INTRODUCTION OF BANCASSURANCE

Bancassurance symbolizes the convergence of banking and insurance. It involves

distribution of insurance products through a bank’s branch network. The
bancassurance, with the potential to redefine the ways in which insurance products are
sold, has developed into tremendous success story in Europe. However, it is gradually
gaining ground in India.

The growth story of the banking sector for the obvious reasons of a
zooming economy, expanding middle class and the vast branch network, is unlikely to
be matched by any banking industry across the emerging market economics. However
the growth prospects have also led to intense competition in the Indian banking
industry. The problem with the bank is that most of them operate on similar business
models where products and prices among competitors are close substitutes. One of the
biggest challenges that the managers of the bank confront is attracting customers and
sustaining growth. Traditional bases for differentiation, such as product features or cost,
are becoming less tangible. Therefore a bank’s management is forced to look out for
new ways to attract new customers and simultaneously retain the existing ones, besides
boosting their bottom line. With the interest income coming under pressure, banks are
expanding fee-based income activities such as marketing of insurance policies and
mutual funds, wealth management for High Net Worth Individuals (HNWIs) and equity
trading. These are indeed proving to be more profitable for banks than basic activities
like lending and borrowing. Bancassurance and selling of mutual funds are the most
tapped business opportunities by the bankers today.

The Indian bancassurance industry has revealed its true

potential only after liberalization. With the opening up of the insurance sector and so
many players entering the Indian insurance industry, the insurance companies are
compelled to come up with innovative products, create more consumer awareness about
their products and offer them at a competitive price. The Indian insurance market
provides untapped potential of about 30 crore lives with insurable interest outside the
insurance cover. Besides life insurance, the increasing levels of income and consequent

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expansion in assets provide a huge scope for general insurance. To reach such a huge
untapped market, insurance companies need a wide and trustworthy network. While the
old giants such as Life Insurance Corporation of India and other government owned
general insurance companies have a good network, maintaining and managing such
network, is definitely a daunting task for the new entrants. Even the old sectors biggies
are now looking to supplement their distribution channels in response to the
competitive forces prevailing in the Indian insurance market.

It is an established fact that insurance is a

business of faith and solicitation. In India, banks continue to command the highest trust
among all the financial sector players as out of the total pool of financial savings of
households, the largest share goes to bank deposits. In addition, a huge network of
69417 bank branches comprising 30,776 rural branches, 15370 semi-urban branches
and 23,271 urban and metropolitan branches is virtually impossible to replicate and will
be indispensable in penetrating novel segments such as rural markets. As such,
bancassurance, as a business proposition, has the potential for generating synergic
benefits both for bankers as well as insurers. While it boosts the bank’s bottom lines, it
also leads to a significant lowering of distribution costs for insurance, besides opening
new horizons for further expansion and growth. Bancassurance addresses the twin
objectives of portfolio diversification by retail customers and synergic integration of
marketing management of banks and insurance companies. If taken in a right spirit
and implemented properly, this can be a win-win situation for all the participants,
viz. banks, insurers and the customers.

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Incentives To Banks
Bancassurance means a major gain for the banks. While it is a source of additional
income for them, it also helps them in enhancing employee productivity with additional
business. Distribution of insurance products through banking channels helps them to
add more customers while providing additional services to the existing ones. For a
common man, his banker is still the best financial consultant and this trust provides a
unique advantage to the banks in distribution of insurance products as well as other
investment instruments such as mutual funds or even unit-linked insurance plans as a
combination of insurance and mutual fund products. A bank providing a whole range of
financial services definitely stands a better chance to attract more customers and
increase revenue. Cost reduction as a corollary to the rise in the number of policies sold
per employee is an obvious benefit that the banks derive from enhanced customer
access fostered by the bancassurance.

Incentives To Insurance Companies

For insurers, the biggest benefit is the huge and trusted banking network without any
administrative hassles for maintaining such network. Insurance not being an off-the-
shelf product requires personal counseling and persuasion. Hence, distribution poses a
major challenge for the insurance companies. Further, the vast untapped insurable
interests spread all over the country makes the traditional channels of the insurance
distribution uneconomical. The increasing competition has made it impossible for the
insurers to enjoy the flexibility of incurring heavy distribution expenses and passing
them to the customer in the form of high premiums. As such, the far and wide reach of
the banking network provides the most obvious and economical distribution alternative.
In addition, insurers also get the benefit of customer database like customers’ financial
standing, spending habits, investment and purchasing capability, which can be used to
customize products and sell accordingly. Since the banks already have an established
relationship with their customers, conversion ratio of leads to sales is also likely to be
high. Further, service aspect can also be tackled easily.

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Advantages To Customers

Retail saving choice is becoming increasingly complex at the international level and
India is no exception. There is a growing need for better instruments and diversified
avenues of investment with minimal transaction costs, which are usually associated
with diversification The benefits of the convergence of banking and insurance are
expected to reach the customers in the form of decreased prices and a sound insurance
products. Globally, insurance products are major internments for savings and this likely
to be the case in India too as insurance penetration gathers momentum. Bancassurance
benefits the customers by providing comprehensive financial advisory services such as
banking, personal loans mutual funds etc. So, when banks turn into financial super-
malls, customers stand to benefits the most .Enhanced convenience to the customers in
paying premiums and getting other facilities at his familiar and friendly place of course
an added advantage.

Bancassurance Models
There are various models, (refer box) used independently or in combinations, through
which bancassurance operates internationally:
• Strategic Alliance Model: It involves a simple ‘marketing tip’ between a bank and
the insurance company where the banker assists the insurer in the distribution of
insurance products for some commission. Except for marketing the products, no other
insurance functions are carried out by the bank.

• Integrative Model: Under the integrative model, branch bankers themselves directly
sell insurance products. Banks may also enter into joint ventures with insurance
companies to offer bancassurance products. This requires the bank staff to have a
thorough knowledge of all the insurance products.

• Specialist Model: In this model, specialized personnel who are generally employees
or representatives of the insurance company itself, distribute the products. Bankers
utilize their database to identify prospects who are then contacted by the insurance
professional.

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• Full Integration Model: This arrangement entails a full integration of banking and
insurance services. The bank sells insurance products under its brand, acts as a provider
of financial solutions as per the customer’s needs. The bank controls sales and the
insurance providers, including claims settlement. Under such an arrangement, the bank
has an additional core activity almost similar to that of an insurance company.

• Financial Planning Model: This offers every customer a complete financial

planning package that attends to his or her entire financial concerns. This process is
considered beneficial to the customer, the bank as well as the insurer. This is generally
considered as an extremely useful way to reach a large number of customers.

Conflicts in Bancassurance
Bancassurance, though beneficial to the bankers, insurers and customers, yet, entails
certain potential areas of conflict which must be carefully monitored and addressed
suitably.

Competing Products
In India, insurance is perceived more as a ‘saving product’ rather than as a ‘risk
management product’. This makes an insurer’s products to compete directly with the
deposit products of banks. In such situation, bankers may not find it in their interest to
hard sell insurance products.

Conflicting Interests
Another potential source of conflict arises in a situation where an insurance company is
promoted by an international bank which may also have a non-insurance business
interest in India. This may cause strategic withholding of customer information by the
domestic banking partner of the bancassurance.

Staff Reluctance
For banks, especially the public sector banks, it is very important to manage any staff
unrest due to additional work on account of bancassurance. Lack of knowledge about
nitty-gritty of an insurance product could also be another deterrent.

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Identity Predicament
Developing and promoting brand equity of bancassurance while retaining the unique
identity of the bank is also a matter of conflict. After all for a banker, bancassurance is
primarily a source of additional income and obviously, it cannot become a substitute of
the regular business of the bank. Maintaining an arm’s length relation between a bank’s
regular and insurance business is another difficult issue.

Functional Incongruities
Although banking and insurance are both financial services, yet they are quite different
in terms of systems, procedures, culture and business ethos.

Such difficulties in the convergence of banking and insurance may be resolved by a

high degree of functional co-ordination with suitable institutional mechanism and
business models. Developing appropriate human resource policies to groom the staff to
undertake the addition responsibility is equally important to make the venture
successful.

Making Bancassurance a Success

Given the diverse skills brought together by bankers and insurers to a bancassurance
tie- up, it is expected that the convergence would not be very easy. However, the
potential areas of conflict can be tackled to make the bancassurance successful. The
following points need to be considered for successful implementation of bancassurance:

o The tie-ups must aim at developing innovative products and services rather
than depending upon the traditional methods. Clearly defining and categorizing
products is also important, for instance, a complex unit-linked life insurance
product is better sold through brokers or agents; while a standard term product
or simple products like auto insurance, home loan and accident insurance can
be handled by bank branches.

o There needs to be clarity on the operational activities of the bancassurance i.e., who
will do the branding? Will the insurance company prefer to place persons at the bank

6
 branch, or will the bank branch train and put up its own people, their remuneration,
etc.

o Even though banks are in personal contact with their clients, a high degree of
solicitation, proactive marketing and skills are required to sell the insurance products.
This can be addressed through proper training along with necessary grooming to
manage staff anxiety and unrest.

o Making strategies consistent with bank’s vision, knowledge about targeted customer
needs, defined process for introducing insurance products, simple yet complete needs,
defined process for introducing insurance products, simple yet complete product
offerings, efficient service delivery mechanism, quality administration, extensive and
high-quality training, effective tracing system for reporting on agents’ time and results
of bank referrals, etc, are the essential requirements for a successful bancassurance
activity.

o Another point is handling of the customers. With an increase in the customer

awareness level, they are demanding greater convenience in financial services. Success
of bancassurance also depends to a great extent on customer’s response to the services
offered by the bancassurance. If they appreciate the better services offered by the
bancassurance companies, their business is bound to stabilize and flourish. This is the
single most important issue that will automatically take care of the rest of the things.

The Regulatory Stance in India

The Indian banking and insurance sectors are regulated by two different regulators, i.e,
the Reserve Bank of India (RBI) and Insurance Regulatory and Development Authority
(IRDA) respectively. The bancassurance being the combination of two sectors comes
under the purview of both the regulators. Each of the regulators has given out detailed
guidelines for banks getting into insurance business. A summary of the guidelines are
given below:

RBI Guidelines
The Government of India notification dated August3, 2000, specifying ‘Insurance’ as a
permissible form of business that could be undertaken by banks under Section 6(1) (o)

7
of the Banking Regulation Act, 1949; allowed banks to undertake insurance business
subject to the prior approval of the RBI. The RBI grants permission to the banks on
case-to-case basis keeping in view all relevant factors, including the banks positions
with regard to the level of non-performing assets. It also ensures that risks involved in
insurance business do not contaminated by any risks which may arise from the
insurance business by maintaining an ‘arms length’ relationship between the bank and
insurance outfit.

Although banks are not allowed to undertake insurance business departmentally, yet
some of them, satisfying specified criteria, may be permitted to set up a joint venture
company for undertaking insurance business with risk participation, subject to
safeguards. However, banks need not obtain prior approval of the RBI for engaging in
insurance agency business or referral arrangement without any risk participation,
subject to the following condition:

 The bank should comply with the IRDA regulations for acting as ‘composite
corporate agent’ or making referral arrangement with insurance companies.

 The bank should not adopt any restrictive practice of forcing its customers to
go in only for a particular insurance company in respect of assets financed by
the bank.

 The bank desirous of entering into referral arrangement, besides complying

with IRDA regulations, should also enter into an agreement with the insurance
company concerned for allowing use of its premises and making use of the
existing infrastructure of the bank. The agreement should be for a period not
exceeding three years at the first instance and the bank should have the
discretion to renegotiate the terms depending on its satisfaction with the service
or replace it by another agreement after the initial period. Thereafter, the bank
may sign a longer-term contact with the approval of Government of India in
respect of a public sector bank.

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  As the participation by a bank’s customer in insurance products is purely on a
voluntary basis, it should be stated so in, all publicity material distributed by
the bank in a prominent way. There should be no ‘linkage’ either direct or
indirect between the provisions of banking services offered by the bank to its
customers and use of the insurance products.

 Risks, if any, involved in insurance agency/referral arrangement should not get

transferred to the business of the bank.

Setting up a joint venture company for insurance business with risk participation

Banks which satisfy the eligibility criteria are be permitted to set up a joint venture
company for undertaking insurance business with risk participation. The maximum
equity contribution allowed by a bank in the joint venture is normally 50% of the paid
up capital of the bancassurance company. On a selective basis, the RBI may permit a
higher equity contribution by a promoter bank initially, pending disinvestment of equity
within the prescribed period in compliance with Section 66A of the Insurance Act as
amended by the IRDA Act,l999, for disinvestment of equity in excess of 06% of the
paid-up capital, or any other direction of GOI/IRDA. In cases where a foreign partner
contributes 26% of the equity with the approval of IRDA/Foreign Investment
Promotion Board (FIPB), more than one bank may be allowed to participate in the
equity of insurance joint venture subject to the prescribed eligibility criteria. Further, a
subsidiary of a bank (undertaking merchant banking, securities, mutual hind, leasing
finance, housing finance businesses, etc) is not normally allowed to join the insurance
company on risk participation basis.

Eligibility criteria (to be reckoned as per the latest audited balance sheet):

• The net worth of the bank should not be less than Rs.500 Cr;

• The Capital Adequacy Ratio (CAR) of the bank should not be less than 10%;
• The level of non-performing assets should be reasonable;

9
• The bank should have had net profit for the last three consecutive years:
• The track record of the performance of the subsidiaries, if any, of the concerned bank
should be satisfactory.

Banks which are not eligible as joint venture participants as above, are allowed to make
investments up to 10% of the net-worth of the bank or Rs.50 cr, whichever is lower, in
the insurance company for providing infrastructure and service support. Such
participation is treated as an investment and should be without any contingent liability
for the bank. The eligibility criteria for these banks are the same as mentioned earlier.

IRDA Guidelines

IRDA prescribes that each bank that sells insurance must have a chief insurance
executive to handle all the insurance activities. Commercial banks, including
cooperative banks and regional rural banks, may become corporate agents only for one
insurance company. Prior to the passage of the Insurance (Amendment) Act, 2002, all
the directors of a company wishing to take up a corporate agency (such as a bank) were
technically required to undertake 100 hours of agency training and pass an examination.
This was causing difficulty in the implementation of bancassurance in the country.
Now, only the designated persons within the corporate agency, who will be selling
Insurance products on behalf of the corporate agent, are required to undergo training of
100 hours. However, for certified accountants, actuaries and those possessing Certified
Associate ship of Indian Institute of Bankers (CAIIB), only 50 hours of training is
required. This is to ensure that only well educated and professional bank officers carry
out the financial advisory process. The corporate agents can only receive commission
without any profit-sharing arrangement.

Institute of Bankers (CAIIB), only 50 hours of training is required. This is to ensure

that only well educated and professional bank officers carry out the financial advisory
process. The corporate agents can only receive commission without any profit-sharing
arrangement.

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IRDA guidelines for insurers appointing corporate agents prescribe that:
• Decision to appoint a corporate agent is to be taken by the corporate office of the
insurer. A specially designated officer is to be made responsible for ensuring
compliance from the corporate agent.
• The corporate agent should normally be a company whose principal business would
be other than the distribution of insurance products.

• The corporate agent should not appoint any sub-agent.

• The Chief Insurance Executive and the specified persons are to be the whole-time
employees of the corporate agent (bank) and certification to sell insurance products.
• All the sales support material used by the corporate agent should be approved by the
insurer.
• The corporate agents do not have authority to underwrite the business or settle any
claim.

The guidelines have made the corporate agency form of bancassurance very attractive
for banks. By becoming a corporate agent, a bank does not share risk in the insurance
business and hence, it is good source of revenue without much regulatory hurdles.
Though profit-sharing is not permitted, yet banks can sufficiently supplement their
income with the commission. It also provides an avenue to the banks to get a feel of the
insurance market which may come handy while entering the insurance sector on a
comparatively larger scale through a joint venture.

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 OBJECTIVES OF THE STUDY

The main objectives of this project are as follows:

 To carry out an intricate study of the bancassurance services provided by ICICI

Bank: the project aims at studying the various insurance products and services of
ICICI.
 To know the features of the insurance products and services of ICICI: The project
also aims at studying the features of products and services of ICICI, i.e. the
characteristics of those products.
 To analyze the consumer behavior: finally, the project studies the consumer
behavior relating to bancassurance services of ICICI.

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 RESEARCH METHODOLOGY

Meaning
Research Methodology is a way to systematically solve the research problem. It may be
understood as a science of how research is done scientifically. Under it we study the
various steps that are generally adopted by a researcher in studying his research
problem along with the logic behind them. It is necessary for the researcher to know not
only the research methods/ techniques but also the methodology.

Sample Size
This refers to the number of items to be selected from universe to constitute a sample.
An optimum sample is one, which fulfills the requirements of efficiency, reliability and
flexibility. Sample size for the

ICICI BANK -50 GENERAL CUSTOMERS OF ICICI IN NORTH DELHI

Method of Sampling

Random Sampling

Random sampling refers to that sampling technique in which each and every unit of
population has an equal opportunity of being selected in the sample. In random
sampling which items get selected in the sample is just a matter of chance-personal bias
of the investigation does not influence the selection. In this project, I have used the
method of “Random Sampling”.

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 Mode of Data Collection

Primary Data:

Primary Data is original and first hand information. If you want to get some statistical
information about payment of wages of workers of a factory you as an investigator can
visit the workers’ colony, and get the information by contacting every worker, this first
hand information is the primary data. The most popular and common tool is
questionnaire/interview schedule to collect the data. The questionnaire is managed by
the enumerator, researcher or trained investigators. I have also used questionnaire as the
main method for collecting data. There are various methods for collecting Primary
Data, some of them are:

• Direct Personal Interview

• Indirect Personal Interview
• Information from Correspondents
• Mailed Questionnaire
• Questionnaires filled by Enumerators

Secondary Data

Secondary Data is collected through other sources. Articles, printed magazines and
newspapers help one to collect the required data by reading a piece of news or article in
newspapers I collected the data for my project report. Government Publications, Report
of Committees and Commissions, Articles, Market Reviews and Reports etc also
provide information as secondary data.

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 LIMITATIONS OF STUDY

The Main Limitations Of The Study Are As Follows:

• The most important limitation is that the sample size, which is taken for the study, is
very small i.e. 50 only.

• The area of the analysis is also limited because this analysis is based on these
questionnaires have been answered only by the people of west Delhi.

• Sometimes the people do not provide exact information required

• All the customers were not ready to corporate to fill the Questionnaire.

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 ICICI BANK
ICICI Bank is India’s second-largest bank with total assets of Rs. 3,767.00 billion (US$
96 billion) at December 31, 2007 and profit after tax of Rs. 30.08 billion for the nine
months ended December 31, 2007. ICICI Bank is second amongst all the companies
listed on the Indian stock exchanges in terms of free float market capitalization. The
Bank has a network of about 955 branches and 3,687 ATMs in India and presence in
18 countries. ICICI Bank offers a wide range of banking products and financial services
to corporate and retail customers through a variety of delivery channels and through its
specialized subsidiaries and affiliates in the areas of investment banking, life and non-
life insurance, venture capital and asset management. The Bank currently has
subsidiaries in the United Kingdom, Russia and Canada, branches in Unites States,
Singapore, Bahrain, Hong Kong, Sri Lanka, Qatar and Dubai International Finance
Centre and representative offices in United Arab Emirates, China, South Africa,
Bangladesh, Thailand, Malaysia and Indonesia. Our UK subsidiary has established
branches in Belgium.

ICICI Bank’s equity shares are listed in India on Bombay Stock Exchange and the
National Stock Exchange of India Limited and its American Depositary Receipts
(ADRs) are listed on the New York Stock Exchange (NYSE).

History
ICICI Bank was originally promoted in 1994 by ICICI Limited, an Indian financial
institution, and was its wholly-owned subsidiary. ICICIs shareholding in ICICI Bank
was reduced to 46% through a public offering of shares in India in fiscal 1998, an
equity offering in the form of ADRs listed on the NYSE in fiscal 2000, ICICI Bank’s
acquisition of Bank of Madura Limited in an all-stock amalgamation in fiscal 2001, and
secondary market sales by ICICI to institutional investors in fiscal 2001 and fiscal
2002. ICICI was formed in 1955 at the initiative of the World Bank, the Government of
India and representatives of Indian industry. The principal objective was to create a
development financial institution for providing medium-term and long-term project
financing to Indian businesses. In the 1 990s, ICICI transformed its business from a

16
development financial institution offering only project finance to a diversified financial
services group offering a wide variety of products and services, both directly and
through a number of subsidiaries and affiliates like ICICI Bank. In 1999, ICICI become
the first Indian company and the first bank or financial institution from non-Japan Asia
to be listed on the NYSE.

After consideration of various corporate structuring alternatives in the context of the

emerging competitive scenario in the Indian banking industry, and the move towards
universal banking, the managements of ICICI and ICICI Bank formed the view that the
merger of ICICI with ICICI Bank would be the optimal strategic alternative for both
entities, and would create the optimal legal structure for the ICICI group’s universal
banking strategy. The merger would enhance value for ICICI shareholders through the
merged entity’s access to low-cost deposits, greater opportunities for earning fee-based
income and the ability to participate in the payments system and provide transaction-
banking services. The merger would enhance value for ICICI Bank shareholders
through a large capital base and scale of operations, seamless access to ICICI’s strong
corporate relationships built up over five decades, entry into new business segments,
higher market share in various business segments, particularly fee-based services, and
access to the vast talent pool of ICICI and its subsidiaries. In October 2001, the Boards
of Directors of ICICI and ICICI Bank approved the merger of ICICI and two of its
wholly-owned retail finance subsidiaries, ICICI Personal Financial Services Limited
and ICICI Capital Services Limited, with ICICI Bank. The merger was approved by
shareholders of ICICI and ICICI Bank in January 2002, by the High Court of Gujarat at
Ahmadabad in March 2002, and by the High Court of Judicature at Mumbai and the
Reserve Bank of India iii April 2002. Consequent to the merger, the ICICI group’s
financing and banking operations, both wholesale and retail, have been integrated in a
single entity.

At ICICI Bank, we care about all your needs. Along with Deposit products and Loan
offerings, ICICI Bank assists you to manage your finances by providing various
investment options ranging from ICICI Bank Tax Saving Bonds to Equity Investments
through Initial Public Offers and Investment in Pure Gold.

17
 ICICI BANK and BANCASSURANCE

ICICI BANK has always believed in giving high quality financial services to its
customers. With the offering of various insurance products, the Bank is moving closer
towards its goal of emerging as a financial supermarket, where the customers have a
variety of products to choose from. The uniqueness of bancassuranee is its simplicity &
affordability and is one of the best of its kind in the country.

The bank is thus now offering structured insurance inline with the customer
requirements. And now ICICI BANK has been successful in providing customers a
superior product at competitive rates. Bancassurance provided by ICICI are as follows:

 ICICI Lombard General Insurance Company

 ICICI Prudential Life Insurance Company

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ICICI Lombard General Insurance Company

ICICI Lombard General Insurance Company Limited is a 74:26 joint venture between
ICICI Bank (Limited and the Canada based $ 26 billion Fairfax Financial Holdings
Limited. ICICI Bank is India’s second largest bank; while Fairfax Financial Holdings is
a diversified financial corporate engaged in general insurance, reinsurance, insurance
claims management and investment management. Lombard Canada Ltd, a group
company of Fairfax Financial Holdings Limited, is one of Canada’s oldest property and
casualty insurers. ICICI Lombard General Insurance Company received regulatory
approvals to commence general insurance business in August 2001.

Fairfax
Fairfax Financial Holding Limited is a financial services holding company whose
corporate objective is to achieve a high rate of return on invested capital and build long-
term shareholder value.

It provides services in the area of financial services, general insurance, reinsurance,

insurance claims management and investment management. Fairfax Group is also one
of the shareholders of ICICI Bank Ltd.

Lombard Canada Ltd. has achieved a reputation for providing solid underwriting
performance, diversified books of business and strong capital positions. It has received
an A- rating from A.M. Best Company and claims paying ability received an A+ rating
from
Duff& Phelps Credit Rating Co.
ICICI LOMBARD

Our Bancassurance philosophy

The Company has set up a dedicated SBU to cater to bancassurance business managed
by dedicated teams for each bank partner across all locations to ensure highest levels of
service to the channel and their customers and to provide complete support and value
addition to the bank partners.

19
We are the only company with a dedicated bancassurance distribution channel. Our key
bancassurance partners include ICICI Bank, ABN Amro Bank and Centurion Bank.
We completely respect the partner’s brand and business model and believe that the
customer is “owned” by the partner.

ICICI Bank: ICICI Bank has a network of about 470 branches and extension counters
and over 1,800 ATMs. It offers a wide spectrum of banking products and financial
services to corporate and retail customers through a variety of delivery channels.

ABN Amro: ABN Amro Bank (India) has 81 year long experience in the Indian
business scenario. It ranks among the top 10 banks in the world in size and strength. As
an international bank, it has more than 3,500 branches in over 70 nations across the
globe.

Centurion Bank: Centurion Bank has an extensive network of branches across India.
Each branch has access to Centurion Banks technologies to offer unparallel services to
customers. The Bank will distribute personal and business covers of ICICI Lombard
through its branches, direct sales teams and marketing offices across India.

RANGE OF PRODUCTS OFFERED BY ICICI LOMBARD

1. PERSONAL
2. BUSINESS
3. NRI
4. RURAL

1. PERSONAL

A. HEALTH INSURANCE
B. HOME INSURANCE
C. MOTOR INSURANCE

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A. HEALTH INSURANCE

ICICI Lombard presents a completely new look to the Mediclaim concept. Health
Insurance (popularly known as Mediclaim) offers protection in case of unexpected
medical emergencies. In case of a sudden illness or accident, the health insurance
policy takes care of the hospitalization, medical and other costs incurred.
We offer a range of innovative policies to choose from. Each plan offers something
unique (in addition to the usual mediclaim policies) to suit your specific needs:

Health Plans

a) Critical Care
Lump-sum benefit on diagnosis of Critical Illness/Major Medical Illnesses and
Procedures, Personal Accident and Permanent Total Disablement (PTD)

b) Health Advantage Plus Insurance

A unique policy that covers hospitalization and Outpatient Department Expenses
(including Dental treatment, cost of medicines and drugs) and enables optimum tax
savings of up to Rs. 5099 u/s 80D.

c) Family Floater Plan

A single policy that secures the hospitalization expenses of your entire family

d) Personal Accident Insurance

A Policy that covers personal accident, permanent total disablement (PTD) and loss due
to terrorism.

e) Critical Care Insurance

Critical Care protects you or your spouse against loss of income on diagnosis of any of
the 9 major medical illnesses and procedures. The first of its kind, it offers a lump sum
benefit on diagnosis of Cancer, Bypass Surgery, Heart Attack, Kidney Failure, Major
Organ Transplant, Stroke, Paralysis, Heart Valve Replacement Surgery or Multiple

21
Sclerosis. Critical Care Insurance also provides cover against accidental death and
permanent total disablement (PTD).

f) Accidental Death Cover

In case of death of the insured due to an accident within the policy period, the nominee
(mentioned in the policy) is compensated with the Sum Insured (opted at the time of
policy issuance).

B. HOME INSURANCE
Home Insurance Introduction
—

It is imperative that you secure your home from natural and man-made catastrophes.
Our Home Insurance Plan ensures you peace of mind by protecting the structure and
the contents of your home. You can choose to buy insurance for only the building
(structure) of your home, or only the contents (belongings) or both.

The policy covers the losses to the structure and contents of your home due to any
natural and manmade calamities.

Burglary cover (only for contents):

The contents of your home are also covered against loss due to burglary or an attempted
burglary. It also covers loss of jewellery, silver articles and precious stones kept under
lock and key, up to 25% of the total content sum insured or Rs. 1 Lac, whichever is
lower.

C. MOTOR INSURANCE
Car Insurance
A comprehensive policy that not only covers you against third party but also against
accidents, damage, injury and much more.

Two Wheeler Insurance

A composite policy that protects you against unfortunate accidents, third party liability,
injuries and damages.

22
2. BUSINESS
Business Products

The key to successful business is proper risk management. It’s all about managing risk
effectively. Our comprehensive commercial product line is aimed at businesses of all
kinds and sizes. We offer products that match your personal and business needs and
provide you a perfect protection cover

A.COMMERCIAL VEHICLES
B. FIRE INSURANCE
C. MARINE INSURANCE
D. INDUSTRIAL INSURANCE
E. LIABILITY INSURANCE
F. OTHERS

A. COMMERCIAL VEHICLES INSURANCE

ICICI Lombard brings you Commercial Vehicle Insurance offering the most crucial
cover of Third Party Liability (TPL). A specialized cover for Goods-carrying Vehicles
— be it Public or Private Carriers. You can now rest assured that your vehicle is
covered and your business stays protected against liability due to accidental death or
injury to third parties or passenger(s). ICICI Lombard Commercial Vehicle insurance
offers Third Party only cover for Goods-carrying Commercial vehicles. This cover is
applicable to Public and Private Carriers including Motorized Three Wheelers and
Motorized Pedal Cycles.

B. FIRE INSURANCE
Every business has a specific set of requirements. Our range of business products is
especially designed to meet your business needs across the commercial spectrum. It is
pivotal to get adequate insurance cover for your business to mitigate risk.

23
Know about our products
• Fire and Special Perils Policy (Material Damage)
• Consequential Loss (Fire) Insurance Policy
• Industrial All Risk

C. MARINE INSURANCE
ICICI Lombard offers comprehensive commercial product line aimed at businesses of
all kinds and sizes. We offer products that match your business needs and provide you
a perfect protection cover.

Know more about our products

• Marine Import Transit Insurance Policy
• Marine Export Transit Insurance Policy
• Marine Inland Transit Insurance Policy
• Marine Hull

D. INDUSTRIAL INSURANCE
Every business has a specific set of requirements. Our range of business products is
especially designed to meet your business needs across the commercial spectrum. It is
pivotal to get adequate insurance cover for your business to mitigate risk.

Know more about our products

• Boiler and Pressure Plant Insurance Policy
• Electronic Equipment Insurance Policy
• Machinery Breakdown Insurance Policy
• Erection All Risks
• Machinery Loss of Profits Insurance Policy
• Electronic Equipment Insurance Policy
• Contractors All Risk Policy
• Contractors Plant & Machinery

E. LIABILITY INSURANCE
Irrespective of the size of business, it is pivotal to consider liability insurance. It is

24
prudent to cover your business against all kinds of liabilities -- public liability (third
party injury or property damage) from industrial and non-industrial operations, product
liability, professional indemnity, D&O liability and E&O liability. ICICI Lombard
offers wide array of liability products to suit your business needs.

Know more about our product

• Public Liability Insurance (Industrial Risks) Policy

• Public Liability Insurance (Non-Industrial Risks) Policy

• Product Liability

• Public Liability Act Only

• Workmen’s Compensation policy

• Director & Officer’s Liability Insurance

F. Others
Every business has a specific set of requirements. Our range of business products is
especially designed to meet your business needs across the commercial spectrum. It is
pivotal to get adequate insurance cover for your business to mitigate risk.

3. NRI SERVICES
A. HEALTH INSURANCE
B. PARENTS OVERSEAS TRAVEL
C. HOME INSURANCE
D. CAR INSURANCE
E. TWO-WHEELER INSURANCE

25
4. RURAL
At ICICI Lombard, investing in rural markets is seen as a keen social responsibility.
The protection provided to the rural class is specified and customized according to their
needs. Through a multiple channel system we not only provide agricultural protection
but also health, motor and other covers.

Products we offer
Health Insurance
We provide protection to the health of the rural folk through three plans Family Health
-

Insurance, Poorna Suraksha Bima and Sampoorna Arogya Bima.

Home Insurance
Our comprehensive policy protects much more than just the home. Through our
network channels, we ensure that the houses in the rural sector are insured against
natural and other perils.

Tractor Insurance
Tractors are one of the most precious assets to the rural folks. Our comprehensive
package policy covers not just own damage but also third party liability and personal
accident.

Weather Insurance
Weather Insurance is an insurance cover against losses incurred due to uncertainties in
climatic conditions. It can be used to hedge any vulnerability of assets or any other
damage incurred due to erratic and irregular weather.

Shop Insurance
Shop Insurance is a comprehensive policy that covers both the structure and the
contents of a shop and protects it against any financial loss in case of an unfortunate
incident.

26
ICICI Prudential Life Insurance Company
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. 925 crore 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. 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.

DISTRIBUTION
ICICI Prudential has one of the largest distribution networks amongst private life
insurers in India, having commenced operations in 74 cities and towns in India.

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
cooperative banks, as well as over 150 corporate agents and brokers. It has also tied up
with NGOs, MFIs and corporate for the distribution of rural policies and organizations
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 56,000 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.

27
FUNCTIONS
ICICI Prudential offers exciting career opportunities for people from a variety of
streams. Read on to find out more about how each of the functions contributes to our
growing business.

Sales Distribution
Tied Agency
Tied Agency is the largest distribution channel of ICICI Prudential, comprising a large
advisor force that targets various customer segments. The strength of tied agency lies in
an aggressive strategy of expanding and procuring quality business. With focus on sales
& people development, tied agency has emerged as a robust, predictable and
sustainable business model.

Bancassurance and Alliances

ICICI Prudential was a pioneer in offering life insurance solutions through banks and
alliances. Within a short span of two years, and with nearly a large number of partners,
B & A has emerged as a vital component of the company’s sales and distribution
strategy, contributing to approximately one third of company’s total business.

The business philosophy at B&A is to leverage distribution synergies with our partners
and add value to its customers as well as the partners. Flexibility, adaptation and
experimenting with new ideas are the hallmarks of this channel.

Group
The Group Business of ICICI Prudential has been in existence for over 2 years. Today,
we are the Number 1 player among private life insurance companies in Group Business
excluding Mortgage Reducing Term Assurance (MRTA) with a market share of 26 %
(FY 2004-2005). We offer the entire gamut of products including Gratuity,
Superannuation Term Insurance, Leave Encashment, Employee Deposit Linked
Insurance (EDLI), Mortgage Reducing Term Assurance (MRTA) & Informal Group
Term covers.

28
Customer Service & Operations
The Operations department oils the work processes between the customer and the
company to ensure consistent and quality service to the customer. To streamline the
operations, the Operations department interfaces between the clients and the agents, the
branches and the underwriters, and manages work processes.

The Vision at Customer Service is to deliver ‘World Class Service at every opportunity.

Units such as the 9 to 9 contact centre, Outbound Call Centre, Customer Care and
Query Resolution Unit are all committed to providing effective solutions to over lakhs
of customers across the country.

IT
The Information Technology function at ICICI Prudential is committed to enable
business through the use of technology. It is segmented into 4 groups to enable highest
levels of delivery to the customers: Life Asia Solutions Group that provides flexibility
in designing better product offerings to end-users, the Solutions Group- Web that
provides real-time information to customers and is responsible for customer
relationship management, IT Architecture & Corporate Solutions Group is in charge of
developing and maintaining a blueprint for the IT architecture for the enterprise as a
whole. This team works as an in house R&D Solution Group, exploring new
technological initiatives and also caters to information needs of corporate functions in
the organization. rr Infrastructure group is responsible for providing hardware,
software, network services to the whole organization. This group runs the Digital
Nervous System of the Enterprise at the highest levels of efficiency and provide robust,
scalable and highly available platform for deployment of business application.

Marketing
The Marketing function at ICICI Pru covers an array of activities - brand and media
management, channel support, direct marketing and corporate communications. The

29
Brand and Communications team is in charge of advertising, consumer research, media
planning & buying and Public Relations; that helps develop and nurture ICICI
Prudential’s corporate identity while effectively communicating its varied product
offerings to the customer. Channel marketing provides support to the sales force by
streamlining the design and development of collaterals and sales tools across
distribution channels. The Direct marketing team was set up to generate high quality
leads for profitable business. The team achieves this through target database acquisition
and communicating customized product information through c-mailers, telemarketing
and innovative direct mailers.

Finance
Finance function in ICICI Prudential is committed to create an infrastructure that is
aligned to shareholder expectations. Finance basically comprises of four functions.
Corporate Planning and MIS provide feedback on business strategies. This includes
driving the budgeting process, providing strategic inputs for decision-making and
management reporting and analysis. The Accounts function includes preparation and
maintenance of financial records, funds management, and expense processing and
treasury operations. Compliance ensures that every action is within the regulatory
framework. This includes reviewing compliance requirements and supporting the
ethical framework of ICICI Prudential life. Internal audit provides assurance to the
management over the organizations control framework and includes process risk
management, information security assessment and business continuity assessment.

HR
The people strategy of ICICI Prudential is “To build a committed team with a culture of
innovation, learning and growth. The Human Resource Function at ICICI Prudential
drives the people strategy of the business. With its initial focus on operational
excellence to deliver benefits and services to staff members, HR is now committed to
building capability through state of the art processes.

30
The ICICI Prudential Edge
The ICICI Prudential edge comes from our commitment to our customers, in all that we
do - be it product development, distribution, the sales process or servicing. Here’s a
peek into what makes us leaders.

1. Our products have been developed after a clear and thorough understanding of
customers’ needs. It is this research that helps us develop Education plans that offer the
ideal way to truly guarantee your child’s education, Retirement solutions that are a
hedge against inflation and yet promise a fixed income after you retire, or Health
insurance that arms you with the funds you might need to recover from a dreaded
disease.
2. Having the right products is the first step, but it’s equally important to ensure that
our customers can access them easily and quickly. To this end, ICICI Prudential has an
advisor base across the length and breadth of the country, and also partners with leading
banks, corporate agents and brokers to distribute our products.

3. Robust risk management and underwriting practices form the core of our business.
With clear guidelines in place, we ensure equitable costing of risks, and thereby ensure
a smooth and hassle-free claims process.

4. Entrusted with helping our customers meet their long-term goals, we adopt an
investment philosophy that aims to achieve risk adjusted returns over the long-term.

5. Last but definitely not the least, our 20,000 plus strong team is given the opportunity
to learn and grow, every day in a multitude of ways. We believe this keeps them
engaged and enthusiastic, so that they can deliver on our promise to cover you, at every
step in life.

31
RANGE OF PRODUCTS OFFERED BY ICICI
PRUDENTIAL

1. LIFE INSURANCE
2. RETIREMENT PLANS
3. HEALTH PLANS

1. LIFE INSURANCE PLANS

On the basis of which life stage you are in and the corresponding insurance needs,
ICICI Prudential plans can be categorized into the following three types: .

A. Education Insurance Plans

B. Wealth Creation Plans
C. Premium Guarantee plans
D. Protection Plans

A. Education Insurance Plans

ICICI Prudential offers a wide portfolio of education insurance plans that are designed
to provide peace of mind to you, as a parent, that your child’s education will be secure.
These plans ensure that money is made available at the crucial junctures in a child’s
education - Class X, Class XII, graduation and post-graduation - to fund crucial
commitments for the child’s future.

Importantly, education insurance plans ensure that in the unfortunate event of the death
of a parent, the child’s education continues unhampered.

Under the education insurance plans platform, ICICI Prudential brings the following
products to you. Please click on the product name to know more about the plans.

32
Plan Name Plan Type

Smart Kid New Unit-linked Regular Unit Linked

Premium

Smart Kid New Unit-linked Single Unit Linked

Premium

Smart Kid Regular Premium Traditional

B. Wealth Creation Plans

Wealth Creation Plans give the customer the dual benefit of protection along with the
potentially higher returns of market-linked instruments. The most important benefit of
ULIPs is the flexibility they give the customer in choosing the premium amount and
also choosing the underlying fund in which this money is to be invested. Wealth
creation plans also offer the customer more liquidity options as compared to traditional
plans. As such, ULIPs are ideal for customers who want the protection of a life cover to
be allied to the returns of market linked instrument — giving them an unmatched
combination of benefits.

Under the wealth creation platform, ICICI Prudential brings the following products to
you:

Plan Name Plan Type

Life Time Gold Unit Linked

Life Link Super Unit Linked

Premier Life Gold Unit Linked

Life Time Plus Unit Linked

33
Life Stage Unit Linked

C. Premium Guarantee Plans

The latest addition to the life insurance product portfolio of ICICI Prudential is the
Premium Guarantee plan InvestShield Life New. Premium Guarantee plans are the
-

ideal insurance-cum-investment option for customers who want to enjoy the potentially
higher returns of a market linked instrument, but without taking any market risk. Under
the Premium Guarantee Plans platform, ICICI Prudential brings to you the following
products:

Plan Name Plan Type

Invest Shield Life New Unit Linked

Invest Shield CashBak Unit Linked

D. Protection Plans
The sole objective of these plans, as their name indicates, is to serve the protection
needs of the customer and by doing so, safeguard one’s family from the financial
implications of unfortunate circumstances than one cannot foresee.

Under the Protection Plans platform, ICICI Prudential brings to you the following
products:

Plan Name Plan Type

LifeGuard Traditional

Save’n’Protect Traditional

CashBak Traditional

Home Assure Traditional

34
2. Retirement Solutions
To cater to the needs of a customer looking for retirement planning, ICICI Prudential
presents a wide array of products. These products have been designed to take into
account the diverse set of needs that characterize individual customers. Please click on
the plans to know more about them and identify which plan is just right for you:

Plan Name Plan Type

LifeStage Pension Unit Linked

PreinierLife Pension Unit Linked

LifeTime Super Pension Unit Linked

LifeLink Super Pension Unit Linked

Forever Life Traditional

Immediate Annuity Traditional

3. Health Product Suite

Health Product Suite:

Under Health Product Suite, ICICI Prudential offers plans under the following major
need categories:

Hospitalization Plans
• Hospital Care

Critical Illness Plans

• Crisis Cover
• Health Assure Plus

35
Cancer Products
• Cancer Care
• Cancer Care Plus

Diabetes Products
• Diabetes Care
• Diabetes Care Plus
• Diabetes Assure

Bancassurance symbolizes the convergence of banking and insurance. It involves

distribution of insurance products through a bank’s branch network. The
bancassurance, with the potential to redefine the ways in which insurance products are
sold, has developed into tremendous success story in Europe. However, it is gradually
gaining ground in India.

The growth story of the banking sector for the obvious reasons of a
zooming economy, expanding middle class and the vast branch network, is unlikely to
36
be matched by any banking industry across the emerging market economics. However
the growth prospects have also led to intense competition in the Indian banking
industry. The problem with the bank is that most of them operate on similar business
models where products and prices among competitors are close substitutes. One of the
biggest challenges that the managers of the bank confront is attracting customers and
sustaining growth. Traditional bases for differentiation, such as product features or cost,
are becoming less tangible. Therefore a bank’s management is forced to look out for
new ways to attract new customers and simultaneously retain the existing ones, besides
boosting their bottom line. With the interest income coming under pressure, banks are
expanding fee-based income activities such as marketing of insurance policies and
mutual funds, wealth management for High Net Worth Individuals (HNWIs) and equity
trading. These are indeed proving to be more profitable for banks than basic activities
like lending and borrowing. Bancassurance and selling of mutual funds are the most
tapped business opportunities by the bankers today.

The Indian bancassurance industry has revealed its true

potential only after liberalization. With the opening up of the insurance sector and so
many players entering the Indian insurance industry, the insurance companies are
compelled to come up with innovative products, create more consumer awareness about
their products and offer them at a competitive price. The Indian insurance market
provides untapped potential of about 30 crore lives with insurable interest outside the
insurance cover. Besides life insurance, the increasing levels of income and consequent
expansion in assets provide a huge scope for general insurance. To reach such a huge
untapped market, insurance companies need a wide and trustworthy network. While the
old giants such as Life Insurance Corporation of India and other government owned
general insurance companies have a good network, maintaining and managing such
network, is definitely a daunting task for the new entrants. Even the old sectors biggies
are now looking to supplement their distribution channels in response to the
competitive forces prevailing in the Indian insurance market.

It is an established fact that insurance is a

business of faith and solicitation. In India, banks continue to command the highest trust

37
among all the financial sector players as out of the total pool of financial savings of
households, the largest share goes to bank deposits. In addition, a huge network of
69417 bank branches comprising 30,776 rural branches, 15370 semi-urban branches
and 23,271 urban and metropolitan branches is virtually impossible to replicate and will
be indispensable in penetrating novel segments such as rural markets. As such,
bancassurance, as a business proposition, has the potential for generating synergic
benefits both for bankers as well as insurers. While it boosts the bank’s bottom lines, it
also leads to a significant lowering of distribution costs for insurance, besides opening
new horizons for further expansion and growth. Bancassurance addresses the twin
objectives of portfolio diversification by retail customers and synergic integration of
marketing management of banks and insurance companies. If taken in a right spirit
and implemented properly, this can be a win-win situation for all the participants,
viz. banks, insurers and the customers.

This is the analyses & interpretation of the Questionnaire prepared by me. This
represents the preferences of customers of ICICI Bank. It also shows what the
customers of ICICI Bank feel about the services provided by their bank.

38
TABLE 1. Income Level of Customers Availing Services of ICICI Bank

NUMBER OF RESPONDENTS PERCENTAGE

Less Than 1,00,000 8

16%
1,00,000 12 24%
2,50,000-5,00,000 19 38%
Above 5,00,000 11 22%

40%

30%

20%
percentage

10%

0%
-1,00,000 1,00,000+ 2,50,000 + 5,00,000 +

Analysis: 38% of customer availing services from ICICI Bank are between the income
level of 2, 50,000 to 5, 00,000 and 24% are from income level between 1, 00,000 to 2,
50,000.and so on.

39
TABLE 2. For how long Customers are been with ICICI Bank

NUMBER OF RESPONDENTS PERCENTAGE

Less Than 1 Year 24 48%

1 — 2 Years 10 20%
3 — 5 Years 12 24%
above 5 years 4 8%

50%
40%
30%
20%
percentage
10%
0%
less than 1-2 years 3-5 years above
1year 5years

Analysis: 48% customers are availing services from the bank for less than
1year.and 8% are with the bank for above 5 years.

40
TABLE 3.Product of ICICI Bank preferred by customers

NUMBER OF RESPONDENTS PERCENTAGE

Personal Banking 28 56%

NRI Banking 4 8%
Corporate Banking 10 20%
Bancassurance 6 12%
Others 2 4%

60%
50%
40%
30%
percentage
20%
10%
0%
Personal Corporate Other

Analysis: most preferred service of ICICI bank is personal banking segment.56%

customer are happy with this service.

41
TABLE 4. According to customers who provide better Insurance Services

NUMBER OF RESPONDENTS PERCENTAGE

Banks 30 60%
Insurance 20 40%

120%

100%

80%
Banks
60%
Insurance
40%

20%

0%

Analysis: Respondent prefers bancassurance services provided by the ICICI bank rather
than the insurance companies.

42
TABLE 5.Terms and Conditions were properly communicated to customers

NUMBER OF RESPONDENTS PERCENTAGE

Yes 40 80%
No 10 20%

Yes
No

Analysis: 80% customers are agreed with the point that they are being provided proper
information about the rules and regulation of the bank.

43
TABLE 6. According to customers of ICICI Bank, Bank employees are able to
communicate the insurance policies in proper manner

NUMBER OF RESPONDENTS PERCENTAGE

Yes 15 30%
No 35 70%

Yes
No

Analysis: 70% of the respondents are not satisfied with the way employees
communicate the details about the insurance policy.

44
TABLE 7. Factors affecting selection of Insurance Products

NUMBER OF RESPONDENTS PERCENTAGE

Risk Coverage 12 24%

Premium Amount 12 24%

Maturity Value 16 32%

Surrender Value 10 20%

35%
30%
25%
20%
15% Percentage
10%
5%
0%
Risk Premium Maturity Surrender
coverage Amount Value Value

Analysis: 32% respondents lay stress on the maturity value while selecting insurance
policy while 24% respondents lay stress on risk coverage and premium amount.

45
TABLE 8. According to customers which is the better Insurance product category
provided by ICICI Prudential

NUMBER OF RESPONDENTS PERCENTAGE

Life Insurance Plans 22 44%

Retirement Plans 11 22%
Health Plans 18 36%

50%

40%

30%

20% Percentage
10%

0%
Life Insurance Retirement Plans Health Plans
Plans

Analysis: According to 44% respondents life insurance plans segment are the best
product provided by ICICI among other insurance product.

46
TABLE 9. Customers have faced any kind of problem in meeting the Claims

NUMBER OF RESPONDENTS PERCENTAGE

Yes 30 60%
No 20 40%

Yes
No

Analysis: 60% respondents have faced problems while settlement of claims while 40%
hasn’t faced any such problems.

47
TABLE 10. Customers point of view when asked that, Banks should continue
providing the Insurance Services, i.e. are you in favor of Bancassurance

NUMBER OF RESPONDENTS PERCENTAGE

Yes 30 60%
No 20 40%

60%

50%

40%

30% Percentage
20%

10%

0%
Yes No

48
Analysis: 60% respondents are in favor of bancassuance services provided by the ICICI
bank.

CONCLUSIONS

• ICICI is catering, basically, to all income groups though it is more towards the
middle class customers. But, it can be concluded that the various bancassurance
services of ICICI has been successful. On the whole ICICI has a diversified
product range covering all strata of the market.

• In the last 2-3 years ICICI has made a significant place in the bancassurance
sector by joining hands with LOMBARD & PRUDENTIAL. It has been rated
as “one of the fastest growing bank in the private sectors.”

• 80% of people have chosen ICICI’s products due to the trust upon the bank.
Successful history of the bank captures the mind of consumers influencing the
choice of their products. The large range of customers and a wide range of
branches extended all over India are the main factors that help in tapping a large
potential of the market.

• The main feature of the bancassurance services of ICICI is that the terms and
conditions of the product are properly communicated to the consumers. ICICI
has a lot of transparency in its operations, which impresses most of the
customers and thus helps to retain the customers.

49
• 58% of the sample says that they have faith in the company but 42% say the
opposite which shows that though the bank has grown a lot but it has not been
able 2 fully satisfy its customers.

• 32% respondents lay stress on the maturity value while selecting insurance
policy while 24% respondents lay stress on risk coverage and premium amount

• 70% of the respondents are not satisfied with the way bank employees
communicate the details about the insurance policy.
• ICICI hasn’t been successful in cross-selling its products because a large
number of the sample is using only one category of product of ICICI. Each
customer has the potential for two products because in addition to the product of
ICICI they are using product of some other bank, ICICI can tap this potential by
providing more benefits the bank can attract a number of customers to reap the
benefits of its bancassurance services.
• Most consumers think that ICICI has fulfilled the promises made by the bank at
the start of the policy and most go with the notion that they would continue their
trust with ICICI

• 60% respondents are in favor of bancassuance services provided by the ICICI

bank.

• 60% respondents have faced problems while settlements of claims while 40%
haven’t faced any such problems.

50
51
 RECOMMENDATIONS

o ICICI has retained a lot of customers due to the transparency it has in its
operations. Probably, this is why ICICI has a relatively good market share
amongst all public banks. ICICI should thus continue operating with the same
transparency.

o ICICI has been largely successful in maintaining customers but the customers in
the “more than 3 years” category constitutes very small percentage of the
sample. The bank should concentrate more on creating new customers &
retaining them for long time

o As personal banking is one of the most preferable product by the customers i.e.
56%, it should also concentrate on making its other services better so that
customers will avail those services also.

o 70% of the respondents are not satisfied with the way bank employees
communicate the details about the insurance policy, so bank should properly
train their employees about the insurance policies.

o ICICI hasn’t been able to attract new customers in the market. As well as it has
not been able to sell its existing customers to a large extent. Hence, ICICI
should follow the strategy of customer satisfaction by designing those products
which are required by the customers.

o 60% respondents have faced problems with settlement of claims, so ICICI

should make the claim procedure simple and quick.

o Lastly, ICICI should concentrate on cross-selling of its products.

52
 OUESTIONNAIRE

1. What is your Income Level?

>1,00,000 1,00,000
2,50,000 <5,00,000

2. How long have you been with ICICI Bank?

> 1 Year 1-3 Years
3-5Year <5Years

3. Which product of ICICI Bank have you used?

Personal Banking NRI Banking
Bancassurance Corporate Banking
Others

4. According to you who provide better Insurance Services?

Banks Insurance Companies

5. Were the Terms and Conditions properly communicated to you?

Yes No

53
6. If you are a customer of ICICI Bank, then do you that the Bank employee is
able to communicate the Insurance Policies in a proper manner?
Yes No
7. What are the factors that affect your selection of Insurance Products?
Risk Coverage Premium Amount
Maturity Value Surrender Value

8. Which according to you is the better Insurance product category provided by

ICICI Prudential?
Life Insurance Plans
Retirement Plans
Health Plans

9. Do you face any kind of problem in meeting the Claims?

Yes No

10. Do you have think Banks should continue in providing the Insurance Services,
i.e. Are you in favor of Bancassurance?
Yes No

54
55
 BIBLIOGRAPHY

BOOKS:

 Sundharam & Varshney “Banking Theory, Law and Practice” Sultan Chand &
Sons, New Delhi.17th Edition. 2006.

 Beri, G.C. (2003). Marketing Reasaerch, TaTa McGraw Hill, New Delhi.

WEBSITES:
• www.wikipedia.com
• www.google.com
• www.icicilombard.com
• www.iciciprulife.com

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