Professional Documents
Culture Documents
2. Chapter II
- Organization Profile
- Organization Chart
3. Chapter III
- Data collection method
- Instrumentation techniques
- Learning experience
- Observation
- Recommendations
- Conclusion
4. Chapter IV
-
-Questionnaire
- Bibliography
CONTENTS
- Executive Summary
- Objectives
- Introduction
EXECUTIVESUMMARY
Bank, a premier financial powerhouse and prudential plc, a leading international financial
services group headquartered in the United Kingdom. ICICI Prudential was amongst the first
private sector insurance companies to begin operations in December 2000 after receiving
approval from Insurance Regulatory Development Authority (IRDA). As the people are
becoming more and more and aware of their Life Style and Income level. They need a plan,
which has an optimum balance between their Investment and Savings. They require an
integrated financial plan for investment. The customer requires those investment options,
which provide them with flexibility and Liquidity and tax benefit.
I am found out tools relates to investment in ULIP at ICICI Prudential life insurance. This
project emphasis on Insurance as a investment tool with regards to ULIP at ICICI Prudential
Life Insurance Company Ltd, Hubli
A PROJECT REPORT ON
Insurance as a investment tool with regards to ULIP at ICICI Prudential Life Insurance
Objectives
To know the importance and awareness of investment in ULIP
To know the risk perception investment relating to the financial management
To know the elements of risk and returns in ULIP
To examine the performance of the plan
INTRODUCTION
As finance is the lifeblood for all economic activities, one aspect of financial
arena, which plays a very important role, is the Insurance. Insurance is the outcome of Mans
search for safety and security, and to find out ways and means to minimize the hardship,
which are beyond his control. Because of the economic reforms introduced by our
government we can see that due to this Globalization and privatization there is enormous
increase in the private sector players queuing in the insurance sector. This entry of Private
players has enhanced the competitiveness and Quality of service with many innovated
products.
Now in India there are totally 28 players including 14 Life and 14 General Insurance
Companies. And Life Insurance is one of the most common forms of insurance.
ICICI Prudential Life Insurance Company is an emerging star in the Private players with the
competition being Global in nature
BRIEF HISTORY OF INSURANCE:
1818: -The British introduce to India, with the establishment of the Oriental Life Insurance
Company in Calcutta.
1870: - Bombay Mutual Life Assurance Society is the first India-owned life insurer.
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
1993: - Malhotra Committee, headed by former BBI governor R.N. Malhotra, set up to draw
1994: -Malhotra Committee recommends re-entry for private players, autonomy to PSU
insurers.
1997:-Insurance regulator IRDA (Insurance Regulatory and Development Authority) set up.
2000:-IRDA starts giving licences to private insurers, ICICI Prudential and HDFC Standard
2002:- Banks were allowed to sell insurance plans, as TPAs enter the scene, insurers start
Functional definition:
caused by particular risk over a number of persons who were exposed to it and who agree top
Contractual Definition:
consideration called a premium, assures a particular risk of other party ad promises to pay to
According to the U.S Life Office Management Association Inc (LOMA), Life Insurance is
defined as follows: Life insurance provides a sum of money if the person who is insured dies
Agent: The authorized representative of the insurer, licensed by the concerned authorities
Bonus: The yearly share of policy holders profit declared by the company based on its profits
which gets added to the policy amount and is payable upon its maturity.
Claim: The amount entitled to the policy holder or his nominee/assignee under a policy
Insurable Interest: Evidence suggesting financial losses due to the occurrence of the event
insured against.
Policy: The evidence of contract between the insurer and the insured. A stamped sealed and
signed document issued by the insurer to the insured in proof of insuring his life.
Premium: The amount mentioned in the policy contract to be paid by the insurer periodically
In India insurance is in practice since 12 th century as per the records. The first life
insurance company to operate in India the Oriental Life Insurance company was established
in 1818 in Calcutta. However it was a British company. The first Indian Insurance company,
the Bombay Mutual Life Assurance Society started its operation in 1871. The Indian Life
Insurance company Act was passed in 1928.Subsequently, both of these Acts were merged
Independent India amended the Insurance Act in 1950 and in 1956, the then fiancé
minister of the nation Mr. C D Deshmukh nationalized all insurance companies, 154 Indian
Insurance companies and 75 provident societies. Finally the life insurance Corporation was
pioneered the general Insurance way back in 1688, the first non-life Insurance Company
set up shop in India was the Triton Insurance company of Calcutta. In 1907 the first Indian
general insurer the Indian Mercantile insurance company started its operations. The New
India Assurance Company Limited was incorporated in 1919. After independence the India
Reinsurance Corporation was set up in 1956 and in 1957 the office of the controller of the
insurance was constituted. In 1968, that tariff advisory committee was set up to regulate the
investment of the players and finally in 1972, the non-life insurance business in the country
was nationalized and the general insurance company was formed as holding company with
four subsidiaries, the National Insurance, Oriental Insurance, United India Insurance and the
new India Assurance Company Limited. In the same year the National Insurance Company
Limited was amalgamated with 22 foreign and 11 Indian Insurance companies. Thus over a
period of two centuries, the Indian insurance industry has gone through the full circle. From
being an open competitive market, it went through nationalization and has been
subsequently liberalized again. Keeping in mind the national economic and commercial
objective of India the government has set up IRDA on 7 th December 1999. Through which
Life insurance is brought not because someone is going to die, but because someone
is going to live.
Suppose there are 1000 person all aged 35 years and healthy lives. They are insured
for one year against the risk of death. Each person is insured for Rs. 50,000. if the past
experience indicates the 4 out of 1000 people die during the year, expected amount claimed
to be paid to the family of 4 persons would come to Rs. 2,00,000. the contribution to be paid
by the each of the 1000 will come to Rs.200 per year. Thus, all the 1000 persons share loss
caused to the 4 unfortunate families. 996 persons who survived till 1 year have not lost any
thing as they have secured peace of mind and a feeling of security for their family. While
insurance cannot prevent accident or premature death, it can help, protect the family of the
deceased against the loss of income caused by the of the main breadwinner. In return for
specified payments, insurance will provide protection against the insurance of an uncertain
The business of insurance company called insurer is to bring together persons who are
exposed to similar risk, collect contribution (premium) from them on sum equitable basis and
especially in a changing cultural and social environment. One can buy a suitable
insurance policy, which will provide periodical payments in ones old age.
Insurance is desired to safeguard oneself and ones family against possible losses on account
of risk and perils. It provides financial compensation for the losses suffered due to the
happening of unforeseen events. By taking life insurance a person can have peace of mind
and need not worry about the financial consequences in case of any untimely death.
Along with the growth of overall population in the country, crossing the benchmark of
hundred crore, there gas been a significant awareness for the need for insurance in the other
as well as rural segments and even among the lower middle class and illiterate class of the
population.We in India have around 30 crore middle class educated and enlightened people
who have not realized that insurance is as necessary as the other basic necessities of life such
To specify requisite qualification and training for insurance intermediaries and agents.
With a mission of : protect the interest of the policy holders to regulate promote and
ensure orderly growth of the insurance industry and for matters connected there with or
incidental thereto.
IRDA Enablers:
In the new market set up, the IRDA s role that of an enabler. The new insurers
will conduct insurance business in India according to the healthy norms prescribed the
IRDA. Regulations for all insurance intermediaries will specify sales-norms. Guidelines
for the code of conduct for the surveyors and loss assessors will help all concerned.
organizations connected with insurance business will regulate.The role of IRDA, besides
regulating the market, it also intents to develop it. The IRDA has the task to promote fair
were the prospected appears to be brighter both for insurers and the customers
Private Players -
a) Baja Allianz Life Insurance Co. Ltd.
b) Birla Sun Life Insurance Co. Ltd.
c) HDFC Standard Life Insurance Co. Ltd.
d) ICICI Prudential Life Insurance Co. Ltd.
e) ING Vysya Life Insurance Co. Ltd.
f) Max New York Life Insurance Co. Ltd.
g) MetLife India Insurance Co. Pvt. Ltd.
h) Kotak Mahindra Old Mutual Life Insurance Co. Ltd.
i) SBI Life Insurance Co. Ltd.
j) TATA AIG Life Insurance Co. Ltd
k) AMP Sanmar Assurance Co. Ltd.
l) Aviva Life Insurance Co. Ltd.
m) Sahara India Life Insurance Co. Ltd.
n) Shriram Sunlam.
Other Likely Players PNB Life Insurance, Reliance Life
Insurance, Axa Bharti Enterprises.
INDIAN FOREIGN
INSURER WEBSITE PROMOTER PROMOTER
Allianz Bajaj life allianzbajaj.co.in Bajaj Auto Allianz AG
insurance
Assurance ampsanmar.com Sanmar Group AMP, Australia
Birla Sun Life birlasunlife.com Aditya Birla Group Sun Life Financial,
Insurance Canada
Unit-linked products are exempted from tax and they provide life insurance. Investors
welcome these products as they provide capital appreciation even as the yields on
government securities have fallen below 6 per cent, which has made the insurers slash
payouts.
According to the IRDA, a company offering unit-linked plans must give the investor
an option to choose among debt, balanced and equity funds. If you choose a debt plan, the
majority of your premiums will get invested in debt securities like gilts and bonds. If you
choose equity, then a major portion of your premiums will be invested in the equity market.
The plan you choose would depend on your risk profile and your investment need.The ideal
time to buy a unit-linked plan is when one can expect long-term growth ahead. This is
especially so if one also believes that current market values (stock valuations) are relatively
low.So if you are opting for a plan that invests primarily in equity, the buzzing market could
lead to windfall returns. If one invests in a unit-linked pension plan early on, say when one is
25, one can afford to take the risk associated with equities, at least in the plan's initial stages.
However, as one approaches retirement the quantum of returns should be subordinated to
capital preservation. At this stage, investing in a plan that has an equity tilt may not be a good
idea.Considering that unit-linked plans are relatively new launches, their short history does
not permit an assessment of how they will perform in different phases of the stock market.
Even if one views insurance as a long-term commitment, investments based on performance
over such a short time span may not be appropriate.
Simply put, ULIPs work very similar to a mutual fund with a life cover thrown in.
They have a mandate to invest the premiums in varying proportions in gsecs (government
securities), bonds, the money markets (call money) and equities. The primary difference
between conventional savings-based insurance plans like endowment and ULIPs is the
investment mandate- while ULIPs can invest upto 100% of the premium in equities, the
percentage is much lower (usually not more than 15%) in case of conventional insurance
plans. ULIPs are also available in multiple options like `aggressive' ULIPs (which can invest
upto 100% in equities), `balanced' ULIPs (which invest 40-60% in equities) and `debt' ULIPs
(which invest only in debt and money market instruments). The exact expense structure/
break-up for ULIPs is as transparent as one would have liked. Broadly speaking, ULIP
expenses are classified into three major categories:
1) Mortality charges:
Mortality expenses are charged by life insurance companies for providing a life cover to the
individual. The expenses vary with the age, sum assured and sum-at-risk for the individual.
There is a direct relation between the mortality expenses and the above mentioned factors. In
a ULIP, the sum-at-risk is an important reference point for the insurance company. Put
simply, the sum-at-risk is the difference between the sum assured and the investment value
the individual's corpus as on a specified date.
policies. Agent commissions, sales and marketing expenses and the overhead costs incurred
to run the insurance business on a day-to-day basis are examples of such expenses.
a) Switching charges:
Individuals are allowed to switch their ULIP options. For example, an individual can switch
his fund money from 100% equities to a balanced portfolio, which has say, 60% equities and
40% debt. However, the company may charge him a fee for `switching'. While most life
insurance companies allow a certain number of free switches annually, a switch made over
and above this number is charged.
b) Top-up charges:
ULIPs allow individuals to invest a top-up amount. Top-up amount is paid in addition to the
premium amount for a particular year. Insurance companies deduct a certain percentage from
the top-up amount as charges. These charges are usually lower than the regular charges that
are deducted from the annual premium.
The main purpose of the study is to find out the factors which are influencing the
investment tools regards with ULIP at ICICI Prudential and to suggest some strategies which
The scope of the study will helps to the peoples for there choice of investment.
The study will help to know the expectations of the ULIP.in future.
The company can find out the satisfaction level of the ULIP of their product plans.
The scope of the study will help the company will find the problems of peoples
investing in ULIP.
Contents
o Organization Profile
o Company profile
o Organization Chart
ORGANISATION PROFILE:
ICICI Prudential Life Insurance Company Limited (the Company) a joint venture
Between ICICI Bank Limited and Prudential plc of UK was incorporated on July
20, 2000 as a company under the Companies Act, 1956 (the Act). The Company
is licensed by the Insurance Regulatory and Development Authority (IRDA) for carrying life
insurance business in India.
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 (UK). The company brings together the local market
expertise and financial strength of ICICI Bank and Prudentials International life insurance
experience. The company was granted a certificate of Registration by the IRDA on November
24, 2000 and eighteen days later, issued its first policy on December 12. ICICI Prudential
was amongst the first private sector insurance companies to begin operations in December
2000 after receiving approval from Insurance Regulatory Development Authority (IRDA).
From its early days, ICICI Prudential seemed to have the wherewithal for a large-scale
business. By March 31, 2002, a little over a year since its launch, the company had issued
100,000 policies translating into premium income of approximately Rs. 1,200 million on a
sum assured of over Rs.23 billion. When the company began its operations, the need was to
build a brand that was relatable to, symbolized trust and was easily recognized and
understood. It launched a corporate campaign ICICI Prudential also made using the theme of
Sindoor to epitomize protection, trust, togetherness and all that is Indian; endearing itself to
the masses. The success of the campaign, the calling card of the company saw the brand
awareness scores almost at par with its 40 year old competitor. The theme of protection was
also extended to subsequent product and category specific Campaigns from child plans to
retirement solutions which highlight how the company will be with its customers at every
step of life.
From day one, the company has unflinchingly focused on being mass-market player,
developing products, creating a distribution network and deploying resources that would
further its goal. Apart from ramping up thoroughly training its advisors, the company has
twelve Banc assurance partners the largest in the country. It swiftly revised and added to its
initial range of products, pioneering market-linked products and pension plans, to offer
customers the most flexible life insurance policies in the country. In February 2004, ICICI
Prudential increased its capital base by Rs. 500 million, its ninth capital hike, bringing the
total paid up equity capital to Rs. 6,750 million. With the authorized capital of the company
standing at Rs. 12 billion, ICICI Prudential continues to have the highest capital base
amongst all life insurers in the country. The challenge ICICI Prudential now faces is to retain
its top-notch position and continue to deliver the finest life insurance and pension solutions to
its ever-growing customer base.
ICICI Prudentials equity base stands at Rs. 1185 crore with ICICI Bank and Prudential plc
holding 74% and 26% stake respectively. For the year ended March 31, 2006, the company
garnered Rs.2, 412 crore of weighted new business premium and wrote 837,963 policies. The
sum assured in force stands at Rs.45, 888 crore. The company has a network of over 72,000
advisors; as well as 9 bancasurance partners and over 200 corporate agent and broker tie-
ups.ICICI Prudential is also the only private life insurer in India to receive a National Insurer
Financial Strength rating of AAA (Ind) from Fitch ratings. The AAA rating is the highest
credit rating, and is a clear assurance of ICICI Prudentials ability to meet its obligations to
customers at the time of maturity or claims.
For the past five years, ICICI Prudential has retained its position as the No.1 private insurer
in the country, with a wide range of flexible products that meet the needs of the Indian
customer at every step in life.
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 received
premium income of Rs. 9.9 billion; up 135% last years total premium income of Rs.4.20
billion. 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. The
companys retail market share amongst private companies stood at 36%, making it clear
leader in the segment. To add to its achievements, in the year 2003/04 it was adjudged Most
Trusted Private Life Insurer (Economic Times Most Trusted Brand Survey by AC Nielsen
ORG-MARG). It was also conferred the Outlook Money-Best Life Insurer award for the
second year running. The company is also proud to have won Silver at EFFIES 2003 for its
Retire from work, not life campaign. Notably, ICICI Prudential was also short-listed to the
final round for its Sindoor campaign in EFFIES 2002.
ICICI Prudentials success is rooted in its philosophy to always offer the customer a choice.
This has been the driving force behind its multi-channel distribution strategy, which includes
advisors, banks, direct marketing and corporate agents. In fact, ICICI Prudential was the first
life insurer to invest in multiple channels and offer the customer choice and access; thus
reducing dependency on any one channel, great strides in the retirement solutions and
pensions market.The Companys penetration of the retirement market was driven by the
focused approach towards creating awareness through sustained campaign; Retire from
work, not life. Within six months, the campaign rewarded ICICI Prudential with an increased
share of 23% of the total pensions market and 78% amongst private players.
ICICI Prudential Life's capital stands at Rs. 37.72 billion (as on March, 2008) with ICICI
Bank and Prudential plc holding 74% and 26% stake respectively. For the year ended March
31, 2008, the company garnered Retail New Business Weighted premium of Rs. 6,684 cores,
registering a growth of 68% over the last year and has underwritten nearly 3 million retail
The company has assets held over Rs. 30,000 cores as on April 30, 2008.ICICI Prudential
Life is also the only private life insurer in India to receive a National Insurer 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 its obligations to customers at
the time of maturity or claims. For the past seven years, ICICI Prudential Life has retained its
leadership position in the life insurance industry with a wide range of flexible products that
Company Profile:
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 the first private
sector insurance companies to begin operations in December 2000 after receiving approval
from Insurance Regulatory Development Authority (IRDA).
Vision:
To make ICICI Prudential the dominant Life and Pensions player built on trust by
world-class people and service.
Vision, Mission, and Quality Policy
Vision:
To be the dominant Life and Pension player built on trust by world class people and
service.
Understanding the needs of customers and offering them superior products and
service
Leveraging technology service customers quickly, efficiently and conveniently
Developing and implementing super risk management and investment
strategies to offer sustainable and stable returns to their policyholders
Providing an enabling environment to foster growth and learning for their
employees
And above all, building transparency in all their dealings.
Values
Customer First: Own Customer; deliver the promise
o Keep customer interest in the centre of all decisions.
o Promise what you can, deliver it to finish.
o Proactively seek Voice of Customer and act on it.
Boundary less: Never say Its not my job
o Offer help and support across functions to ensure business success.
o Seek and share ideas freely
o Recognize and respect internal customers.
o Understand and value contributions from colleagues.
Ownership: If it is to be, it is up to me
o Take responsibility and see tasks through to completion.
o Own mistakes, learn from mistakes.
o Pursue goals relentlessly, never give up.
o Be a team player, take ownership for team performance.
Passion: Boundless energy and enthusiasm
o Exhibit Winning Instinct.
o Demonstrate speed and urgency for achieving results.
o Challenge status quo and do things differently.
o Nurture and motivate team members to reach full potential.
Integrity: Be honest and fair in what you say and do
o Practice what you preach
o Stand up honestly and fearlessly for what is right
o Act in a consistent and equitable manner
o Think and act for long term impact.
ICICI Prudential Life Insurance Company is a joint venture between ICICI Bank,
which is one of India's foremost financial services companies, and Prudential plc, which is a
leading international financial services group headquartered in the United Kingdom. ICICI
Prudential began the operations in December 2000. Today, this company has over 2100
branches, which include 1,116 micro-offices, over 290,000 advisors and 18 banc assurance
partners.
ICICI Prudential Life Insurance Company is the first life insurer in India that received a
National Insurer Financial Strength rating of AAA (Ind) from Fitch ratings. ICICI Prudential
has been voted as India's Most Trusted Private Life Insurer for three consecutive years. ICICI
Prudential Life Insurance Company has various insurance plans that have been designed for
different individuals, as every individual has different insurance needs. Given below is a list
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
Login
A proposal, which is complete i.e., duly filled with all necessary documents
Reject
An Application gets rejected at the Branch Ops level due to necessary details not filled in
the form or necessary documents not submitted are a Reject. It is then sent back to the
Issuance
Decline Status
When a customer refuses to take a policy post login but before Issuance is called a
Decline
Cancellation
When the cheque given by the customer bounces, it amounts to cancellation of the policy.
Lapse
A policy for which the Customer fails to pay subsequent premiums is a Lapsed Policy.
Free look
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 Free look Period.
Surrender
We all recognize the importance of life insurance. After all, we want to make sure that our
loved ones are taken care of when we die. But before you run out and purchase a policy, do
some research ahead of time. That way, you'll be sure to get the best possible coverage at the
right price. Here are some helpful tips to get you started:
Shop around
When it comes to life insurance, it pays to shop around because premiums can vary
widely. And thanks to the Internet, it's now easier than ever. Try out one of the many
insurance websites that can provide you with instant quotes. Make sure the website
you shop from takes into consideration the factors in your medical history that can
affect the premiums.
Never buy more coverage than you need
The key to purchasing the right amount of life insurance is to have just enough
coverage to meet your needs. If you have more life insurance than you need, you'll be
paying unnecessarily for higher premiums. On the other hand, it's important not to
have too little coverage, resulting in you being underinsured.
ICICI Bank (NYSE:IBN) is Indias 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
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, policyholder and unit holders worldwide. As of June 30, 2004, the
company had over US$300 billion in funds under management. Prudential has brought to
market an integrated range of financial services products that now includes life
assurance, pensions, mutual funds, banking, investment management and general insurance.
In Asia, Prudential is the leading European life insurance company with a vast network of 24
life and mutual fund operations in twelve countries - China, Hong Kong, India, Indonesia,
Japan, Korea, Malaysia, the Philippines, Singapore, Taiwan, Thailand and Vietnam.
Management Profile:
Directors Investment
K. V. Kamath, Chairman Committee
Mark Norbom Lalita D. Gupte,
Lalita D. Gupte Chairperson
Kalpana Morparia H. T. Phong
Chanda Kochhar Shikha Sharma
H. T. Phong N. S. Kannan
M. P. Modi V. Rajagopalan
R. Narayanan Sandeep Batra
Keki Dadiseth Puneet Nanda
Shikha Sharma, Managing Director
N. S. Kannan, Executive Director Governance Committee
H. T. Phong V. Rajagopalan
Promoterss
ICICI Bank Limited (NYSE:IBN) is India's largest private sector bank and the second largest
bank in the country with consolidated total assets of about US$ 95 billion as of March 31,
2009. ICICI Banks subsidiaries include Indias leading private sector insurance companies
and among its largest securities brokerage firms, mutual funds and private equity firms. ICICI
Banks presence currently spans 19 countries, including India.
Prudential
Established in London in 1848, Prudential plc is a leading internal retail financial services
group with significant operations in Asia, the US and the UK. Prudential has been writing
protection and savings insurance for over 160 years, and today has more than 21 million
customers worldwide and over 249 billion in assets under management (as of December 31,
2008). In Asia, Prudential is the leading Europe-based life insurer with operations in China,
Hong Kong, India, Indonesia, Japan, Korea, Malaysia, the Philippines, Singapore, Taiwan,
Thailand, and Vietnam. Prudential is one of the largest asset management companies in terms
of overall assets sourced in Asia ex-japan, with ?36.8 billion funds under management (as of
December 31, 2008) and operations in ten markets including China, Hong Kong, India,
Japan, Korea, Malaysia, Singapore, Taiwan, Vietnam and United Arab Emirates.
The Company
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 the first private sector
insurance companies to begin operations in December 2000 after receiving approval from
ICICI Prudential Life's capital stands at Rs. 4,780 crores (as of March, 2009) with ICICI
Bank and Prudential plc holding 74% and 26% stake respectively. For the period April 1,
2008 to March 31, 2009, the company has posted a growth of 13%, garnering total received
FY2008 and has underwritten over 9 million policies since inception. The company has assets
ICICI Prudential Life is also the only private life insurer in India to receive a National Insurer
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 its obligations to
For the past eight years, ICICI Prudential Life has retained its leadership position in the life
insurance industry with a wide range of flexible products that meet the needs of the Indian
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: 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.
Regular Premium
Single Premium
Wealth Advantage
LifeStage Assure
LifeTime Gold
LifeLink Super
LifeStage RP
InvestShield CashBank
Protection Plans
Pure Protect
Life Guard
CashBak
Home Assure
Retirement Solutions
ForeverLife Plan
Immediate Annuity
Health Saver
Medi Assure
Hospital Care
Crisis Cover
Cancer Care
Diabetes Assure
Annuity Solutions
Rural Plans
PRODUCTS:
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 4
Life Time Gold is a unit-linked plan which offers potentially higher returns over the long
term with flexible investment options to help you achieve your goals. It offers 8 fund
Life Stage RP is unit linked plan that provides you with an option of lifecycle-based
portfolio strategy that continuously re-distributes your money across various asset classes
based on the customers profile, helping him achieve his desired financial goals.
LifeLink Super is a single premium unit linked insurance which offers attractive premium
allocation along with the opportunity to enjoy potentially high returns over the long term,
Invest Shield Life New is a unit linked plan that provides premium guarantee and allows
the customer to enjoy the benfits of potentially higher returns while guaranteeing him that
he will get back atleast all the premiums paid by him, while providing protection to your
Invest Shield Cashbak is a unit linked plan that provides premium guarantee while
Wealth Advantage s a unique whole life single premium unit linked plan that provides
long term coverage upto the age of 70 years and provides you the option to systematically
Life Stage Assure a unit linked insurance plan that provides Guaranteed Maturity
Addition of 100%- 450% of first year premium based on the term and number of
premiums paid, with the additional advantage of a lifecycle based portfolio strategy that
allocates the investors money across various asset classes based on his age and risk
appetite
Protection Solutions
Pure Protect is a flexible and affordable term product, with which you can ensure your
life and provide total security for your family in case of an unfortunate event.
Life Guard is a protection plan, which offers life cover at low cost. It is available in 2
options level term assurance with return of premium & single premium.
help customers cover their home loans in a simple and cost-effective manner
Child Plans
Smart Kid New ULRP The policy is designed to provide money at key educational
Retirement Solutions
Forever Life is a traditional retirement product that offers guaranteed returns for
Life Time Super Pension is a regular premium unit linked pension plan that helps
one accumulate over the long term and offers 5 annuity options (life annuity, life
annuity with return of purchase price, joint life last survivor annuity with return of
purchase price, life annuity guaranteed for 5,10 and 15 years & for life thereafter,
joint life, last survivor annuity without return of purchase price) at the time of
retirement.
Life Stage Pension is a regular premium unit linked pension plan that provides
money across various asset classes based on your age and risk profile.
Life Link Super Pension is a single premium unit linked pension plan.
for life at the time of retirement. It offers the benefit of 5 payout options.
Health Solutions
medical conditions (900 surgeries) and has a long term guaranteed coverage upto
20 years.
Crisis Cover is a 360-degree product that will provide long-term coverage against
Diabetes Care Active is a long term insurance policy created for individuals with
Type II diabetes and pre-diabetes. It offers long term (upto 20 years) control over
Cancer Care is a regular premium plan that pays cash benefit on the diagnosis as
Medical Assure is a health insurance policy that provides assured insurability till
age 75 years, assured coverage for accepted pre-existing illnesses after 2 years and
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 Accident &
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 an accident results in total and permanent disability, 10% of rider sum assured will
be paid each year, from the end of the 1st year after the disability date for the remainder of
the base policy term or 10 years, whichever is lesser. 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.
Critical illness benefit: Critical Illness Benefit Rider provides protection against 9 critical
illnesses to the policyholder when attached to the basic plan.
Waiver of premium: On total and permanent disablement due to accident all future
premiums under the base plan will be waived till the end of the term of the rider or death of
assured life, if earlier.
Income benefit rider: In case of death of the Life Assured during the term of the policy,
10% of the Sum Assured is paid annually to the nominee on each policy anniversary till the
maturity of the rider.
ICICI Pru Life ranked as the Most Trusted Pvt Life Insurance brand in the
Brand Equity "Most Trusted Brands 2009" survey
ICICI Prudential Life won a Gold award for AboutULIPS.com and Health
Saver campaign, innovation award for www.taxguru08-09.com and a silver
award for its Insurance yoga campaign at the ICICI Group Marketing
Excellence award.
ICICI Prudential Life Insurance was awarded with the coveted 'ICAI Award
for Excellence in Financial Reporting' by the Institute of Chartered
Accountants of India (ICAI) for the financial year ended March 31, 2008.
ICICI Prudential Life was awarded the Life Insurance Company of the Year
at the12th Asia Insurance Industry Awards 2008.
ICICI Prudential Life was awarded with two Bronze Effie's in the services
category for its Corporate campaign and Retirement Number campaign
ICICI Prudential Life Insurance won the award for the Best Life Insurer-
Runner up at the Outlook Money & NDTV Profit Awards 2008
ICICI Prudential Life was awarded the SAP ACE 2008 Best Business
Objects Award for its IT practices
ICICI Prudential Life won the Award for Brand Excellence in the Banking
and Financial services category at the Asia Brand Congress 2008
Ms. Shikha Sharma, MD & CEO, ICICI Prudential Life Insurance Co. Ltd.
was adjudged the Businesswoman of the year at The Economic Times
Awards for Corporate Excellence, 2007-08.
ICICI Prudential Life won the UK Trade & Investment India Business
Awards 2008 in the Business Partnership Award-Large Company category
ICICI Prudential Life won the ICICI Group Marketing Excellence Award
2008 in three key categories for its marketing initiatives
ICICI Prudential Life was awarded the INDYs Award for Excellence in Mass
Communication in the category of Most Creative Advertisement-Television
Ms. Shikha Sharma, MD & CEO, ICICI Prudential Life Insurance was
adjudged as one of the 50 Most Powerful Women in Business by The
Financial Express.
Ms. Shikha Sharma, MD & CEO, ICICI Prudential Life Insurance was
adjudged the Entrepreneur of the Year-Manager at the Ernst and Young
Entrepreneur Awards 2007
Ms. Shikha Sharma, MD & CEO, ICICI Prudential Life Insurance was
awarded the Outstanding Businesswoman of the Year at CNBC TV18's
India Business Leader Awards 2007
ICICI Prudential Life Insurance won the award for the Best Life Insurer-
Runner up at the Outlook Money & NDTV Profit Awards 2007
ICICI Prudential Lifes, retirement solutions campaign for the year 2006-07
was awarded the Bronze Effy trophy in the services category. It also won
the Brand Equity Bravery Award 2007, instituted by Ad club.
Best Life Insurer 2003. Outlook Money Awards 2003 & 2004
Superbrand 2003-04
Silver Effie for Effectiveness of the Retire from Work not life advertising
campaign Effies 2003
Recognitions
ICICI Prudential Life was recognized as the most trusted brand amongst
private life insurers in the Economic Times-Most Trusted Brand survey
2008.
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 received
premium income of Rs. 9.9 billion; up 135% last years total premium income of Rs.4.20
billion. 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. The
companys retail market share amongst private companies stood at 36%, making it clear
leader in the segment. To add to its achievements, in the year 2003/04 it was adjudged Most
Trusted Private Life Insurer (Economic Times Most Trusted Brand Survey by ACNeilsen
ORG-MARG). It was also conferred the Outlook Money-Best Life Insurer award for the
second year running. The company is also proud to have won Silver at EFFIES 2003 for its
Retire from work, not life campaign. Notably, ICICI Prudential was also short-listed to the
final round for its Sindoor campaign in EFFIES 2002.
In Keeping with its belief that a happy customer is the best endorsement, ICICI Prudential
has embraced the SIX SIGMA approach to quality, an exercise that begins and ends with the
customer from capturing his voice to measuring and responding to his experiences. 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 Life Advisors; it allows ICICI Prudential Advisors
to redeem points for items ranging from kitchenware to gold, white goods, and even
international holidays.
Organizational chart:
Sampling
o Instrumentation techniques
o Learning experience
SAMPLING:-
BABASAB PATIL Page 48
Insurance as a Investment tools with regards to ULIP
Every decision poses unique needs for information, and relevant strategies can be
developed based on the information gathered through research. Research is the systematic
objective and exhaustive search for and study of facts relevant to the problem.
Research design means the framework of study that leads to the collection and analysis of
The study was conducted as an exploratory sampling survey method to collect primary and
secondary data.
DATA SOURCE:
Primary data are those collected by the investigator himself for the first time and thus
they are original in character, they are collected for a particular purpose.
Secondary data are those, which have already been collected by some other persons
for their purpose and published. Secondary data are usually in the shape of finished products.
Two types of secondary data were collected for the preparation of the project work:
Internal Data was generated from companys brochures, manuals and annual reports.
External Data, on the other hand, was generated from research books and internet (websites).
BABASAB PATIL Page 49
Insurance as a Investment tools with regards to ULIP
SAMPLING TECHNIQUES
information is collected only from a representative part of the universe and the conclusions
A random sampling technique was used to collect data from the respondents. A random
sample is a sample selected from a population in such a way that every member of the
population has a equal chance of being selected and the selection of any individual does not
influence the selection of any other. The selection is purely depends on chance. So while
SAMPLE SIZE
Sample size denotes the number of elements selected for the study. For the present study, 100
respondents were selected at random.
INSTRUMENTATION TECHNIQUES:
To know the response, the researcher used questionnaire method. It has been designed
method of data collection. The success of the questionnaire method in collecting the
information depends largely on proper drafting. So in the present study questions were
arranged and interconnected logically. The structured questionnaire will reduce both
interviewers and interpreters bias. Further using SPSS software and analysis was done for
each questions response to reach into findings, suggestions and finally to the conclusion
Learning experience
1) Gender
gendor
female
male
Interpretation: According to our project survey we have come to now the out of 100
responds in that 94% are male and 6% female. Therefore male are more than female in Hubli
city.
2) Occupation
occupation
business man
proffesional
others
student
Interpretation:
According to our project survey we find business men 10%, professional 14%,student 25%,
and then others are 51%. It will indicates that others are more compare to business men,
professional and student
investment
savings
tax benefits
returns
Interpretation:
if any other
bajaj allianzas
Reliance insurance
LIC
ICICI Prudential
Interpretation:
According to our project survey out of 100 respondent 39% invest in LIC, 51%
invest in ICICI Prudential life insurance, 2% invest in Reliance insurance, 7% invest in Bajaj
Allianzs and 1% of respondent other companies
if any other
T.V. Advertisement
reference(friends re
new s paper/magzines
company advisor(agen
Interpretation: According to our project survey out of 100 respondent people get the
information 3% on T.V.advertisement, 4% on news paper and magazines,61% company
advisors, 26% reference( friends and relatives). According to our project survey shows that
more people get information from company advisors.
6) are you aware of ULIP in ICICI Prudential life insurance?
not respond
no
yes
7) If yes, which insurance plan would like to invest in ICICI Prudential life insurance?
smart kid
Not respond
if other specify
lifetime gold
retirement solution
Interpretation : According to our project survey out of 100 respondent 20% respondents
like to invest smart kid, 17% lifetime gold, 39% retirement solution, 1% respondents like to
invest rest of the plans, 23% not respondents, according to our survey people would like to
flexibility
not respond
security
full w ithdraw al
returns
Interpretation:
According to our project survey out of 100 respondents 9% considered for making
ULIP is flexibility, 11% considered for security, 43% for returns 14% for full withdrawals
and 23% not respondent It shows people considered ULIP for the purpose of returns.
not respondent
yearly
monthly
quartely
half yearly
Interpretation:
According to our project survey out of 100 respondent 28% opted for yearly, 34% half
yearly, 9% quarterly and remaining 6% for monthly. It will indicates more people opted for
investment premium payment method for half yearly basis.
low
not respond
average
high
Interpretation:
According to our project survey out of 100 respondent risk involved in ULIP 5%
said low risk, 40% said average, 32% said high risk and 23% not responded for ULIP. It
indicates that risk in ULIP average, its depend upon the market condition.
not respond
10000
50000-100000
25000-50000
10000 -25000
Interpretation:
According to our project survey out of 100 respondent 33% people pay 10000 per
annum, 7% people pay 10000-25000 per annum, 3% people pay 50000-100000 per annum
and rest of 24% peoples not respond
12) In future would like to invest in
bank deposits
investing in gold
share market
equity
insurance
mutul fund
Interpretation:
According to our project survey out of 100 respondent 63% people invest in
insurance, 7% people invest in mutual funds, 5% people invest in invest in equities, 11%
people invest in share market, 1% people invest in gold and remaining 13% invest in bank
deposits. It shows that in future more people interested to invest in insurance.
13) Are you satisfied with the performance of the ULIP in ICICI Prudential life
insurance?
are you satisfied with the performance of the ULIP in ICICI Prudential l
highly dissatisfied
moderate
satisfied
higly satisfied
Interpretation:
14) Are you satisfied with the advisor of ICICI Prudential life insurance?
are you satisfied with the advisor of ICICI Prudential life insurance
average
good excellent
Interpretation:
According to our project survey out of 100 respondent satisfaction of advisors
work is 58% respondents says excellent, 27% respondents says good, 15% respondents says
average(medium).
dissatisfied
neither satisfied or
Interpretation:
According to our project survey out of 100 respondent levels of satisfaction about
ULIP 53% people are highly satisfied, 41% only satisfied, 3% neither satisfied or dissatisfied
OBSERVATION
1. It was found that 94% male and 16% female are participating in our survey.
3. It was found that the peoples choice of insurance, is investment is 8%, security
15%,savings 11%,tax benefits 8%, returns 27%, and financial future need is 31%,
it shows that the people think more for financial future needs.
4. It was observed that peoples are interested to invested in 39% in LIC, 51% in
companies i.e. Birla sun life, HDFC, ING VYSYA etc. it indicates that more
news paper and magazines,61% company advisors, 26% reference( friends and
relatives) it shows that people get more information from company advisors.
Recommendations:-
For ICICI to have a larger market share it has to widen the customer base, so it
should come up with intensive market strategy and aggressive publicity stunts such
as:
The company should concentrate on the people aged between 18-25 for individual
and also the age category 35-55 for family.
Since individuals are interested in insuring their family members the company
should concentrate on insuring the individuals family members.
ICICI Prudential should concentrate on geographical areas for its expansion and to
penetrate through rural areas it should tie-up with rural banks such as M.G.Bank etc.
34% respondents would like to pay half yearly premium. The company should also
emphasis on yearly payment of premium
Top of mind insurance company is LIC, because of its trust what people keep in it
and its awareness. So ICICI Prudential should emphasis heavy advertisement.
31% respondents would like to invest money in insurance for financial future need.
So ICICI to provide different financial future satisfaction plans to the people.
Conclusion
To conclude, the survey results highlight some important facts, though ICICI Prudential may
be comparatively competitive with other companies ULIP. The choice of people investing in
insurance is more as 31% and awareness of ICICI Prudential ULIP is more as 74%,
61% people get information from company advisors and satisfaction level of ULIP is more as
53% it will shows that ULIP is grow more in future days.
o Questionnaire
o Bibliography
QUESTIONNAIRE
1) Name: _________________________________________________
2) Age: __________________________________________________
a) LIC
b) ICICI Prudential
c) Reliance insurance
e) Bajaj Alianzas
If any other____________________
Yes No
14) If yes, which insurance plan would like to invest in ICICI prudential?
a) Flexibility b) security
If any other_____________________
Quarterly Monthly
a) 10000 b) 10000-25000
c) 25000-50000 d) 50000-100000
20) Are you satisfied with the performance of the ULIP in ICICI prudential?
_______________________________________________________________
21) Are you satisfied with the advisor service in ICICI prudential?
_______________________________________________________________
_______________________________________________________________
Bibliography
1. www.iciciprulife.com
2. www.google.com
3. www.insurance.com