prudential is the leading European life
insurance company with a vast network of 24 life and mutual fund operations in
twelve countries - China, Hong Kong, India, Indonesia, Japan, Korea, Malaysia, the
Philippines, Singapore, Taiwan, Thailand and Vietnam.

FY05 ICICI Prudential Life Insurance premium income up 77% in

- Maintains high growth rates into fourth year of business -

Mumbai; April 12, 2005:ICICI Prudential Life Insurance, India's No. 1 private life insurance company, has
maintained its high growth rate well into its fourth complete year of business, closing the financial year ended March
31, 2005, with annualized premium of Rs 1256 crore. Having issued a total of 614,519 policies in the year, the
company's total number of policies is now 1.4 million and its total sum assured now exceeds Rs 30,000 crore. New
business premium has seen an impressive growth to cross Rs 1,500 crore, double that of last year.

Business highlights for the year include: 1) 770 claims have been settled during the period; 90% of them within 8
days of receiving all documentation. 2) Renewal premium up 226% to Rs 780 crore. This is now 49% of the new
business premium. 3) Average premium rises 31% to Rs 24,000 (excluding rural business). 4) Group business
contribution up 1100% to Rs 111 cr; 2nd highest market share in the segment (amongst private companies). 5)
Crossed the 1 million total policies mark and the 200,000 rural policies mark. 6) Market share amongst private life
insurers for retail business stands at 36% for the period April '04 to February '05; and 7% of the total market.

Commenting on the annual performance, Ms Shikha Sharma, CEO & MD, ICICI Prudential Life Insurance, said 'The
continued success of the business is on the back of a strategy that drives both value and volume growth. This has
been accomplished by expanding distribution to get closer to the customer, offering him products that he/she needs
and is willing to invest in over the medium-to-long-term, sound back-office and risk-management practices and
scientific fund management practices'.

ICICI Prudential has implemented quality programs across several customer-facing processes ever since it began
operations. This has resulted in meeting defined turnaround times on 93% of occasions, and has resulted in significant
benefits for customers of core processes such as policy issuance. The company has grown to 107 branches across 74
locations, and has an advisor strength of 56,000. With its seven bank partners and 150 corporate agents and brokers,
its reach increases exponentially. The company offers a range of 27 products that span traditional and ULIP across the
categories of protection, child, endowment, capital guarantee, pension and group solutions.

'The focus for the next few years is pursue profitability by continuing to build scale through a robust and healthy
portfolio', Ms Sharma continued. Despite its large base, ICICI Prudential has maintained its high rate of growth, clearly
making it the leading private insurance company with a business more than twice that of its closest competitor.

The last quarter (Q405) was the most successful for the company, in which it posted an annualised premium of Rs 590
crore and issued about 267,000 policies.

About ICICI Prudential Life Insurance

ICICI Prudential Life Insurance Company is a joint venture between ICICI Bank and Prudential plc. It was one of the
first players to commence operations when the insurance industry was opened to the private sector in 2000. In the
financial year ended March 31, 2005, the company garnered Rs 1584 crore of new business premium for a total sum
assured of Rs 13,780 crore and wrote nearly 615,000 policies. The company has a network of about 56,000 advisors;
as well as 7 bancassurance and 150 corporate agent tie-ups. For the past four years, ICICI Prudential has retained its
position as the No. 1 private life insurer in the country, with a wide range of flexible products that meet the needs of
the Indian customer at every step in life. To know more about the company, please visit www.iciciprulife.com

Except for the historical information contained herein, statements in this release which contain words or phrases such
as 'will', 'would', 'aim', 'will likely result', 'believe', 'expect', 'will continue', 'anticipate', ''estimate', 'intend', 'plan',
'contemplate', 'seek to', 'future', 'objectives', 'goals', 'project', 'should', 'will pursue', and similar expressions or
variations of such expressions may constitute 'forward looking statements'. These forward-looking statements involve
a number of risks, uncertainties and other factors that could cause actual results to differ materially from those
suggested by the forward-looking statements. These risks and uncertainties include, but are not limited to ICICI
Bank's ability to successfully implement its strategy in the field of insurance, our growth and expansion, technological
changes, investment income, cash flow projections, our exposure to market risks as well as the other risks detailed in
the reports filed by ICICI Bank (joint promoters of ICICI-Prudential Life Insurance Company Limited) with the

125
Securities and Exchange Commission of the United States. ICICI Bank undertakes no obligation to update forward-
looking statements to reflect events or circumstances after the date thereof.

For further information, please contact:

Jabeen Vasi
Corporate Communications Manager, ICICI Prudential Life Insurance Company, Mumbai
Tel: (022) 56621846 Email: jabeen.vasi@iciciprulife.com

ICICI Prudential Life Insurance increases capital base by Rs 100 crore

Mumbai; February 9, 2005

Paid-up capital up to Rs 925 crore

ICICI Prudential Life Insurance Company, India's number one private life insurer, has increased its capital base by Rs
100 crore, taking its total paid-up equity capital to Rs 925 crore. This is the eleventh equity hike since the company
was incorporated in December 2000. The two partners, ICICI Bank and Prudential plc, have been issued 10 crore
equity shares of Rs 10 each, in their existing proportions of 74:26 respectively. The authorized capital of the company
stands at Rs 1200 crore. ICICI Prudential continues to have the highest capital base amongst all life insurers in the
country.

'The past year has been our most successful yet, with the company growing at triple digit rates despite its huge base
of over one million policies. It is heartening that both our promoters are willing to continually invest the resources
necessary for ICICI Prudential to maintain a healthy growth rate as it strives to be the leader of the modern life
insurance business in India' said Ms Shikha Sharma, Managing Director and CEO, ICICI Prudential Life Insurance
Company.

The size and scale of the business, as it stands today is an important success factor for ICICI Prudential and the
company hopes to continue its expansion in the months and years to come. The company grew nearly 127% in April-
December 2004 over the same period last year, to notch up a new business received premium of over Rs 860 crore.
The company has a presence in 80 locations, the most recent additions being Durgapur, Guwahati and Vapi. In
December 2004, ICICI Prudential?s total market share amongst private life insurers stood at 31%, and its share in the
retail business was 35%. Its total market share for the same period is 9.2%.

The additional capital will be used to meet capital adequacy norms as stipulated by the regulator, and will fund the
high up-front expenses typical to a life insurance business, and expansion plans such as opening new branches. In the
life insurance business, a number of expenses are incurred up-front, but the revenue, in the form of premia, flows
over a 10-15 year time frame.

The Hindu Business Line: February 26, 2004

Poornima Mohandas

GUESS what has come with the dabba today, not the run-of-the-mill sachet of digestive to follow the heavy lunch;
strung on to the rusty handle is a mailer from an insurance company to sell its policy.

With the year-end approaching and tax saving being top of the mind recall for the average Indian, the financial
intermediary is adopting marketing practices that are distinctive of the FMCG sector.

ICICI Prudential Life Insurance is piggyback riding on `dabbawallahs'' distribution network, which delivers 2 lakh
lunchboxes to office-goers every noon in the metropolis.

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Said Mr Abhishek Bhatia, Marketing Manager, ICICI Prudential Life Insurance, 'We wanted to reach out to the
customer through a channel that is not cluttered unlike TV and radio where he sees/hears messages from 300 other
companies. It''s an age of micro marketing where we try to understand the local medium. We sent out about 50,000
direct mailers on a pilot basis to the areas of Churchgate, Bandra and Andheri where maximum offices are located.''''

The glossy envelope with a bitten red apple on the front is strung on to the rusty, metal handle of the dabba. The
mailer inside plays to the sentiment of the conscientious tax-planner with the opening line, `Yes! I want to save more
tax and add to my retirement savings.''

One is asked to fill up and mail a form giving contact details and a convenient time and date for the company''s
financial services consultant to come for a meeting.

On a broader platform, the company sends out mailers to customers of Dominoes Pizza and BPCL loyalty card-holders
in select cities across the country.

Even the competitors laud the innovative effort. Says the Communications Manager of SBI Life, Mr Pradeep Pandey,
'Insurance companies are attempting to demystify themselves and create brand awareness.''''

'The dabbawallah network is a good way to reach out to potential customers, but the success depends on how suitable
the audience is and the cost associated with it. The whole advantage of direct mailers is the minimal cost associated
with it. 'Even if 4-5 per cent of the mail receipts turn into policyholders, it would compare to international best ratios in
the sphere of direct marketing initiatives.''''

Messages from financial intermediaries seem to be taking a less sober tone these days with HDFC Bank running a TV
campaign on a lighter note and ICICI Prudential having a cartoon character, `Chinta Mani'' in its advertisement.

'There is no need to make financial products seem serious and morbid. We are trying to break the mould,'''' said Mr
Bhatia.

Muthoot crosses Rs 10 crore premium income for ICICI Prudential Life Insurance

Kochi; November 29, 2004

Muthoot crosses Rs 10 crore premium income for ICICI Prudential

Life Insurance

ICICI Prudential Life Insurance today announced that Emgee Muthoot, the Insurance division of the Muthoot group,
one of Kerala's largest banking and financial services groups, has crossed the Rs 10 crore premium mark in a span of
less than three years. Emgee Muthoot, which began distributing ICICI Prudential's life insurance products under the
corporate agency relationship, has also emerged as ICICI Pru's largest non- bank partnership in the state.

ICICI Prudential Life Insurance pioneered the multi-channel distribution strategy in the country, and Kerala has
emerged as one of its most successful examples of this model. The company has tied up with leading banks in the
state, like Federal Bank and The South Indian Bank, as well as some other strong retail financial services distributors
such as Emgee Muthoot. Each of these are key partners in ICICI Prudential's alternate distribution strategy and
contribute greatly to the company's business as well as awareness levels and customer experience. Speaking at the
event, Ms Shikha Sharma, CEO & MD, ICICI Prudential Life Insurance said, ''It's been wonderful to see the evolution of
Emgee Muthoot into a diversified financial services company. Ever since they decided to become corporate agents and
distribute our life insurance products in February 2002, they have made huge strides in training and developing their
workforce to sell a complex product like life insurance, and deliver value to their customers. I believe that it is thanks

127
to these efforts that they are today not only our leading corporate agent in Kerala, but the second largest in the
country''.

Mr. George Alexander Muthoot, Managing Director, the Muthoot group, said ''A few years ago, we took a strategic
decision to leverage our extensive branch network and thereby expand the scope of the services we offer our
customers. Our partnership with ICICI Prudential has been fantastic, and today life insurance has become a core
business for us. I believe that the success of this relationship has been founded on our shared values and mission to
deliver a superior experience to our customers''.

Emgee Muthoot is one of the most successful corporate agents for ICICI Prudential, and has been one of the
frontrunners in the company's Partner Program, an initiative to strengthen relationships with key partners. The group's
strategic move towards a branch model of distribution in mid-2003 served as a catalyst for the group's life insurance
foray, and the company has earned over Rs 5 crore in premium income since the beginning of this financial year
alone.

ICICI Prudential's early start and continued focus on alternate channels, which include bank tie-ups, corporate agents
and brokers, has resulted in these channels contributing nearly 30% of ICICI Prudential's new business. Currently,
ICICI Prudential has 7 bank relationships and over 150 corporate agency and broker tie-ups.

ICICI Prudential clocks growth of 169% in H1 of FY05

Mumbai; October 20, 2004

Garners new business premium of Rs 498 crore

ICICI Prudential Life Insurance, the leading private life insurer in the country, has maintained its momentum into the
first half of the current year. The company has garnered Rs 498 crore of new business premium in the period April-
September 2004, clocking a growth of 169% in over the same period last year. The company wrote over 214,000
policies in this period for a total sum assured of over Rs 6,400 crore, an increase of more than 100,000 policies over
what it had written in the same half of FY04.

Of the Rs 498 crore premium income, Rs 268 crore was earned in the second quarter (July-Sept 2004), a growth of
133% over the same quarter in the previous year.

''Over the past four years, ICICI Prudential has retained its position as a leader amongst the private life insurers. We
believe that scale in terms of reach, channels and product portfolio is extremely critical to the success of the life
insurance business. At the same time, we have ensured that this growth is built on a foundation of a strong brand,
sound processes, positive customer experience and robust risk and investment management'', said Ms Shikha
Sharma, CEO & MD, ICICI Prudential Life Insurance.

ICICI Prudential recently became the first private life insurer to cross the one million-policy milestone. The company's
market share amongst private life insurers for the period April-August 2005 stands at 32%, and its share in the retail
business stands at 34%. Its total market share for the same period is 5.6%.

Unit-linked plans, in all their forms - retirement, child, savings and investment continue to be the most popular
products, contributing 87% new business (annualized premium) in the first half of the year. The company recently
launched Premier Life, a limited premium paying market-linked product that offers the life assured safety and security
for a longer period of time.

The company has grown to 69 locations in the past quarter, only recently adding Bareilly, Faridabad, Gwalior, Salem,
Varanasi and Vapi to its distribution network. Its total branch network stands at 90 branches

Chris Cairns conducts ICICI Prudential’s cricket clinic

Mumbai; October 19, 2004

Chris Cairns conducts ICICI Prudential's cricket clinic

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More than two hundred budding young cricketers between the ages 7-15 had a great time at ICICI Pru's Smart Kid
Cricket Clinic as they spent several hours with Chris Cairns, the ace cricketer from New Zealand. The well-known all-
rounder shared his bowling and batting tips with children hailing from various cricketing academies at a coaching
session held at P J Hindu Gymkhana on Marine Drive, Mumbai.

Chris Cairns who has taken more than 200 test wickets as a pace bowler for New Zealand and scored over 3000 runs
as a batsman told the children to be disciplined and focused on achieving set goals in their lives to become good
human beings and sportsmen.

Speaking at the occasion, Mr. Cairns said, ''ICICI Pru Smart Kid's initiative of having a Cricket Clinic is a wonderful
way to nurture the young talent in this country. It's been fantastic to see the enthusiasm and the skill that these
children have displayed for the game of cricket. Children should have the opportunity at a young age to hone their
skills beyond the classroom, and the ICICI Pru Smart Kid Cricket clinic helps them to do just this. Indian cricket
already has a number of role models and I am sure some of these children will one day make it big at the domestic
and at the international level.''

Abhishek Bhatia, Head - Marketing, ICICI Prudential Life Insurance said, ''We seek out opportunities to engage with
children on different platforms, and a cricket clinic by Chris Cairns has a wonderful fit with Smart Kid's proposition of
furthering education and all-round development. This cricket clinic is a chance for India''s emerging cricket talent to
get some tips from one of the world's finest crickets, and we're happy to bring them this event.''

ICICI Prudential is the leading private life insurer in India. The company offers a complete range of products to meet
varying needs of individuals, ranging from highly flexible policies designed to guarantee a child's education, to life
assurance to retirement solutions. The company recently crossed the one million-policy mark, becoming the first
private life insurer to achieve this landmark. ICICI Prudential's total market share amongst private life insurers for the
period April-August 2005 stands at 32%, and its share in the retail business stands at 34%. Its total market share for
the same period is 5.6%.

CEO’s Desk
The last year has been our finest thus far, and I’d like to thank you for the faith you have placed in us.
Our company has grown 77% in the past year and we’re proud to have been given the opportunity to
secure the families of 1.4 million Indians, retaining us our position of leading private life insurer in the
country.

Because the life insurance business is one of scale and reach, being insured with the largest private life
insurer means greater dependability for you. As part of the growing ICICI Prudential family, you are
assured of the widest and most competitive range of products and world-class investment and risk
management practices. One of our major focus areas over the past few years has been to enhance the
service levels we offer you. We have implemented the Six Sigma methodology across several customer-
facing processes, which has resulted in significant improvements, such as issuance of your policy
documents within 10 days and settling claims in an average of just 7 days. You can look forward to
greater improvements in some key areas in the months ahead.

Taking your feedback, we’ve introduced Ensure – a revamped version of our quarterly communication to
you. I hope you find this issue useful and thought-provoking. Do read through the article in the
Knowledge Power section - it’s on a topic that plagues all us parents persistently – planning for our
child’s education!

Best wishes for a safe, secure and rewarding year ahead.

Warm wishes,

Shikha Sharma

Equity
Company Industry % Net

129
 Assets
FINANCE 14.74%
STATE BANK OF INDIA 4.83%
HDFC BANK 4.19%
HDFC LIMITED 2.96%
UTI BANK 1.85%
PUNJAB NATIONAL BANK 0.66%
ORIENTAL BANK OF COMM 0.26%
OIL & GAS 13.75%
ONGC CORPORATION LTD 4.56%
BHARAT PETROLEUM CORP LTD 3.14%
HPCL 2.81%
GAS AUTHORITY OF INDIA 2.10%
INDIAN OIL CORPORATION LIMITED 0.84%
CHENNAI PETROLEUM CORPORATION LTD 0.30%
METALS 10.46%
TATA IRON & STEEL COMPANY LIMITED 6.31%
HINDALCO INDUSTRIES LIMITED 3.64%

NATIONAL ALLUMINIUM COMPANY LIMITED 0.52%

SOFTWARE 8.56%
INFOSYS TECHNOLOGIES LTD 6.75%
TATA CONSULTANCY SERVICES LTD 1.23%
WIPRO LIMITED 0.57%
CAPITAL GOODS 5.60%
BHARAT HEAVY ELECTRICALS LIMITED 4.16%
LARSEN AND TOUBRO LIMITED 0.83%
ASEA BROWN BOVERI LIMITED 0.60%
CHEMICALS 5.28%
RELIANCE INDUSTRIES LIMITED 5.28%
FMCG 4.64%
ITC LTD. 3.46%
MARICO INDUSTRIES LTD. 0.42%
COLGATE PALMOLIVE INDIA LIMITED 0.39%
PROCTER & GAMBLE HYG. & HEALTH LTD 0.37%
TELECOM & MEDIA 4.54%
BHARATI TELE VENTURES LTD. 4.54%
CEMENT &
CONGLOMERATES
4.24%

ASSOCIATED CEMENT COMPANIES LIMITED 1.60%

GRASIM INDUSTRIES LTD 1.59%
GUJARAT AMBUJA CEMENTS LIMITED 1.05%

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 PHARMACEUTICAL 3.87%
SUN PHARMA LTD 2.01%
CIPLA LTD 1.58%
RANBAXY LABORATORIES LTD. 0.28%
MISCELLANEOUS 2.35%
G.E.SHIPPING 1.73%
CENTURY TEXTILES LIMITED 0.62%
AUTOMOBILES 2.27%
MAHINDRA & MAHINDRA LTD 1.76%
PUNJAB TRACTORS LTD. 0.51%
AIRLINES 2.08%
JET AIRWAYS INDIA LTD 2.08%
Total 82.39%

Debentures / Bonds
% Net
Company Ratings
Assets
INDIAN RAILWAY FINANCE CORPORATION AAA 6.12%
HDFC AAA 5.15%
RELIANCE INDUSTRIES AAA 4.87%
GE CAPITAL AAA 4.04%
RURAL ELECTRIFICATION CORPORATION AAA 4.00%
POWER FINANCE CORPORATION AAA 3.62%
EXIM BANK AAA 2.89%
HINDALCO AAA 2.35%
BHARAT HEAVY ELECTRICALS AAA 2.20%
CITIFINANCIAL CONSUMER AAA 1.67%
GRASIM INDUSTRIES AAA 1.06%
ICICI BANK PTC AAA 0.71%
IDFC AAA 0.64%
BHARAT PETROLEUM CORPORATION AAA 0.64%
NATIONAL THERMAL POWER CORPORATION AAA 0.38%
SBI AAA 0.33%
NABARD AAA 0.05%
UTI BANK A1+ 0.71%
KOTAK MAHINDRA BANK A1+ 0.51%
STANDARD CHARTERED INVESTMENTS & LOANS P1+ 6.16%
NATIONAL HOUSING BANK P1+ 1.75%
CITICORP FINANCE INDIA P1+ 1.27%
SUNDARAM FINANCE P1+ 0.53%
IDBI AA+ 5.19%

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GUJARAT AMBUJA CEMENT AA+ 0.53%
IPCL AA 0.36%

Total 57.70%

Making Headlines

In The Spotlight

Instant info at your fingertips

Now ICICI Pru unit-linked policyholders can check out the NAVs of their funds through the interactive
voice response system at any time. Just dial the call centre number, and select '4' to know the most
recent calculated value of a unit of your chosen fund. For those looking for their specific policy value, the
website is just a click away.

At your service far and wide

Our distribution network continues to expand! ICICI Pru recently began operations in Simla, Anand and
Mehsana to take its total spread to 74 cities and towns across the country. Coupled with the networks of
our bank and corporate agent partners, it is clearly one of the widest networks amongst private life
insurers.

Claims Process

Our claims process is

1. Handled personally
2. Easy to understand
3. Flexible enough for speedy decisions
4. Simple documentation
We have a 4 step claim process
1. Claimant to intimate to ICICI Prudential about the claim
2. ICICI Prudential to help the claimant to complete the documentation
3. Claimant to submit the required documents
4. ICICI Prudential to take decision on the claim.

Documentation

Standard documents required for claim processing

Written intimation of the claim

Original policy document
Death Certificate/ Hospital certificates
Claimant's statement with Discharge form.

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Depending on the facts and circumstances of the claim, the company may request for some additional
documents.

Forms

The forms below will help you file a claim.

Critical Illness / Major Surgical Assistance intimation

Death claim intimation
Claimant's Statement (Accidental death claim)
Claimant's Statement (Non-Accidental death claim)

Basic Business Definitions

Key Business Measures 2

Stages in Policy Issuances 3

Distribution Channels 4

Product Segments 5

Other Policy Related Terminologies 6

About Management Reports 9

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Key Business Measures

1) APE : Annualised Premium Equivalent

APE is the basic measure used to judge Organizational performance. Some other
nomenclatures for APE are WAPI, Weighted API, and Weighted Sales.

APE = Annualized Regular premium + 10 % of Single Premium.

Annualised Regular Premium = Premium Amt * Billing Frequency.

E.g.: A monthly mode policy taken in September 2004 for which premium is Rs 10,000
pm.
The APE in this case will be = 10000*12 = Rs 1, 20,000/-.

Single Premium Policy as the name goes is one for which the premium is paid only
once. If the Premium is taken as the total amount, it will show an uneven picture. Hence,
Single Premium business is calculated at 10% during the computation of APE.

Topup is an additional amount of premium that is paid by the customer voluntarily. It is

treated at par with SP and 10 % of Topup is added to the APE to arrive at the TOTAL
APE.

2) Sum Assured
Sum Assured is the amount of money for which the Insurance is taken. Pension
products like Lifetime Pension, Lifelink Pension & Secure Plus Pension could have zero
death benefit.

3) Average Premium
Average premium is the average size of the Policy in terms of Premium
Average Premium = Total APE
Total No of Policies

4) Activity Ratio
It is a Key Performance Indicator which measures the efficiency of the Sales Team. It is
calculated as under

Activity Ratio = Active Agents for the period

Total Agents at the beginning of that period

*Active agent is one who has sourced at least one policy in the period under
consideration.

5) Productivity
Productivity is the no of cases per active agent.
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 Productivity = Total Cases
No of active Agents

Stages In Policy Issuance

6) Proposal
A Proposal Stage is the First stage before the policy is issued at COPS. At this stage, the
application form is received by COPS, but it is pending for issuance due to further
clarifications required from the customer.

7) Login
A proposal which is complete i.e., duly filled with all necessary documents attached to
it & accepted by the Branch ops, is called a Login

8) Reject
An Application gets rejected at the Branch Ops level due to necessary details not filled
in the form or necessary documents not submitted is a Reject. It is then sent back to the
Advisor for completion.

9) Issuance
Issuance means a policy that is issued to the Customer by Central Ops.

10) Decline Status

When a customer refuses to take a policy post login but before Issuance is called a
Decline

11) Cancellation
When the cheque given by the customer bounces, it amounts to cancellation of the
policy.

12) Lapse
A policy for which the Customer fails to pay subsequent premiums is a Lapsed Policy.

13) Freelook
Post issuance of the policy, the policyholder has the option to turn down the policy
within 15 days from the date of issuance. This period of 15 days is called Freelook Period.

14) Surrender
When a customer wants to discontinue with the policy it is called Surrender.

135
 Distribution Channels
15) Tied Agency Channel
The Tied Agency Channel, as the name suggests, is driven by agents (advisors) of the
company. For insurance distribution, this is the most popular channel. This channel
sourced 73% of ICICI Prudential’s business in FY 2004.

16) Bancassurance
Bancassurance is a setup whereby a tie up is made with a Bank. This distribution
model works on referral basis. The Insurance Company is benefited by the customer
base of the bank that is made available to it. The bank, in return earns referral
commission for every policy issued to the bank customer. In this arrangement,
typically an employee of the ICICI Prudential is stationed at the bank branch and he
sources the business through walk-ins that happen at the bank. His domain of
prospective customers is the banks’ customers. Such agents put up at banks are called
as Financial Service Consultant (FSC). Bancassurance, as an arrangement for
distribution, has been proved successful because of the extended reach that the
insurance company gets through the bank branch network.

17) Corporate Agents

Corporate Agents (CAs) are Corporate entities that source policies for the Insurance
Company with whom they have a tie-up. They are authorized to source policies for one
insurance company only. The difference between CA & Bancassurance arrangement is that
the former trains its own employees to sell the policies while in case of Bancassurance
arrangement, the employees of the insurance company (FSCs) source the business.

18) Brokers
A variant of CAs, Brokers are not tied to a particular company and are allowed to
source business for more than one insurance company.

19) Direct Marketing

Direct marketing, as a channel of distribution, is relatively a new one. It basically
encompasses all unconventional channels of distribution. Inter alia, it includes call center,
internet and other mass media channels. All leads that come through this channel are then
attended and closed by our branches.

20) Advisor
An Advisor is the agent of the Company who sources or sells the policy for the
company. They are called as FOS - Feet on Street.

136
Product Segments

21) Linked Products

As the name suggests, the premium received on these products post mortality charges &
admin charges is invested in Funds .These products are directly linked to the performance of
underlying fund. E.g.: Lifetime, LifeLink.

22) Pension Products

A Pension Product is one which provides for retirement benefits i.e., pensions,
annuities.

23) Universal Life Products

Universal Life Products are products wherein the capital amount invested in the
Insurance plan is guaranteed.
E.g.: Secure Plus, Cash Plus etc

24) Participating
Participating products are the ones that ‘participate’ in the profits of the company.
Hence, in a particular period if the company does not do well, the Vested Bonuses
(VB) gets directly affected. E.g.: CashBak, Smartkid RP, Save n Protect RP.

25) Non Participating

These are products which do not enjoy participation in the profits of the company i.e.,
no Guaranteed additions or Vested Bonuses.
Eg: Lifeguard

26) Rural Products

Rural Products are customized to the requirements of the rural sector. It’s a regulatory
obligation on every insurance company to source a certain percentage of the business from
the rural sector. ICICI Prudential has Mitr, Suraksha as its rural products.

27) Group Products

A Group Policy as the name suggests is a Policy which covers a group of people .e.g.
a Policy taken by the organization which covers all the Employees.

Other Policy Related Terminologies

28) Jet Cases

For Every Insurance cases there are certain medical tests required to warrant the fitness
of the assured (person on whose life the Insurance policy is taken). But if the assured already
fulfils certain set criteria, then an insurance policy can be issued to him even without a
medical test. These criteria are called the Jet Criteria (J1 & J2) and such cases are called Jet
Cases.

137
 29) Non Jet Cases
All the cases which do not fall within the set criteria defined as the Jet cases are called
Non Jet Cases, these mandatory needs to undergo the medical examination/s.

30) Life Cover

Life cover is the part on which the cost of insurance is charged, the cost of insurance
here is the mortality cost. Life cover at any point of time during the tenure of the policy is;

Life Cover = Sum Assured at that point of time – Value of units at that point of time.

31) Extended Life Cover

After the maturity of the plan the policy holder is provided free cover for 50% of the
basic sum assured that he had taken, for the next 5 yrs. This Unique Benefit is called
Extended life Cover. Applicable to policies such as Save ‘n’ Protect, Life Guard ROP.

32) Death Benefits

Benefits paid in a Life Insurance Policy or an Annuity plan with Life cover in the
event of the life assured passing away during the term.

33) Life Assured (LA)

Person who is assured under the plan.

34) Vested Bonuses

Bonuses that have accrued over the term of the plan in a ‘with profits’ plan.

35) Purchase Price

The accumulation of money in a deferred annuity plan.

36) Guaranteed Additions

Guaranteed Additions are the ones that the insurer adds to the Sum Assured.

37) Prospect
Individual that has the potential to purchase a life policy – i.e. age, health and money.

38) Proposer
138
 The person who buys the policy i.e. proposer and life assured can be the same person or
different – but should fulfill the principle of Insurable interest.

39) Annuitant
The Policyholder who has a pension / annuity plan.

40) Nominee
The custodian to the claim – may or may not be the rightful owner to the claim money.

41) Claimant
The person who makes the claim

42) Beneficiary
The rightful successor to the claim.

43) Rider
Riders are features attachable with a main policy which provides added protection
against specific risks at little extra cost
E.g. Critical Illness Benefit Rider, Major Surgical Assistance Rider

44) Underwriting.
Underwriting is a process of estimation of the risk assumed under a policy. It forms the
basis for the premium charge for a given sum assured.

45) Key Man Insurance

A key man is a person who directly affects the profitability and the continuity of the
business and whose absence will have an adverse impact on the financial health of the
organization. A risk cover taken on the life of such a person by the company is called a Key-
Man Insurance. The Key Man insurance policies help to mitigate the possible financial losses
and ensure business continuity in the absence of the key man.

46) Mortality Charges

Mortality charges are the risk charges that are levied on the life cover part to provide
the protection benefit to the policyholder.

47) Investment Options

139
 In case of Unit Linked Plans the policy holder has the option to invest his contribution
in any of the under mentioned plans depending upon his risk appetite, investment objectives
etc.

Fund Name Asset Mix Potential

Risk Reward
a) Maximiser Equity & Related Sec. Max 100 % High
Debt, Money Mkt & Cash Max 25%
b) Balancer Equity & Related Sec. Max 40 % Average
Debt, Money Mkt & Cash Min 60%
c) Protector Debt Instruments Max 100 % Moderate
Money Market & Cash Max 25 %
d) Preserver Debt Instruments Max 50 % Low
Money Market & Cash Min 50 %

Some Basic Principles underlying Management Reports

1) All Data reflected in the Reports relates to New Business only.

2) All Figures are in APE (INR Millions unless otherwise mentioned)

3) Also for all above computations the Policy Status taken into account is
 In Force
 Policies on which claims have been filed.
 Lapsed cases
 Paid Up cases.

Policy status excluded – Withdrawn WD

Cancelled CF
Declined DC
Freelook FL
Postponed PO
Underwriting UW
Proposal Stage PS

4) Management Reports show Group & Rural Business Data Separately

For feedback & suggestions, please get in touch with:

Narendra Ganpule
Manager – MIS
ICICI Prudential Life Insurance Company Ltd.
ICICI PruLife Towers
Prabhadevi
140
Mumbai – 400 025.
Tel: 022 – 5662 1750.
Email: narendra.ganpule@iciciprulife.com

References:

1) www.iciciprulife.com
2) www.einsuranceprofessional.com
3) www.bimaonline.com
4) www.ciionline.org
5) www.mindbranch.com
6) www.irdaindia.com
7) Life Insurance Management (courseware M.B.A Insurance) ICFAI Business
School.
8) ICFAI Insurance Journals
9) Consumer Behavior – Leon G Shissman
10)Services Marketing – Adlarian Palmer

141