A PROJECT REPORT ON

“SRATEGIES ADOPTED BY LIFE INSURANCE COMPANIES TO

REDUCE DEFAULTER’S SPECIAL STUDY IN ICICI PRUDENTIAL”

SUBMITTED BY

“RAJNEET KAUR”

FOR THE DEGREE OF

THE BACHELOR OF MANAGEMENT STUDIES.

UNDER THE GUIDENCE OF

“PROF.SHUBHASHNI IYENGER”

N.G. ACHARYA AND D.K. MARATHE COLLEGE

OF ARTS, SCIENCE AND COMMERCE, CHEMBUR.

UNIVERSITY OF MUMBAI
ACADEMIC YEAR 2007-2008.
 DECLARATION

I “Rajneet Kaur” student of N.G Acharya and D.K. Marathe College, Chembur hereby
declare that I have completed the project entitled “Strategies Adopted By Life
Insurance Companies To Reduce Defaulter’s Special Study In Icici Prudential” in
partial fulfillment of the requirement for the third year of BMS course for Academic year
2007-2008.
I further declare that information submitted by me is true to the best of my knowledge.

DATE:

(Signature of Student)

CERTIFICATE

I “Prof.Shubhashni Iyenger” hereby certify that “Rajneet Kaur” studying in T.Y.BMS at

N.G.Acharya and D.K.Marathe College, Chembur has completed a project on “strategies
adopted by life insurance companies to reduce defaulter’s special study in icici
prudential” in the academic year 2007-2008 under my guidance.
I further certify that the information submitted is true and original to the best of my
knowledge.

Date:

(Principal) (Co-ordinator) (Project Guide)

 ACKNOWLEDGEMENT

I would like to thank the University of Mumbai, for introducing the

BMS course, there by giving the student a platform to keep abreast

with the changing business scenario, with the help of theory as a

base and practical as a solution.

This project would have been incomplete without the endless support

and guidance by my project guide Prof. Subhashini Iyengar & I am

deeply obliged to Prof. Subhashini Iyengar our co-ordinater for

being a constants source of help & support.

 EXECUTIVE SUMMARY

This project has been design to serve as a main project in fifth semester for
course of Bachelor of management studies of University of Mumbai. it has been
specially written covering all topics considered important for subject matter of the
project.
I have kept in mind purpose and scope of project and have treated all topics in
language, which would be easily understood.

My project title “strategies adopted by life insurance companies to reduce

defaulter’s special study in ICICI Prudential” vis-à-vis Competitor for the
recovery of Premium from the payment Defaulters of life insurance policies in
Mumbai/Thane.” Is all about recovering the payment defaulters

With competitive analysis, I had studied the perception of different company for
the recovering the premium payment defaulter. Which different measures and
efforts are taken for the same. There are different strategies used by the
company for recovering its payment defaulters.
I have collected the primary data about defaulters for 3 months from ICICI
Prudential, MetLife, Max New York the sample size is 4 unit manager and 2
financial advisor of each company. With the help of this data and making use of
statistical tool like Co-correlation, standard deviation, chi-square, Cost-Benefit
Analysis and credit granting decision chart I have showed which company’s
defaulters are at alarming rate, which company provides the maximum the credit
period.
Objective:

 To know the reason behind the premium payment defaulters

 Among the different reason which one affects the most?
 To compare ICICI Prudential with its competitor to know which companies
have high rate of defaulters.
 Which company provides maximum credit period
 What are the measures that can be undertaken by the company to recover
its premium payment defaulters?
 INDEX

Serial No. Content Page no

1. Introduction 1
2. Structure of the insurance company 2
3. Basic functions of the insurance industry 3
4 insurance policy: the total product concept 6
5 Brief history of insurance 9
6 how insurance work 10
7 Role of insurance in economic development 12
8 Company profile 14
9 Company vision 16
10 Promoters of the company 18
11 Key people 20
12 Current scenario 21
13 Global scenario of life & non life insurance 22
14 Organization structure 24
15 Products 25
16 procedure for becoming an advisor 30
17 Introduction 32
18 What is premium 33
19 Revival A solution 37
20 Insurance companies in India 39
21 Analysis 49
22 Standard deviation 50
23 Rank co Relation 53
24 Reasons for non payment of premium 55
defaulters
25 Measures taken by icici prudential 57
26 Recommendation 58
27 Conclusion 59
28 Annexure 60
29 Bibliography & Webliography 62