AN

SUMMER INTERNSHIP REPORT

ON

“NEED OF INSURANCE” , From

ICICI Prudential Life Insurance Pvt. Ltd.

In partial fulfillment for the course of

Post Graduate Program in Marketing-Finance.

(Session 2011-2013)

Master Of Business Administration

SUBMITTED TO:- SUBMITTED BY:-

Mrs. Sunita dwivedi ANUJ CHAUHAN

MBA- Finance + Marketing

Roll No.-MBAN1MG11026

I Express My Sincere And Deepest Gratitude To Mr. Manoj Sharma, Senior Agency Manager Of ICICI Prudential Life Insurance Pvt. Ltd. For His Excellent Guidance And Precise Criticism. It Is Entirely Due To His Blessings Vigilant Supervision And Generous Help That I Could Complete This Project Work. I Express Special Thanks To My Mentor Mrs. Sunita Dwivedi For Providing Me The Format For Preparing This Project Work.

I Anuj Kumar Chauhan son/daughter of Ravindra Nath Chauhan certify that the project report entitled NEED OF INSURANCE prepared by me is my personal and an authentic work under the guidance of Mr. Manoj Sharma, Senior Ageny Manager(ICICI Prudential Life Insurance Pvt. Ltd., Gwalior).

Date : ……………… Signature of the Student:

Place : …………….. Anuj Kumar Chauhan

MBA(Finance + Marketing)

4th Trimester- G1

Roll No.: MBAN1MG11026

PREFACE

Generally the whole project is based on Human capital, Insurances, Knowledge asset protection, Risk management. The purpose of this paper is to analyze how insurances can be used in the management of human capital risks. The issue is highlighted in the context of small and medium-sized enterprises (SMEs).Design/methodology/approach – Building on literature on intellectual liabilities, the paper provides a comprehensive picture of human capital related risks, emphasizing their effects on SMEs. Findings – The paper divides the identified human capital risks into insurable and uninsurable risks, determining a specific insurance solution for each insurable risk. Based on the results, pension, accident, health, life, liability and crime insurances are the most useful types of insurances for the management of human capital risks. Research limitations/implications – The generalisability of the findings is limited by the methodological choice. Practical implications – This paper creates a basis for the better recognition of the various human capital risks in companies and describes how insurances can be applied for the management of these risks.

Contents

1 Chapter - Industry Profile

2 Chapter - Organizational Profile

3 Chapter - Need for the Study

4 Chapter - Literature Survey

5 Chapter - Research Methodology

6 Chapter - Analysis of the Study

7 Chapter - Findings and suggestions

Bibliography Appendix

INDUSTRY PROFILE

Indian banking is the lifeline of the nation and its people. Banking has helped in developing the vital sectors of the economy and usher in a new dawn of progress on the Indian horizon. The sector has translated the hopes and aspirations of millions of people into reality. But to do so, it has had to control miles and miles of difficult terrain, suffer the indignities of foreign rule and the pangs of partition. Today, Indian banks can confidently compete with modern banks of the world.

In the Indian Banking System, Cooperative banks exist side by side withcommercial banks and play a supplementary role in providing need-basedfinance, especially for agricultural and agriculture-based operations including farming, cattle, milk, hatchery, personal finance etc. along with some small industries and self-employment driven activities.Banking in India originated in the first decade of 18th century with The General Bank of India coming into existence in 1786. This was followed by Bank of Hindustan. Both these banks are now defunct. After this, the Indian government established three presidency banks in India. The first of three was the Bank of Bengal, which obtains charter in 1809, the other two presidency bank, viz., the Bank of Bombay and the Bank of Madras, were established in 1840 and 1843, respectively. The three presidency banks were subsequently amalgamated into the Imperial Bank of India (IBI) under the Imperial Bank of India Act, 1920 – which is now known as the State Bank of India.

Indian Insurance Market – History

Insurance has a long history in India. Life Insurance in its current form was introduced in 1818 when Oriental Life Insurance Company began its operations in India. General Insurance was however a comparatively late entrant in 1850 when Triton Insurance company set up its base in Kolkata. History of Insurance in India can be broadly bifurcated into three eras: a) Pre Nationalisation b) Nationalisation and c) Post Nationalisation. Life Insurance was the first to be nationalized in 1956. Life Insurance Corporation of India was formed by consolidating the operations of various insurance companies. General Insurance followed suit and was nationalized in 1973. General Insurance Corporation of India was set up as the controlling body with New India, United India, National and Oriental as its subsidiaries. The process of opening up the insurance sector was initiated against the background of Economic Reform process which commenced from 1991. For this purpose Malhotra Committee was formed during this year who submitted their report in 1994 and Insurance Regulatory Development Act (IRDA) was passed in 1999. Resultantly Indian Insurance was opened for private companies and Private Insurance Company effectively started operations from 2001.

Profile of Life Insurance Companies

All private life insurance companies and public sector company operating in India during 2000-01 to 2009-10 were taken for the study. Life Insurance Corporation which is the only public sector life insurer and twenty two private sector life insurers, most of them joint ventures between Indian groups and global insurance giants, were taken for the study.

PUBLIC SECTORLife Insurance Corporation of India Life Insurance Corporation of India (LIC) is an autonomous body authorized to run the life insurance business in India with its Head Office at Mumbai. About 154 Indian insurance companies, 16 non-Indian companies and 75 provident fund societies were operating in India at the time of nationalization. Nationalization was accomplished in two stages; initially the management of the companies was taken over by means of an Ordinance, and later, the ownership by means of a comprehensive bill. The Parliament of India passed the Life Insurance Corporation Act on the 19th of June 1956, and the Life Insurance Corporation of India was created on 1st September, 1956, with the objective of spreading life insurance much more widely and in particular to the rural areas with a view to reach all insurable persons in the country, providing them adequate financial cover at a reasonable cost.

Under Indian conditions there are only two broad classifications of insurance companies: life and non-life insurance. The life insurance activities are solely managed by Life Insurance Corporation of India in the public sector. The Life Insurance Corporation (LIC) was established about 55 years ago with a view to provide an insurance cover against various risks in life. A monolith then, the corporation, enjoyed a monopoly status and became synonymous with life insurance.

1964 saw the introduction of computers in LIC of India. Unit Record Machines introduced in late 1950‟s were phased out in 1980‟s and replaced by Microprocessors based computers in Branch and Divisional Offices for Back Office Computerization. Standardization of Hardware and Software commenced in 1990‟s. Standard Computer Packages were developed and implemented for Ordinary and Salary Savings Scheme (SSS) Policies. LIC of India had 5 zonal offices, 33 divisional offices and 212 branch offices, apart from its corporate office in the year 1956.

Today LIC of India functions with 3250 fully computerized branch offices, 100 divisional offices, 7 zonal offices and the corporate office. LIC‟s Wide Area Network covers 100 divisional offices and connects all the branches through a Metro Area Network. LIC of India has tied up with some Banks and Service providers to offer on-line premium collection facility in selected cities. LIC‟s ECS and ATM premium payment facility is an addition to customer convenience. Apart from on-line Kiosks and IVRS, Info Centres have been commissioned at Mumbai, Ahmedabad, Bangalore, Chennai, Hyderabad,

Kolkata, New Delhi, Pune and many other cities. With a vision of providing easy access to its policyholders, LIC of India has launched its Satellite Sampark offices. The satellite offices are smaller, leaner and closer to the customer.

PRIVATE SECTOR

The Government having tried various models for the insurance industry such as privatization with negligible regulation (pre 1956) and nationalization (1956-2000) and having observed sub optimal performance of the sector, resorted to adopting a hybrid model of both these, resulting in privatization of the sector with an efficient regulatory mechanism (post 2000). This was initiated with the aim of making the industry competitive so that there are more players offering a greater variety of products over a large section of the population. The following companies are entitled to do insurance business in India.

Table : II

Private Life Insurance Companies Sr.No.

Regt No. Date of Regt. Name of the Insurer

1 101 23/10/2000 HDFC Standard Life Insurance Co. Ltd.

2 104 15/11/2000 Max New York Life Insurance Co.Ltd.

3 105 24/11/2000 ICICI Prudential Life Insurance Co.Ltd.

4 107 10/01/2001 Kotak Mahindra old mutual Life Insurance Co.Ltd.

5 109 31/01/2001 Birla Sun Life Insurance Co.Ltd.

6 110 12/02/2001 TATA AIG Life Insurance Co. Ltd.

7 111 30/03/2001 SBI Life Insurance Co.Ltd.

8 114 02/08/2001 ING Vysya Life Insurance Co.Ltd.

9 116 03/08/2001 Bajaj allianz Li Bajaj Allianz Life Insurance Co.Ltd.

10 117 06/08/2001 Met Life India Insurance Co. Ltd.

11 121 03/01/2002 Reliance Life Insurance Co. Ltd.

12 122 14/05/2002 Aviva Life Insurance Co. Ltd.

13 127 06/02/2004 Sahara India Life Insurance Co.Ltd.

14 128 17/11/2005 Shriram Life Insurance Co.Ltd.

15 130 14/07/2006 Bharti Axa Life Insurance Co.Ltd.

16 133 04/09/2007 Future Generali India Life Insurance Co.Ltd.

17 135 19/12/2007 IDBI Fortis Life Insurance Co. Ltd.

18 136 08/05/2008 Canara HSBC Oriental Bank of Commerce Life Insurance Co. Ltd.

19 138 27/06/2008 Aegon Religare Life Insurance Co. Ltd.

20 140 27/06/2008 DLF Pramerica Life Insurance Co. Ltd.

21 142 26/12/2008 Star Union Dai-ichi Life Insurance Co. Ltd.

22 143 05/11/2009 India First Life Insurance Co. Ltd.

Table : III

Private Life Insurance Companies And Their Promoter Sr.No.

Name Of The Insurer

Indian Promoter Foreign Promoter

1 HDFC Standard Life Insurance Co.Ltd.

HDFC Ltd. Standard Life Assurance, UK

2 Max New York Life Insurance Co.Ltd.

MAX India New York life, USA

3 ICICI Prudential Life Insurance Co.Ltd.

ICICI Bank Prudential, UK

4 Kotak Mahindra old mutual Life Insurance Co.Ltd

Kotak Mahindra Bank

Old mutual, South Africa

5 Birla Sun Life Insurance Co.Ltd.

Birla Group Sun Life, Canada

6 TATA AIG Life Insurance Co. Ltd.

TATA Group American International Assurance Co.,

USA 7 SBI life

Insurance Co.Ltd.

State Bank of India

BNP Paribas Assurance, France

8 ING Vysya Life Insurance Co.Ltd.

VYSYA Bank ING insurance International, Netherlands

9 Bajaj Allianz Life Insurance Co.Ltd.

Bajaj Auto Allianz, Germany

10 Met Life India Insurance Co. Ltd.

J & K Bank Met life International Holdings Ltd. ,USA

11 Reliance Life Insurance Co. Ltd.

Reliance Capital -

12 Aviva Life Insurance Co. Ltd.

Dabour Gruop Aviva International

13 Sahara India Life Insurance Co.Ltd.

Sahara Group -

14 Shriram Life Insurance Co.Ltd.

Shriram Group Sanlam Group, South Africa

15 Bharti Axa Life Insurance Co.Ltd.

Bharti Group AXA Holdings, France

16 Future Genrali India Life Insurance Co. Ltd.

Future Group Pantaloon Retail Ltd Sain Marketing Network Pvt. Ltd. (SMNPL), Generali, Italy

17 IDBI Fortis Life Insurance Co. Ltd.

IDBI Bank Fedral Bank Fortis, Netherlands

18 Canara HSBC Oriental Bank of Commerce Life Insurance Co. Ltd.

Canara Bank HSBC Insurance (Asia Pacific) Holdings Ltd and Oriental Bank of Commerce

19 Aegon Religare Life Insurance Co. Ltd.

Religare Enterprises Limited

Aegon, U.S.

20 DLF Pramerica Life Insurance

DLF Group PFI , U.S.

Co. Ltd. 21 StarUnion Dai-

ichi Life Insurance Co. Ltd.

Bank of India, Union Bank of India

Dai-ichi Mutual Life Insurance Co. Japan

22 India First Life Insurance Co. Ltd.

Bank of Baroda, Andhra Bank

Legal General, U.K.

Table : IVInsurer WISE LIFE INSURANCE OFFICES

(As on 31st March) Life Insurer

2000-01

2001-02

2002-03

2003-04

2004-05 2005-06 2006-07 2007-08 2008-09 2009-10

HDFC standard Life Insurance Co. Ltd.

2 4 18 26 90 150 448 569 609 568

MAX NEW YORK Life Insurance Co. Ltd.

3 15 23 33 64 84 118 194 705 705

ICICI Prudential Life Insurance Co. Ltd.

6 14 29 69 109 175 583 1958 2102 1921

Kotak Mahindra Life Insurance Co. Ltd.

NA 9 28 39 43 46 75 151 198 215

Birla Sun Life Insurance Co. Ltd

2 19 29 41 53 97 148 538 660 652

TATA AIG Life Insurance Co. Ltd.

NA 6 13 26 40 72 89 283 454 439

SBI Life Insurance Co. Ltd

NA 5 10 19 31 46 138 200 489 494

ING Vysya Life Insurance Co. Ltd

NA 4 16 26 38 68 183 265 265 254

BAJAJ ALLIANZ Life Insurance

NA 17 33 49 153 567 877 1007 1164 1151

Co. Ltd. MET Life India Insurance Co. Ltd.

NA 3 8 16 35 43 53 94 190 255

Reliance Life Insurance Co. Ltd

NA 17 35 48 80 157 159 745 1145 1247

AVIVA Life Insurance Co.Ltd.

NA 3 12 22 50 110 140 213 224 186

SAHARA India Life Insurance Co.Ltd.

NA NA NA 2 18 18 33 33 49 49

SHRIRAM Life Insurance Co. Ltd.

NA NA NA NA NA 11 12 53 98 162

Bharti Axa Life Insurance Co. Ltd.

NA NA NA NA NA 10 16 77 200 203

Future Generali India Life Insurance Co. Ltd.

NA NA NA NA NA NA NA 9 93 90

IDBI Fortis Life Insurance Co. Ltd.

NA NA NA NA NA NA NA 2 33 37

Canara HSBC Oriental Bank of Commerce Life Insurance Co. Ltd.

NA NA NA NA NA NA NA NA 32 33

DLF Premercia Life Insurance Co. Ltd.

NA NA NA NA NA NA NA NA 15 32

Star Union Dai-Ichi Life Insurance Co. Ltd.

NA NA NA NA NA NA NA NA 2 7

India First Life Insurance Co. Ltd.

NA NA NA NA NA NA NA NA NA 2

Life Insurance Corporation of India

2186 2190 2191 2196 2197 2220 2301 2522 3030 3250

NAME OF THE PLAYER MARKET SHARE (%)Name of the Player Market share (%)

LIFE INSURANCE CORPORATION OF INDIA 82.3

ICICI PRUDENTIAL 5.63

BIRLA SUN LIFE 2.56

BAJAJ ALLIANZ 2.03

SBI LIFE INSURANCE 1.80

HDFC STANDARD 1.36

TATA AIG 1.29

MAX NEW YARK 0.90

AVIVA 0.79

OM KOTAK MAHINDRA 0.51

ING VYSYA 0.37

MET LIFE 0.21

ORGANIZATIONAL PROFILE

ICICI

The World Bank established ICICI LTD in 1955, the Government of India and t h e   I n d i a n I n d u s t r y ,   p r o m o t e   I n d u s t r i a l d e v e l o p m e n t   o f   I n d i a   b y   p r o v i d i n g project and corporate finance to Indian industry. ICICI has grown from a development bank to a financial conglomerate and has become one of the largest public financial institutions of India. ICICI has financed almost all major sector of the economy, covering 6848 companies and 16851projects. In the fiscal year 2002- 2003, ICICI had disbursed a total of Rs 45673 billion. Assets worth.1676.59 billion as on 31st of march 2005 a n d   c u s t o m e r   6   m i l l i o n   a n d   5   m i l l i o n p o l i c y h o l d e r   a c c o u n t .   M u l t i   c h a n n e l network, 573 branches and 2000+ATMs

PRUDENTIALP r u d e n t i a l   w a s   f o u n d e d   i n   1 8 4 8 .   P r u d e n t i a l   i s   t h e  l a r g e s t   l i f e   i n s u r a n c e company in the United Kingdom. Provides retail financial services products and services to more than 20 million customers, policyholder and unit holders and manages over £300 billion of funds worldwide (as of 31 December 2006).In Asia, Prudential is the leading European life insurance company with life operations in China, Hong Kong, India, Indonesia, Japan,Korea, Malaysia, t h e   P h i l i p p i n e s , S i n g a p o r e , T a i w a n ,   T h a i l a n d , V i e t n a m .   P r u d e n t i a l   i s  t h e se condo largest retail fund manager for Asian sourced assets ex-Japan as at June 2006. Its fund management business has expanded into a total of ten markets.

ICICI + PRUDENTIAL (JOINT VENTURE)A Joint venture ICICI and Prudential of UKICICI Prudential started its operation in December 2000The key objective of ICICI prudential is to provide the Indian citizen to suit a variety of needs.

ICICI Prudential Life Insurance:

ICICI Prudential Life Insurance Company is a joint venture between ICICI Bank, a premier financial powerhouse and prudential plc, a leading international financial services group headquartered in the United Kingdom. ICICI Prudential Life Insurance Company is a joint venture between ICICI Bank – one of India’s foremost financial services companies-and Prudential plc – a leading international financial services group headquartered in the United Kingdom. Total capital infusion stands at Rs. 47.80 billion, with ICICI Bank holding a stake of 74% and Prudential plc holding 26%.

ICICI was established in 1955 to lend money for industrial development. Today, it has diversified into retail banking and is the largest private bank in the country. Prudential plc was established in 1848 and is presently the largest life insurance company. Total capital infusion stands at Rs. 33.62 billion, with ICICI Bank holding a stake of 74% and Prudential plc holding 26%.

They began their operations in 24th November, 2000 after receiving approval from Insurance Regulatory Development Authority (IRDA). Today, their nation-wide team comprises of over 1,000 offices, over 263,000 advisors; and 22 bancassurance partners. ICICI Prudential was the first life insurer in India to receive a National Insurer Financial Strength rating of AAA from Fitch ratings. For three years in a row, ICICI Prudential has been voted as India's Most Trusted Private Life Insurer, by The Economic Times - AC Nielsen ORG Marg survey of 'Most Trusted Brands'.

It began its operations in December 2000 after receiving approval from Insurance Regulatory Development Authority (IRDA). Today, their nation -wide reach includes 1,960 branches (inclusive of 1,096 micro-offices), over 237,000 advisors; and 6 bank assurance partners.

For three years in a row, ICICI Prudential has been voted as India’s Most Trusted Private Life Insurer, by The Economic Times – AC Nielsen ORG MARG survey of ‘Most Trusted Brands’. As they grow their distribution, product range and customer base, they continue to tirelessly uphold their commitment to deliver world-class financial solutions to customers all over India.

For the past nine years, ICICI Prudential Life has retained its leadership position in the life insurance industry with a wide range of

flexible products that meet the needs of the Indian customer at every step in life.

ICICI Prudential Life has one of the largest distribution networks amongst private life insurers in India. It has a strong presence across India with 1,960 branches (including 1,096 micro-offices) and an advisor base of over 230,000 (as on December 31, 2009).

Insurance Solutions for Individuals: ICICI Prudential Life Insurance offers several novel, customer-centric products for customers at every stage of life. The products and services offered by the organization are in various fields, such as:

Protection Plans:

1. Save ‘n’ Protect: It’s a perfect plan to collect funds as savings and be protected by the insurance policy.2. Cash back: It’s a policy with a combination of three benefits periodic liquidity, protection & savings.3. Home Assure: It is a policy where you can cover your home loan which is a term assurance plan.4. Pure Protect: It secures your life and your family in case of any unforeseen situation. It is a term plan which is a flexible and inexpensive product.5. Life Guard: It is a cover which is available at a low cost. This plan comes with 2 options –level term assurance with return of premium & single premium.

Premium Guarantee Plans:1. Invest Shield Cash Back : It provides a premium guarantee and also balancing the returns, safety & liquidity. It is a unit linked plan.2. Invest Shield Life New : A plan where the customer is guaranteed that he will at least get back his premiums. It is a unit linked plan which also provides premium guarantee and the customer gets the benefits of high returns. The policy also offers a protection to the family with a life insurance cover.

Education Insurance Plans:1. Smart Kid Regular Premium : It is a tradional plan where funds are provided for the needs of the child in the future.

2. Smart Kid New Unit-linked Regular & Single Premium : The policy is made in such a way that the child receives money at a stage, for his educational needs.

Wealth Creation   Plans:

1. Premier Life Gold: Premier Life Gold helps with long-term wealth creation .It is a limited premium paying plan. And from the second year onwards it also provides flexibility of premium reduction.2. Life Stage RP : The Life Stage RP is unit linked plan that provides you with a portfolio strategy and keeps distributing your funds across the different asset classes depending on your profile.3. Wealth Advantage: It’s an exclusive whole life single premium unit linked plan that provides long term coverage up to the age of 70 years. And you have the option of withdrawing your funds systematically.4. Lifetime Gold: This plan is a unit linked plan from which you can get high returns over a long term with easy investment options. It offers 8 fund options – Preserver, Protector, Return Guarantee Fund, Balancer, Flexi Balanced Multiplier, R.I.C.H and Flexi Growth.5. Life Stage Assure: A unit linked insurance plan that provides Guaranteed Maturity Addition of 100%- 450% of first year premium based on the term and number of premiums paid. Also your funds are allocated across several asset class based on your profile.6. Life Link Super: It’s a single premium unit linked insurance which offers premium allocation along with a chance to get high returns over the long term, and your family is also protected by this plan.

Group Plans:1. Group   Term Insurance Plan:  It’s a flexible group term plan which provides an inexpensive cover to members of a group. The cover is either given based on uniform or based on designation/rank or a multiple of salary. The benefit under the policy is paid to the beneficiary nominated by the member on his/her death.2. Group Gratuity Plan: The plan helps employers fund their statutory gratuity obligation in a scientific manner and also avail of tax benefits as applicable to approved gratuity funds.3. Group Super Annuation Plan:   This plan offers a flexible market linked scheme that provides substantial benefits to both employers and employees. Both defined contribution (DC) and defined benefit (DB) schemes are offered to optimize returns for members of the trust and rationalize cost. Members have the option of choosing from various annuity options or opting for a partial commutation of the annuity at the time of retirement.

4. Annuity Solutions: This plan has annuity products which give you income and help you realize your needs. In addition to the annuities offered to existing superannuation customers, the plan also offers immediate annuities to superannuation funds managed by the team.

Health Insurance Plans:

1. Diabetes Plans: It is a long term insurance policy created for individuals with Type II diabetes and pre-diabetes. It offers long term (upto 20 years) control over diabetes through a specially designed Wellness Program including regular health checkups and a Diabetes Coach to facilitate diabetes management. It also provides you coverage against seven major critical illnesses.2. Cancer Plans: It provide a regular premium plan that helps you with a cash benefit on the diagnosis as well as at different stages in the treatment of various cancer conditions.3. Comprehensive Health coverage: provides comprehensive hospitalization cover and reimburses all other medical expenses by building a health fund.4. Critical Illness Plan: It is a 360-degree product that will provide long-term coverage against 35 critical illnesses, total and permanent disability, and death.5. Hospitalization Plan: A health insurance policy that provides assured insurability till age 75 years, assured coverage for accepted pre-existing illnesses after 2 years and an assured price for 3 years. Also there is another hospital care plan where there  is a fixed benefit plan covering various stages of treatment hospitalization, ICU, procedures & recuperating allowance. It covers a range of medical conditions (900 surgeries) and has a long term guaranteed coverage up to 20 years.

Retirement Plans:1. Forever Life: A traditional retirement product that offers guaranteed returns for the first 4 years.2. Immediate Annuity:   A single premium annuity product that assures an income for life at the time of your retirement. It has the benefit of 5 payout options.3. Life Stage Pension: A regular premium unit linked pension plan that provides you with a unique lifecycle-based strategy that continuously re-distributes your money across various asset classes based on your age and risk profile.4. Premier Life Pension: It is a unit-linked pension policy with a limited premium paying option for preferred customers.

5. Lifetime Super Pension: It is a regular premium unit linked pension plan that helps one accumulate over the long term and offers 5 annuity options (life annuity, life annuity with return of purchase price, joint life last survivor annuity with return of purchase price, life annuity guaranteed for 5, 10 and 15 years & for life thereafter, joint life, last survivor annuity without return of purchase pric5. at the time of retirement.6. Life Link Super Pension : A single premium unit linked pension plan.

Rural Plans:Suraksha & Suraksha Kavach :   It’s a rural plans which offer benefits like life Cover, low and Affordable Premiums and Hassle Free Procedure.

Micro Insurance Sarv Jana Suraksha :   Sarv Jana Suraksha is a plan to provide protection and security to rural population at a very affordable cost. The family members are protected in this plan in case of death of the policyholder.The New Product Launched by ICICI Prudential is as follows-1. Anmol Nivesh for tea tribes in Assam in January 20092. Health Saver in January 20092. Price:Pricing is very important in life insurance as policyholders are attracted towards it more often. ICICI Prudential has some unique policies which is different from other companies.

Example: ICICI Prudential- Pure Protect

Below is the table that shows premium for various age-term combinations for a Sum

Assured of Rs.50 lakhs.

Age 10 years 15 years 20 years 25 years

30 year Rs.7608 Rs.8378 Rs.9444 Rs.12558

35 year Rs.9889 Rs.11390 Rs.13,327 Rs.18809

40 year Rs.14394 Rs.17064 Rs.20067 Rs.27075

NEED FOR THE STUDY

There Is A Question Based On Insurance i.e.- Who will take care of my family if tomorrow something unfortunate happens to me?” If this question bothers you, then Life Insurance is the answer.

Of course, under any circumstances, the loss of a loved one is a traumatic experience. But, if your family is also left without sufficient money to meet basic living needs or prepare for future goals, they will have to cope with a financial crisis at the same time. A Life Insurance plan ensures that your family is financially secure even if tomorrow you are no longer around to care for them.

UncertaintyThe basic need of insurance arises as risks are uncertain and unpredictable in nature. Getting insurance for an asset does not mean that the asset is protected against risks or its exposure to risk is reduced, but it actually implies that in case the asset suffers any loss in value due to such risk, the insurance company bears the loss and compensates the insured by making payment to him.

Life insurance, especially tailored to meet your financial needs

Need for Life Insurance

Today, there is no shortage of investment options for a person to choose from. Modern day investments include gold, property, fixed income instruments, mutual funds and of course, life insurance. Given the plethora of choices, it becomes imperative to make the right choice when investing your hard-earned money. Life insurance is a unique investment that helps you to meet your dual needs - saving for life's important goals, and protecting your assets.

Asset Protection:- From an investor's point of view, an investment can play two roles - asset appreciation or asset protection. While most financial instruments have the underlying benefit of asset appreciation, life insurance is unique in that it gives the customer the reassurance of asset protection, along with a strong element of asset appreciation.

The core benefit of life insurance is that the financial interests of one’s family remain protected from circumstances such as loss of income due to critical illness or death of the policyholder. Simultaneously, insurance products also have a strong inbuilt wealth creation proposition. The customer therefore benefits on two counts and life insurance occupies a unique space in the landscape of investment options available to a customer.

Goal based savings:- Each of us has some goals in life for which we need to save. For a young, newly married couple, it could be buying a house. Once, they decide to start a family, the goal changes to planning for the education or marriage of their children. As one grows older, planning for one's retirement will begin to take precedence.

Clearly, as your life stage and therefore your financial goals change, the instrument in which you invest should offer corresponding benefits pertinent to the new life stage.

Life insurance is the only investment option that offers specific products tailormade for different life stages. It thus ensures that the benefits offered to the customer reflect the needs of the customer at that particular life stage, and hence ensures that the financial goals of that life stage are met.

Why life insurance:1. Protection of the interest of the family member.2. Provision for education and marriage of the children.3. Post retirement income for self and dependents.4. Special needs for medical expenses.5. Provision for health /illness.6. Provision for housing.7. Provision for income tax rebate.

SWOT ANALYSIS OF ICICI PRUDENTIALStrengths:

ICICI Prudential is the largest private player in the insurance industry in INDIA , with a market share of around 32% amongst the private players.

There is a huge pool of skilled professionals to carry out the successfulVentures.

ICICI Prudential is one of India’s leading financial institutions. Offering a complete financial solution that encompasses every

sphere of life. From commercial banking To stock broking To mutual funds To

life insurance To investment banking, The group caters to the financial needs of individuals and Corporate. ICICI prudential is the first company, which got license of insurance trading from I.R.D.A. (Insurance Regulatory & Development Authority).

ICICI Prudential is leading in securities. The company has a network in 74 cities in India and offices in

New-York, London and Dubai. The group services a customer base of over 2.7 million.

Weaknesses:• Though there is a huge market for insurance policies, the middle class who constitutes bulk of this market is burdened with inflationary pressure and therefore is not able to save for future.• Less popularity of ICICI Prudential in villagers.• Most of the people have faith on LIC as it is a Govt.

Organization.Opportunities:

• Out of 320 million insurable market only 20% of population is insured.

• The ICICI Prudential group is going to open 100 branches of ICICIPrudential in coming 4-5 years.

• The insurance sector is growing so there is opportunity for business growth.

• Unemployment is today a big problem in our country; therefore people who have the potential should be encouraged to enter in to this sector. 

Threats :• Competition is growing as new entrants are coming in insurance

sector.• Main threat is “COMPETITORS”.

LITERATURE SURVEY

Service Quality Evaluation in Select Commercial Banks:  Today, banking operations are driven by the market, and the customer is seen as a consumer of the bank and not of any particular branch of the bank. Hence, it is logical that the customer will be served by all the branches of the bank and this necessitates that each branch serves the customer as if the customer belongs to that branch itself. Today, the concept of core banking has made ‘Anywhere and Anytime’ banking a reality. Along with technology, banking services have also evolved, and the delivery of various banking products are carried out through the medium of high technology at a fraction of the cost to the customer. In this scenario, the present study was conducted to evaluate the service quality of select leading commercial banks by identifying the major factors responsible for customer satisfaction. To support the objective of the study, SERVQUAL technique, based on service quality which is delivered to customers.

Mall C.P. and Sigh J.P.27 (1998) emphasized the importance of diversification and introducing flexibility to reduce risk. They stated that diversification reduces risks on the one hand and increases the possibility of large gains on the other. They also reviewed insurance as a way-out for reducing the risk. The immense schemes help transfer of risks to the insurance companies, especially applicable in agricultural business.

RESEARCH METHODOLOGY

Research Methodology deals with, the procedure adopted to carry out the study. According to GREEN AND TULL:“A research design is the specification of methods and procedures acquiring the information needed. It is the overall operational pattern or framework of the p ro jec t tha t s t ipu la t e s which in fo rmat ion i s to be co l l ec ted f rom which sources by what procedures’’. For conducting the study, as a researcher I adopted both primary as well as secondary method of data collection.

OBJECTIVES   OF   STUDY

T h e p u r p o s e o f r e s e a r c h i s t o d i s c o v e r a n s w e r t o q u e s t i o n s t h r o u g h t h e application of scientific procedures. The main aim of research is to find out how much people an individual get insured and go for it . Though each research study has its own specific purpose. The objective of the study of  “ Preference For Unit Link Investment Plans Over Traditional  investment Avenues” was to discover the answers for the following questions with the help of Questionnaire filled by Interview method.

To know the consumer responses about ICICI Prudential life insurance policy.

To know about the products of ICICI Prudential Life Insurance.

To know about the objections of people for not taking the Insurance policy.

To know the need for Life Insurance.

To know the benefits of Life Insurance

To know the market share of ICICI Prudential Life Insurance in the Market.

ASSUMPTIONS   UNDERLYING   THE   STUDY

The basic assumptions underlying the study were: All the People/ customers were rational. They will prefer the best avenue to park their funds in the given

situation. There was no bias.

TYPE   OF RESEARCH  Research refers to the search for knowledge. It can be defined as scientific and systematic search for pertinent information on a

specific topic. It is careful investigation or enquiry especially through search for new facts of any branch of knowledge. In this study I used Exploratory research, which provides insights into and comprehension of an issue or situation. It helped me to draw some definitive conclusions. Exploratory research is a type of research Conducted when the problem has not been clearly defined. It helps in determine the best research design, data collection method and selection of subjects. Given its fundamental nature, exploratory research often concludes that a perceived problem does not actually exist.

RESEARCH   DESIGN

A research design or a structure is the process done before data collection or  analysis can commence. A research design is not just a work plan. A work plan details what has to be done to complete the project but the function of a research design is to ensure that the evidence obtained enables us to answer t h e i n i t i a l q u e s t i o n a s u n a m b i g u o u s l y a s p o s s i b l e .

Primary data:The primary data was collected with the help of questionnaire filled using

Interview method. As per the need of the study I formulated the questionnaire with the help of the experts of insurance sector and some existing as well as new customers whom I could bank up on. This helped me to frame the required level of questionnaire needed for the study of the stated problem.

Secondary data:The secondary data was collected from the database, publications and the websites of the company through Internet.

DATA   ANALYSIS

In this study a structured Questionnaire was framed for studying the proposed study. The questionnaire was framed in such a way that covers

all the aspects of the customers and product profile. In the beginning some question were asked to know about the tax payment, possession of life insurance, of which company what were the motives and so on, then the questions were related to traditional plans of LI and then regarding ULIP. Why they prefer , what benefit they got against traditional, was any specific reason for buying, were they satisfied with ULIP, if not, what additional features they wanted to be added in that.

BIBLIOGRAPHY Secondary Sources :Sharma G.D ,(1985) 

“Indicators of Performance of Universities”(National Institute …… New Delhi .) ICICI Prudential Life Insurance Co. Ltd. (2009), “Unit Linked Product Guide” (ICICI Prulife ………,Mumbai),  (IRDA's Annual Report - 2008) “Disclosures forming part of Financial Statements” IRDA (Investment) (Amendment) Regulations(Sept, 2008)Life Insurance in India 1956(Kothari Cr 2008)“Research Methodology Methods & Techniques”(New Age International (p) Limited) Brochures: ICICI Prudential Life Insurance Company Ltd, UNI: 105v01 L/IC/26, 2004Life Insurance Company Ltd, UNI: 05l058v01 L/IC/02 1956.

Websites:-www.google.com www.bimaonline.com www.licindia.com www.iciciprulife.com