Mahesh Project 11

8/3/2019 Mahesh Project 11

1/83

PROJECTS MAHESHWARNATH

GOGU.MAHESHWARNATH

[email protected]

[email protected]

MOBILE NO:9502342232

1
mailto:[email protected]:[email protected]:[email protected]:[email protected]


2/83

A

PROJECT REPORT ON

CUSTOMER SATISFACTION

IN

ICICI PRUDENTIAL LIFEINSURANCE, HYDERABAD

Submitted to

JAWAHAR LAL NEHRU TECHNOLOGICAL UNIVERSITY

In partial fulfillment of the requirement

For the award of the degree of

MASTER OF BUSINESS ADMINISTRATION

BY

Mr.GOGU.MAHESHWARNATH

Roll. No.08J11E0021

Under the supervision of

Mr.K.SRIKANTH, MBA(M.phil)

Asst. Professor

HI-TECH COLLEGE OF ENGINEERING & TECHNOLOGY

2


3/83

Gandipet, Himayath Nagar, C.B.Post Hyderabad 500075

2008-2010

ACKNOWLEDGEMENT

This project has been collaborative effort. I take this opportunity to thank all

those who have helped me in the preparation and successful completion of this project

work.

First of all, I wish to express my sincere thanks to my guide

Mr. K.SRIKANTH, Asst.Professor for his valuable support, guidance and co operation

throughout the course of project.

I am deeply indebted to Dr.P.BALA ANJI REDDY professor Head, Department

of Management Studies for his excellence guidance and unstained support in the course

of entire completion of this project.

I would like to express my gratitude to Dr.Maheswar, Principal of Hi-Tech

College of Engineering & Technology , Hyderabad for his constant help and

moral support. Finally I wish to thank Mr.S.SANJAY KUMAR (AM) and other

staff members of ICICI PRUDENTIAL LIFE INSURANCE for their valuablesupport and co operation for the completion of this project.

Last but not least, I am extremely happy to express my deep sense of gratitude to

my parents who have always supported to me morally and believe me more than I

do.

(GOGU.MAHESHWARNATH)

(08J11E0021)

3


4/83

DECLARATION

I hereby declare that the project report title CUSTOMER SATISFACTION

Submitted by me to the Department of Business Management, Hi-Tech college of

Engineering & Technology College, JNTU, Hyderabad, is a Bonafied work

undertaken by me and it is not submitted to any other University or Institution for the

award of any degree or diploma certificate published any time before.

(GOGU.MAHESHWARNATH)

(08J11E0021)

4


5/83

S.NO INDEX PAGE NO

1

2

3

4

5

CHAPTER I

INTRODUCTION

OBJECTIVES OF THE STUDY

NEED & SCOPE OF THE STUDY

METHODOLOGY OF THE STUDY

LIMITATIONS

1-5

6

7

8-9

10

6

7

CHAPTER II

INDUSTRY PROFILE

COMPANY PROFILE

11-20

21-41

8

CHAPTER III

THEORETICAL APPROACH 42-51

9

CHAPTER IV

DATA ANALYSIS AND INTERPRETATION

52-65

10

11

12

CHAPTER V

FINDINGS

SUGGESTIONS

CONCLUSION

67

68

69

5


6/83

13 QUESTIONNARIE 70-72

14 BIBLIOGRAPHY 73

EXECUTIVE SUMMARY

This project is based on the Customer Satisfaction of the ICICI PRUDENTIAL insuranceCompany ltd. It is done to find out whether the customers are satisfied with the Benefits

they get with their respective policies or not. Further, in this Project the study includes

the introduction of the company wherein I told about the Objectives of the study and

profile of the ICICI Prudential.

Section 2 includes the Research Methodology wherein I have discussed the Research

Design and Various sources of the Data Collection. Thereafter the relevant matter

includes the Data analysis and Findings wherein I have analyzed the data collected from

the Questionnaire. Lastly it represents the conclusion and the suggestions based on the

customer satisfaction survey.

6


7/83

7


8/83

INTRODUCTION

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

insured covered in the policy. Essentially, a life insurance policy is a contract between the

named insured and the insurance company wherein the insurance company agrees to pay

an agreed upon sum of money to the insured's named beneficiary so long as the insured's

premiums are current.

With a large population and the untapped market area of this population insurance

happens to be a very big opportunity in India. Today it stands as a business growing at

the rate of 15-20% annually. Together with banking services, it adds about 7 percent to

the countries GDP. In spite of all this growth statistics of the penetration of the insurance

in the country is very poor. Nearly 80% of Indian populations are without life insurance

cover and the health insurance. This is an indicator that growth potential for the insurance

sector is immense in India.

It was due to this immense growth that the regulations were introduced in the insurance

sector and in continuation Malhotra Committee was constituted by the government in

1993 to examine the various aspects of the industry. The key element of the reform

process was participation of overseas insurance companies with 26% capital. Creating a

more competitive financial system suitable for the requirements of the economy was the

main idea behind this reform.

Since then the insurance industry has gone through many changes. The liberalization of

the industry the insurance industry has never looked back and today stand as one of the

most competitive and exploring industry in India. The entry of the private players and the

increased use of the new distribution are in the limelight today. The use of new

8


9/83

distribution techniques and the IT tools has increased the scope of the industry in the

longer run.

Insurance is the business of providing protection against financial aspects of risk, such as

those to property, life health and legal liability. It is one method of a greater conceptknown as risk management which is the need to mange uncertainty on account of

exposure to loss, injury, disadvantage or destruction.

Insurance is the method of spreading and transfer of risk. The fortunate many who are

exposed to some or similar risk shares loss of the unfortunate. Insurance does not protect

the assets but only compensates the economic or financial loss.

In insurance the insured makes payment called premiums to an insurer, and in return is

able to claim a payment from the insurer if the insured suffers a defined type of loss. Thisrelationship is usually drawn up in a formal legal contract.

Insurance companies also earn investment profits, because they have the use of the

premium money from the time they receive it until the time they need it to pay claims.

This money is called the float. When the investments of float are successful they may

earn large profits, even if the insurance company pays out in claims every penny received

as premiums. In fact, most insurance companies pay out more money than they receive in

premiums. The excess amount that they pay to policyholders is the cost of float. An

insurance company will profit if they invest the money at a greater return than their cost

of float.

Reasons for insurance:

To financially support family members in the event of untimely death/ disability of

earning memberTo cover medical expenses of the insured in the event of illness

To cover risk of loss of property in the event of any uncertainty

Classification of insurance:

The insurance industry in India can broadly classified in two parts. They are.

9


10/83

1) Life insurance.

2) Non-life (general) insurance.

1) Life insurance:

Life insurance can be defined as life insurance provides a sum of money if the person

who is insured dies while the policy is in effect.

In 1818 British introduced to India, with the establishment of the oriental life insurance

company in Calcutta. The first Indian owned Life Insurance Company; the Bombay

mutual life assurance society was set up in 1870.the life insurance act, 1912 was the first

statuary measure to regulate the life insurance business in India. In 1983, the earlier

legislation was consolidated and amended by the insurance act, 1938, with

comprehensive provisions for detailed effective control over insurance. The union

government had opened the insurance sector for private participation in 1999, also

allowing the private companies to have foreign equity up to 26%. Following the opening

up of the insurance sector, 12 private sector companies have entered the life insurance

business.

Benefits of life insurance:

Life insurance encourages saving and forces thrift.

It is superior to a traditional savings vehicle.

It helps to achieve the purpose of life assured.

It can be enchased and facilitates quick borrowing.

It provides valuable tax relief.

Thus insurance is found to be very useful in the lives of the person both in short term and

long term.

Fundamental principles of life insurance contract;

1) Principle of almost good faith:

A positive duty to voluntary disclose, accurately and fully, all facts, material to the risk

10


11/83

being proposed whether requested or not.

2) Principle of insurable interest:

Relationships with the subject matter (a person) which is recognized in law and gives

legal right to insure that person.

2) Non-life (general) Insurance:

Triton insurance co. ltd was the first general insurance company to be established in India

in 1850, whose shares were mainly held by the British. The first general insurance

company to be set up by an Indian was Indian mercantile insurance co. Ltd., which was

stabilized in 1907 . there emerged many a player on the Indian scene thereafter.

The general insurance business was nationalized after the promulgation of General

Insurance Corporation (GIC) OF India undertook the post-nationalization general

insurance business.

LIFE INSURANCE BUSINESS NON-LIFE INSURANCE

BUSINESS

Life Insurance Corporation

ICICI Prudential Life Insurance

HDFC Standard Life Insurance

Max New York Life Insurance

Birla Sun Life Insurance

Om Kotak Mahindra Life Insurance

Reliance Life Insurance

Allianz Bajaj Life Insurance

Dabur CGU Life InsuranceING Vyasa Life Insurance

SBI Life Insurance

General Insurance Corporation

National Insurance Company

The New India Insurance Company

The Oriental Insurance Company

United India Insurance Company

Reliance General Insurance

TATA-AIG Insurance

Royal Sundar ram Alliance General

InsuranceBajaj Alliance General Insurance

ICICI Lombard Insurance

11


12/83

The Insurance Regulatory and Development Authority

(IRDA)

Reforms in the Insurance sector were initiated with the passage of the IRDA Bill in

Parliament in December 1999. The IRDA since its incorporation as a statutory body in

April 2000 has fastidiously stuck to its schedule of framing regulations and registering

the private sector

insurance companies. The other decisions taken simultaneously to provide the supporting

systems to the insurance sector and in particular the life insurance companies were the

launch of the IRDAs online service for issue and renewal of licenses to agents.

The approval of institutions for imparting training to agents has also ensured that the

insurance companies would have a trained workforce of insurance agents in place to sell

their products, which are expected to be introduced by early next year.

Duties, Powers and Functions:

Section 14 of IRDA Act, 1999 lays down the duties, powers and functions of IRDA.

Subject to the provisions of Act and any other law for the time being in force, the

authority shall have the duty to regulate, promote and insure orderly growth of insurance

business and re-insurance business.

Without prejudice to the generality of the provisions contained in sub section (1), the

powers and functions of the authority shall include,

1. Issue to the applicant a certificate of registration, renew, modify, withdraw,

suspend or cancel such registration.

12


13/83

2. Protection of the interest of the policyholders, insurable interest, settlement of

insurance claim, surrender value of policy, and other terms and contracts of

insurance.

3. Specify requisite qualifications, code of conduct, practical training for intermediary

or insurance intermediaries and agents.

4. Specifying the code of conduct for surveyors and loss assessors.

5. Promoting efficiency in the conduct of insurance business.

6. Promoting and regulating organizations connected with the insurance and re-

insurance business.

7. Levying fees and other charges for carrying out the purpose of this act.

8. Calling for information from, undertaking inspection of, conduction enquiries and

investigations including audit of the insurers, intermediaries, insurance

intermediaries and other organizations connected with the insurance business.

9. Control and regulations of the rates, advantages, terms and conditions that may be

offered by insurer in respect of general insurance business not so controlled and

regulated by the Tariff Advisory Committee under the section 64U of the Insurance

Act, 1938(4 of 1938).

10. Specifying the firm and manner in which books of account shall be maintained and

statement of accounts shall be rendered by insurers and other insuranceintermediaries.

11. Regulating investments of funds by insurance companies.

12. Regulating maintenance of margin of solvency.

13. Adjudications of disputes between insures and intermediaries or insurance

intermediaries.

14. Supervising the functioning of the Tariff Advisory Committee.

15. Specifying the percentage of premium income of the insurer to finance schemes for

promoting and regulating professional organizations referred to in clause (f).

16. Specifying the percentage of life insurance business and general insurance business

to be undertaken by the insurer in the rural or social sector.

17. Exercising such other powers as may be prescribed.

18. Exercising for the License

13


14/83

The IRDA has prescribed both qualifications and the disqualifications for a person to be

given a license:-

Qualifications

The person must be :

1. At least 18 years old.

2. Must have passed at least 12th standard or more (if the person is appointed in a

place with population of 50,000or more), 10th standard otherwise.

3. Have undergone for at least 100 hours in life or general insurance business as the

case may be form an institute, approved and notified by the authority.

4. Should have also passed the pre-recruitments examination conducted by the

Insurance Institute of India or any other examination body recognized by the

authority.

5. In case of an applicant for the composite insurance agent, the person should have

completed at least 150 hours practical training in life and general insurance business,which may be spread over six to eight weeks.

Disqualifications

The factors that would prevent a person from obtaining a license are that:

1. Has been found to be unsound mind by a court of competent jurisdiction.

2. Has been found guilty of criminal breach of trust, misappropriation, cheating,

forgery or attempt to commit any such offence.

The licensed once issued can be cancelled whenever the person acquires a

disqualification. In case of companies and firms who want to become agents, the test of

qualification and disqualification would be applied to all the directors and partners.

There are two separate forms, one for individuals and other for those other than

14


15/83

individuals, in which the applications are to be made. The two forms are numbered by

IRDA-Agent VB and are annexed to the regulation. The applications in the respective

forms have to be made to the designated person appointed by the insurer sponsoring the

application.

The application for the license to be accomplished by proofs:

1. Of fee have been remitted to the authority.

2. Of age.

3. Of having completed the training and passed the prescribed examination.

The fee to be send to the authority directly is Rs.250 for new license and for renewals

applied for within the prescribed period, at least 30 days before the date of expiry. If the

application is made after the date of expiry it would be normally refused. But, if the

authority is satisfied that hardship would be caused otherwise, the license may be

renewed. Prior to renewal of the license the agent should have completed at least 25

hours practical training in life or general insurance or at least 50 hours practical training

in life and general insurance business in the case of a composite insurance agent.

Since being set up as an independent statutory body the IRDA has put in a framework ofglobally compatible regulations. In the private sector 12 life insurance and 6 general

insurance companies

have been registered.

Agency law regulations- agency

The basics of the insurance business in India are governed by the Agency law, which is

the part of the Indian Contracts Act, 1982. Further after the industry got opened up the

regulatory authority has been the Insurance Regulatory and Development Authority

(IRDA).

Agent- The Definition

15


16/83

According to the section 182 of the Indian Contract Act, 1872, an agent is a person

employed to do any for another or to represent another in dealing with a third person. In

the insurance sector the term Agent is ordinarily applied to a person engaged by the

insurer to procure new business.

Powers of Agent

An agent can act only to the extent of authority may be expressed or implied. An

authority is said to be expressed when it is given by words spoken or written. It is

implied when it is to be inferred from the circumstances of the case.

Life Insurance Agent

The Insurance Act, 1938 defines an agent as, one who is licensed under the act and is

paid consideration of his soliciting or procuring insurance business including business

relating to continuance, renewal or revival of policies of insurance.

CUSTOMER SATISFACTION

What is customer satisfaction?

Customer satisfaction refers to how satisfied customers are with the products or services

they receive from a particular agency. The level of satisfaction is determined not only by

the quality and type of customer experience but also by the customers expectations.

A customer may be defined as someone who:

has a direct relationship with, or is directly affected by your agency and receives or

relies on one or more of your agencys services or products. Customers in human services

are commonly referred to as service users, consumers or clients.

16


17/83

An organization with a strong customer service culture places the customer at the centre

of service design, planning and service delivery. Customer centric organizations will:

determine the customers expectations when they plan

listen to the customer as they design

focus on the delivery of customer service activities

Value customer feedback when they measure performance.

Why is it important?

There are a number of reasons why customer satisfaction is important in

Insurance Sector:

Meeting the needs of the customer is the underlying rationale for the existence of

community service organizations. Customers have a right to quality services that deliver

outcomes.

Organizations that strive beyond minimum standards and exceed the expectations of

their customers are likely to be leaders in their sector.

Customers are recognized as key partners in shaping service development and assessing

quality of service delivery. The process for measuring customer satisfaction and

obtaining feedback

on organizational performance are valuable tools for quality and continuous service

improvement.

17


18/83

OBJECTIVES

OBJECTIVE OF THE STUDY

For every problem there is a research. As all the researches are based on some

and my study is also based upon some objective and these are as follows.

1. To understand the insurance business and products of ICICI Prudential lifeinsurance co ltd.

2. To find out the peoples perception about life insurance.

3. To find out whether people were really aware of life insurance.

4. To find out how people think about private life insurance.

5. To find out what respondents expectfrom life insurance.6. To understand Consumer buying behavior

7. To come out with conclusion and suggestions based on the analysis and theInterpretation of data.

18


19/83

Need and scope of the study

Needs of the study

Satisfaction is defined as . . .

A persons feeling of pleasure or disappointment resulting from comparing

a products perceived performance (or outcome) in relation to his or her

expectations.

Customer Satisfaction can be defined as supplying or gratifying all wants

or wishes, fulfilling conditions or desires, or the state of the mind anything

that makes a customer feel pleased or contented.

Consumer Behavior:

Consumer behavior is defined as the behavior that consumers display in

searching for, purchasing, using, evaluating and disposing of products and

services that they expect will satisfy their needs.The study of the processes involved when individuals or groups select,

purchase, use, or dispose of products, services ideas, or experiences to

satisfy needs and desires

19


20/83

Customer value: The ratio between the customers perceived benefits

(economic, functional and psychological) and the resources (momentary,

time, effort, psychological) used to obtain those benefits.

Customer satisfaction: Customer satisfaction is the individuals perception

of the performance of the product or service in relation to his or her

expectations.

Motivation: The processes that account for an individuals intensity,

direction, and persistence of effort toward attaining a goal.Personality can be described ad the psychological characteristics that both

determine and reflect how person responds to his or her environment.

Perception is defined as the process by which an individual selects,

organizes, and interprets stimuli into a meaningful and coherent picture of

the world.

Consumer learning is the process by which individuals acquire the

purchase and consumption knowledge and experience they apply to future

related behavior.

Scope of the study

This study can be conducted by comparing the performances &

products of two private & a government insurance players in

insurance industry.

20


21/83

The number of respondents to be surveyed can be improved.

The study can be conducted in Indore city only.

This study can be conducted to analyze the market stand of ICICI

Prudential life insurance Company limited.

The joint strengths

Apowerful joint venture partnership with each carrying a set of strengths

complementing each others

Reputation

Insurance

expertise

Product

Distribution

Operations

Brand strength

Infrastructure

Customer base

Local knowledge

Market Innovators

PRUDENTIALICICI

SIGNIFICANCE OF THE STUDY

The project is concerned with the STUDY ON CUSTOMER

SATISFACTION AT ICICI PRUDENTIAL LIFE INSURANCE.

This study is very useful as the financial market become more

sophisticated and complex, investor needs a financial

intermediary who provides the required knowledge and

professional expertise on successful investing and Life insurance

21


22/83

is a form of insurance that pays monetary proceeds upon the

death of the insured covered in the policy. Essentially, a life

insurance policy is a contract between the named insured and

the insurance company wherein the insurance company agrees

to pay an agreed upon sum of money to the insured's named

beneficiary so long as the insured's premiums are current.

STATEMENT OF THE PROBLEM

Study of consumer behavior & customer satisfaction towards ICICI Prudential Life

Insurance Products.

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 include their names and contact numbers given by ICICI.

During the telephonic we have 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 then Rs. 12000 only.

Age limit for selling a product/policies was 1 month to 60 yrs this mean that a

policy can be sold to person between the age of 1 month to 60 yrs and not

anything exceeding or below it.

RESEARCH DESIGN

The research design of this project is exploratory. Though each research study has itsown specific purpose but the research design of this project on ICICI is exploratory in

nature as the objective is the development of the hypothesis rather than their testing .

METHODOLOGY

22


23/83

Every project work is based on certain methodology, which is a way to systematically

solve the problem or attain its objectives. It is a very important guideline and lead to

completion of any project work through observation, data collection and data analysis.

According to Clifford Woody,

Research Methodology comprises of defining & redefining problems, collecting,

organizing &evaluating data, making deductions &researching to conclusions.

Accordingly, the methodology used in the project is as follows: -

Defining the objectives of the study

Framing of questionnaire keeping objectives in mind (considering the objectives)

Feedback from the employees

Analysis of feedback

Conclusion, findings and suggestions.

Sampling Technique Used

This research has used convenience sampling technique.

1) Convenience sampling technique: Convenience sampling is used in exploratory

research where the researcher is interested in getting an inexpensive approximation of the

truth. As the name implies, the sample is selected because they are convenient

Selection of Sample Size:

For the survey, a sample size of 50 has been taken into consideration.

Sources of Data Collection:

23


24/83

Research will be based on two sources:

1. Primary data

2. Secondary data

1) PRIMARY DATA:

Questionnaire: Primary data was collected by preparing questionnaire for customers.

The questionnaire was filled through telephonic research.

2) SECONDARY DATA:

Secondary data will consist of different literatures like books which are published,

articles, internet, the company manuals and websites of company- www.iciciprulife.com.

Magazines and brochures are some other sources of secondary data followed for the

study.

In order to reach relevant conclusion, research work needed to be designed in a proper

way.

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.

Statistical Tools Used

24
http://www.iciciprulife.com/http://www.iciciprulife.com/


25/83

The main statistical tools used for the collection and analyses of data in this project are:

Questionnaire

Pie Charts

Bar Diagrams

Limitations of study

Limitations of study

Due to the following unavoidable and uncontrollable factors the factors,the result might

not be accurate. Some of the problems faced while conducting the survey are as follows:

Time and cost constraints were also there.

Chances of some biasness could not be eliminated.

A Samples size of fifty has been use due to time limitations.

A majority of respondents show lack of cooperation and are biased towards theirown opinions.

Sampling plan:

It is very difficult to collect information from every member of a population .As

time and costs are the major limitation that the researcher faces.

A sample of100 was taken the sample size of 100 individuals were selected on

the basis of convenient sampling technique. The individuals were selected in the

random manner to form sample and data were collected from them for the

research study.

25


26/83

26


27/83

Industrial Profile

Insurance in India

The insurance sector in India has come a full circle from being an open competitive

market to nationalization and back to a liberalized market again. Tracing the

developments in the Indian insurance sector reveals the 360 degree turn witnessed over a

period of almost two centuries.

A Brief history of the Insurance Sector

The business of life insurance in India in its existing form started in India in the year

1818 with the establishment of the Oriental Life Insurance Company in Calcutta.

Some of the important milestones in the life insurance in India are;

1912: The Indian Life Assurance

For over 50 years, life insurance in India was defined and driven by only one company-

the Life Insurance Corporation of India (LIC). With the Insurance Regulatory and

Development Authority (IRDA) Bill 1999 paving the way for entry of private companies

into both life and general sectors there was bound to be new-found excitement- and new

success stories. Today, just three years since their entry, their cumulative share has

crossed 13% (source: IRDA), far exceeding expectations. Clearly insurance is on a

growth path.

The percentage of premium income to GDP which was just 2.3% in 2000-01 rose to

3.3% in 2002-03; and life insurance has emerged as the dominant contributor to this

growth.

27


28/83

The industry presented a huge opportunity. Life insurance penetration, for instance, was

at an abysmal 22% of the insurable population. However, private players have had to rise

to many challenges. They were faced with attitudinal barriers towards the category and

the perception that insurance was only a tax saving tool. Insurance per se had lost it basic

rationale: protection. It wasnt surprising then that its potential lay frozen and

unexploited. The challenge for private insurance players was to change the established

category driver and get customers to evaluate life insurance as an investment-cum-

protection tool.

Insurance in India started without any Regulation in Nineteenth

century.

It was story of a typical colonial era. A few British companies

dominated

the market mostly in large urban centers.

Insurance was nationalized mainly on 3 counts First, Indian lives were not insured.

Second, even if they were insured, they were treated as substandard lives and extra

premium was charged. Third, there were gross irregularities in the functioning of Life

insurance was nationalized in the year 1956, and then general insurance was

nationalized in the year 1972. In 1999, the private insurance companies were allowed

back again into insurance sector with maximum cap of 26 percent foreign holding.

1818 The British introduce to India, with the establishment of the

Oriental Life Insurance company in Calcutta.

1850 Non life insurance debuts, with Triton Insurance Company.

1870 Bombay Mutual life Assurance Society is the first Indian-

owned life insurer

1907 Indian mercantile Insurance is the first Indian non-life

insurer.

28


29/83

1912 The Indian life assurance companies act enacted to regulate

the life insurance business.

1938 The insurance act, which forms the basis for most current

insurance laws, replaces earlier act.

1956 Life insurance nationalized, government takes over 245

Indian and foreign insurers and provident societies.

1956 Government sets up LIC

1972 Non life insurance nationalized, GIC set up.

1993 Malhotra committee, headed by former RBI governor

R.N.Malhotra, set up to draw up a blue print for insurance sector

reforms.

1994 Malhotra Committee recommends re-entry of private

players, autonomy ot PSU insurers.

1997 Insurance regulator IRDA (Insurance Regulatory and

Development Authority) set up.

2000 IRDA starts giving licensed to private insurers

2001 ICICI Prudential Life Insurance came into the market to

sell a policy.

2002 Banks were allowed to sell insurance plans, as TPAs enter

the scene, insurers start settling non-life claims in the cashless

mode.

The Insurance Regulatory and Development Authority (IRDA):

Reforms in the Insurance sector were initiated with the passage of the IRDA Bill in

Parliament in December 1999. The IRDA since its incorporation as a statutory body in

April 2000 has fastidiously stuck to its schedule of framing regulations and registering

29


30/83

the private sector insurance companies.

The other decisions taken simultaneously to provide the supporting systems to the

insurance sector and in particular the life insurance companies were the launch of the

IRDAs online service for issue and renewal of licenses to agents.

The approval of institutions for imparting training to agents has also ensured that the

insurance companies would have a trained workforce of insurance agents in place to sell

their products, which are expected to be introduced by early next year.

Since being set up as an independent statutory body the IRDA has put in a framework of

globally compatible regulations. In the private sector 12 life insurance and 6 general

insurance companies have been registered.

With the demographic changes and changing life styles, the demand for insurance cover

has also evolved taking into consideration the needs of prospective policyholder for

packaged products. There have been innovations in the types of products developed by the

insurers, which are relevant to the people of different age groups, and suit their

requirements. Continued innovations in product development has resulted in a wide range

of flexible products to meet the requirements for cover at different stages of life -today a

variety of products are available ranging from traditional to Unit linked providing

protection towards child, endowment, capital guarantee, pension and group solutions. A

number of new products have been introduced in the life segment with guaranteed

additions, which were subsequently withdrawn/toned down; single premium mode has

been popularized; unit linked products; and add-on/riders in cl ud in g accidental

death; dismemberment, critical illness, fixed term assurance risk cover, group hospital

and surgical treatment, hospital cash benefits, etc. Comprehensive packaged products

have been popularized with features of endowment, money back, whole life, single

30


31/83

premium, regular premium, rebate in premium for higher sum assured, premium mode

rebate, etc., together with riders to the base products.

Historical Perspective

Prior to 1956 -242 companies operating

1956 -Nationalization- LIC monopoly player -Government control

2001 -Opened up sector

Contribution to Indian Economy

Life Insurance is the only sector which garners long term savings.

Spread of financial services in rural areas and amongst socially less privileged.

Long term funds for infrastructure.

Strong positive correlation between development of capital markets and

insurance/pension structure.

Employment generation.

Insurance Industry prior to de-regulation

Prior to deregulation in 2000, market was a public monopoly.

Public Monopoly

- 2000 Offices

- Over 800,000 agents

Distribution through tied agents only

Sales approach primarily on a tax savings platform

Traditional style product offering : Endowment and money back plans

Inadequate and inflexible products

Pensions: Small part of product offer

Limited focus on customer needs

31


32/83

Improving Service Standards

Pre Deregulation Limited Distribution

Post Deregulation Service through Distribution

32

Channel Access Service Points Use of IT

Advisors Branch Network Limited use of IT

Multi Channel Access Multiple Service

Points

Use of IT

Advisors

Brokers &Corporate agents

Bancassurance

Call Centers

Email

Website

Branch Network

Shorter time aroundtime

Claims

Policy Issuance


33/83

Company profile

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. 42.72 billion, with ICICI Bank holding a stake of 74% and Prudential plc

holding 26%.

We began our operations in December 2000 after receiving approval from Insurance

Regulatory Development Authority (IRDA). Today, our nation-wide team comprises of

over 2000 branches (inclusive of 1,095 micro-offices), over 261,000 advisors; and 24

bancassurance partners. ICICI Prudential is 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, by The Economic Times - AC Nielsen ORG Marg survey of 'Most Trusted

Brands'. As we grow our distribution, product range and customer

base, we continue to tirelessly uphold our commitment to deliver worldclassfinancial solutions to customers all over India.

THE ICICI PRUDENTIAL EDGE

33


34/83

The ICICI Prudential edge comes from our commitment to our customers, in all that we

do - be it product development, distribution, the sales process or servicing. Here's a peek

into what makes us leaders.

1. Our products have been developed after a clear and thorough understanding of

customers' needs. It is this research that helps us develop Education plans that offer the

ideal way to truly guarantee your child's education, Retirement solutions that are a hedge

against inflation and yet

promise a fixed income after you retire, or Health insurance that arms you with the funds

you might need to recover from a dreaded disease.

2. Having the right products is the first step, but it's equally important to ensure that our

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 our products .

3. Robust risk management and underwriting practices form the core of our business.

With clear guidelines in place, we ensure equitable costing of risks, and thereby ensure a

smooth and hassle-free claims process.

4. Entrusted with helping our customers meet their long-term goals, we adopt an

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

5. Last but definitely not the least, our 28,000 plus strong team is given the opportunity

to learn and grow, every day in a multitude of ways. We believe this keeps them engaged

and enthusiastic, so that they can deliver on our promise to cover you, at every step in

life.

VISION

The companys vision is to make ICICI Prudential the dominant life and Pensions

player built n trust by world-class people and service.

They hope to achieve this by:

34


35/83

1. Understanding the needs of customers and offering them superior products and

services.

2. Leveraging technology to device customers quickly, efficiently and conveniently.

3. Developing and implementing superior risk management and investment

strategies to offer sustainable and stable returns to their policyholders.

4. Providing an enabling environment to faster growth and learning for their

employees.

5. Building transparency in all their dealings.

The success of the company is due to its unflinching commitment to five core values:

1. Integrity

2. Customer first

3. Boundary less

4. Ownership

5. Passion

Each of the core values describe what the company stands for, the qualities of their

people and the way they work.

1. ICICI Bank set up its international boundary in fiscal 2002 to cater to the cross-

bascules needs of client and leverage on products internationally.

2. It currently has subsidiaries in United Kingdom and Canada, branches in

Singapore and Behr in and representative offices in US, United Arabs emirates

and Bangladesh.

3. ICICI Banks equity shares are listed in INDIA on the stock exchange; Mumbai

and the National Stock Exchange on India Limited and its American Depository

Receipts (ADRs) are listed on the New York Stock Exchange (NYSE).

35


36/83

PROMOTERS

ICICI BANK

ICICI Bank (NYSE:IBN) is India's second largest bank and largest private sector bank

with over 50 years of financial experience and with assets of Rs. 1812.27 billion as on

30th June, 2005. 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 and asset management. ICICI Bank is a leading

player in the retail banking market and has over 13 million retail customer accounts. The

Bank has a network of over 570 branches and extension counters, and 2,000 ATMs.

PRUDENTIAL PLC

Established in London in 1848, Prudential plc, through its businesses in the UK and

Europe, the US and Asia, provides retail financial services products and services to more

than 16 million customers, policyholders and unit holders worldwide. As of June 30,

2004, the company had over US$300 billion in funds under management. Prudential has

brought to market an integrated range of financial services products that now includes

life assurance, pensions, mutual funds, banking, investment management and general

insurance. In Asia, Prudential is the leading European life insurance company with a vast

network of 24 life and mutual fund operations in twelve countries - China, Hong Kong,

India, Indonesia, Japan, Korea, Malaysia, the Philippines, Singapore, Taiwan, Thailand

and Vietnam.

FACT SHEET

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 was amongst thefirst private sector insurance companies to begin operations in December 2000 afterreceiving approval from Insurance Regulatory Development Authority (IRDA).

ICICI Prudential Life's capital stands at Rs. 42.72 billion (as of June 30, 2008) withICICI Bank and Prudential plc holding 74% and 26% stake respectively. For the quarterended June 30, 2008, the company garnered Retail Weighted New Business Premium ofRs. 1,174 crores as against Rs 810 crores for the quarter ended June 30, 2007, thereby

36


37/83

posting a growth of 45% and has underwritten over 6 lakh policies over this period. Thecompany has assets held over Rs. 30,600 crore as on August 31, 2008.

ICICI Prudential Life is also the only private life insurer in India to receive a NationalInsurer Financial Strength rating of AAA (Ind) from Fitch ratings. The AAA (Ind) rating

is the highest rating, and is a clear assurance of ICICI Prudential's ability to meet itsobligations to customers at the time of maturity or claims.

For the past seven years, ICICI Prudential Life has retained its leadership position in thelife insurance industry with a wide range of flexible products that meet the needs of theIndian customer at every step in life.

DISTRIBUTION

ICICI Prudential Life has one of the largest distribution networks amongst private lifeinsurers in India. It has a strong presence across India with over 2000 branches (including1,095 micro-offices) and an advisor base of over 261,000 (as on August 31, 2008). Thecompany has 24 banc assurance partners having tie-ups with ICICI Bank, Bank of India,South Indian Bank, Shamrao Vitthal Co-Op Bank, Jalgaon Peoples Co-op Bank,Ernakulam District Co-op Bank, Idukki District Co-op Bank, Ratnagiri SindhudurgGramin Bank, Solapur Gramin Bank, Wainganga Kshetriya Gramin Bank, AryawartGramin Bank, Jharkhand Gramin Bank, Narmada Malwa Gramin Bank, Baitarani

Gramya Bank, Ratnagiri District Central Co-op Bank, Seva Vikas Co-op Bank, SangliUrban Co-Operative Bank, Baramati Co-operative Bank, Ballia Kshetriya Co-OperativeBank, The Haryana State Co-Operative Bank, Renuka Nagrik Sahakari Bank, AmanathCo-Operative Bank, Arvind Sahakari Bank, Bhandara Urban Co Operative Bank

SALES DISTRIBUTION

Tied Agency

Tied Agency is the largest distribution channel of ICICI Prudential, comprising a largeadvisor force that targets various customer segments. The strength of tied agency lies inan aggressive strategy of expanding and procuring quality business. With focus on sales& people development, tied agency has emerged as a robust, predictable and sustainablebusiness model.

Banc assurance and Alliances

37


38/83

ICICI Prudential was a pioneer in offering life insurance solutions through banks andalliances. Within a short span of two years, and with nearly a large number of partners, B& A has emerged as a vital component of the companys sales and distribution strategy,contributing to approximately one third of companys total business. The businessphilosophy at B&A is to leverage distribution synergies with our partners and add value

to its customers as well as the partners. Flexibility, adaptation and experimenting withnew ideas are the hallmarks of this channel.

Board of the Directors

The ICICI Prudential Life Insurance Company Limited Board comprises reputed peoplefrom the finance industry both from India and abroad.

Ms. Chanda D. Kochhar, ChairpersonMr. N. S. Kannan, DirectorMr. K. Ramkumar, DirectorMr. Barry Stowe, DirectorMr. Adrian OConnor, DirectorMr. Keki Dadiseth, Independent DirectorProf. Marti G. Subrahmanyam, Independent DirectorMs. Rama Bijapurkar, Independent DirectorMr. Vinod Kumar Dhall, Independent DirectMr. V. Vaidyanathan, Managing Director & CEO

Management Team

The ICICI Prudential Life Insurance Company Limited Management team comprisesreputed people from the finance industry both from India and abroad.

Mr.V.Vaidyanathan, Managing Director & CEODr. Avijit Chatterjee, Appointed ActuaryMr. Puneet Nanda, Executive Vice President

38
http://www.iciciprulife.com/public/About-us/ProfileTeam-Vaidyanathan.htmhttp://www.iciciprulife.com/public/About-us/ProfileTeam-Dr.%20Avijit%20Chatterjee.htmhttp://www.iciciprulife.com/public/About-us/ProfileTeam-PuneetNanda.htmhttp://www.iciciprulife.com/public/About-us/ProfileTeam-Vaidyanathan.htmhttp://www.iciciprulife.com/public/About-us/ProfileTeam-Dr.%20Avijit%20Chatterjee.htmhttp://www.iciciprulife.com/public/About-us/ProfileTeam-PuneetNanda.htm


39/83

Mr.V.Vaidyanathan

Managing Director & CEO

ICICI Prudential Life Insurance Company Limited

Mr. V. Vaidyanathan is the Managing Director & CEO of ICICI Prudential Life InsuranceCompany.

Vaidyanathan was a lateral hire and joined the ICICI Group in 2000 with 10 years ofbanking experience. Within a year, he was appointed the Managing Director of ICICIPersonal Financial Services Limited, with the responsibility to set up the consumerfinancing business for ICICI Limited. At 38, he was appointed as Executive Director onthe Board of ICICI Bank and was responsible for Retail Banking, SME Banking and

Rural Banking businesses.During his career with the ICICI Group, he has built a strong retail banking business,which includes deposits, private banking, mortgages, autoloans and credit cards and hasalso led these businesses to market leadership. He also headed the Small and Mediumenterprises (SME) banking and Rural Banking Business of ICICI Bank. Under hisleadership over the last decade, the retail banking business has grown to 1400 bankbranches in 800 cities, 25 million customers , USD 30 bn in assets, a correspondingliability base, and a strong team of 26000 employees . The bank continues to add over 3million new customers every year. Having handled both sides of the balance sheet overthe past two decades, he is a banker whose experience goes across cycles. He has

groomed and left behind a strong leadership team in ICICI Bank.He was also on the board of ICICI Lombard General Insurance, and was the chairman ofICICI Home Finance Co limited. He was earlier on the board of CIBIL, Indias firstcredit bureau.His contribution in this sphere is widely recognized in industry circles and within theICICI Group. He was recently profiled among India's Top 25 executives by BusinessToday, a leading business magazine in India.He is an alumnus of Birla Institute of Technology and Harvard Business School, AMP.

He is an avid runner, has participated in 4 marathons and occasionally plays golf. Helives in Mumbai with his family including his father, wife and three children.

39


40/83

Dr. Avijit Chatterjee

Appointed Actuary


Avijit Chatterjee is Appointed Actuary of ICICI Prudential Life Insurance where he hasoverall responsibility for statutory reporting, risk appetite, pricing, valuation, reinsurance,etc. In addition to his role as Chief Actuary, Avijit will also be responsible for the entireRisk framework for the company alongwith internal audit and legal departments. He hasbeen with the company since September 2007.Prior to joining ICICI Prudential Life, Avijit spent 15 years in various positions in one ofUK's leading life insurance company. His areas of work included group-wide capital

management, product supervision, management of the group actuarial team andproviding actuarial input on all material transactions conducted by group entities.Avijit holds a Ph.D. in pure mathematics, is a Fellow of the Faculty of Actuaries (FFA) inScotland and is also a Fellow of the Institute of Actuaries of India (FIAI).

Mr. Puneet Nanda

Executive Vice President


Mr. Puneet Nanda is Executive Vice President at ICICI Prudential Life InsuranceCompany. He looks after the Corporate Center which includes Investment Management,Human Resources, Finance and Accounts, Compliance, Investor/analyst relationship,Business Intelligence and Corporate Strategy, Product Development, Corporate

Communications and Sales Strategy.Mr. Nanda has been with the company since inception and was the Chief InvestmentOfficer responsible for the setting up and managing the investment function prior togetting elevated to his current role.Prior to joining ICICI Prudential, Mr. Nanda has worked with a leading investment bankand an international financial services company.

40


41/83

Mr. Nanda is an engineer by qualification and has also completed his Post GraduateDiploma in Management from the Indian Institute of Management, Lucknow in 1994.

BRAND VALUES

Market Research reveals that the values people associate with ICICI Prudential are,indeed, those that the company hopes to project: lifelong protection and value for money.The core value is protecting your loved ones, throughout lifes ups and downs. It is apowerful proposition; one, which ICICI Prudential, is taking into the market place.

ACHIEVEMENTS

Beginning operations in December 2000, ICICI Prudentials success has been meteoric,becoming the number one private life insurer within months of launch. Today, it has one

of the largest distribution networks amongst private life insurers in India, with branches

in 54 cities. The total number of policies issued stands at more than 780,000 with a total

sum assured in excess of Rs.160 billion.

ICICI Prudential closed the financial year ended march 31, 2004 with a total receivedpremium income of Rs. 9.9 billion; up 135% last years total premium income of Rs.4.20billion. New business premium income shows a 106% growth at Rs. 7.5 billion, driven

mainly by the companys range of unique unit-linked policies and pension plans. Thecompanys retail market share amongst private companies stood at 36%, making it clearleader in the segment. To add to its achievements, in the year 2003/04 it was adjudgedMost Trusted Private Life Insurer (Economic Times Most Trusted Brand Survey byACNeilsen ORG-MARG). It was also conferred the Outlook Money-Best Life Insureraward for the second year running. The company is also proud to have won Silver atEFFIES 2003 for its Retire from work, not life campaign. Notably, ICICI Prudentialwas also short-listed to the final round for its Sindoor campaign in EFFIES 2002.

41


42/83

In Keeping with its belief that a happy customer is the best endorsement, ICICIPrudential has embraced the SIX SIGMA approach to quality, an exercise that beginsand ends with the customer from capturing his voice to measuring and responding to hisexperiences. This initiative is currently helping the company improve processes,turnaround times and customer satisfaction levels. Another Novel introduction is the

ICICI Prudential Lifestyle Rewards Club, Indias first rewards programme for LifeAdvisors; it allows ICICI Prudential Advisors to redeem points for items ranging fromkitchenware to gold, white goods, and even international holidays.

Stages in Policy Issuance

1) Proposal

A Proposal Stage is the First stage before the policy is issued at COPS. At this stage, the

application form is received by COPS, but it is pending for issuance due to further

clarifications required from the customer.

2) Login

A proposal which is complete i.e., duly filled with all necessary documents attached to it& accepted by the Branch ops, is called a Login

3) Reject

An Application gets rejected at the Branch Ops level due to necessary details not filled in

the form or necessary documents not submitted is a Reject. It is then sent back to the

Advisor for completion.

4) Issuance

Issuance means a policy that is issued to the Customer by Central Ops.

5) Decline Status

When a customer refuses to take a policy post login but before Issuance is called a

Decline

42


43/83

6) Cancellation

When the cheque given by the customer bounces, it amounts to cancellation of the

policy.

7) Lapse

A policy for which the Customer fails to pay subsequent premiums is a Lapsed Policy.

8) Freelook

Post issuance of the policy, the policyholder has the option to turn down the policy within

15 days from the date of issuance. This period of 15 days is called Freelook Period.

9) Surrender: When a customer wants to discontinue with the policy.

ProductS And Services

ICICI Prudentials ultimate promise is financial security. A strong brand certainly boosts

sale, but without customer-friendly, innovative products, even the best brand would not

last long.

ICICI Prudentials product range has been developed on the understanding that different

people have their own sets of needs at various stages of their lives. It has thus built a

flexible portfolio of products that can be customized to cater to varying needs of people

at each stage, and thus ensure protection in every step of life. The companys philosophy

has been to help customers understand their financial needs and work closely with them

to customize a product that would meet. Advisors can offer a complete range of products

Savings plans, Child plans, Market-linked plans, Protection plans, and Retirement plans

and tailor a flexible solution to meet customers changing needs at every stage of life.

In fact, ICICI Prudential was the first to un-bundle product benefits, pioneering the

concept of riders and soon after introduce comprehensive market-linked and retirement

plans.

ICICI Prudential has launched a handful of products that are analyzed below:

43


44/83

ICICI Prudential's life insurance products may be loosely categorized under three forms:

pure life insurance products without an investment angle to them; a product that is a mix

of a cumulative investment scheme and an insurance product; and, finally, standard

products such as money-back and endowment policies.

Single Premium Bond: The Single Premium Bond is the name of a policy that combines

the features of an investment in a cumulative deposit scheme with that of an insurance

product.

Policy-holders are required to pay a one-time premium based on a target sum assured. At

maturity, the policy-holder gets the sum assured and guaranteed additions that work out

to a compound return of 4.5 per cent the sum assured.

The insurance part of the package comes in the form of death benefits that are paid in the

case of the demise of the policy-holder. The size of the death benefit is linked to the

number of years left for the policy to expire. On maturity date, the maturity value is also

paid in addition to the death benefits that would have been paid earlier.

Life Guard policies: The company offers two pure life insurance products that have an

umbrella name, Life Guard. One of them involves a one-time premium for which there

are no maturity benefits. The other requires regular premium payments that are returned

at the end of the policy. Life Guard offers absolutely no investment-related return and is

suitable for individuals looking for an unadulterated insurance package.

INSURANCE SOLUTIONS FOR INDIVIDUALS

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 with up

to 5 riders, to create a customized solution for each policyholder.

Savings Solutions

Secure Plus is a transparent and feature-packed savings plan that offers 3 levels

of protection.

44


45/83

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

protection as well as liquidity options.

Save n Protect is a traditional endowment savings plan that offers life

protection along with adequate returns

CashBak is an anticipated endowment policy ideal for meeting milestone

expenses like a childs marriage, expenses for a childs higher education or

purchase of an asset.

LifeTime and LifeTime II 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.

LifeLink Superis a single premium Unit Linked Insurance Plan which combines

life insurance cover with the opportunity to stay invested in the stock market.

Premier Life is a limited premium paying plan that offers customers life

insurance cover till age of 75.

InvestShield Life is a Unit Linked plan that provides capital guarantee on the

invested premiums and declared bonus interest.

InvestShield Cash is a Unit Linked plan that provides capital guarantee on theinvested premiums and declares bonus interest along with flexible liquidity

options.

InvestShield Goldis a Unit Linked plan that provides capital guarantee on the

invested premiums and declares bonus interest along with limited premium

payment terms.

Protection Solutions

LifeGuard is a protection plan, which offers life cover at very low cost. It is

available in 3 options level term assurance with return of premium and single

premium.

HomeAssure is a mortgage reducing term assurance plan designed specifically to

help customers cover their home loans in a simple and cost-effective manner.

45


46/83

Child Plans

SmartKid education plans provide guaranteed educational benefits to a child

along with life insurance cover for the parent who purchases the policy. The

policy is designed to provide money at important milestones in the childs life.

SmartKid plans are also available in unit-linked form both single premium and

regular premium.

Retirement Solutions

ForeverLife is a retirement product targeted at individuals in their thirties.

SecurePlus Pension is a flexible pension plan that allows one to select between 3

levels of cover.

Market-linked retirement products

LifeTime Pension IIis a regular premium market-linked pension plan.

LifeLink Pension IIis single premium market linked pension plan.

InvestShield Pension is a regular premium pension plan with a capital guarantee

on the investible premium and declared bonuses

Golden Years : is a limited premium paying retirement solution that offers tax

benefits up to Rs 100,000 u/s 80C, with flexibility in both the accumulation and

payout stages.

Health Solutions

Health Assure and Health Assure Plus : Health Assure is a regular premium

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

policy holder with financial assistance, irrespective of the actual medical

expenses. Health Assure Plus offers the added advantage of an equivalent life

insurance cover

46


47/83

Cancer Care: 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.

Group Insurance Solutions

ICICI Prudential also offers Group Insurance Solutions for companies seeking to

enhance benefits to their employees.

ICICI Pru Group Gratuity Plan: ICICI Prus 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 Pru Group Superannuation Plan: ICICI Pru offers a flexible defined

contribution superannuation scheme to provide a retirement kitty for each member of

the group. Employees have the option of choosing from various annuity options or

opting for a partial commutation of the annuity at the time of retirement.

ICICI Pru Group Term Plan: ICICI Prus 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 thebeneficiary nominated by the member on his/her death.

Flexible Rider Options

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

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

1. Accident and disability benefit: 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 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.

47


48/83

2. Accident Benefit : This rider option pays the sum assured under the rider on

death due to accident.

3. Critical Illness 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

4. Income Benefit: This rider pays the 10% of the sum assured to the nominee

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

available in SmartKid, SecurePlus, and CashPlus.

5. Waiver of Premium: In case of total and permanent disability due to an

accident, the premiums are waived till maturity. This rider is available with

Secure Plus and Cash Plus.

SWOT ANALYSIS

STRENGTHS:

i. ICICI Prudential is the largest private player in India, with a

market share of around 36% amongst the private players

ii. ICICI Prudential has deposited a paid up capital of Rs 925

crore with IRDA caution deposit, the highest among all the

life insurance company in India where as LIC has deposited

Rs 60 crore so far.

iii. ICICI Prudential is the first life insurance company to offer

ECS debit facility.

iv. ICICI Prudential is the first company to introduce unit link

life insurance and pension products. Presently the maximum

numbers of ranges are under ULIP life insurance, investment

as well as pension plan.

48


49/83

v. Products

Flexibility to switch your fund value at your own discretion four times a year

viz. maximizer, protector, balancer, preserver.

Greater transparency-policy holder knows what is happening to his money

and where the company has invested his money.

Liquidity options-you can make complete or partial withdrawals any time

after 3 years.

Life insurance plans are eligible for deduction under sec 80.

WEAKNESSES:

i. Industry in nascent stage.

ii. Rural areas still not covered.

iii. Not very known among Indian population.

iv. Lack of credibility among the people because ICICI being a

private player.

v. Premiums are high as compared to its competitors.

vi. Very few branches in the country.

vii. Products:

The policy doesnt have the surrender option before

third year.

Plan does not offer any guarantee or assured return.

Product profile is not very comprehensive.

49


50/83

Mortality, management and administrative charges are

sky scrapping as compared to its competitors.

OPPORTUNITIES

i. Liberalization of Indian economy.

ii. As the industry is growing the whole market is virgin.

iii. The whole private sector is opened to be trapped even though

the competition is fierce from government owned insurance

companies.

iv. Its a volume business that is even if the company has few

good corporates the turnover cease to increase by manifold.

v. Products:

Preserver funds look good due to comfortable liquidity in

the economy and there is little chance hike in short-term

rate by RBI.

Finance minister unveiled a budget favoring consumer

spending, boosting demand and therefore higher economic

growth.

THREATS

i. The government players will become aggressive thus growth

is going to be tough.

ii. Entry of other players is not ruled out.

iii. Apprehension towards ICICI Prudential being a private life

insurance company.

50


51/83

iv. We expect the industry to rationalize in future that is mergers

and acquisitions will happen, which will impact the industry

and ICICI Prudential fortunes.

v. Products:

Past performance of these plans is not indicative of

the future performance of the plan.

The sum invested in the funds is subject to market

risks and there can be no assurance that the objective

of plan will be achieved.

All benefits payable under the policy are subject to

tax laws and other financial enactment, as they exist

from time to time

51


52/83

THEORETICAL APPROACH

Meaning and Defination of Marketing

Marketing, more than any other business functions deals with customers. Creating

customers value and satisfaction are the heart of modern marketing thinking and

practice. Marketing is the delivery of customers by promising superior value and to keep

current customers by delivering satisfaction.

The American marketing association has defined marketing, as Marketing is the

performance of business activities that direct the flow of goods and services from

producers to consumer or user.

Philip Kotler definition of marketing is Marketing is a social and managerial

52


53/83

process by which individuals and groups obtain what they need and want through

creating and exchanging products and value with other.

Functions of Marketing

Marketing as business authorities conceive it today is aboard function of business

composed of many elements.

Until recently even outstanding authorities defined marketing as The performance of

business activities that direct the flow of goods and services from producers to

consumer or user. while this definition still not broad enough. It does not

encompass the idea that marketing also includes the identification of the market and

the markets needs and that is guides the development of the products and services to

fulfill those needs profitably.

Various Activities That A Marketer Follows

Identifying specific markets for products and services;

Identifying existing and future needs and wants of these markets; Guiding the

development of products, packages and services to fill these needs at a profit, and

selling delivering and collecting for, and effecting legal transfer of these goodsservices to the ultimate consumer or user.

An even simpler definition and one easier to remember is the right product or service at

the right price at the right place at the right time and doing it at a profit.

Definition Of Marketing Research

The American Marketing Association defines marketing research as The

systematic gathering, recording and analysis of data about problems relating to marketing

of goods and services.

According to Kotler, Marketing research is the systematic design, collection

analysis and reporting of data and finding relevant of a specific marketing situation

53


54/83

facing the company.

The key word in the above definition is Systematic. this is the difference between

research and haphazard gathering of findings. For a study/research to be systematic

there must be two qualities in the least. First, it should be orderly so that themeasurements have accuracy and there is a fair crosssection. Second, it should be

impartial in analysis and interpretation

Customer satisfaction refers to the extent to which customers are happy with the

products and services provided by a business. Customer satisfaction levels can be

measured using survey techniques and questionnaires. Gaining high levels of customer

satisfaction is very important to a business because satisfied customers are most likely to

be loyal and to make repeated orders and to use a wide range of services offered by a

business.

The need to satisfy customer for success in any commercial enterprises is very obvious.

The income of all commercial enterprises is derived from the payments received for the

products and services to its external customers. Customers are the sole reason for the

existence of commercial establishments.

Since sales are the most important goal of any commercial enterprise, it becomes

necessary to satisfy customers. For customer satisfaction it is necessary to establish and

maintain certain important characteristics like:

a. Quality

b. Fair prices

c. Good customer handling skills

d. Efficient delivery

e. Serious consideration of consumer complaints.Satisfaction is the feeling of pleasure or disappointment attained from comparing a

products perceived performance (outcome) in relation to his or her expectations. If the

performance falls short of expectations, the customer is dissatisfied. If the performance

matches the expectations, the customer is satisfied. If the performance exceeds

expectations, the customer is highly satisfied or delighted

54


55/83

There are 7 steps to Satisfaction Customer

It's a well known fact that no business can exist without customers. In the business of

Website design, it's important to work closely with your customers to make sure the site

or system you create for them is as close to their requirements as you can manage.

Because it's critical that you form a close working relationship with your client, customer

service is of vital importance. What follows are a selection of tips that will make your

clients feel valued, wanted and loved.

1. Encourage Face-to-Face Dealings

This is the most daunting and downright scary part of interacting with a customer. If

you're not used to this sort of thing it can be a pretty nerve-wracking experience. Rest

assured, though, it does get easier over time. It's important to meet your customers face to

face at least once or even twice during the course of a project.

My experience has shown that a client finds it easier to relate to and work with someone

they've actually met in person, rather than a voice on the phone or someone typing into

an email or messenger program. When you do meet them, be calm, confident and above

all, take time to ask them what they need. I believe that if a potential client spends over

half the meeting doing the talking, you're well on your way to a sale.

2. Respond to Messages Promptly & Keep Your Clients Informed

This goes without saying really. We all know how annoying it is to wait days for a

response to an email or phone call. It might not always be practical to deal with all

customers' queries within the space of a few hours, but at least email or call them back

and let them know you've received their message and you'll contact them about it as soon

as possible. Even if you're not able to solve a problem right away, let the customer know

you're working on it.

A good example of this is my Web host. They've had some trouble with server hardware

which has caused a fair bit of downtime lately. At every step along the way I was emailed

and told exactly what was going on, why things were going wrong, and how long it

would be before they were working again. They also apologized repeatedly, which was

nice. Now if they server had just gone down with no explanation I think I'd have been

pretty annoyed and may have moved my business elsewhere. But because they took time

55


56/83

to keep me informed, it didn't seem so bad, and I at least knew they were doing

something about the problems. That to me is a prime example of customer service.

3. Be Friendly and Approachable

A fellow Site Pointer once told me that you can hear a smile through the phone. This is

very true. It's very important to be friendly, courteous and to make your clients feel like

you're their friend and you're there to help them out. There will be times when you want

to beat your clients over the head repeatedly with a blunt object - it happens to all of us.

It's vital that you keep a clear head, respond to your clients' wishes as best you can, and at

all times remain polite and courteous.

4. Have a Clearly-Defined Customer Service Policy

This may not be too important when you're just starting out, but a clearly defined

customer service policy is going to save you a lot of time and effort in the long run. If a

customer has a problem, what should they do? If the first option doesn't work, then what?

Should they contact different people for billing and technical enquiries? If they're not

satisfied with any aspect of your customer service, who should they tell?

There's nothing more annoying for a client than being passed from person to person, or

not knowing who to turn to. Making sure they know exactly what to do at each stage of

their enquiry should be of utmost importance. So make sure your customer service policy

is present on your site -- and anywhere else it may be useful.5. Attention to Detail (also known as 'The Little Niceties')

Have you ever received a Happy Birthday email or card from a company you were a

client of? Have you ever had a personalized sign-up confirmation email for a service that

you could tell was typed from scratch? These little niceties can be time consuming and

aren't always cost effective, but remember to do them.

Even if it's as small as sending a Happy Holidays email to all your customers, it's

something. It shows you care; it shows there are real people on the other end of that

screen or telephone; and most importantly, it makes the customer feel welcomed, wanted

and valued.

6. Anticipate Your Client's Needs & Go Out Of Your Way to Help Them Out

Sometimes this is easier said than done! However, achieving this supreme level of

understanding with your clients will do wonders for your working relationship.

56


57/83

Take this as an example: you're working on the front-end for your client's exciting new

ecommerce Endeavour. You have all the images, originals and files backed up on your

desktop computer and the site is going really well. During a meeting with your client

he/she happens to mention a hard-copy brochure their internal marketing people are

developing. As if by magic, a couple of weeks later a CD-ROM arrives on their doorstep

complete with high resolution versions of all the images you've used on the site. A note

accompanies it which reads:

"Hi, you mentioned a hard-copy brochure you were working on and I wanted to provide

you with large-scale copies of the graphics I've used on the site. Hopefully you'll be able

to make use of some in your brochure."

Your client is heartily impressed, and remarks to his colleagues and friends how very

helpful and considerate his Web designers are. Meanwhile, in your office, you lay back in

your chair drinking your 7th cup of coffee that morning, safe in the knowledge this happy

customer will send several referrals your way.

7. Honour Your Promises

It's possible this is the most important point in this article. The simple message: when

you promise something, deliver. The most common example here is project delivery

dates.

Clients don't like to be disappointed. Sometimes, something may not get done, or youmight miss a deadline through no fault of your own. Projects can be late, technology can

fail and sub-contractors don't always deliver on time. In this case a quick apology and

assurance it'll be ready ASAP wouldn't go amiss.

Conclusion

Customer service, like any aspect of business, is a practiced art that takes time and effort

to master. All you need to do to achieve this is to stop and switch roles with the customer.

What would you want from your business if you were the client? How would you want to

be treated? Treat your customers like your friends and they'll always come back.

Customer Satisfaction Strategies Followed By Icici prudential

The different strategies followed by Icici prudential consists of Customer

57


58/83

relationship management, strategy to providing better facility to the owner, and strategy

to provide better after sales service to customer.

Customer Relationship Management

CRM as a tool was used to create positive word-of-mouth, to monitor customer

experiences and generate referrals. A series of CRM activities were implemented with

regular direct communication, events and customer satisfaction surveys, etc.

This study will help me to find and customer satisfaction level, To know the

reason for decline of customers at service station, To know the perception of customers

regarding the charges or rates offered by the service centers and To know any suggestion

from customers to improve the service centers.

The study is scheduled through primary data and other information thereby

preparing Questionnaire, which focus of various variables, and attributes that are

important to know the satisfaction level and the factors affecting the purchase decision.

The survey caused at the Hyderabad Dist with the sample size of 100.The

collected data are tabulated and analyzed data and all suggestions are given according to

the analyzed data graphs and charts are used to illustrate the statistical data and findings.

METHOD TO MEASURE CUSTOMER SATISFACTION

Companies use the following methods to measure customer satisfaction.

1) Complaints and suggestion system:

Companies obtaining complaints through their customer service centers, and further

suggestions were given by customers to satisfy their desires.

2) Customer satisfaction surveys

Responsive companies obtain a direct measure of customer satisfaction by periodic

surveys. They send questionnaires to random sample of their customers to find out how

they feel about various aspects of the companys performance and also solicit views on

their competitors performance. It is useful to measure the customers willingness to

58


59/83

recommend the company and brand to other persons.

3) Lost Customer Analysis.

Companies should contact customers who have stopped buying or who have switched to

another supplier to learn why this happened

4) Consumer Behavior Vs Consumption Behavior

Consumer behavior refers to the manner in which an individual reaches decision

related to the selection, purchases and use of goods and services. Walters and Paul says

that, consumer behavior is the process whereby the individuals decide what, when, how

and from whom to purchase goods & services.

Consumer behavior relates to an individual person (Micro behavior) where as

consumption behavior relates to and to the mass or aggregate of individuals (Macro

behavior) consumers behavior as a study focuses on the decision process of the

individual consumer or consuming unit such as the family.

In contrast the consumption behavior as a study is to do with the explanation of the

behavior of the aggregate of consumers or the consuming unit. Consumer is a pivot,

around which the entire system of marketing revolves. The study of buyer behavior is

one of the most important keys to successful mark.

59


60/83

1. What according to you life insurance is?

PARTICULARS NO.OF.RESPONDENT PERCENTAGE

Risk Coverage 10 10%

Tax Savings 3 3%

Good return 4 4%

Security 3 3%

All the above 80 80%

TOTAL 100

60


61/83

0

20

40

60

80

100

NO.OF.RESPONDENT

Life Insurance is

Risk Coverage Tax Savings Good return

Security All the above TOTAL

2. How aware are you regarding insurance?

PARTICULARS NO.OF.RESPONDENT PERCENTAGE

Yes 2 2%

No 98 98%

TOTAL 100 100%

61

ANALYSIS:

From the survey it was found that amongst 100 respondents

a) 10% of the respondents say risk coverage.b) 3% of the respondents say tax savings.c) 4% of the respondents say good returns.d) 3% of the respondents say financial security.

e) 80% of the res

Mahesh Project 11

Documents

Transcript of Mahesh Project 11