Channel Management

Bachelor of Management Studies

By

Mukul Sehgal

Under the guidance of

MR. RANJEET MISHRA
HR. MANAGER
AXIS BANK

Dr./Prof. VEENA MEHTA

ASSISTANT PROFESSOR
SCHOOL OF BUSINESS

Date
20th JULY 2016

Channel Management

By

Mukul Sehgal

DATE
JULY, 2016

Certificate of Approval
The following Summer Internship Project Report titled "Channel Management" is hereby
approved as a certified study in management carried out and presented in a manner satisfactory to
warrant its acceptance as a prerequisite for the award of Bachelor of Management Studies for
which it has been submitted. It is understood that by this approval the undersigned do not
necessarily endorse or approve any statement made, opinion expressed or conclusion drawn
therein but approve the Summer Internship Project Report only for the purpose it is submitted to
the Summer Internship Project Report Examination Committee for evaluation of Summer
Internship Project Report
Name

Signature

1. Faculty Mentor

Dr. Veena Mehta

2. Industry Mentor

Mr. Ranjeet Mishra

___________________
___________________

Certificate from Summer Internship Project Guides

This is to certify that Mr. Mukul Sehgal, a student of the Bachelor of Management Studies has
worked under our guidance and supervision. This Summer Internship Project Report has the
requisite standard and to the best of our knowledge no part of it has been reproduced from any
other summer Internship project, monograph, report or book.

Faculty Mentor:- Dr. Veena Mehta

Assistant Professor
SoB, GU

Industry Mentor:- Mr. Ranjeet Mishra

HR manager
Organization:- Axis bank

ACKNOWLEDGEMENTS
I am fortunate in having sought and secured valuable guidance, continuous encouragement
and strong support at every stage of my guide, Mr. Ranjeet Mishra
I want to acknowledge the help provided by guide and friends. The precious inputs
provided by them have helped in compiling this report. As well as I want to thank my
friends and colleagues who helped me in this working.
I express my deep-hearted thanks and gratitude to all of those who helped me in this
Project.

TABLE OF CONTENT
5

OBJECTIVE:

COMPANY PROFILE:

ABOUT THE PRODUCT:

73

RESEARCH METHODOLOGY

92

DATA ANALYSIS

93

RECOMANDATION

107

ANNEXURE:

108

CONCLUSION

113

BIBLIOGRAPHY:

114

OBJECTIVE
6

The government has brought a revolutionary change in the Indian business in term
of financial aspect. In the last five year the inflation is on higher rate and each and
every thing getting more and more ex pensive. There are so many companies
available in insurance sector in such a condition there are cut thought competition.
And a big problem in front of the company that how they can manage there
channel.
The objective of my project work is that to study the particular channel and find out
the problem against it

COMPANY PROFILE
ABOUT THE ICICI PRUDENTIAL

MANAGEMENT
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
Mr. N.S. Kannan, Executive Director

MANAGEMENT TEAM
Ms. Shikha Sharma, Managing Director & CEO
Mr. N.S. Kannan, Executive Director
Mr. V. Rajagopalan, Chief - Actuary
Mr. Sandeep Batra, Chief Financial Officer & Company Secretary
Ms. Anita Pai, Chief - Customer Service and Operations
Mr. Puneet Nanda, Chief - Investments
Mr. Dipan Bhattacharya - Chief Information Technology

OUR MEMBER

Mr. Lakshmi N. Mittal

Mr. Anupam Puri
Mr. Vinod Rai
Mr. Somesh R. Sathe
Mr. M.K. Sharma
Mr. P.M. Sinha
Prof. Marti G. Subrahmanyam
Mr. T.S.Vijayan
Mr. V. Prem Watsa
Mr. K.V. Kamath, Managing Director & CEO
M s. Kalpana Morparia, Deputy Managing Director
Ms. Lalita D. Gupte, Joint Managing Director
Ms. Chanda Kochhar, Executive Director
Dr. Nachiket Mor, Executive Director

10

ABOUT PRUDENTIAL

Corporate Overview

PLC STRUCTURE

11

BACKGROUND
Prudential plc, one of the UK's leading financial service providers,
issued life insurance policies in Poland prior to World War II through
Prudential

Assurance

Company

Limited

and

its

subsidiary

"Przezornosc", a now defunct Polish company in which Prudential

Assurance acquired a controlling interest in 1927.
Przezornosc continued to issue life policies in Poland until 31 December
1936, and Prudential Assurance issued life policies in Poland from 1
January 1933 to 31 December 1936. With effect from 1 January 1937
both

companies

ceased

to

accept

new

life

business

and

the

administration of the two portfolios was combined.

Based on notes of surviving records that existed in Prudential
Assurance's London office there were 4,623 policies in force in Poland
at the outbreak of World War II in 1939. Over 34% of these policies
12

have been settled since the early 1950s despite significant gaps in our
records, due in no small part to their destruction in Poland under Nazi
Occupation.
The assets of Prudential's Polish Business were seized by the Nazi
occupying authorities, following the invasion of Poland in 1939. Unlike
some major European insurers Prudential did not trade in Nazi
occupied Europe
Management & Policies
Prudential aims to set, maintain and promote high standards of
responsible business practice. In shaping our approach, we engage
with business and non-business interest groups to ensure that we fully
understand their expectations of us and to ensure that our policies and
programmes address relevant issues. Our policies can be viewed by
clicking the links below or from the left-hand menu.

13

Our Business and Society

Our focus on acting responsibly and with integrity is not new. It is a
philosophy that we have always striven to apply in the way we work.
This is not only 'the right thing to do'. It also makes sound commercial
sense. If we behave responsibly, customers, employees, shareholders
and regulators are more likely to trust us. Trusted companies are
successful companies.
Our current strategy has been developed after widespread consultation
with all stakeholders. That dialogue continues to ensure that our
approach reflects their individual concerns and priorities.
Although our business is founded on the seemingly simple activity of
collecting and managing funds, we operate in a complex environment.
Serving over 18 million customers and with a presence in 18 countries,
we have a wide-ranging social impact and we are influenced in turn by
prevailing socio-economic conditions. Governments and regulatory
frameworks are other significant influences, as are the global social
and environmental issues that we seek to address through our
corporate responsibility programme.

Internal Control & Risk Management

14

The Board has responsibility for the Groups system of internal control
and for reviewing its effectiveness. The Board has conducted a review
of the effectiveness of the Groups system of internal control. The
control procedures and systems the Group has established are
designed to manage, rather than eliminate, the risk of failure to meet
business objectives and can only provide reasonable and not absolute
assurance against material misstatement or loss. The system of
internal control includes financial, operational and compliance controls
and risk management.
The Group Risk Framework, adopted in 1999, requires that all of the
Groups businesses and functions establish processes for identifying,
evaluating and managing the key risks faced by the Group. The Group
risk categorisation model breaks risk down into risk classes, risk
categories and risk components. The seven risk classes cover business
environment risk, strategic risk, credit risk, regulatory compliance risk,
investment risk, underwriting risk and operational risk, and are
intended to encompass all risks faced by the Group. They are used by
the business units and Group during risk identification, analysis,
aggregation and reporting of risk. The Groups risk management
framework includes the following committees:
Group Operational Risk Committee

15

The Group Operational Risk Committee is chaired by the Group

Finance Director and its membership includes representatives of the
business unit and Group functions who have input into the operation of
the Group Risk Framework. The Group Operational Risk Committee is
the senior management forum responsible for oversight of the Group
Risk Framework across the business unit and Group functions,
including

monitoring

operational

risk

and

related

policies

and

processes as they are applied throughout the Group. The Group

Operational Risk Committee reports to the Group Chief Executive, who
has overall responsibility for the risks faced by the Group. The Group
Operational Risk Committee is supported in this role by the Group Risk
Function and the Risk Committees and Risk Functions in each business
unit. Quarterly risk reports from the business units and Group are
reported to the Group Operational Risk Committee covering all risks of
Group significance. Regular reports are also made to the Group and
business unit audit committees by management, internal audit and
compliance functions.
Group Asset Liability Committee
The Group Asset Liability Committee is chaired by the Group Finance
Director and its membership includes business unit and Group
management involved in the operation of the asset liability, credit and

16

insurance risks framework. The Group Asset Liability Committee is the

senior management forum responsible for oversight of asset-liability
mismatch, solvency, market, credit and insurance risks across the
Group. The Group Asset Liability Committee reports to the Group Chief
Executive.
Group Balance Sheet Management Committee
The Group Balance Sheet Management Committee is chaired by the
Group

Finance

Director

and

is

the

senior

management

forum

responsible for oversight of the Groups balance sheet strategy,

including debt capacity and capital structure. Its membership includes
management involved in the operation of the Groups policies for
balance sheet management, including liquidity, financing and capital
adequacy. The Group Balance Sheet Management Committee reports
to the Group Chief Executive.
Internal Control Framework
As a provider of financial services, including insurance, the Groups
business is the managed acceptance of risk. The system of internal
control is an essential and integral part of the risk management
process. As part of the annual preparation of its business plan, all of
the Groups businesses and functions are required to carry out a

17

review of risks. This involves an assessment of the impact and

likelihood of key risks and of the effectiveness of the controls in place
to manage them. The assessment is reviewed regularly throughout the
year. In addition, business units review opportunities and risks to
business objectives regularly with the Group Chief Executive and
Group Finance Director.
Businesses are required to confirm annually that they have undertaken
risk management during the year as required by the Group Risk
Framework and that they have reviewed the effectiveness of the
system of internal control. The results of this review were reported to
and reviewed by the Group Audit Committee, and it was confirmed
that the processes described above and required by the Group Risk
Framework were in place throughout the period covered by this report,
and complied with Internal Control: Guidance on the Combined Code
(the Turnbull guidance). Business unit internal audit teams execute
risk based audit plans throughout the Group, from which all significant
issues are reported to the Group Audit Committee.
The Groups internal control framework includes detailed procedures
laid down in financial and actuarial procedure manuals. The Group
prepares

an

annual

business

plan

with

three-year

projections.

Executive management and the Board receive monthly reports on the

18

Groups actual performance against plan, together with updated

forecasts

yIntegrit: Claims

Claims in storage, 1934

The prompt payment of claims to provide immediate help in time of

emergency is considered a central part of customer service, and when
calamity struck, Prudential collectors were always on hand to provide
rapid financial relief to beneficiaries. During the Second World War
there was even a case in which a claim was paid to the heirs of a man
killed in an air raid barely an hour after taking out a policy on his own
life. Allowances were also made for cases in which claimants policies
and supporting documentation had been destroyed along with their
other possessions.
The Sun newspapers profile of Prudential, published in 1894, observed
that no serious accident occurs among the
masses of people without including in its

19

death-roll persons who are assured with the company, a fact borne
out by the following examples:
1880: Pen-y-Graig colliery explosion - 87 deaths, 20 claims paid
1882: Collapse of factory chimney, Bradford - 50 deaths, 22 claims
paid
1883: Victoria Hall catastrophe, Sunderland - 191 infant deaths, 35
claims paid
1887: Exeter Royal Theatre fire - 160 deaths, 53 claims paid
1890-94: Influenza epidemic - 20,528 claims on deaths caused by flu
Localised disasters, such as the floods on the Lincolnshire and East
Anglian coasts in 1953 brought out the gallantry and efficiency of the
Prudential field staff, who were often among the first on the scene.
More recently, claims have been paid following the grounding of the
Braer oil tanker at Garth Ness, Shetland in 1993 and widespread
flooding in 2000.
A wide range of claims has
been covered by Prudential
over the years, including fire,

20

flood, marine, motor, railway, industrial and domestic accidents. Most

notoriously, the sinking of the Titanic on 14 April 1912 resulted in the
loss of over 1,500 lives; by June 1912, Prudential had paid 14,239 in
claims for 324 lives

Integrity: Wartime
During the First World War Prudential paid in full
claims arising from death due to war circumstances,
when the policies had been taken out
Prudential Staff War Memorial

before the outbreak of hostilities No extra premium was charged for

existing policies on the lives of those engaged in active service. The
Courts (Emergency Powers) Act 1914 also protected policies against
forfeiture as a result of non-payment of premiums due to the war.
War claims paid out by 1918 amounted to 5,000,000. Prudential paid
230,000 war claims out of the total of 674,000 deaths actually
confirmed by the British Government - more than
one third of the British soldiers killed during the war.
By the outbreak of the Second World War, Prudential
had more than 28,000,000 policyholders. All Industrial Branch and
many Ordinary Branch policies contained a clause reducing claims on

21

deaths due to war causes. The board decided on 7 September 1939

that for the time being all claims arising from naval, military and
aviation causes be paid in full.

Together with the other life offices, the Prudential

agreed to protect Ordinary Branch policies from
lapse due to hardship caused by the war Industrial
Branch policyholders were already protected under
the Industrial Assurance and Friendly Societies (Emergency Protection
from Forfeiture) Act (1940).
Throughout the war there were heavy annual claims for war casualties,
totalling more than 3,000,000 by the end of 1943 and over
5,500,000 by the end of the war, representing claims on nearly
110,000 deaths; 21,000 of these comprised one third of all British
civilians killed in air raids

22

Prudential Group Anti-Bribery Policy:

covering the giving and acceptance of bribes
Introduction
Prudential values its reputation for ethical behaviour and
for financial probity and reliability. It recognises that
over and above the commission of any crime, any involvement in
bribery will also reflect adversely on its image and reputation. Its aim
therefore is to limit its exposure to bribery by:

Setting out a clear anti-bribery policy;

Training all employees so that they can recognise and avoid the
use of bribery by themselves and others;
23

Encouraging its employees to be vigilant and to report any

suspicion of bribery, providing them with suitable channels
of communication and ensuring sensitive information is
treated appropriately;

Rigorously

investigating

instances

of

alleged

bribery

and

assisting the police and other appropriate authorities in any

resultant prosecution;

Taking firm and vigorous action against any individual(s)

involved in bribery.

The Policy
The Group prohibits:
the offering, the giving, the solicitation or the acceptance of any bribe,
whether cash or other inducement
to or from
any person or company, wherever they are situated and whether they
are a public official or body or private person or company
by any individual employee, agent or other person or body acting on
the Group's behalf in order to gain any commercial, contractual or
regulatory advantage for the Group in a way which is unethical or in

24

order to gain any personal advantage, pecuniary or otherwise, for the

individual or anyone connected with the individual

Further Clarification
The Group recognises that market practice varies across the territories
in which it does business and what is normal and acceptable in one
place may not be in another. This policy prohibits any inducement
which results in a personal gain or advantage to the recipient or any
person or body associated with them, and which is intended to
influence them to take action which may not be solely in the interests
of the Group or of the person or body employing them or whom they
represent.
This policy is not meant to prohibit the following practices providing
they are customary in a particular market, are proportionate and are
properly recorded:

normal and appropriate hospitality

the giving of a ceremonial gift on a festival or at another special

time

25

the use of any recognised fast-track process which is available to

all on payment of a fee

the offer of resources to assist the person or body to make the

decision more efficiently provided that they are supplied for that
purpose only.

Inevitably, decisions as to what is acceptable may not always be easy.

If anyone is in doubt as to whether a potential act constitutes bribery,
the matter should be referred to the local senior manager with
responsibility for this policy before proceeding. If necessary, guidance
should also be sought from either Group Compliance or Group Security
at GHO.

Employee Responsibility
The prevention, detection and reporting of bribery is the responsibility
of all employees throughout the Group. Suitable channels of
communication by which employees or others can report confidentially
any suspicion of bribery will be maintained via the whistleblower's
hotline.
Plc Board

26

Board Member Prudential plc Chairman Prudential plc

Chairman, Nomination Committee

SIR DAVID CLEMENTI, MA, FCA, MBA

Board Member Prudential plc Group Chief Executive

Prudential plc
MARK TUCKER

Board Member Prudential plc Group Finance

DirectorPrudential plc
PHILIP BROADLEY
Board Member Prudential plc President & Chief Executive
Officer Jackson National Life
CLARK MANNING

27

Board Member Prudential plc Chief Executive

M&G
MICHAEL MCLINTOCK
Board Member Prudential plc Chief Executive
Prudential Corporation Asia
MARK NORBOM
Board Member Prudential plc Chief Executive
Prudential UK & European Insurance Operation.

MARK WOOD
Non-excutive director
Prudential plc

KEKI DADISETH

Non-executive director
Prudential plc

MICHAEL GARRETT

28

Non-executive director
Prudential plc

BRIDGET MACASKILL

Non-executive director
Prudential plc
Chairman, Remuneration Committee

ROBERTO MENDOZA

Non-executive director
Prudential plc

KATHLEEN ODONOVAN

Non-executive director
Prudential plc
JAMES ROSS

29

Non-executive director Prudential plc Senior

Independent Director
Chairman, Group Audit Committee
ROB ROWLEY

The Ramsgate lifeboat 'Prudential'

Prudential has a long history of investing in the
community, from Victorian philanthropy as practised by
its directors in the 19th century, through recent
sponsorship of sports and arts events to current
environmental and financial literacy initiatives. Prudential traditionally
supported public health charities and disaster funds, particularly those
with which it was already involved in paying individual claims. In the
interwar years, Prudential donated to a number of causes, including
London Chest Hospital and the Bentley Colliery Disaster Relief Fund,
and in 1926 the company paid for the new Ramsgate lifeboat, used in
the Second World War during the Dunkirk
evacuation.

Prudential Tennis Championships 1981

Several of Prudentials early directors were keen cricket
fans and until recently the company has maintained its
30

connection with the sport by providing considerable sponsorship.

Prudentials first venture into sports sponsorship came in 1972 with
the Prudential One-Day Cricket International series, and continued for
the next 12 years, including the Prudential World Cup and several
England/Australia matches. Other sporting activities that have received
sponsorship include tennis, golf, motorcycling, football, basketball,
bowls, snooker, and in 1998-1999, PruTour, the UKs biggest cycle
race.
The first arts events to receive Prudentials support were a series of
concerts by the London Philharmonic Orchestra at the Royal Festival
Hall in 1982; these were closely followed by support for theatre
groups, and for the Sadlers Wells Trusts scheme to bring the Cologne
Opera to London. The Prudential Awards for the Arts (the largest arts
prizes in the UK, now administered by the Association for Business
Sponsorship of the Arts) were launched in 1988. In 1996 Prudential
began sponsorship of a series of major exhibitions at the Tate Gallery,
and remains a founding corporate partner of the Tate Modern. More
unusual ventures which have received support include the British Trust
for Conservation Volunteers, parachute jumping, a quiz for sixthformers and the Wildlife Photographer of the Year award.

31

Prudential Asia 'PRUfriends' campaign

Each of Prudentials businesses now undertakes its
own localised sponsorship and community activities,
such as Jackson National Lifes support of Michigan
State

University

and

the

United

Way

community

volunteering

campaign. Through its PRUfriends outreach programme, Prudential

Asia stages public events promoting a healthy lifestyle; its charitable
donations focus on the needs of young people, and those with
disabilities, as well as providing short-term relief for victims of
disasters such as the recent earthquake in India.
In 2001, Prudential plc joined forces with The National Association of
Citizens Advice Bureaux and the Personal Finance Education Group to
develop Plan for Life Learning a major new financial education
programme. This focus on financial education was extended to
consumer information in 2002, with the launch of the Plan from the
Pru in the UK an award-winning impartial guide to planning finances
at every stage of life.
2001 saw the production of Prudentials first Environment Report, and
participation in a joint Government and industry initiative to provide
guidance on environmental management and reporting for the
financial sector.

32

Since 2002 Prudential Property Investment managers Limited (PruPIM)

has sponsored major industry research by Kingston University into
sustainable property investment

Diversity
All employees and applicants to our businesses should
be given equal opportunity in all aspects of employment
to ensure that the group's businesses recruit, retain and
promote the best available talent.
Business Units must ensure that these principles are embedded in all
their management practices and that this is evident to employees in
their day to day work.
Business Units should report annually to Group Human Resources on
their diversity and equal opportunities practices and overall workforce
demographics, for internal governance and public disclosure where
required

33

Employee Learning
Competitive advantage is sustained by having sufficient
and appropriate skills to deliver business objectives.
Businesses should establish an environment that
facilitates learning and ensures the levels of training and competence
required by local regulation

Employee Relations
Business Units should seek to have a strong and direct
relationship

with

employees

and

where

there

is

collective representation the aim should be to achieve

positive relationships that support the achievement of the business
goals.
Businesses must ensure compliance with the statutory and regulatory
requirements of the labour markets within which they operate. It is
essential that businesses seek to maintain a positive reputation
relating to the treatment of employees.
The status of any significant outstanding HR issues which are likely to
impact either positively or negatively on the Group's reputation as an
employer should be reported directly to the Group HR Director
immediately
34

Overall trends relating to employee involvement, staff consultation and

where relevant union recognition policies and practices should be
reported to group annually.

Environment Policy
Prudential recognises that, through day-to-day business
activities and the investments made on behalf of
customers, we have an impact on the environment.
We are committed to minimising that impact and preventing pollution
and unnecessary damage to the environment from our operations.
Through our environmental programme, we are working to integrate
environmental management into all our core business activities,
financial products and services. This will cover medium and long-term
savings,

life

assurance,

banking

and

investment

management.

Prudential is a signatory of the UN Environment Programme for

Financial

Institutions

on

the

Environment

and

Sustainable

Development. As such we will endeavour to ensure our policies and

business actions promote the consideration of the environment,

35

sustainable

development

and

compliance

with

all

relevant

environmental legislation and regulations.

We will strive to:

Continuously improve our environmental performance;

Use energy and water efficiently;

Reduce consumption of materials, through re-use rather than

disposal wherever possible;

Promote recycling;

Develop policies and practices which raise awareness and

encourage and enable our staff to make a contribution to
achieving environmental improvement;

Encourage our suppliers to minimise the impact of their

operations on the environment through our procurement polices
and practices;

Take account of environmental considerations as part of our

investment process;

36

Apply the principles of best environmental practice in the

planning, development, refurbishment and decommissioning of
our buildings;

Develop environmental considerations into Product Development

and Stewardship.

Prudential
through

has
which

developed
our

environmental

efforts

towards

objectives
achieving

and

targets

environmental

improvement can be measured and will continue to monitor and review

our environmental performance and policies.
We will report publicly on an annual basis to demonstrate developing
progress in improving our environmental performance.
Philip Broadley
Group Finance Director
March 2003
Environment/Supply Chain
We recognise that our business activities and the
investments we make on behalf of our customers have
an impact on the environment and the wider community.

37

It is important that our business management reflects the growing

awareness of environmental issues within the supply chain, including
factors such as: ethical considerations; security of supply; future
costs; efficiency savings and legislation.
We believe corporate responsibility is an integral part of good business
practice, encompassing our relationships with employees, customers,
shareholders, suppliers, and business and non-business partners in the
communities in which we operate. The Prudential Procurement Teams'
supply chain and environmental objectives are to secure services and
products with minimal environmental impact where appropriate and to
work with suppliers to create services and products that further our
progress towards sustainable development, whilst meeting Prudential
economic targets.
We will:
1) Identify environmentally preferable products and seek practical and
innovative solutions to environmental and social issues in individual
contract specifications for the supply of business goods and services.
2) Develop procurement strategies for key spend areas and those with
high environmental impact that provide economic advantage, whilst
where possible, reducing total material consumption, fossil fuel energy

38

requirements, transportation and waste to lay the foundation for

sound, long-term relationships with key suppliers.
3) Encourage key suppliers to minimise the impact of their operations
on the environment through their procurement policies and practices
and their own supply chains in meeting the contract specification.
In addition, we shall ensure that we have a training and development
plan for our procurement staff and to review this policy annually.
Philip Broadley
Group Finance Director
March 2003
Financial Reporting
The

directors

have

duty

to

report

to

shareholders

on

the

performance and financial position of the Group and are responsible

for preparing the financial statements on pages 56 to 95 (Annual
Report

2004)

and

the

achieved

profits

basis

supplementary

information on pages 113 to 124 (Annual Report 2004).

It is the responsibility of the auditor to form an independent opinion,
based on its audit of the financial statements and its review of the
supplementary financial statements; and to report its opinions to the

39

Companys shareholders. Its opinions are given on pages 97 and 125

(Annual Report 2004).

Company law requires the directors to prepare financial statements for

each financial year which give a true and fair view of the state of
affairs of the Company and of the Group and of the results for the
period and which comply with the Companies Act 1985. In preparing
those statements, the directors ensure that suitable accounting
policies are selected and applied consistently, that reasonable and
prudent judgements and estimates are made and that applicable
accounting standards are followed. They also ensure that appropriate
accounting records are maintained which disclose with reasonable
accuracy at any time the financial position of the Group and enable
them to prepare the financial statements and that reasonable steps
are taken to safeguard the assets of the Group and to prevent and
detect fraud and other irregularities.
After making appropriate enquiries, the directors consider that the
Group has adequate resources to continue its operations for the
foreseeable future. They therefore continue to use the going concern
basis in preparing the financial statements.
The SIG has three focus areas:

Early Child Health

40

Elementary Education

Micro Financial Services

Health: Early Child Health

(Maximising the proportion of healthy three year olds)
This focus seems to have the potential for maximum long and shortterm impact and appears achievable in the most cost-effective and
therefore scaleable manner.
ICICI Bank aims to improve individual capacity by impacting two
important indicators of chronic undernutrition in the first three years at
the national level:

Proportion of babies born with a birth weight of less than 2.5 kg

at or beyond 37 weeks of gestation (Intra-Uterine Growth
retardation, IUGR)

Proportion of children under three years who are stunted.

Education: Elementary Education

(Maximising the number of 14-year olds who have a basic level
of education)

41

Education (and not just literacy) up to the elementary level seems

to be almost a necessary condition for any individual (rich or poor) to
be able to participate in any manner in the larger economy
Here the goal is to work towards the universalisation of elementary
education all across India, rural and urban, with a substantial
difference being made by 2010. The goal focuses on retention in
school and learning achieved.

Money: Micro Financial Services

(Maximising access to basic financial services)
These services would include basic banking (savings and cash
management), finance (debt and equity), insurance (life and health)
and derivatives.
The goal here is to facilitate universal access to these four services
by the year 2010
Global Issues
In this section we focus on four global issues that are relevant to our
business and to our stakeholders internationally. Our response is

42

informed by our expertise and by continuous dialogue with our

stakeholders.
Changing Demographics
Around the world, populations are ageing as people are living
longer and birth rates decline. While living longer is good
news for many, it creates a fresh set of challenges for societies, with
individuals increasingly called upon to take responsibility for retirement
provision. Financial services providers have a key role in developing
solutions.
Consumer Confidence
Consumer confidence in savings has been affected by a
combination of factors in recent times, including poorly
performing equity markets and a range of other issues.

Increasing Globalisation
The lowering of trade barriers around the world presents
businesses with opportunities for growth and efficiency, but
we recognise that our choices can instantly affect people
around the world. Socially acceptable business growth is key, based on

43

internationally accepted standards of conduct

Sustainable Development
Sustainable development is about more than protecting the
environment. It also means ensuring human rights, dealing
fairly with all our stakeholders and acting responsibly towards the
communities in which we operate
Code of Business Conduct

Our Business
Through our businesses in the UK, Continental Europe, the US and
Asia, we provide financial products and services to many millions of
customers worldwide. In so doing, we aim to uphold our reputation,
built over 155 years, for acting responsibly and with integrity,
respecting the laws and regulations, traditions and cultures of the
countries within which we operate as well as internationally accepted
standards of responsible business conduct.
The Prudential plc Board requires the highest possible standards of
professional and ethical conduct from all employees. This Code of
44

Conduct sets out the basic ethical standards that are required across
the Group. Equivalent standards of conduct are expected from all
agents and other persons acting on behalf of the Group. All employees
and other persons acting on behalf of the Group are expected to treat
compliance with this Code of Conduct as an important element of their
relationship with the Group.
Mark

Tucker

Group Chief Executive

Our Group Code of Business Conduct

Each business should operate with policies and procedures which are
consistent with the values and the standards set out in this Code and
the requirements of the Group Governance manual, details of which
can be found on affinity, the Group's intranet. The following standards
of conduct apply to all employees and other persons acting on behalf
of the Group. In particular, the Group's senior management has a
special responsibility to lead according to these standards.
1. All Dealings

45

1.1

Engage in honest and ethical conduct, including the ethical

handling of actual or apparent conflicts of interest between

personal and professional relationships.
1.2

Maintain effective procedures to prevent confidential

information being misused and make it clear that the use of

confidential information for personal and corporate gain will not
be tolerated.
1.3

Advance the legitimate interests of the Group, having

regard to our values and standards, as set out in this Code and
the Group Governance manual.
1.4

Comply with all applicable laws, rules and regulations in

every country in which we operate.

2. Dealings with Customers
2.1

Treat customers fairly, openly and honestly

2.2

Provide high standards of service.

2.3

Operate effective complaints processes to deal with

situations where these standards are challenged. services that

meet customer needs and are readily understandable

46

2.4

Aim to provide and promote a range of products and.

2.5

Maintain the confidentiality of customer information, save

where the law requires or permits disclosure, or the customer

has given prior written consent.
3. Dealings with shareholders, the companies in which we
invest and the public
3.1

Maximise shareholder value over time, recognising that

wealth generated also benefits customers and employees as well

as the communities within which we operate.
3.2

Keep accounting records which accurately disclose the

financial position of the business and issue financial statements

to ensure transparency of information on the Group's financial
performance.
3.3

Communicate business policies, achievements and

prospects honestly.
3.4

Where appropriate communicate with companies in which

we invest as part of the normal investment management process

and debate any departures from our values and standards.

47

3.5

Provide full, fair, accurate, timely and understandable

disclosure in reports and documents that the Group publicly

releases and/or files or submits to appropriate authorities and
comply with all laws and regulations such as the UK Listing Rules
and the US Sarbanes-Oxley Act.
4. Dealings with Employees
4.1

Maintain a working environment that provides appropriate

remuneration including benefits, training and opportunities for

personal development.
4.2

Be intolerant of discrimination, harassment or

victimisation. Recognise diversity in recruitment and dealings

with employees. Create a favourable employee relations
environment in which the involvement of all employees is
encouraged.
4.3

Support employees who become aware of and are willing

to report business malpractice and establish procedures to

enable people who genuinely believe that malpractice is
occurring, has occurred or is likely to occur within the business
to raise issues internally without fear or recrimination.

48

4.4

Provide a clean, healthy and safe work environment,

stressing the obligation on all employees to take every

reasonable precaution to avoid injury to colleagues and members
of the public
4.5

Prohibit the illegal use of drugs on our premises and

encourage any member of the Group with an alcohol or drug

dependency to seek help.
4.6

Prohibit the use of forced or child labour.

5. Dealings with suppliers of goods and services

5.1

Maintain the highest possible standards of integrity in

business relationships with suppliers.

5.2

Encourage the use of those suppliers who operate with

values and standards equivalent to ours

5.3

Work together with suppliers to improve all aspects of

performance.
5.4

Agree terms of payment when orders for goods and

services are placed and pay in accordance with those terms.

6. Dealings with communities

49

6.1

Contribute to the social and economic well being of those

communities where we are an employer.

6.2

Encourage employees to participate in projects and

initiatives to strengthen those communities.

6.3

Work to minimise adverse environmental impact of our

business operations and to achieve group environmental policy

targets.
6.4

Ensure that we conduct our activities, so far as possible, in

a manner sensitive to the cultural and social traditions of

communities with which we come into contact.
7. Dealing with Competitors
7.1

Conduct business in accordance with our Code of Conduct

and compete vigorously but honestly.

7.2

Avoid disclosing proprietary or confidential information in

any contact with competitors

8. Dealing with governments and regulators

50

8.1

Maintain a constructive and open relationship with

governments and regulators to foster mutual trust, respect and

understanding
9. Compliance with this Code of Conduct
9.1

Businesses will explain to employees our values, the

standards required under this Code and any associated

responsibilities.
9.2

Businesses must be able to demonstrate that procedures

are in place to ensure compliance with all requirements under

this Code and periodic audit will be undertaken by internal audit.
9.3

Failure to comply with this Code or the Group Governance

manual may lead to disciplinary or criminal action being taken

against individuals
Health and Safety
Section 2(2)(3) Health and Safety at Work Act 1974)
Ensuring that our employees enjoy a safe and healthy
working

environment

is

of

great

importance

to

Prudential. Our key objectives are to maintain a framework which

allows us to meet all our legal obligations and to prevent incidence of
51

work-related accidents and ill-health. Our safety management system

sets

out

policies,

assigns

key

responsibilities

and

performance

standards to ensure the health and safety of our staff, visitors and
contractors.

Policy

It is Prudential's policy to ensure the health, safety and welfare of all

its employees while at work. In addition, it must also ensure the health
and safety of other persons who may be affected by its activities such
as customers, contractors, suppliers, tenants and members of the
public. Health and safety management within Prudential plc will be an
integral part of managing the total risks to the business and must be
resourced adequately.
Key objectives

To prevent work-related accidents and ill-health and reduce their

number and severity to as low as it is reasonably practicable;

To meet all legal obligations regarding health and safety and, in

particular, maintain an effective health and safety management
system, health and safety working conditions, safe plant and
equipment, safe materials and safe methods and procedures;

52

To demonstrate

to

the

workforce,

customers,

contractors,

suppliers and the public, through a risk reduction programme the

importance to Prudential plc of their health and safety;

To protect shareholders' interests by ensuring that all business

decisions take into account the health, safety and welfare of the
employees.

Organisation
To ensure that our health and safety policies are effective, we have
established a framework to acquire involvement and commitment from
employees at all levels of the organisation. This includes:

Assessing the skills required to carry out jobs safely;

Allocating health and safety responsibilities to all members of

staff at the appropriate levels;

Providing a platform from which staff are involved at all levels in

the planning and execution of all health and safety initiatives.

Operation
In support of the Prudential health and safety policy, a comprehensive
health and safety management system has been established to
manage the day to day activities in support of the policy. This includes

53

the setting and monitoring of performance standards, identification,

assessment and management of risk and reporting on a regular basis
at various levels of the organisation, including annually at the
Prudential plc Board. The operation includes the undertaking of
periodic audits to confirm compliance

54

Human Rights
As

an

international

provider

of

financial

services,

operating in diverse markets and cultures, Prudential

recognises its obligations to supporting Human Rights as
a consequence of its principles of acting responsibly and with integrity.
This Policy outlines Prudential's approach.
Prudential is committed to ensuring protection and respect for
fundamental Human Rights in all our activities.
We strongly endorse the principles set out in the Universal Declaration
of Human Rights, in particular those relevant to our operations which
are:

The right to freedom from discrimination;

The right to personal safety and security;

The prohibition of slavery: forced or child labour;

The

prohibition

of

torture,

treatment or punishment;

The right to privacy;

The right to religious freedom;

55

cruel,

inhuman

or

degrading

The right to freedom of opinion and expression;

The right to freedom of peaceful assembly and association;

The right to free participation in political life;

The right to work;

The right to rest and leisure;

The right to an adequate standard of living;

The right to education;

The right of minorities and indigenous peoples to protect their

identity;

The right to cultural participation.

Our Human Rights Policy is implemented by incorporating these

principles into our Group Code of Conduct which sets the minimum
standards to which our operating companies must adhere, in respect
of

their

interactions

with

Customers,

Employees,

Suppliers,

Communities, Shareholders, the Public, Companies in which we invest,

Competitors, Governments and Regulators and all our dealings.

56

Our Group Code of Conduct encompasses the principles of the

International Labour Organisation's Core Labour Conventions relating
to Non-discrimination (C100, C111), Freedom of Association (C87,
C98) and the Abolition of Forced (C29, C105) and Child Labour (C138,
C182).
Guidance for managers will be produced in support of this policyand as
it relates to our Group Code of Conduct. Companies within the
Prudential Group are responsible for developing suitable policies to
implement the Group Code of Conduct appropriate to their local
markets and cultures. Compliance with the Group Code of Conduct is
assessed through periodic audit carried out by Group Head Office
Internal Audit.
Issues arising from this Human Rights Policy, the Group Code of
Conduct and supporting policies will be handled through normal line
management arrangements, as will any target setting and reporting of
performance

57

Our Corporate Responsibility Policy

Prudential defines corporate responsibility as action
taken by the Group which positively impacts on our
customers, our shareholders, our people, our suppliers
and the communities around our businesses, and which includes and
goes beyond our legal or regulatory obligations. Examples of our
commitment to corporate responsibility include:

investing for the long term to bring out the best in our people

acting as a responsible shareholder;

investing in our communities;

engaging with customers;

managing our environmental impacts;

maintaining effective health and safety management systems.

Each business is committed to corporate responsibility in order to

enhance the value of their business and that of the Group as a whole.
The nature of each business as well as local cultures and needs
determine which issues are most relevant in our markets in addition to
minimum standards set by the Group. An executive director is
responsible for advising the main board on corporate responsibility
58

matters, informed by Prudential plc's Corporate Responsibility Policy

Group.
We are committed to reporting on our corporate responsibility policies
and

actions

performance.

annually,
In

which

shaping

our

will

enable

particular

others
approach

to
to

judge

our

corporate

responsibility, we engage with business and non-business interest

groups to ensure that we fully understand their expectations of us and
to ensure that our policies and programmes address relevant issues.
corporate responsibility. As an international provider of financial
services, we believe that a positive record as a conscientious employer,
acting responsibly and with integrity, will enhance our reputation. As
such, we believe it can contribute to our long-term
Prudential aims to set, maintain and promote high standards of
financial success and to our primary objective of achieving shareholder
value.
Performance Evaluation
An evaluation was carried out of the performance of the Board and its
Committees, and of the individual directors, for the year 2004, in line
with the requirements of the Code. The aim was to improve individual
contributions, the effectiveness of the Board and its Committees and
the Groups performance.
59

Following a competitive selection process, the evaluation of the Board

as a whole and of the Chairman was carried out by an independent
consultant, following a briefing by the Chairman and the Senior
Independent Director. Interviews were conducted with each Board
member by the independent consultant. The interview questions were
based on the Code and sought views on the effectiveness of the Board
and on the Chairmans performance. The independent consultant
prepared its report based on the interviews with directors. The overall
results of the evaluation were reviewed by the Board in January 2005.
The non-executive directors met, under the leadership of the Senior
Independent Director, to consider the report of the independent
consultant and to review the performance of the Chairman. The
performance of individual non-executive directors and the Group Chief
Executive was evaluated by the Chairman in a meeting with each
director and with the Group Chief Executive. The Group Chief
Executive individually appraised the performance of the executive
directors.

60

The Board
As at 31 December 2004, the Board comprised the Chairman, six
executive directors and six independent non-executive directors.
Following recent changes there will be, with effect from 1 April 2005,
six executive directors and seven independent non-executive directors
in addition to the Chairman. These non-executive directors bring a
wide range of business, financial and global experience to the Board.
Biographical details of the current Board members appear on pages 32
and 33 (Annual Report 2004).

The roles of Chairman and Group Chief

Executive are separate and clearly defined, and have been approved
by the Board so that no individual has unfettered powers of decision.
The Chairman is responsible for the leadership and governance of the
Board as a whole and the Group Chief Executive for the management
of the Group and the implementation of Board strategy and policy on
the Boards behalf. In discharging his responsibility, the Group Chief
Executive is advised and assisted by the Group Executive Committee,
comprising all the business unit heads and a Group Head Office team
of

functional

specialists.

Rob

Rowley

is

the

Companys Senior

Independent Director, to whom concerns may be conveyed by

61

shareholders if they are unable to resolve them through the existing

mechanisms for investor communications, or where such channels are
inappropriate. The Chairman meets, at least annually, with the nonexecutive directors without the executive directors being present.
During 2004 the Board met 14 times and held a separate strategy day.
Each year one of the Board meetings is held at one of the Groups
business operations to facilitate a fuller understanding of the diversity
of the business. In September 2004, a Board meeting was held in
Scotland, following a series of presentations made to Board members
on the UK business and future market opportunities by the Prudential
UK management team at its Craigforth centre. All of the directors,
save for Bridget Macaskill who missed one scheduled meeting due to
injury, attended all of the eight scheduled Board meetings. The
majority of the directors attended most of the remaining six additional
Board meetings. Where a director was not able to attend any of the
additional meetings, their views were canvassed prior to that meeting.
A further 14 Board Committee meetings took place during the year.
The Boards terms of reference, which are regularly reviewed, set out
those matters specifically reserved to it for decision, in order to ensure
that it exercises control over the Groups affairs. These include,
amongst other things, approval of the annual and interim results,

62

strategy

and

corporate

objectives,

operating

plans,

significant

transactions and matters affecting the Companys share capital.

A corporate governance framework approved by the Board maps out
the internal approvals processes and those matters which are
delegated to business units. These principally relate to the operational
management of the Groups businesses and include pre-determined
authority limits delegated by the Board to the Group Chief Executive
for further delegation by him in respect of matters which are essential
to the effective day-to-day running and management of the business.
The chief executive of each business unit, who in respect of his
business unit responsibilities reports to the Group Chief Executive, has
authority for management of that business unit and has established a
management

board

comprising

its

most

senior

executives.

In

accordance with the Group Governance Framework, business unit chief

executives are required to certify annually their compliance with the
requirements of the framework.
The Board is accountable for ensuring that an effective system for
succession planning and management development is in place. This is
delivered through an established review process that is applied across
all the businesses and covers both director and senior management
succession and development. The Board reviews the outcomes of the
63

review annually and actions arising from the review are implemented
as part of the management development agenda.
All directors have direct access to the services of the Company
Secretary who advises them on all corporate governance matters, on
Board procedures, and on compliance with applicable rules and
regulations. In order to ensure good information flows, full Board and
Committee papers are provided to the directors by the Company
Secretary approximately one week before each Board or Committee
meeting. The Company Secretary also supports the Chairman in
providing tailored induction programmes for new directors and ongoing training for all directors.
Other commitments of the Chairman and changes during the year are
detailed in his biography on page 32 (Annual Report 2004). The Board
is satisfied that these other commitments are not such as to interfere
with the performance of the Chairmans duties for the Group

At Prudential, Life Insurance Was a Belief Before It Was

a Business
Since 1875, Prudential Financial has helped people achieve financial
security and peace of mind. Our success is based on a long history of

64

social

responsibility,

strong

leadership,

sound

investments

and

innovative products and services.

The Prudential Friendly Society, founded by insurance agent John
Fairfield Dryden, was founded in a basement office at 812 Broad Street
in downtown Newark, N.J. It was the first company in the U.S. to make
life insurance available to the working-class. The company sold
Industrial Insurance, which provided funeral and burial expenses for
low-income families, with some weekly premiums as low as three
cents.
Four years later, Prudentials sales extended beyond New Jersey, into
New York City and Philadelphia, and the company's customer base
expanded to the newly emerging middle class. With growing sales,
assets reached $1 million, and in 1885, the one-millionth policy was
sold to John Dryden. Renamed "The Prudential Insurance Company of
America," Prudential later adopted The Rock of Gibraltar as its
company symbol, reflecting the strength and security it offered to
customers.
As the twentieth century emerged, Prudential transitioned from a stock
company to a mutual company, and business continued to grow. Even
during the Great Depression, when policy loans and mortgage
delinquencies rose to unprecedented numbers, Prudential remained
committed

to

protecting
65

working

families.

The 1940s began a "golden" period for Prudential. Monetary assets

grew six-fold, and Prudential continued to expand its product offerings.
The company decentralized and over the next three decades opened
regional offices in Los Angeles, Chicago, Minneapolis, Jacksonville,
Houston, Boston and northern New Jersey and a Canadian Head Office
inToronto.
Expansion and growth underscored the latter third of the twentieth
century. Prudential marked the 1980s by becoming the first major
insurance company to market variable annuities. In 1984, the
company introduced Variable Appreciable Life, a major product
innovation, that gave customers investment options in which to invest
their policy cash values. Growth continued into the following year
when Prudential acquired Jennison Associates Capital Corp., a major
stock and bond manager for pension funds. Topping off the decade,
the company entered the residential real estate brokerage business in
1987 by forming a new subsidiary, The Prudential Real Estate
Affiliates.

Prudential entered the 1990s with consolidated assets surpassing $100

billion. The decade also saw a changing of the guard when Arthur F.
Ryan of Chase Manhattan Bank, became the first individual from
66

outside Prudential to become chairman and chief executive officer.

In

2001,

Prudential

marked

major

milestone

with

its

demutualization. Prudential Financial, Inc.'s common stock began

trading on December 13, 2001, on the New York Stock Exchange
under the symbol "PRU." Since that time, Prudential Financial
completed a number of business transactions that include the
acquisition of American Skandia, the largest distributor of variable
annuities through independent financial planners in the United States,
and the creation of a retail
brokerage business with Wachovia Corporation forming one of the
nation's largest retail financial advisory organizations, Wachovia
Securities,

LLC.

Prudential Financial's distinctive rock logo and Prudential's name are

among the most enduring brands in U.S. corporate history. The
company's long history is a testament to the quality it has provided its
customers. In addition to the level of service, Prudential Financial is
today recognized for the breadth of products and services it provides
and continues to be a recognized company of quality financial services
at home and abroad.

67

ABOUT ICICI BANK

ICICI Bank is India's second-largest bank with total assets of about

Rs.1,676.59 bn(US$ 38.5 bn) at March 31, 2005 and profit after tax of
Rs. 20.05 bn(US$ 461 mn) for the year ended March 31, 2005 (Rs.
16.37 bn(US$ 376 mn) in fiscal 2004). ICICI Bank has a network of
about 573 branches and extension counters and over 2,000 ATMs.
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 specialised subsidiaries and affiliates in the
areas of investment banking, life and non-life insurance, venture
capital and asset management. ICICI Bank set up its international
banking group in fiscal 2002 to cater to the cross border needs of
clients and leverage on its domestic banking strengths to offer
products internationally. ICICI Bank currently has subsidiaries in the
United Kingdom, Canada and Russia, branches in Singapore and
Bahrain and representative offices in the United States, China, United
Arab Emirates, Bangladesh and South Africa.

68

ICICI Bank's equity shares are listed in India on the 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).
ICICI Bank has formulated a Code of Business Conduct and Ethics for
its directors and employees. (Click here to view a copy of the Code)
At September 20, 2005, ICICI Bank, with free float market
capitalization* of about Rs. 400.00 billion (US$ 9.00 billion)
ranked third amongst all the companies listed on the Indian
stock exchanges.
ICICI Bank was originally promoted in 1994 by ICICI Limited, an
Indian financial institution, and was its wholly-owned subsidiary.
ICICI's 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
69

and long-term project financing to Indian businesses. In the 1990s,

ICICI transformed its business from a 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
70

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
Ahmedabad in March 2002, and by the High Court of Judicature at
Mumbai and the Reserve Bank of India in 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.
*Free

float

holding

excludes

all

investments and cross holdings among

promoter

holdings,

public sector entities.

Board Committees
Audit Committee
Mr. Sridar Iyengar
Mr. M. K. Sharma
Mr. Somesh R. Sathe
Board Governance & Remuneration Committee
Mr. N. Vaghul
Mr. Anupam Puri
Mr. M. K. Sharma

71

strategic

Mr. P. M. Sinha
Prof. Marti G. Subrahmanyam
Business Strategy Committee
Mr. N. Vaghul
Mr. Anupam Puri
Mr. M. K. Sharma
Mr. P. M. Sinha
Mr. K. V. Kamath
Credit Committee
Mr. N. Vaghul
Mr. Somesh R. Sathe
Mr. M .K. Sharma
Mr. P. M. Sinha
Mr. K. V. Kamath
Fraud Monitoring Committee
Mr. M. K. Sharma
Mr. Somesh R. Sathe
Mr. K. V. Kamath
Ms. Kalpana Morparia
Ms. Chanda D. Kochhar
Risk Committee
Mr. N. Vaghul
Mr. Sridar Iyengar
Prof. Marti G. Subrahmanyam
72

Mr. V. Prem Watsa

Mr. K. V. Kamath
Share Transfer & Shareholders'/ Investors' Grievance
Committee
Mr. M. K. Sharma
Mr. Somesh R. Sathe
Ms. Kalpana Morparia
Ms. Chanda D. Kochhar
Committee of Directors
Mr. K. V. Kamath
Ms. Lalita D. Gupte
Ms. Kalpana Morparia
Ms. Chanda D. Kochhar
Dr. Nachiket Mor
Asset-Liability Management Committee
Ms. Lalita D. Gupte
Ms. Kalpana Morparia
Ms. Chanda D. Kochhar
Dr. Nachiket Mor

73

ABOUT THE PRODUCT

Savings Plans
ICICI Prudential offers a variety of policies that give you the benefits of
protection and the opportunity to save for important assets or events,
like a home, a car or a wedding

A regular premium unit-linked insurance plan with an assurance of

Capital Guarantee* and the facility of extended insurance cover.

A regular premium unit-linked insurance plan with an assurance of

Capital Guarantee* along with flexible liquidity options.

A unit-linked insurance plan with an assurance of Capital Guarantee*,

which offers you the benefit of a limited premium payment and
coverage term.

74

A market linked insurance plans that meets your Investment and

Protection needs.

Complete market-linked insurance plans that adapt itself to your

changing protection and investment needs, throughout a lifetime.

An insurance plan that gives added protection savings and multiple

options, all in one!

An insurance plan that gives added protection savings, multiple

options, plus the power of liquidity.

A traditional endowment savings plan that offers both high returns and
protection.

An endowment savings plan that allows you to get back substantial

survival benefits without having to wait till the maturity date.

75

*The capital guarantee is applicable only on the invested premium and

the declared bonus interests
Protection Plans

ICICI Prudential Life Insurance offers LifeGuard - a set of pure

protection plans. Choose from amongst three different product
structures to insure your life and provide total security to your family,
at a very affordable cost

Level Term Assurance with return of premium

On death the entire sum assured will be paid.

On maturity, all the premiums paid will be returned.

Level Term Assurance without return of premium

On death the entire sum assured will be paid.

No survival or maturity benefits.

76

You can also enhance the above two policies by adding Accident &
Disability Benefit Rider and Waiver of Premium Rider (WOP).

Level Term Assurance - Single premium

On death the entire sum assured will be paid.

No survival or maturity benefits

As a responsible parent, you will always strive to ensure

a hassle-free, successful life for your child. However, life is full of
uncertainties and even the best-laid plans can go wrong. Heres how
you can give your child a 100% safe and assured tomorrow, whatever
the uncertainties. SmartKid is especially designed to provide flexibility
and safeguard your childs future education and lifestyle, taking all
possibilities into account. Choose from amongst a basket of 4 plans:
1. SmartKid regular premium
2. SmartKid unit-linked regular premium
3. SmartKid unit-linked regular premium II
4. SmartKid unit-linked single premium II

77

All these plans offer you:

Financial Benefits: Regular payments at critical stages

in your childs life, like Board examinations, Graduation
and Post-graduation.

Total peace of mind, even if you are not around

Sum Assured is paid immediately: Ensures that your

loved ones stay financially secure, even in your
absence.

All future premiums are waived: Ensuring that your

family is not financially burdened in your absence.

Policy benefits continue: The educational benefits of

the policy continue, ensuring that your child can realize
his or her dreams without any hassles.

Development Allowance: SmartKid guarantees

regular income to secure your childs educational career
and also ensures his or her all-round development, for a
nominal additional amount. The Income Benefit Rider
takes care of this through an annual payment of 10% of
the sum assured, to your child, till the maturity of the
policy, in the unfortunate event of the death of the
parent

78

All SmartKid plans can be enhanced with the Accident &

Disability Benefit Rider and Income Benefit Rider.You
can also an Accident Benefit Rider to a SmartKid
Regular Premium policy,and a Waiver of Premium Rider
(WOP) to SmartKid unit-linked regular premium policy.

Retirement Plans
Life Expectancy has been rising rapidly and today
you can expect to live longer than your earlier
generations. For you, this increase will mean a longer retirement life,
stretching into a couple of decades. ICICI Prudential presents
Retirement

Solutions

that

combine

the

best

of

insurance

and

investment. These solutions are developed to ensure your peace of

mind for the years to come. Choose from amongst 6 retirement plans.
A flexible unit-linked retirement solution that offers
flexibilities

during

the

accumulation

as

well

as

payout

phase.

A regular premium unit-linked pension plan with an assurance of

Capital Guarantee*

79

A regular premium linked pension plan that gives you the freedom to
choose the amount of premium, and invest in market-linked funds, to
generate potentially higher returns.

A single premium linked pension plan that gives you the freedom to
choose the amount of premium, and invest in market-linked funds, to
generate potentially higher returns.

A regular premium pension plan that gives you the flexibility to choose
between 3 levels of sum assured for the same level of total annual
contribution

A regular premium pension plan that helps you save for your
retirement while providing you with life insurance protection.
*The capital guarantee is applicable only on the invested premium and
the declared bonus interests.
Choose from 5 Annuity options at the time of vesting
1. Life Annuity
2. Life Annuity with return of purchase price
3. Life Annuity guaranteed for 5, 10, 15 years
4. Joint Life, Last Survivor without return of purchase price
5. Joint Life, Last Survivor with return of purchase price

80

Investment Plans
LifeLink II is a unique plan that combines the security of a life
insurance policy with the opportunity of enjoying high returns on your
investments, without the market risks compromising on the protection
of your family!

Death Benefit: The Sum Assured under the product has 2 options,
either 500% of the initial premium or 105% of the initial premium. In
the event of an unfortunate death, the beneficiary will receive higher
of the value of units or the initial death benefit, less any withdrawals.

Withdrawal Benefit: One can make partial withdrawals from the

accumulated value of the policy after completion of one policy year.
Flexibility: Choose from four fund options, based on your investment
objective and risk appetite. If at a later stage your financial priorities
change, you can switch between the various fund options, absolutely
free, 4 times a year

81

Group Solutions
In an era of competitive parity, the only asset that makes a decisive
difference between corporate success and failure is the quality of
human capital. Employee benefits have proven to be an excellent tool
to optimize the retention of talent and improve an organisations
bottomline.

The

quality

of

an

organisations employee

benefits

establishes and maintains a company's image as a caring employer.

Optimum care of employees is a long-term investment that results in a
sustained competitive advantage for an organisation in the times to
come.

82

ABOUT CHANNEL MANAGEMENT

Channel Management - Release 2005

mySAP CRM empowers organizations to manage partners and enables
channel partners to effectively serve their customers, resulting in a
more profitable and loyal indirect channel. Organizations can more
effectively collaborate with and leverage channel partners to better
market to, sell to and service end customers.

Partner
Managem
ent

Partner Partner
Partner
Partner Plannin Training Partner Partner
Lifecycle
Recruit
g&
&
Networ Compens
Manage
ment Forecas Certific
king
ation
ment
ting
ation

Campaig
Content Catalog
Lead
Channel
n
Marketing Managem Managem Managem Manage
ent
ent
ment
ent

Channe
Partn
l
er
Marketi
Locat
ng
or
Funds

Channel
Sales

POS &
Chann
Accou Opportuni Pricing Interactive Quotation
el
nts &
ty
&
Selling & & Order
Invent
Contac Managem Contra Configurat Managem
ory
ts
ent
cts
ion
ent
Trackin
g

Channel
Service

Knowledg Service
Live Complai Install Warranty
e
Order
Supp
nts &
ed
Managem
Managem Managem
ort
Returns Base
ent
ent
ent

83

Channel
Commerc
e

Collaborativ
e
Showroom

Distributed
Catalog &
Content
Management

Distributed
Order &
Inventory
Management

Hosted
Partner
Sites

Managing yourself
Select the competence of your interest here below to see a list of
programmes

addressing

this

competence

programmes in the area of Managing yourself.

Media Training

Leadership Style

Communication Style

Communicating Effectively

Influence and Self-Confidence

Negotiating Skills

Working with Internal Clients

Facilitating Meetings

Time Management

Business Presentations/Writing
84

or

see

list

of

all

Office Management

Skills for Executive Assistants

MANAGING OTHERS
Select the competence of your interest here below to see a list of
programmes

addressing

this

competence

programmes in the area of Managing others.

Increasing Team Performance

Coaching

People Management Skills

Handling Conflict

Managing the Sales Team

Managing the IT Department

85

or

see

list

of

all

Office Management

Delegation

Delivering Training

86

The impact of New Technologies on Channel

Management
How do you select the optimal channels to get your products and
services in front of your targeted customers? Recent changes in
information technology and logistics have transformed the entire
distribution environment. Innovation in distribution can give you a
clear competitive advantage.
This intensive programme will bring you up to date with the latest
technological, logistical and behavioural developments which could
impact the way you bring your products to market in a B2C
environment. You will get an insight into the latest thinking, research
and global best practice allowing you to understand, manage and
evaluate your distribution options more effectively.
Programme duration: 3 days

Registration fee: 3650 Euro

More information? Contact our Customer Service team or call +32/

(0)2/543.21.00

87

This programme in your company?

MCE can also organise this programme for a group of executives from
your company at a date and location of your choice, taking into
account

the

specific

needs

of

your

organisation.

Contact

Axel

Kolomyjczuk for more information.

Corporate Internet Banking
Corporate Internet Banking (CIB), facilitates banking from your desk. At
the click of a mouse you can access your accounts at ICICI Bank and also
keep track of your accounts at our various branches in India.

Corporate Internet Banking features and benefits.

Account Information: Real time balance information

and summary of days transaction.

Fund Transfers: Manage your Supply-Chain network,

effectively

by

using

our

Corporate

Internet

Banking

fund transfer mechanism. You can effect fund transfer

on a real time basis across the bank locations in India.

Request: Make a banking request online.

How

do

Click

here

apply
to

for

download

Corporate

Internet

Banking?

Application

form

Corporate

88

for

Internet Banking. You may also wish to visit any of our

Branches in India for a copy.
How do I access Corporate Internet Banking?
With connection to the Internet, you can login to Corporate
Internet Banking with your Corporate Id, User ID and
Password via the following:
(a) At http://www.icicibank.com/ , under Corporate Finance,
click on "Click here for Corporate Internet Banking Login", or
(b) Go directly to
http://ebusiness.icicibank.com/imarkets/login/cib_login.asp
to login. You can bookmark this URL by adding this to your
browser favourites .
Account Information :
The complete database that the bank has about your
company is available to you at your terminal. It provides you
:

Current balance in your account on real-time basis

Days transactions in the account

Details of cash credit limit, drawing power, amount

utlised, etc.
89

Downloading of account statements as an excel or text

file. The statements can be integrated with your ERP
system for auto-reconciliation.

Fund Transfers:
Manage your Supply-Chain network, effectively by using our
Corporate Internet Banking's online fund transfer
mechanism.You can effect fund transfer on a real time basis
across the bank locations in India. The product facilitates :

One-to-one fund transfer between two linked account

across the bank locations in India

Bulk fund transfers. In bulk fund transfers, you upload

a flat file containing payment/collection information.
Our systems take care of processing the entire file and
once

the

file

is

processed

you

can

integrate

the

processed file to your ERP for auto reconciliation.

The real life situation of user-wise limits and multilevel

signatories

can

be

mapped

in

the

net-based

fund

transfer module too. You can specify user-wise cap for

funds transfer and the number of approvals needed for
each fund transfer. The fund transfer will not take place
90

unless the required number of signatories has approved

it.

With a Power of Attorney from your dealers, you can

link the dealers accounts to your account in order to
have

an

money

online

fund

involved

Alternatively,

transfer, saving

with

the

cheque

dealer

can

you

collection
credit

your

time

and

systems.
account

through this channel. Similarly, you could also effect

vendor and other payments online.
Request:
Corporate

Internet

Banking

allows

the

client

to

make

email

either

following requests online :

Registration

for

account

statements

daily/weekly/fortnightly/monthly basis

Stop payment of cheque

Cheque book replenishment

Demand Draft/Payorder

Opening of fixed deposit account

91

by

Opening of Letter of credit

What is Life Insurance?

Life insurance is a form of insurance that pays monetary proceeds upon the death

of the insured covered in the policy. Essentially, a life insurance policy is a contract
between the named insured and the insurance company wherein the insurance company
agrees to pay an agreed upon sum of money to the insured's named beneficiary so long as
the insured's premiums are current.
People take out life insurance policies for a number of reasons. Such
insurance provides security to family members upon the loss of a loved
one. For instance, if the primary wage earner dies in his or her prime,
the death benefit received from a life insurance policy will assist the
surviving family members in overcoming the burden of the tragic loss.
Life insurance can be purchased by individuals, but is also offered as a
perk

by

many

employers.

Often

times,

large

employers

and

government employers offer group life insurance at no cost to the

employee. Should the employee wish to obtain additional life insurance
from the employer's insurance company, they can usually do so at
reduced rates.

92

The cost of life insurance varies depending on such factors as the

insureds age, health, and occupation. For example, the premium for a
25-year-old, male, non-smoker in excellent health will be far less
expensive than a similar policy for a 65-year-old male smoker.
Similarly, a sky dive instructor would have to pay much higher
premiums for life insurance than would a librarian.
Life insurance is available in a number of different forms to fit the
tastes of the proposed insured. Some of the typical forms of life
insurance policies include: whole life, variable life, and term life. Term
life insurance policies begin with low premiums during the initial stages
of the policy and these premiums increase steadily as the insured
grows older. There is no cash build-up in a term policy and,
accordingly, the death benefit will not increase.
With whole life and variable life insurance, a portion of each premium
pays for the insurance and the remainder serves as a tax-free
investment. A whole life policy sets a premium at the beginning of the
policy and that premium does not change over the life of the policy.
This form of insurance allows for a cash build-up during the insured's
life. This cash build-up can be used during the course of the policy or it
will simply serve to increase the death benefit in the end.

93

In a variable life product, the premium remains the same over the life
of the policy, and there should be a cash build-up as long as the
various mutual funds selected by the insured perform well

RESEARCH METHODOLOGY
The project channel management is basically a broad study of the
sources by which company offering their products to the consumer in
present scenario there are so many companies which offering their
same product line to their customer in last five year there are great
change reported in insurance sector

ICICI Prudential is basically the leading insurance company in private

sector and it has 20 percent coverage of the total insurance market.
By this it is so obvious that ICICI Prudential has big channel than
other. For the proper channel management it is necessary to select the
right people for conveying the message of ICICI Prudential. They have
so many products and for it their requirements are right human skills

In our primitive days we are just studying about the company profile
like ICICI bank, US based prudential and ICICI Prudential and after
that we are introducing our self to the company norms and rules and
94

regulation after that we are studying about the facilities the company
offer to their employee .In next step we are trying to understand
potential of ICICI Prudential in insurance sector.

The most important part of our summer project is recruitment of

financial adviser. They are those personalities who directly sell the
product to their customer. For the financial advisor there are some
parameters on the basis of which we can select them. This is not so
easy task to recruit them because there are so many companies which
offering more or less similar facilities to their advisers.

For the recruitment of the financial advisor we are selecting some

sources by which we can get committed self-motivated financial
advisor as placement agencies, hostels and so many other sources
where we are going for the selection of financial adviser. After
identifying the particular candidate we are going for their 100-hour
IRDA training for understanding the product offered by company and
other technicality of hard-core selling. There is so many other training
given by the company, time to time about other expertise.

95

Method of data collection

A) Primary Data Collection:Primary data collection contains the following four types of methods: 1 Observation Method:
It contains Causal observation, Systematic observation, direct observation and contrived
observation.
2 Survey Method:
It contains Personal Interview, Telephone Interview and Mail Interview.

A) Secondary Data Collection: It can be collected from internal as well as external sources
1 Internal Source:
Various internal sources like employee, books, sales activity, stock availability, product cost,
etc.
2 External Sources:
Libraries, trade publications, literatures, etc are some important sources of external data.

96

The Researcher has used primary data for the core purpose of the project and this primary
data has been gathered by survey method. The researcher has also used secondary data

DATA ANALYSIS

B) Data collection Tools:

To conduct a survey, the Researcher has selected a structured questionnaire as an instruction for
gathering valuable information from the customers.
DATA PRESENTATION:

After collection of data, the analysis of it was done through graphs.

1. What is your full time profession?

a) Business -31

b) Govt. Service -17

c) Private Jobs -42

d) Retired -14

e) Housewife -07

97

From the above shown data we can see that mostly private jobs professionals are interested in doing
this work. Housewives do this job but number of them is very less.

2. According to you, the purpose of insurance is:

S. No.
a.
b.
c.
d.
e.

Parameters
Pre-mature death
Living too long
Childrens future
Wealth creation
Tax saving

Order of preference
29
12
33
14
23

98

From the above shown graph we can see that mostly people take insurance as the childrens future.
The number of people who takes it as living too long is very less.

3. What efforts can be made to bring about more awareness amongst people?

a) Media Ads - 26

b) Banners - 04

c) Newspaper - 15

d) Agents - 54

e) Event Sponsorship - 07

f) Any Other - 05.

99

When it comes to bring about more awareness amongst people, from the above graph we can see that
most of the people think that agents can do it.

4. You know how many names of private insurance company?

a) Below 2 - 05

b) Between 2-4 - 61

c) Between 4-6 08

d) Above 6 37

100

When people are asked that how many companies are known to them, most of them said 2-4.

5. You like to work in market/field and want to interact with people?

a) Yes - 42

b) No - 58

101

When people are asked that would they like to work in market field and want to interact with people,
most of them said NO.

6. From how many years you live in NCR?

a) Below 6 months - 13

b) 6 months 1 year - 61
102

c) 1 year- 2 year - 27

d) more than2 years 37

When people asked that from how much time they are living in the NCR, most of them replied 6
months to 1 year.

7.

How many people do you know in NCR?

a) Less than 200 - 27

b) 200-500 - 53
103

c) 500-1000 21

d) Above 1000 - 10

When it was asked from that people that how much acquaintances they have in NCR, most
of them replied 200-500.

8.

Do you like to earn some extra money?

a) Yes - 86

b) No - 14

When people were asked that if they like to earn extra money, most of them said Yes.

9. Are you involved in Insurance Business?

a) Yes - 28

b) No - 83
104

If YES, than answer the following question:

A.

Duration of working?
a) Below 6 months 12
c) 1 2 years - 02

b) 6 months 1 year - 06
d) 2 3 years - 05

e) Above 3 years -03

10. Annual Productivity given to company?

a) Below 50,000 - 00

b) 50,000 1, 00,000 - 00
105

c) 1, 00,000 2, 00,000 - 02

d) 2, 00,000 3, 00,000 - 02

e) 3, 00,000 4, 00,000 - 07

f) Above 3, 00,000

When people were asked about the annual productivity given by them to company, most of them
said 3,00,000.
11. In which company are you working?
a) LIC - 16

b) ICICI Prudential - 04

c) Other 08

106

When people were asked about the company in which they are working, most of them said LIC.

12. How much time you provide easily besides your job hours?
a) 0-2 hrs - 22
c) 4-6 hrs - 15

b) 2-4 hrs - 37
d) Time Full 09

When people were asked how much time they can provide to this job besides their own job
most of them said 2-4 hrs.

107

FINDINGS

People are becoming more and more money conscious as I find very less person
who doesnt want to earn extra money.

People are very much aware of ICICI Prudential among private companies as they
respond me first name of ICICI prudential and then others.

The overall scenario is that still people trust on LIC more than any other insurance
company. Some time when I asked someone to become an advisor of ICICI
Prudential they misunderstood with LIC. For them still life insurance means LIC.

Generally people are having leisure time of around 2-3 hours and still want to
utilize this time to earn extra money, if they can.

Contrary to the prior thinking most of the people dont hesitate in doing field work
a roaming in the market for money. They know that without hard work they cant
earn money.

108

There were many respondents who were not interested in attending seminar
conducted by ICICI Prudential in their office, because of low awareness of private
insurance company.

109

RECOMMEDATION
SUGGESTIONS AND RECOMMENDATION

Need to create and effectively deploy differentiated strategies in finding out more
resources to recruit insurance advisors.

Right prospects identification and thus segmentation, which need to be appropriate.

Design and manage sales force, which yields high performance. More training of
the employees can be done so that they produce best result.

Recruitment process needs to be slightly fast, so that prospects can retain some
confidence as in starting.

Need to create better, differentiated detailed brochures for advisors recruitment.

Increase advisors sales force quality as well as quantity by employing some HR

professional, who time to time take some action for the improvement of insurance
advisors.

More advertising strategies should be taken to grasp the attention of those people
who want to become insurance advisors.

Make use of internet banking for increasing sales and also for promotion.

There should be more incentives to insurance advisors they are the backbone of the
company in order to increase sales they have to do mare efforts than others.

Generate some innovative and alternative channels of distribution, using the sources that
can straight play with the emotion of the person and influence so high that it forces the
human being to go for insurance and that to willingly. Recruit those individuals that really
want to take this job as a challenge.
110

Conclusion
For better channel management there are so many tools like
proper communication among the channel, the selection of right
financial advisor they should understand the Opportunity and
should be self motivated, the important part of the growth of the
financial comp- anise is that they should properly manage there
channel.

The another important thing is that the

financial advisor should be the
appropriate Personality. The another
important thing is that product design it
should be in right Manner

111

Bibliography
Study Material
Brochures of all insurance company
Company BOP (Business opportunity Presentation)
Brochures of ICICI prudential

Book Referred
Philip kotler

News Paper and Media

Financial Express
Economic times

Website referred
www.google.com
www.iciciprulife.com
www.icicibank.com
112