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A report on

Internship Training

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INDUSTRY PROFILE

, in law and economics, is a form of risk management primarily used to hedge

against the risk of a contingent loss. Insurance is defined as the equitable transfer of the

risk of a potential loss, from one entity to another, in exchange for a premium. Insurance

is a federal subject in India and has a histor y dating back to 1818. Life and general

insurance in India is still a nascent sector with huge potential for various global players

with the life insurance premiums accounting to 2.5% of the country's GDP while general

insurance premiums to 0.65% of India's GDP. The Insurance sector in India has gone

through a number of phases and changes, particularly in the recent years when the Govt.

of India in 1999 opened up the insurance sector by allowing private companies to solicit

insurance and also allowing FDI up to 26%. Ever since, the Indian insurance sector is

considered as a booming market with every other global insurance company wanting to

have a lion's share. Curr ently, the largest life insurance company in India is still owned

by the government.

In order to provide strict state control over Insurance business many acts were

passed, th first being The Insurance Act, 1938. The Life Insurance in India was

completely nationalised only on 19 Janurary, 1956 through the Life Insuranceth

Corporation Act, 1956. Nationalization was accomplished by the government acquisition

of the management of the existing insurance companies. This resulted in the formation of

the Life Insurance Corporation of India on 1 st September 1956 which enjoyed complete

monopoly in the life insurance industry till the year 1999.

The remaining 100 odd General Insurance companies were nationalized by the

General Insurance Business (Nationalisation) Act, 1972 subsequently merging them into

four companies. All the companies were amalgamated into National Insurance, New

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India Assurance, Oriental Insurance, United India Insurance which were headquartered in

each of the four metropolitan cities.

Till end of 1999-2000 fiscal year, two state-run insurance companies, namely,

Life Insurance Corporation (LIC) and General Insurance Corporation (GIC) were the

monopoly insurance (both life and non-life) providers in India.The year 1999 saw the

entrance of private insurance companies in Indian insurance sector. The Govt. of India,

then introduced the Insurance Regulatory and Development Authority Act (IRDA) in

1999, thereby de-regulating the insurance sector and allowing private companies into the

insurance. Further, foreign investment was also allowed and capped at 26% holding in

the Indian insurance companies.

The private insurance joint ventures have collected the premium of Rs.1019.09

crore with the investment of just Rs.3, 000 crore in three years of liberalization. The

private life insurance players have been significantly improving their market share when

compared to 50 years Old Corporation (i.e. LIC). As per the figures compiled by IRDA,

the Life Insurance Industry recorded a total premium underwritten of Rs. 10,707.96 crore

for the period under review. Of this, private players contributed to Rs.1, 019.09 crore,

accounting for 10 percent. Life Insurance Corporation of India (LIC), the public sector

giant, continued to lead with a premium collection of Rs.9,688.87 crore, tr anslating into a

market share of 90 per cent. In terms of number of policies and schemes sold, private

sector accounted for only 3.77per cent as compared to 96.23 per cent share of LIC (The

Economic Times, 21 March, 2004).

The ICICI Prudential topped among the private players in terms of premium

collection. It recorded a market share of 25 per cent, followed by Birla SunLife with 15

percent, HDFC Standard and Max New York Life with a market share of approximately

15 per cent each.

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In case of private non-life insurance players, which their market share raised to

14.13 per cent, recorded a growth of 70.75 per cent on an annual basis, while the market

share of public sector stood at 85.87 per cent, registering a marginal growth of 6.34 per

cent. The overall market has recorded a growth of 12.32 per cent by the end of January

2004. Among the private non-life insurance players, ICICI Lombard topped the list with

a market share of 3.05 per cent in one year period and with an annual growth rate of

131.6 per cent, followed by Bajaj Allianz with 2.91 per cent market share and Tata AIG

with 2.27 per cent market share and with an annual growth rate of 62.60 per cent.

LIFE INSURERS

LIFE INSURERSLIFE INSURERSLIFE INSURERS

.

.

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ON

ONON

ON-

LIFE

INSURERS

LIFE INSURERS

LIFE INSURERSLIFE INSURERS

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COMPANY PROFILE

India's Number One private life insurer,

is a joint venture between ICICI Bank Ltd.-one of India's foremost financial

services company- and Prudential plc - a leading international financial services group

headquartered in the United Kingdom. Total capital infusion stands at Rs. 20.60 billion,

with IC ICI Bank holding a stake of 74% and Prudential plc holding 26%.

They began their operations in December 2000 after receiving approval from

Insurance Regulator y Development Authority (IRDA) and are headquartered in Mumbai.

Today, their nation-wide team comprises of over 580 offices, over 234,000 advisors; and

22 banc assurance partners.

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INTRODUCTION

ICICI Prudential was the first life insurer in India to receive a National Insurer

Financial Strength rating of AAA (Ind) from Fitch ratings. For three years in a row,

ICICI Prudential has been voted as India's Most Trusted Private Life Insurer, b y The

Economic Times - AC Nielsen ORG Marg survey of 'Most Trusted Brands'.

The ICICI Prudential edge comes from the commitment to their customers, in all

that they do be it product development, distribution, the sales process or servicing.

ICICI Prudential products have been developed after a clear and thorough understanding

of customer needs. Having the right products is the first step, but its equally important to

ensure that customers can access them easily and quickly. To this end, ICICI Prudential

has an advisor base across the length and breadth of the country, and also partners with

leading banks, corporate agents and brokers to distribute their products. Robust risk

management and underwriting practices form the core of their business. With clear

guidelines in place they ensure a smooth and hassle-free claims process.

Entrusted with helping customers meet their long-term goals, they adopt an

investment philosophy that aims to achieve risk adjusted returns over the long-term.

Their 16000+ strong staff is given the opportunity to learn and grow, everyday in a

multitude of ways. This keeps them engaged and enthusiastic, so that they can deliver on

the promise to cover customer, at every step of life.

For the past six years, ICICI Prudential has retained its position as the No. 1

private life insurer in the countr y, with a wide range of flexible products that meet the

needs of the Indian customer at every step in life.

ICICI Prudential has one of the largest distribution networks amongst private life

insurers in India. As of January 31, 2007 the company has over 580 offices across the

country and over 234,000 advisors.

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The company has over 20 banc assurance partners, having tie-ups with ICICI

Bank, Federal Bank, South Indian Bank, Bank of India, Lord Krishna Bank, Idukki

District Co-operative Bank, Jalgaon Peoples Co-operative Bank, Shamrao Vithal Co-op

Bank, Ernakulam Bank and 9 Bank of India sponsored Regional Rural Banks (RRBs). It

has also tied up with NGOs, MFIs and Corporates for the distribution of rural policies.

There are two main types of plans ULIP and Traditional.

ULIPs have gained high acceptance due to attractive features they offer. These

include:

Flexibility to choose sum assured. Flexibility to choose premium

amount. Option to change level of Premium/ Sum Assured even after the plan has

started. Flexibility to change asset allocation by switching between funds.

Charges in the plan and net amount invested are known to the

customer. Customer has the convenience of tracking his/her investment performance

on a daily basis.

Customer has the option to withdraw money after few years i.e. the option

of low minimum tenure. Partial or systematic withdrawals are allowed.

A choice of funds is provided to customers ranging from equity, debt,

cash or a combination. They can choose the fund mix based on desired asset

allocation.

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These are the old type of plans available. These plans cater to customers with a

low risk appetite. Some of the common features of the traditional plans are:

Major chunk of investible funds are in debt instruments. Though

low, but steady and almost assured returns are expected over the long term.

death benefit is sum assured with guaranteed and vested bonus.

Helps in asset creation as they are for a long tenure.

Premium to sum assured ratios is fixed for each plan and age.

Withdrawals are generally not allowed before maturity.

ICICI Prudential Life Insurance offers a range of innovative, customer-centric products

that meet the needs of customers at every life stage. Its products can be enhanced up to 4

riders, to create a customized solution for each policyholder.

is a transparent, feature-packed savings plan that offers 3 levels of

protection as well as liquidity options.

is a traditional endowment savings plan that offers life protectionalong with adequate returns.

is an anticipated endowment policy ideal for meeting milestone expenses

like a child's marriage, expenses for a child's higher education or purchase of an

asset. It is available for terms of 15 and 20 years.

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is a traditional retirement product that offers guaranteed returns for the

first 4 years and then declares bonuses annually.

is a regular premium unit linked pension plan that helps

one accumulate over the long term and offers an annuity option (guaranteed income

for life) at the time of retirement.

is a single premium unit linked pension plan.

is a single premium annuity product that guarantees income for

life at the time of retirement. It offers the benefit of 5 payout options.

and Health Assure is a regular premium plan

which provides long term cover against 6 critical illnesses by providing policyholder

with financial assistance, irrespective of the actual medical expenses. Health Assure

Plus offers the added advantage of an equivalent life insurance cover.

is a regular premium plan that pays cash benefit on the diagnosis as

well as at different stages in the treatment of various cancer conditions.

Diabetes Care is the first ever critical illness product especially for

individuals with Type 2 diabetes. It makes payments on diagnosis on any of 6

diabetes related critical illnesses, and also offers a coordinated care approach to

managing the condition. Diabetes Care Plus also offers life cover.

Hospital Care is structured to ensure customers receive a pre-

determined insurance amount for each procedure or hospitalization, even if they

spend less. Further, its long-term design of a term between 10-20 years, assures

policyholders the guaranteed cushion of insurance cover even if they make a claim

during the term. Available for individuals between the ages of 1-60 years, this is one

of the first products that will cover people up to the age of 80 years.

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ICICI Prudential also off ers Group Insurance Solutions for companies seeking to enhance

benefits to their employees.

ICICI Prudential's group gratuity plan helps employers fund

their statutory gratuity obligation in a scientific manner. The plan can also be

customized to structure schemes that can provide benefits beyond the statutory

obligations.

ICICI Prudential offers both defined contribution

(DC) and defined benefit (DB) superannuation schemes to optimize returns for the

members of the trust and rationalize the 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.

In addition to the annuities offered to existing

superannuation customers, they offer immediate annuities to superannuation funds

not managed by them.

ICICI Prudential's flexible group term solution helps provide

affordable cover to members of a group. The cover could be 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.

ICICI Prudential Life offers flexible riders, which can be added to the basic policy at a

marginal cost, depending on the specific needs of the customer.

If death occurs as the result of an accident during the

term of the policy, the beneficiary receives an additional amount equal to the rider

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sum assured under the policy. If the death occurs while traveling in an authorized

mass transport vehicle, the beneficiary will be entitled to twice the sum assured as

additional benefit.

protects the insured against financial loss in the event of 9

specified critical illnesses. Benefits are payable to the insured for medical expenses

prior to death.

This rider pays the 10% of the sum assured to the nominee ever y

year, till maturity, in the event of the death of the life assured. It is available on

SmarKid and CashPlus.

In case of total and permanent disability due to an accident,

the future premiums continue to be paid by the company till the time of maturity.

This rider is available with LifeTime Super, LifeTime Super Pension and CashPlus.

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markets: China, Hong Kong, India, Japan, Korea, Malaysia, Singapore, Taiwan, Vietnam

and United Arab Emirates.

ICICI Prudential has been the market leader in the private life insurance sector

contributing to 30% of the growth share followed by the SBI Life Insurance with 18%

share. Members like Ms. Shikha Sharma, C.E.O & M.D., Ms. Anita Pai, E.V.P

Customer Service & Technology, Mr. Puneet Nanda, C.I.O, Mr. Binayak Dutta, Chief

Sales & Distribution, have been with the company since its inception in 2000 and are

instrumental in developing ICIC Prudential to this level.

The first policy was sold on 12 December, 2000. Within 1 year ICICI Prudentialth

achieved 25000 policies and thereby growing at a faster rate achieved 1 million policiesby October, 2004. By 2010 ICICI Prudential has a target to achieve 20 million customers.

AWARDS & RECOGNITION

Avaya GlobalConnect - Economic Times

Customer Responsiveness Awards.

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The Economic Times - A C Nielsen Survey of Most Trusted Brands 2003,

2004 and 2005.

Prudential Corporation Asia.

Effies 2003

Institute of Marketing & Management

Indira Group of Institutes

Asia-Pacific H R Congress Awards for HR Excellence

VISION & VALUES

To make ICICI Prudential the dominant Life and Pensions player built on trust by

world-class people and service.

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The dominance here is meant in making ICICI Prudential a Role Model for

other insurance companies and also to increase in scale. They believe in building on trust

since its critical for a long-term relationship by people from all cadres in the world and

provide the best services.

They hope to achieve vision by:

Understanding the and offering them superior products

and service.

Leveraging to service customers quickly, efficiently and

conveniently.

Developing and implementing superior

to offer sustainable and stable returns to policyholders.

Providing an enabling environment to foster growth and learning for

And above all, in all their dealings.

Their vision has given them a direction to reach out and make a mark in the dynamic

industry.

The keystones of ICICI Prudentials success have been their values which shine

forth in all they do. Every member is committed to 5 core values:

Integrity - Be honest and fair in what you say and do.

Customer First - Own the customer & deliver the promise.

Boundryless - Never say Its not my job

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Ownership - If its to be, its up to me.

Passion - Boundless energy and enthusiasm.

DEPARTMENTATION

Departmentation is an element of the organizing process. Departmentation may be

defined as a process of grouping individual jobs into departments. It involves grouping of

activities and employees into departments so as to facilities and employees in to

departments so as to facilities the accomplishment of organization objectives. It is a

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means of dividing the large & complete organization into smaller & flexible

administrative unit.

The various departments in ICICI Prudential are:

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Recruitment process:

Recruitment forms the first stage in the process which continues with selection and

ceases with the placement of the candidate. It is the next step in the procurement function, the

first being the manpower planning. Through planning, a management strives to have the right

number and the right kind of people at the right place, at the right time to do things which

result in both the organization and the individual receiving the maximum long range benefits.

Recruitment makes it possible to acquire the number and types of people necessary to ensure

the continued operation of the organization. There are two sources of recruitment. They are

Internal source and External source of recruitment. Internal source of recruitment means

selecting the candidate for the position from the employers of the organization itself. External

source of recruitment means selecting the candidate from outside the organization. HR

department will understand the need for additional man power and then they will go for

selection process. If internal source of employees are not available, they go for external

source. Applications will be scrutinized and the eligibility candidates are short listed. They

will be called for writing a test. Those candidates, who cleared the test, will be called for an

interview. Once they get through the interview, their certificates will be verified. Selected

candidates will be given offer letters.

HR Planning

Recruitment

Selection

: This is a source of internal recruitment where off-load job employees are given an

Placementopportunity to work on-load through an Assessment Development Centers (ADC). In this

programme the employees are tested in terms of their presentation skills, problem solving

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ability, communication skills, professional knowledge, team leading ability, aggressiveness,

and persistence with the job profile etc. Every employee has to maintain a goal sheet where

the targets are set. If the employee achieves the goal sheet within a specified period he stands

to have a chance of attending the ADC. If the employee crosses the hurdle he is promoted to

a higher designation. If he fails to do so he can wait till he becomes eligible for the next

ADC

.

: Popularly known in the market as employee reference. Employees of ICICI

Prudential can refer any candidate of his choice. In case the candidate is hired and stays with

the organization for a minimum of 3 months, the employee who referred the candidate stands

to gain a reward of Rs. 10,000/- where Grade I candidates are concerned and a reward of

8.3% of the salar y of the hired candidate if his designation belongs to Grade II. This is done

in order to increase employee morale, to strengthen the value of ownership.

: Venues are arranged for direct walk-in. Candidates are short

listed by the HR people with respect to their performance as mentioned in their resumes and

are sent to the second level interview conducted by the respective Line managers. Hired

candidates are then required to fill in the Personal Data Form (PDF) and adhere to necessary

formalities.

: ICICI Prudential has been maintaining good relation with a number of

consultancies since its inception. The whole process of recruiting through consultancies is as

follows. Requirements from all the branches reach the HR department. The HR department

then contacts the Consultants and gives its requirements. Consultants then send in suitable

candidates with respect to the required designations for interview. The hired candidates are

then required to compile with the necessary formalities.

In the month of May and June around 400 were recruited while the attrition was

comparatively less which was 75 numbers.

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In case of resignations Exit Interviews are held by the HR manager. Calls are made to

the candidates and interviewed. The main reason for resigning is for better prospects.

Currently there are 35,145 employees all over India where 2440 numbers belong to Tamil

Nadu. Out of 2440, 1250 are active employees and the remaining 1190 have exited the

organization. (Source: PACE Dump, ICICI Prudential, as on 23/06/07.)

Corporate Governance is given due importance at ICICI Prudential as at its heart are

many dedicated people focused on delivering the best results. The organization makes sure

that yearly the management gets to meet the employees and this is done on a large scale. The

programme conducted is called where interactions and participations happen

between the management and the work force. Employees are felt free to give suggestions,

share any grievances etc. The management makes sure the problems, if any, are solved there

itself. If not is taken seriously and considered over a period.

SALARY &WAGES:

Fair salary and wages are given to the employees. Every

empolyee have to open an ICICI bank account with the organization. The first month

salary is received in the form of a bank draft and subsequent months salary is credited in

the bank account.

PERFORMANCE

APPRAISAL:Appraisal is done from the top to bottom and do

not follow the 360 degree appraisal. Employees are given a chance for self appraisal also.

Based on their performance they do stand a chance to get promoted.

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ENTERTAINMENT:

In order to maintian good employment relations various

activites are or ganized.

is a quarterly e-magazine meant for the employees of ICICI Prudential.

Articles can be posted on this e-magazine. This is done to enhance the

hidden talents in employees.

is an event where sports like Cricket and Table Tennis matches

are held once in two months. This is kind of a relaxation for the

employees.

AWARDS

:Awards are given to encourage employees to perform even better and to

give in their best. Based on each ones meritocracy awards are given. The

awards are as follows:

This is a spot award recognition given to any employee who possess and

also adhere to the companys values.

This award is given if any exceptional demonstation of ICICIPrulifes value isrecognized which have contributed to any business practice.

Self nomination of a case study can be done for this award for practices

which have a significant impact on business practices.

TRAININ

G: Training is provided to all the hired candidates for a period of ten days.

The training batches are held every alternate Monday and the food and accomodation are

taken care off by the company for this period. If the batch is huge in number the

candidates are divided in two batches and training are held at the available ICICI

Prudential branch.

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: In case of any complaints against an employee, it can be mailed to the

HR manager. In case of any fraudulant practices termination is the only solution.

Complaints with respect to work place harresments, behaviour, non-adherence to process

may result in warnings followed by strict actions if no improvement is observed.

: For employees belonging to Grade III and above, activities on stress

level management is conducted.

ICICI Prudential has a special software designed by named

for its employees which is used through the intranet. It stands for ersonalized ccessible

onvenient This software helps the employees to update their personal details,

their bank account numbers, etc. Employees can apply for leave on and can get

approval. They have to mark their attendence through the e-muster everyday else their

salary will not be paid for that day. In case of any official duty prior notification can be

made for these days on Enployees can also file complaints on it. This has been

very helplfull for all employees and it is practiced since the inception of the company.

LEARNING EXPERIENCE

I was entrusted with the responsibility of getting in contact with a list of

Consultancies and their suggested referrences. I had to ask for feedback from the

provided referrences to have an idea about the efficiency of the consultants. This gave me

exposure to big HR consultancies who have tie-ups with big organizations.

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My relation with the consultancies grew as I kept in touch with the

consultants and provided them with the HR requirements for the each relationship.

Together we made sure that the interviews took place and the sufficeint number of

requirements for candidates were met with.

I gave welcome calls to all the hired candidates and helped them with the

training batch venue. I made sure the training department was informed about the batch

and saw to it the venue was booked for the training. I was also entrusted to take care of

candidates accomodation.

I was given the responsibility of taking car e of post recruitment process.

That is calling the hired candidates to fill in a Personal Detail Form (PDF) and collecting

the necessary documents from them. On submission of which I had to give them their

Offer Letter.

I had to do paper processing. The filled in PDFs had to be duly checked if

its complete and has the necessary line manager and the HR managers signature along

with the candidates documents and a copy of the offer letter and send it to the centralized

entry. Once these PDFs are received in Mumbai they are once again checked and the

applicant ID is generated for hiring the candidate on and providing the employee

ID.

I took care of the forms relating to resignation i.e. the resignation acceptance

form, the PF withdrawal form and the mediclaim. These had to be tracked on the

computer and had to be sent to the centralized entry. An employee can exit the company

only if he/she recieves acceptance from his/her reporting manager. He/she must inform it

to the HR department where we send the forms to the centralised entry and update this

information in .

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CONCLUSION

ICICI Prudential has been growing at a rapid pace since its inception and will

continue to grow. The ICICI Prudential edge comes from the commitment to their

customers, in all that they do be it product development, distribution, the sales process

or servicing. Their leadership position not only reflects customer satisfaction, but also

reveals the business potential in the industry. They have a ver y dedicated force focused

on delivering the best results.

ICICI Prudential is built on the foundation of our core values: Integrity, Customer

first, Boundary less, Ownership and Passion that lay a foundation for all their actions.

The organization also aims at providing a supportive environment for each employee at

every location.

The company is able to conduct its business smoothly mainly because of the co-

ordination and commitment of various departments. They all work towards the objectives

of the company keeping their vision in mind and at the same time fulfilling their quality

policies. In order to have good employee relations various activities are conducted where

there is interaction between the top level management and the employees.

The consultants are also maintaining a good relation with the organization. It is

very important to maintain a good relation with the consultancies so that the companys

necessary requirements where candidates are concerned are fulfilled. Monthly meets are

organized between the company and the consultancies. They are also encouraged by

rewarding a sum of Rs. 100,000 for the first 50 hires and extra 50,000 for every extra hire

above 50 numbers.

Thus to conclude the success of ICICI Prudential, Indias No. 1 private life

insurer, is due to the committed work force with an excellent top management. This

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