A SUMMER TRAINING REPORT

ON

“MARKETING RESEARCH
OF ICICI PRUDENTIAL PRODUCTS”

SUBMITTED IN THE PARTIAL FULFILLMENT OF THE

REQUIREMENT OF
BACHELOR OF BUSINESS ADMINISTRATION (BBA)

TRAINING SUPERVISOR: SUBMITTED BY:

 ACKNOWLEDGEMENT

Project work is never the accomplishment of one individual. Rather it is an amalgamation

of the efforts, ideas and co-operations of a number of individuals. Each page is written,
discussed and revised with the deepest sense of esteem and gratitude.

It gives me immense pleasure to take this opportunity to thank all those who helped in
successfully completing the project.

First & foremost I would like to thank our MR. MANOJ NARANG
(branch manager) who provided me with this opportunity.

Getting this project done was a big task but with the cooperation of all
the Company employees, it was a smooth sailing. I specially would like
to thank Mr. MANISH KUMAR (unit manager) for all the assistance he
has provided me in the period of my training.
TABLE OF CONTENTS

CHAPTER CHAPTER NAME PAGE NO.

NO.

1 COMPANY PROFILE
a) About ICICI
b) Market Presence of ICICI Prudential
c) Research on Products and Services
-Life Insurance Plans
-Health Plan
-Retirement Plans
d) Company policies

2 LITERATURE REVIEW
3 RESEARCH METHODOLOGY
a) Objectives of the Research
b) Research design
c) Data Sources
-Primary Data
-Secondary Data
c) Questionnaire Design
d) Sample design
e) Limitations of Research

4 DATA ANALYSIS 70 - 85
5 FINDINGS 86 - 87
6 RECOMMENDATIONS 88
ANNEXURES 90
-Questionnaire

BIBLOGRAPHY 91
REFERENCES 92
 CHAPTER 1
INTRODUCTION
COMPANY PROFILE

HISTORY OF ICICI

ICICI Bank was originally promoted in 1994 by ICICI Limited, an Indian financial
institution, and was its wholly owned subsidiary. ICICI was formed in 1955 at the
initiative of the World Bank, the Government of India and representatives of the
Indian Industry. The principal objective was to create a development financial
institution for providing medium-term and long term project financing to Indian
businesses. In the 1990s, ICICI transformed its business from a development
financing 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.

ICICI marked its first foray into retail banking by promoting ICICI Bank. The Bank was
registered a banking company on January 5, 1994 and received its banking license from
the Reserve Bank of India on May 17, 1994.

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 2001

 ICICI Bank’s acquisition of the Bank of Madura Limited in an all-stock

amalgamation in fiscal 2001
  Secondary market sales by ICICI to institutional investors in fiscal 2001 and
fiscal 2002.

The first ICICI Bank branch was started in Madras in June 1994. It is now India’s
second-largest bank with total assets of about Rs. 1 trillion and a network of about 540
branches and offices and over 1,000 ATMs. The branches are fully computerized with
state-of-the-art technology and systems. All of them are fully networked through V-SAT
(Satellite) technology. The Bank is connected to the international SWIFT network since
March 1995. ICICI Bank’s infinity was the first Internet banking service in the country
and a prelude to banking in the next millennium. Currently, the bank has around 150,000
customers.

ICICI Bank offers a wide range of banking products and financial services to corporate
and retail customers through a variety of delivery channels and through its specialized
subsidiaries and affiliates in the areas of investment banking, life and non-life insurance,
venture capital, asset management and information technology. ICICI Bank’s equity
shares are listed in India on stock exchanges at Chennai, Delhi, Kolkota and Vadodara,
the stock Exchange, Mumbai and the National Stock Exchange of India Limited and its
American Depository Receipts (ADRs) are listed on the New York Stock Exchange
(NYSE).

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’s group 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 to over five decades, entry into new
business segments, higher market share in various business segments, particularly
fee-based services, and access to vast talent pool of ICICI and its subsidiaries. In
October 2001, the Boards of Directors of ICICI and ICICI Bank approved the merger
of ICICIC and two of its wholly owned retail finance subsidiaries, ICICI Personal
Financial Services Limited and ICICI Capital Services Limited, with ICICI Bank.
Shareholders of ICICI and ICICI BANK approved the merger in January 2002, by
the High Court of Judicature at Bombay and the Reserve Bank of India in April
2002.

Consequentially, on March 30, 2002, ICICI Bank became the first universal bank in India
by integrating ICICI group’s financing and banking operations, both wholesale and
retail, into a single-entity. The merger has created the country’s largest private sector
bank and the second largest bank in terms of assets, with a growth model that brings
together complementary capabilities and provides opportunities hither to unavailable
as separate entities.
ABOUT ICICI PRUDENTIAL

It is one of the largest financial investments in India.

Broad spectrum of financial solutions for corporate and retail customers.
Assets in excess of Rs. 1, 00,000 cr.
Better than sovereign rating.
It is first Indian company to be listed on New York Stock exchange.
It is trusted by millions of Indians over the years.

Shares in Market
76%-ICICI
24%-Prudential

Why Insurance
 Premature Death
 Living too long
 Living Death
 Children future
 Wealth Creation

PRUDENTIAL P/C

 Started operation in 1848 and is now one of the largest life insurance companies
in world.
 Presence in UK, Europe, US and throughout Asia.
 Insurance and Investment funds under management exceed Rs. 1100000 Cr.
 Solid reputation built over 150 years.
  Already established as one of the biggest private sector mutual fund companies in
India (Prudential ICICI AMC).
 A truly global brand.

PRUDENTIAL ASIA

 75 years experience in Asia.

 Over 60,000 staff advisors.
 Over 2 million customers.
 In 12 countries throughout Asia.

ORGANISATIONAL STRUCTURE

MD
Shikha Sharma

HIMALAYAN PENINSULAR

Head of Sales
(HOS)

Zonal Sales
Manager (ZSM)
 Territory
Manager(TM)

Branch Manager
(BM)

Area Sales
Manager (ASM)

Senior Agency
Manager (SAM)

Agency Manager
(AM)
Advisors/Trainees

Unit Manager
(UM)

MARKET PRESENCE
Assistant Unit
Manager (AUM)

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

ICICI Prudential equity base stands at Rs. 675 crore with ICICI Bank and Prudential plc
holding 74% and 26% stake respectively. In the year ended March 31, 2004, the company
had issued over 430,000 policies, for a total sum assured of over Rs. 8,000 crore and
premium income in excess of Rs. 980 crore. Today the company is the #1 private life
insurers in the country.

DISTRIBUTION

ICICI Prudential has one of the largest distribution networks amongst private life insurers
in India, having commenced operations in 54 cities and towns in India. The company has
seven banc assurance tie-ups, having agreements with ICICI Bank, Federal Bank, South
Indian Bank, Bank of India, Lord Krishna Bank and some co-operative banks, as well as
over 160 corporate agents and brokers. It has also tied up with organizations like Dhan
for distribution of Salaam Zindagi, a policy for the socially and economically underprivileged
sections of society.

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

RESEARCH ON PRODUCTS AND SERVICES

LIFE INSURANCE

Life insurance is a guarantee that your family will receive financial support, even in your
absence. Put simply, life insurance provides your family with a sum of money should
something happen to you. It thus permanently protects your family from financial crises.

In addition to serving as a protective cover, life insurance acts as a flexible money-saving

scheme, which empowers you to accumulate wealth-to buy a new car, get your children
married and even retire comfortably.
Life insurance also triples up as an ideal tax-saving scheme.

LIFE INSURANCE PLANS

 Education Insurance Plans

 Wealth Creation Plans

EDUCATION INSURANCE PLANS

One of your most important responsibilities as a parent is to ensure that your child gets
the best possible education that can be provided.

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

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

Under the education insurance plans platform, ICICI Prudential brings the following
products to you.

PLAN NAME PLAN TYPE

Smart Kid New Unit-linked Unit Linked

Regular Premium

Smart Kid New Unit-linked Unit Linked

Single Premium

Smart Kid Regular Premium Traditional

SMARTKID

ICICI Prudential's Smart Kid is a fixed-term insurance plan that provides you with funds
at regular intervals. The plan also keeps your family financially secure should an
untoward event ever occur.

FEATURES AND BENEFITS OF SMARTKID.

Smart Kid offers an exclusive choice of 3 education insurance plans: Smart Kid New
Unit-linked Regular Premium, Smart Kid New Unit-linked Single Premium and Smart
Kid Regular Premium. Take a look at the features and benefits of each plan:

1. Smart Kid New Unit-linked Regular Premium

Smart Kid New Unit-linked Regular Premium is a unit-linked plan, which enables you
and your child to accumulate wealth by virtue of the performance of the underlying
market-linked instrument. Take a look at the features of the plan:

Premium: The minimum premium to be invested is Rs. 10,000 per annum. After
deducting premium allocation charges from the premium, the remaining amount will be
invested in a fund of your choice.

Sum Assured: The minimum Sum Assured that the policyholder can opt for is Term *
Annual Premium/2, subject to a minimum of Rs 1 Lac.
Policy term: The term of the policy will be calculated as the difference between your
child's current age and the age of your child when the policy matures.

Mortality, Policy Administration charges: These and other charges will be deducted
from the units in the fund.

2. Smart Kid New Unit-linked Single Premium

Smart Kid New Unit-linked Single Premium works in much the same way as SmartKid
New Unit-linked Regular Premium policy mentioned above. The only different feature is
the premium amount-you will be required to pay only a single premium, which starts at
as low as Rs. 50,000.

Additional Features and Benefits Common to All 3 Plans

Regular payouts: As your child approaches key educational milestones such as 12th
standard or graduation exams, he or she will receive regular payouts, guaranteeing he or
she continues to study, no matter what the circumstance.

Death Benefit: Your child will receive the Sum Assured immediately, should something
happen to you. ICICI Prudential will pay the remaining premiums, ensuring your child
continues to receive policy benefits, as always.

Income Benefit Rider: You can choose to add the benefits of this rider to your child's
education plan. Should you depart before your son's or daughter's education is complete,
you child will receive 10% of Rider Sum Assured, for the balance term of the policy.
Add-on riders: 'Accidental Death and Disability Rider' and 'Waiver of Premium Rider'
ensure your child stays doubly protected, at all times. You can choose to add these to
your child's education policy.
Tax benefits: Premiums you pay for a SmartKid policy are eligible for tax savings [u/s
80(C)]. Maturity and death benefits are eligible for tax exemptions [u/s 10(10D)].

3. SmartKid Regular Premium

Flexible investment option: Choose the amount of premium with which you wish to
safeguard your child's education.

Flexible policy tenure: The tenure of the plan will be calculated as the difference
between your child's current age and his or her age at which the policy matures.

Flexible premium options: The premium will be calculated based on 3 factors: Sum
Assured, policy tenure and your age.

Guaranteed bonus: A guaranteed bonus of 3.5% per annum is declared for the first 4
premium paying years plus an annual vested bonus declared in subsequent years.

WEALTH CREATION PLANS

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

Under the wealth creation platform, ICICI Prudential brings the following products to
you.
 PLAN NAME PLAN TYPE

Premier Life Unit Linked

Lifetime Plus Unit Linked

Life Stage Unit Linked

PREMIER LIFE GOLD

Knowing the dynamic nature of the environment and your profession, you certainly
prefer plans that do not require you to make long-term financial commitments. You
would much rather have the freedom to invest for short periods, say three or five years,
and still enjoy good returns for the rest of your life.

ICICI Prudential's Premier Life Gold has been tailored to precisely meet your
requirements. One of the finest wealth creation plans available, Premier Life Gold
provides you with the benefit of paying premiums for a brief period but enjoying the
benefits of cover and potentially higher returns over the long run. Put simply, Premier
Life Gold ensures you enjoy long-term benefits even when you make short-term
investments.
PREMIERLIFE GOLD AT A GLANCE

Premium 3 years 5 years

Payment Term

Minimum Rs 100000 Rs 60000

Premium

Minimum Entry 0 0
Age

Maximum Entry 69 years 65 years

Age

Minimum Policy 6 years 10 years

Term

Maximum 30 years 30 years

Policy Term

Maximum Age 75 years 75 years

at maturity

Minimum Sum Higher of (5* Annual Premium AND Policy

Assured Term/2*Annual Premium)

Tax Benefit Premium paid for the policy and critical illness
benefit rider will be eligible for tax benefit under
section 80C & 80D respectively, any benefit
amount received under this policy will be eligible
for the tax benefit under section 10 (10D), as per
prevailing Income Tax laws.

LIFETIME PLUS

Invest in ICICI Prudential's LifeTime Plus-the only unit-linked plan that provides your
family with both, Sum Assured AND Fund Value. Both these amounts ensure your loved
ones remain financially secure, regardless of life's uncertainties. This ideal wealth
creation plan also serves as a protective insurance cover.

LIFETIME PLUS AT A GLANCE

Minimum/Maximum Entry Age 10 years and 30 years

Minimum/Maximum Age of 0 years and 65 years

Entry

Minimum/Maximum Premium Rs. 20,000 and Rs. 3,00,000 per annum

Minimum Sum Assured Annual Premium x Term/2

Tax Benefit Premium paid for the policy will be eligible for
tax benefit under Sec. 80C. Any amount paid to
you will be eligible for tax benefits under Sec. 10
(10D) as per prevailing Income Tax laws.

FEATURES AND BENEFITS OF LIFETIME PLUS

ICICI Prudential's LifeTime Plus is a regular premium unit-linked
insurance policy that provides you with flexible investment options and
of course, the protective benefit of an insurance cover. Take a look at the
features and benefits of this plan:

6 investment funds: Select among Flexi-Growth, Maximiser, Flexi-

Balanced, Balancer, Protector, and Preserver, based on your financial
goals and risk profile.

Partial withdrawal of money: Withdraw funds in installments from the

4th year onwards.
Maturity benefit: Receive the Fund Value when your policy matures.
Choose to take this value as a single lump-sum amount or in monthly, bi-
annual or annual installments spread over 1 to 5 years.

Death benefit: Your nominee receives the Sum Assured AND Fund Value
should something happen to you.

Additional allocation of units: Receive an additional allocation of units

every 4th year, starting from the end of the 8th year, at the rate of 5% of
annual premium, into the investment fund.

Tax benefits: Enjoy tax benefits on the premiums you pay (under u/s 80
C) and tax exemptions on maturity and death benefits [under u/s 10 (10
D)].
LIFESTAGE

We have different priorities at different life stages. With such changing priorities, it is
important to adopt Asset Allocation as an investment practice. It helps to strike the right
balance by distributing your investments across different asset classes like equity and
debt. More importantly, it should also change according to our life stage profile – age,
risk tolerance, etc. However, the discipline of making the right Asset Allocation at
various life stages in today’s fast-paced life requires the expertise and dedicated time of
someone who can manage your money on a day-to-day basis.

LIFESTAGE AT A GLANCE

Minimum Premium Rs 15000

Minimum Entry Age 0 years

Maximum Entry Age 65 years

Minimum Age at 18 years

Maturity

Maximum Age at 75 years

maturity

Minimum Term 10 years

Maximum Term 75 years

Minimum Sum Assured Term / 2 * Annual Premium

Premium Payment Yearly, Half-Yearly, Monthly

Frequency

Tax Benefit Premium paid for the policy and critical illness benefit
rider will be eligible for tax benefit under section 80C &
80D respectively, any benefit amount received under this
policy will be eligible for the tax benefit under section 10
(10D), as per prevailing Income Tax laws.
FEATURES AND BENEFITS OF LIFESTAGE

Two unique portfolio strategies:

Life Cycle Based portfolio strategy

Age based Asset Allocation (Equity Debt mix)

Quarterly Rebalancing of Asset Allocation

Capital Preservation at maturity

Fixed portfolio strategy

Allocate your investments into different asset classes using your personal judgement

KEY BENEFITS OF LIFESTAGE RP

Option to choose a unique and personalized life-cycle based portfolio strategy to create
ideal balance between Equity and Debt

Option to change in chosen portfolio strategy 4 times in a policy term (CIPS - Change in
Portfolio Strategy)

Additional allocation of units at regular intervals to enhance your investment

Ensure capital preservation at the time of policy maturity by systematic transfer to debt
fund in the last 10 policy quarters

Option to withdraw your money systematically over a period of 5 years on the maturity
of the policy

In the unfortunate event of death, your nominee will receive Sum Assured plus Fund
Value

HEALTH
HEALTHY LIVING

It is the aim of all of us to lead a long and illness free life. Today this has become
possible thanks not just to Medical Technologies that are able to identify and effectively
treat many diseases but also because a great deal of knowledge has become available on
how healthy lifestyles can help us live longer. Healthy living, getting plenty of exercise,
eating right and leading a stress free life are to a large extent responsible for increasing
life spans. In this world of instant food and instant fads what constitutes healthy living?

The key to Healthy Living comprises of

Nutrition
Exercise for the Mind & Body
Home Care

HEALTH COVER CORNER

5 REASONS WHY HEALTH COVERS ARE A MUST

A health cover insures you against several illnesses and guarantees you
stay financially secure should you ever require treatment. The cover
ensures you are taken care of by compassionate and competent doctors at
the best hospitals. It thus safeguards your peace of mind, eliminates all
worries about treatment expenses, and allows you to focus your energy
on more important things, like healing.

Indians at greater risk

Reason 1: Lifestyles have changed: Indians today suffer from high levels
of stress. Long hours at work, little exercise, disregard for a healthy
balanced diet and a consequent dependence on junk food have weakened
our immune systems and put us at an increased risk of contracting
illnesses.
Reason 2: Rare non-communicable diseases now common: Obesity, high
blood pressure, strokes, and heart attacks, which were earlier considered
rare, now affect an increasing number of urban Indians-almost every day.

Shocking Truths
• 18% of the urban population suffers from hypertension, which leads to renal
failure, stroke and cardio vascular diseases
• 30% of the population suffers heart attacks before age 40 66% of deaths today are
due to cardio vascular diseases
• Almost 3.5 million Indians suffer from diabetes
• Cardiovascular diseases (CVDs) like heart disease and stroke are the main
causes of death and disability

The Cost Factor

Reason 3: Medical care is unbelievably expensive: Medical breakthroughs have
resulted in cures for dreaded diseases. These cures, however, are available only to a select
few. High operating expenses—therapy for breast cancer costs as much as Rs. 2 lakhs for
3 days—have restricted treatment to the richest. In fact, even among the affluent groups,
20% need to sell their valuable assets so they can accumulate the required amount for
their medication.
Reason 4: Indirect costs add to the financial burden: Indirect sources of expense—
travel, boarding and lodging, and even temporary loss of income— account for as much
as 35% of the overall cost of treatment. Most often, we overlook this fact when planning
for medical expenses.
 Graph: 1
Reason 5: Incomplete financial planning: Most of us have insured our home, vehicle,
child’s education, and even our retirement years. Ironically however, we have not insured
our health. We ignore the fact that illnesses strike without warning—and seriously impact
our finances and eat into our savings in the absence of a good health cover.
Health cover: A must-have
No financial plan is complete without a comprehensive health cover. ICICI Prudential
offers the following health insurance plans providing various types of covers for all
health needs.
Crisis Cover: The most comprehensive critical illness cover offering cover against 35
Critical Illnesses along with life and disability cover.
Hospital Care: A long term hospitalization and surgery benefit plan, covering the widest
possible range of the medical conditions.
Diabetes Care/ Diabetes Care Plus: A unique critical illness insurance plan covering 6
critical illnesses and offering a wellness program which is specifically designed for type
2 diabetics and pre diabetics.
Cancer Care: This cancer insurance plan offers a fixed benefit to meet treatment and
surgery related needs of someone afflicted with cancer
Health Assure Plus: The basic critical illness insurance plan which offers you a cover
against 6 critical illnesses along with life cover"
ARE YOU ADEQUATELY INSURED?
Sound health cover planning ensures you receive both, direct medical expenses and
indirect expenses, as soon as the need arises. When investing, choose a range of health
plans that:

• Cover a wide spectrum of medical conditions from the most basic to the most
critical
• Include reimbursement and benefit-based plans, which enable you to meet
specific health risks and expenses as mentioned in the diagram below

An example: Cancer—although it does not occur as frequently as the common cold or

fever—severely drains one’s finances as its treatment expenses are very high. Hence, it is
imperative to insure ourselves with a health plan that provides cover against Cancer.

Quick tip

when selecting a health plan, ensure the plan:

• Provides long-term coverage
• Clearly mentions exclusions of cover
• Is guaranteed renewable
• Is backed by trusted name and gives the assurance of paying claims

HEALTH PRODUCT SUITE

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

• Health Assure
• Health Assure
Plus
• Hospital Care
• Cancer Care
• Cancer Care Plus
• Crisis Cover
• Diabetes Care
• Diabetes Care
Plus

RETIREMENT

WHY IS RETIREMENT PLANNING IMPORTANT?

Retire from work. Not from life.

A retirement plan is an assurance that you will continue to earn a satisfying income and
enjoy a comfortable lifestyle, even when you are no longer working. To understand why
an increasing number of individuals have already started planning for their retirement,
and why you should too, read on.

Independence is the new way of life: An increasing number of young Indian

professionals are moving away from the traditional joint family structure. Since support
no longer comes easily, parents have realized the need to provide for themselves during
their retirement years.

Costs set to soar: Skyrocketing costs throw even a well-salaried person off balance.
With rates rising everyday, you can imagine how high they will be when you are ready to
retire. A retirement plan provides you with a steady income every month, to arm you in
the face of rising costs.

To understand how inflation can impact your monthly expenses, use our special tool, the
Inflation Index calculator.

Non-earning retirement phase is now longer: Only 4% of India working population-

mostly government employees – are covered by pensions. The remaining 96% comprises
self-employed and salaried professionals who do not have a formal, mandated provision
for pensions.

ICICI Prudential offers two key retirement plans, LifeLink Super Pensionand LifeTime
Super Pension - flexible income cum insurance plans that ensure you meet all your
retirement requirements. So you can retire peacefully from work, but not from life.

START PLANNING FOR RETIREMENT RIGHT AWAY

Both Ramesh and Vikram want to retire at the age of 60 years. To take care of his post-
retirement requirements, Ramesh invests a total amount of Rs. 35 lakhs towards his
retirement corpus. On the other hand, Vikram invests a total of Rs 50 lakh towards his
retirement. Despite investing less, Ramesh accumulates Rs 298 lakh, compared to
Vikram's accumulation of Rs 216 lakh!. Read on to find out how..

What Ramesh had in his favour was TIME. He began investing a sum of Rs 1 lakh p.a.
earlier, at the age of 25 years, up to the age of 60. Ramesh, to compensate for lost time,
saved twice the amount invested by Ramesh i.e. Rs. 2 lakhs every year from the age of
35, till the age of 59 years.
It is for this precise reason you should plan for your retirement now-and not later; so you
get the advantage of investments that multiply quickly each year, giving you the added
advantage!

Graph: 2
The graph above shows the retirement amount both Ramesh and Vikram accumulate by
the age of 60 years. Please note: The assumption is that both investments appreciate at the
rate of 10% per annum.

HOW TO PLAN FOR RETIREMENT?

5 simple steps to arrive at an ideal retirement plan

Step 1: Decide how much income you require to live comfortably in your post-
retirement years. Remember to take into account aspects like increased medical costs,
vacations and gifts for family, but reduce costs like children's education and rent, if you
own your home. Use our easy Inflation Index Calculator to calculate the impact of
inflation.

Step 2: Determine how much you need to save regularly, starting today. Use our
Retirement Calculator to determine how large a kitty you will need and how much you
need to save each year.

Step 3: Select the right retirement plan that enables you to meet your post-retirement
requirements. Preferably invest in market-linked plans, which can provide you with
potentially higher returns in the long run. Our Life Stage Profiler will help you select the
plan that meets your criteria

Step 4: Start saving now so you have time on your side and can enjoy the power of
compounding. Use our simple Power of Compounding Calculator.

Step 5: Systematically invest a fixed amount every month for your post-retirement
years.
LITERATURE REVIEW

Mumbai; October 28, 2006

- Arms India to fight one of its largest health concerns –

ICICI Prudential Life Insurance, India’s No. 1 private life insurer, today announced the
launch of the world’s first critical illness insurance especially meant for people with type
2 diabetes. The product – christened Diabetes Care – gives India a boost in its fight to
tackle a condition that affects one out of 8 Indians, and reaffirms the country’s position
as a world-class innovator.

Speaking at the launch, Ms. Shikha Sharma, CEO & Managing Director, ICICI
Prudential Life Insurance, said, “With over 20% of the world’s diabetic individuals in
India, there is an urgent need for a solution that both encourages and incentivises them to
manage their condition better, and also offers them a financial cushion should they suffer
from any related critical illnesses. These are the key requirements we have taken into
account while developing Diabetes Care”.

Commenting on the challenges of the product development, she said, “When we scanned
the global environment, we realized that despite the huge need, there was no insurance
product specifically tailored for diabetic individuals. Diabetes Care is truly a milestone
innovation for both us and the global life insurance market and becomes even more
important as it marks a paradigm shift in insurance product structures from cost pooling
to overall cost reduction.” Ms. Sharma added.

“Regular monitoring, healthy eating, exercise and modern medicine, can help a diabetic
individual control his or her condition and live a long and healthy life. The need of the
hour is a comprehensive support system that encourages them to manage their condition”,
said Dr V. Mohan, Chairman and Chief Diabetologist, Dr. Mohan’s Diabetes Specialities
Centre, Chennai. Acknowledging the need for a specialist life insurance product, he
continued, “Diabetes commonly leads to cardiovascular, kidney, eye & foot disorders,
which when detected early can be treated successfully. However, in most cases, diabetic
individuals are not covered by any insurance, and this places a considerable financial
burden, on the patient and family -- this is where the insurance element of ICICI
Prudential’s Diabetes Care comes to the rescue”.

Dr. M. Rema, Managing Director and Chief Ophthalmologist of Dr. Mohan’s Diabetes
Specialities Centre, added “Regular treatment of diabetes is much less expensive than
treatment for its complications. This is where ICICI Prudential’s Diabetes Care could
make a huge difference and I congratulate them on bringing this for the benefit of
millions of people with diabetes in India”.

Diabetes Care is unique from other insurance products in that it specifically covers
existing diabetics. The product is structured to provide a coordinated care proposition to
help the insured manage the diabetic condition, while providing financial support to meet
the cost of health complications. Further, the product rewards policyholders by reducing
their premiums by up to 30%, depending on the extent to which they have been able to
manage their diabetes. Because of this comprehensive approach, Diabetes Care will
encourage policyholders to take the necessary steps to avoid further health complications.

The product’s support system includes:

• Comprehensive annual check-ups and consultations with doctors

• Home collection of samples for blood tests
• Helplines for access to resources, and co-promotion and servicing of support
groups.

To complete its offering, ICICI Prudential is entering into partnerships with leading
pharmaceutical companies and diagnostic labs, gymnasiums and dieticians.
Diabetes Care is available for a term of 5 years for people of 25 to 60 years of agewho
already suffer from adult diabetes or impaired glucose tolerance (IGT). Available under 3
sum assured variants of Rs 3 lakhs, Rs 5 lakhs and Rs 10 lakhs, the product provides
payment of the sum assured on diagnosis of any of 6 critical illnesses. One can also
purchase a rider that makes a payout of 10% of sum assured for diabetes-related eye and
limb complications. Another version, Diabetes Care Plus, provides life cover in addition
to critical illness cover.

Hyderabad; August 24, 2006

First-of-its-kind premium guarantee product in India & immediate annuity product

ICICI Prudential Life Insurance, India’s No. 1 private life insurer, today announced the
launch of two new products aimed at offering greater security to investors and retirees
alike. One product is a unique premium guarantee market-linked plan which ensures that
an investor will only get the benefits of the upsides of the market, without incurring any
loss if the markets go down; and the other is an immediate annuity product that offers a
guaranteed income for life, for retired people above 45 years of age.

The first-of-its-kind premium guarantee product in the Indian life insurance industry,
Invest Shield Life - New, offers retail investors the opportunity for long-term capital
appreciation through exposure to the markets, while protecting them from any capital
erosion. Speaking at an event to launch the products, Mr Sandeep Batra, Executive Vice
President, ICICI Prudential Life Insurance said, “The majority of Indian investors prefer
to save through traditional instruments as they do not want to risk their hard-earned
monies by investing in the stock markets. However, many of them have seen their friends
and colleagues earn good returns by investing in the markets and are looking for a low-
risk opportunity to do so themselves. The premium guarantee product is the ideal market
entry product for such traditional investors, who do not wish to risk their capital while
investing in the markets”.

InvestShield Life - New is a long-term, transparent investment-cum-insurance plan that

invests in balanced fund with 40% exposure to equity. This provides conservative
investors a safe means to experiment with equity, and yet promises that the policyholder
will not lose any of his invested monies, should the markets go down. The product is
available for a minimum premium of Rs 8,000 per year for a policy term ranging
between10 and 30 years. On death, the policyholder’s nominees receive the sum assured
plus the higher of the fund value and guarantee value (total premium paid); while on
maturity, the higher of the fund value and guarantee value is paid to the policyholder.

The second product, Immediate Annuity, is aimed at providing retirees with a stable and
secure income for life. Commenting on the need for the product, Mr. Batra said, “Social
and demographic trends in India have changed radically over the past decade or so. With
the breakdown of the joint family system, increasing inflation and longer life spans, old
age income security is a challenge for millions of retirees. Our Immediate Annuity
product addresses this growing need by promising a guaranteed income for life”.

A person between the ages of 45 and 80 years can purchase Immediate Annuity by
making a single lump sum payment. He or she can select from ICICI Prudential’s 7
annuity options, depending on the extent to which he or she requires coverage. The
payout options are: annuity for life with and without return of purchase price, joint life
(for annuitant and spouse) with and without return of purchase price and annuity for life
guaranteed for 5/10/15 years.

What makes ICICI Prudential’s Immediate Annuity proposition even more powerful is
the added benefit of an Annuity Card, which offers the annuitant the convenience of
instantly accessing the annuity incomes from over 15,000 Visa locations in 150 locations
across India and cash-free transactions in over 1.5 lakhs Visa member establishments.

Both the products – Invest Shield Life - New and Immediate Annuity – are available for
retail customers through ICICI Prudential vast distribution network across the country.
Customer touch points include over 83,000 advisors, 300 branches, its 19 bank partners
and 200 corporate agents.
 CHAPTER 2
RESEARCH METHODOLOGY

OBJECTIVES OF THE RESEARCH

The objectives of this research are as follows:

 To know about various policies of ICICI Prudential.

 To sell the various policies of ICICI portfolio.
 To learn and understand the distribution aspect of insurance products.
 To identify the insurance needs of the Indian population with respect to their
emotional, physical and financial conditions.
 To match the needs of the population with the products in hand or else design a
new product.

RESEARCH DESIGN

The research is carried on in a proper planned and systematic manner. The

research was particularly a telephonic research .We have to sell products to list of
people which includes their names and contact numbers given by ICICI.
During the telephonic we to sell different products by explaining the benefits of a
particular product, but
The minimum amount for selling a policy to a customer is equal to or more than Rs.
18000 only.
Age limit for selling product/policies was 1 month to 65 years-This mean that a policy
can be sold to person between the age of one month to 65 years and not anything
exceeding or below it.

Basically two kinds of products which were given to sell viz.

 Life time - This offer customers the flexibility and control to customize the policy
to meet the changing needs at different life stages. Each offer 4 fund options?
Preserver, Protector, Balancer and Maximiser.

 Smart Kid offers an exclusive choice of 3 education insurance plans: Smart Kid
New Unit-linked Regular Premium, Smart Kid New Unit-linked Single Premium
and Smart Kid Regular Premium.

The Life time policy has an edge over the other two policies as it offers a
customer to pay premium for minimum of three years after which the customer
might or might not pay any further premium but still can get investment return
according to the market share , thereby giving a capital guarantee to the customer.

This research methodology also includes:

 Familiarization with the concept of insurance and its various terms.

 Thorough study of the information collected.
 Conclusions based on findings.

DATA SOURCES

TYPES OF DATA USED:-

PRIMARY DATA:-

It is collected directly from people and organization via questionnaires or surveys before
being analyzed to reach conclusions concerning the issues covered in the questionnaire or
survey.

VARIOUS SOURCES

• QUESTIONNAIRE
• PRODUCT PAMPHLET
• PERSONAL OBSERVATION

SECONDARY DATA:-

Secondary data - collected by are others to be "re-used" by the researcher.

VARIOUS SOURCES

• NEWSPAPERS
• INTERNET
• PROSPECTOUS
QUESTIONNAIRE DESIGN

The Questions are not specific, they are general public questions. The objective behind
formulating each question is whether they are satisfied with the services of ICICI
Prudential Life Insurance or not. The questions with are used are open ended questions.

SAMPLE DESIGN

SAMPLE UNIT: The survey includes all the general public who are employed and
having salary between Rs.10, 000 to RS.40, 000 per month.

EXTENT: The survey is carried out in the South Extension part of NEW DELHI.

TIME FRAME: 8 weeks

SAMPLE SIZE: 100 persons

LIMITATIONS OF THE RESEARCH

By working on this project I gained a lot of knowledge over the banking sector in India.
But there is a certain no. of problems which I faced while working on this project. These
problems can be illustrated as limitations of study which are as followed:–

• Reliability on the primary source of data.

• Most of the contents collected were difficult to understand because it was new for
me to work in this field.

• It was tricky and time consuming to understand the mysteries of marketing.

• Trust of customers was a difficult thing to gain.
• Response of customers could be biased.

Convincing people to invest in a new product which is different from their lifestyle was a
tough job.
CHAPTER 4

DATA ANALYSIS
NEED ANALYSIS

First let us look at why one needs insurance and then we will study various needs of the
customers.

NEED FOR HEALTH INSURANCE

Providing quality healthcare to a huge population such as ours encompassing different

strata of society has indeed been a formidable task for the last few decades. WHO
statistics put the healthcare access in India at around 65 percent. The remaining 35
percent do not have any access at all. Government in most parts of the world developed
or otherwise, realizes the limitations when it comes to provide healthcare per se or its
financing aspects. In a globalize market-driven economy, it becomes imperative for each
country to look for the solutions and structure them to suit domestic needs. While there
will be various factors both external and internal influencing this search, there is no doubt
that public and private healthcare providers and financers will have to keep the patient or
customer in focus when formulating a well thought out and highly integrated approach to
cover all sorts of requirements.

It is true that in managing healthcare, the pre-payment route through insurance schemes
rather than out-of-pocket payments are preferable and a fairer form of revenue collection.
But there are loopholes in the present indemnity-based insurance products offered by the
public sector units and pricing of products are mostly non-scientific. It is well known that
Mediclaim is a loss-making preposition with claim ratios being as high as 130 percent.
The opening up of the health insurance sector to private is seen as one that will provide
better solutions. Insurance concepts in healthcare are changing from managed care to
defined care and there is no doubt that the private insurers can provide the customers with
a wide variety of products. But health insurance is still in a limbo at the moment in
absence of any clear-cut guidelines from the IRDA.
Pricing is the key issue and major international players already present in India are sort of
waiting in the wings to see what and hoe their competitors go about their strategies. There
is no doubt that private medical insurance is bound to be dearer than the existing public
sector health policies. And therein lies the problem for the new entrants who are at a
disadvantage as the incumbent players are providing comprehensive coverage at low and
unviable premiums. If experts have worked out to be provided to the entire one billion
Indian populations, experts have worked out the insurance cost to be approximately
Rs.4000 per annum per head. Add to this the insurance company’s establishment costs
plus their profits and have an insurance plan that can be priced at Rs.5000 at the barest.
This figure is going to be debatable, especially as the public sector insurance companies
policies are priced very low. And this sector with its pricing advantage has already given
an indication that it will give a tough competition to the private insurers. The new
entrants should ideally not compete with existing Mediclaim policies, use a better USP
than pricing and design new products suited to the Indian background and succeed in
building a sure but steady market. There is a room for everyone provided there is a
simplicity and transparency, insurers are neutral and willing to control unnecessary
healthcare delivery costs to be patients and make claim procedures simple.
 Q1. How many members do you have in your family?

2 3 4 5 6 other (Specify)

Sample size = 100

30

25

20
PERCENTAGE

15 p e rc e n t a g e

10

0
1 2 3 4 5 6 m o re
than 6
N o . O F F A M IL Y M E M B E R S
Graph: 3

INTERPRETATION
Through the survey it is clear that most of the family having more than 6 members.
Q2. Net Family Income from all sources (monthly in Rs.)

Below 10,000 10,000 to 20,000 20,000 to 40,000 40,000 & above

P E R C E N T A G E D IV IS IO N

60
50
40
30 P E R C E N T A G E D IV IS IO N
20
10
0
B E LO W 10000- 20000- A B O V E
10000 20000 40000 40000
IN C O M E O F P E O P L E
Graph: 4

INTERPRETATION
Thus we can see that most of the people earning income between 20000-40000 i.e. 52%
and only few percentages of people earning below 20000.
 Q3. How much do you invest yearly in Insurance Plans?

Below 10,000 10,000 to 20,000 20,000 to 40,000 40,000 & above

P E R C E N TA G E O F P E O P L E

40
35
30
25
P E R C E N TA G E O F
20
P E O P LE
15
10
5
0
B E L O W 1 0 0 0 0 -2 0 0 20 0 0 0 0 -4 0 0 0 0A B O V E
10000 40000
A N N U A L IN V E S T M E N T O F P E O P L E
Graph: 5

INTERPRETATION
It is clear from the survey that most of the people invest a very less amount of money in
insurance plans because they think that it is insecure to invest in insurance plans.
 Q4. Where would u like to insure if given a chance?
LIC ICICI PRU. BAJAJ ALLIANZ TATA AGI SBI
KOTAK MAHINDRA

70 %
60 %
50 %
40 %
S e rie s 1
30 %
20 %
10 %
0%
LIC

I
IC

SB
G
IC

NZ

AI

RA
IA

TA

ND
LL

TA

HI
JA

MA
JA
BA

K
TA
KO

Graph: 6

INTERPRETATION
Thus we see that the companies are comfortable in having business with govt.
owned companies as they feel its safe & secure to have business with them which
is followed by SBI as it is the biggest bank and then followed by TATA AIG as
the name TATA is associated with it which commands huge premium in the
market . Whereas in the case of ICICI PRUDENTIAL the figures represent
mediocre performance after compelling and coxing the corporate and creating a
strong impression whether they feel interested in doing business with the
company.
 Q5. Are you satisfied with the services of your Insurance Co?

Very Good Good Average Poor

14
12
10
8 S A T IS F IE D
6 N O T S A T IS F IE D
4
2
0
LIC
IFE
IC
SL

IL
IAL

FC

SB
NT

HD
DE
RU
P
CI
ICI

Graph: 7

INTERPRETATION
As we can see that a high percentage of people are satisfied with ICICI PRUDENTIAL
services or through this we can say that ICICI PRUDENTIAL is NO. 1 insurance
company in customer services.
Q6. Have you invested in any sources of investment like?

BONDS MUTUAL FUNDS & SHARES POST OFFICE

OTHER (specify) __________________

P E R C E N T AG O F P E O P L E

40
35
30
25
20 S eries 1
15
10
5
0

OTHER
BONDS

POST OFFICE
FUNDS&SHARE
MUTUAL

Graph: 8

INTERPRETATION
After survey I found that most of the people interested to invest in MUTUAL FUNDS
AND SHARES i.e. 36% because they give high rates of return.
 Q7. What is people’s main concern while taking an insurance policy?

SECURITY RETURNS TAX RETURNS

Tax rebate, 20%

S ecurity
Returns, 10% Returns
Tax rebate

Security, 70%

Graph: 9

INTERPRETATION
People invest in insurance mainly because of security concern.
Q8. Are you satisfied with the return that your company gives?

YES NO

60

50

40

30 S e rie s 1

20

10

0
YES NO
Graph: 10

INTERPRETATION
55% of people say yes they are satisfied whereas 45% of respondents are not satisfied
with the return.
 Q9. Do you know about ICICI PRUDENTIAL CO.?

YES NO

120

100

80

60 Series1

40

20

0
YES NO

Graph: 11

INTERPRETATION
Through the graph it is clear that most of people are aware of ICICI PRUDENTIAL.

Q10. Are you interested in products offered by the ICICI

PRUDENTIAL?

YES NO WILL THINK

 W ill think , 17%

Y es
No
N o , 22%
Y es , 61% W ill think

Graph: 12

INTERPRETATION
The good thing is that atleast the corporates were quite eager to find out what ICICI
PRUDENTIAL has to offer whereas the major 39 % of the corporates were not even
interested in the products as they are quite satisfied by the LIC and they are not in
breaking their long relationship with them. The private players will have to play a long
battle in order to ensure that they are serious player in the market. Basically corporates
think that it’s too early to invest in private companies as they have just entered the scene
and they are unsure of the security they will have about their investment.
 CHAPTER 5
FINDINGS

During the training period in ICICI Prudential, we carried out the telephonic interview of
different people, to check their satisfaction level regarding the policies if have taken and
if they are interested to give the company more business by further investing or buying
more policies. For this a certain set of questions were asked such as:

• Whether they are a new customer or an existing customer.

• Providing information to customers for the different insurance policies.
• To know the interest of customers in different kind of policies.
• Asking if the customers are interested to invest in a new policy.
• Taking in account satisfaction level of existing customers.
• Convincing customers who are interested in a particular policy.
• Details of number and kind of policies sold are shown as :--

During the whole training period what was found that convincing customers to buy a
particular policy was really a tough task to accomplish. And from the list of contacted
people I was able to sell policy to only two persons, both of Life time policy.

Further after convincing them on the telephone to buy a Life time policy I personally
went to their place on the particular address being provided by the customers to further
explain them clearly about the policy such as minimum policy amount, benefits from the
policies and also to get the details of the person interested in buying the policy. Later on
these people were further contacted by our executives to complete the final process.
After carrying out the above telephonic interview what was found that people who are
unaware of these insurance policies showed a comparatively more interest to invest in
these policies than aware people. Therefore an analysis of different kind of policies sold
can be made and shown in the graph as followed:--

Percentage of each Policies sold at ICICI for

June-July 2007

Sm artKid
17%
LifeTim e
Sm artKid
39%
CashBak
Save n Protect
CashBak
27% LifeTim e
Save n Protect
17%

Graph: 13

From the above diagram it is very much clear that the current scenario of investment in
different policies offered by ICICI Prudential ,the life time policies with a 39% play an
upper hand as far as policies sold are concerned .Customers are more favorable towards
this policy is due to it is compatible to changing needs of different lifestyles
CHAPTER 6

RECOMMENDATIONS

After working on this project its my immense pleasure to say its been most beneficial to
me as it gave a lot of knowledge about the banking sector in India, which also include
how there has been a change in the insurance sector in India over the years with more and
more different kind of insurance policies emerging constantly. Also while working in
ICICI prudential has given me a vast knowledge on marketing which is a creative and
innovative field whose study & usage requires good interaction & communication skills
to encourage more and more people to invest in insurance policies.

Through this I came to know about the mindset of a customer as an investor and their
interest regarding a particular policy but also identifying their insurance need.

Therefore ICICI Prudential has been a successful organization over the past few years
but there is still scope for improvement ,as the insurance sector in India has grown a lot
,certain parts of scope for improvement which are suggested as followed:-

1. Direct door to door interview.

2. Spreading, expanding the need & awareness of insurance among the people
through different means of communication viz. sms, television etc.
3. Introducing new policies according to the customer needs.
4. Improving the various customer services by using more efficient customer
relation management, thereby which will lead to improvement in the overall
banking of ICICI Bank.
CHAPTER 7
ANNEXURES

QUESTIONNAIRE

Name:
Address:

Telephone No.:
Occupation:

Salaried Self Employed Unemployed

Business Others (specify) _____________

Office Address:

Family details:
Q1. How many members do you have in your family?

2 3 4 5 6 other (Specify)

Q2. Net Family Income from all sources (monthly in Rs.)

Below 10,000 10,000 to 20,000 20,000 to 40,000 40,000 & above

Q3. How much do you invest yearly in Insurance Plans?

Below 10,000 10,000 to 20,000 20,000 to 40,000 40,000 & above

Q4. Where would u like to insure if given a chance?

 LIC ICICI PRU. BAJAJ ALLIANZ TATA AGI SBI
KOTAK MAHINDRA

Q5. Are you satisfied with the services of your Insurance Co?

Very Good Good Average Poor

Q6. Have you invested in any sources of investment like?

BONDS MUTUAL FUNDS & SHARES POST OFFICE

OTHER (specify) __________________

Q7. What is people’s main concern while taking an insurance policy?

SECURITY RETURNS TAX RETURNS

Q8. Are you satisfied with the return that your company gives?

YES NO

Q9. Do you know about ICICI PRUDENTIAL LIFE INSURANCE CO.?

YES NO

Q10. Are you interested in products offered by ICICI PRUDENTIAL?

YES NO WILL THINK

 CHAPTER 8
BIBLIOGRAPHY

1. BOOKS AND AUTHORS

Insurance institute of India (IC-02, IC-33)
Research methodology by “C R Kothari”.
Marketing research by “S L Gupta”

2. WEBSITES:
www.iciciprulife.com
www.ICICI.com
www.prupartner.com

3. NEWSPAPERS AND MAGAZINES:

INSURANCE CHRONICAL BY ICFAI
Economic times
Business world (may, 2007 2nd edition)