A

Study

on Consumer Behaviour
AT

And Customer Satisfaction ICICI Prudential Life Insurance Service

A.JAGAN Reg. No. 40908631017 Of KARPAGA VINAYAGA COLLEGE OF ENGINEERING AND TECHNOLOGY Submitted to the FACULTY OF MANAGEMENT STUDIES In partial fulfillment of the requirements For the award of the degree Of MASTER OF BUSINESS ADMINISTRATION ANNA UNIVERSITY CHENNAI 600 025

KARPAGAVINAYAGAC OLLEGE OF ENGINEERING AND TECHNOLOGY

DEPARTMENT OF MANAGEMENT STUDIES
G.S.T. Road, Chinna Kolambakkam, Palayanoor Post, Madhuranthagam (T.K.), Kancheepuram 603 308. Phone : 044 27565486, 27598232

BONAFIDE CERTIFICATE This is to certify that the project report entitled as A STUDY OF CUSTOMER SATISFACTION is a bonafide work done by MR.A.JAGAN of Reg.No.40908631017, who carried out study under my supervision certified further that to the best of my knowledge the work reported here in doesnt from part of any other summer training report on the basis of which a degree or award was conferred on an earlier occasion on this or any other candidates.

Prof. C.V.Rajagopalan Mr.N.Elanchaezhian Head of the Department Guide in charge

DECLARATION BY THE STUDENT

This is to state that the training report titled A

Study

on

Consumer Behaviour and Customer Satisfaction at ICICI Prudential Life Insurance Service in Tiruvarur Distis
based on the original work carried out by me towards the partial fulfillment of requirement for the M.B.A program of the Anna University Chennai. This report has not been submitted to any other University for the award of any Degree or Diploma.

Date: Place: A.JAGAN

I give my deepest thanks to the Lord Almighty for giving me all the wisdom, the knowledge and strength to carry out this project in a successful manner.

ACKNOWLEDGEMENT

I am immensely thankful and profoundly grateful to Smt. MEENAKSHI ANNAMALAI,DIRECTOR, KVCET, for having me this amply opportunity to do this professional course in this campus. I express my sincere gratitude and thanks to Professor. T.RANGARAJULU, PRINCIPAL, KVCET, for facilitating to conduct research study. I am deeply indebted to Professor. C.V.RAJAGOPALAN, HEAD OF THE DEPARTMENT OF MANAGEMENT STUDIES, KVCET, Whose timely suggestion and encouragement helped and me to complete this project successfully. I express my sincere and profound thanks to my project guide Mr.N.Elanchaezian, whose guidance, induced information, timely suggestions and encouragement help me to complete this project successfully. It is my great respect to express my heartiest gratitude to Mr.D. RAMANKUMAR, manager. A Study on Consumer Behaviour and Customer Satisfaction at ICICI Prudential Life Insurance Service in Tiruvarur Dist ., for having devoted much of their precious time in giving me valuable guidance and explaining the details parting to my project work. I am thankful to all my MBA faculty members, my mother Mrs.S.Sandhiya, my sister S.Harini and all my friends for helping and encouraging me during the period of my project.

D.RAMAN KUMAR Branch Manager

ICICI Bank Limited Tiruvarur Dist

_____________________________________________________________________________________

CERTIFICATE
This is to certify that Mr. A.JAGAN , Final year MBA student of Karpaga vinayaga college of engineering & Technology, Chennai600119, has successfully completed his 3 week project work on A Study on Consumer Behaviour and Customer Satisfaction at ICICI Prudential Life Insurance Service in Tiruvarur Dist from 25.06.2009 to 24.07.2009 under my supervision at District Branch office , ICICI Bank , Tiruvarur - 614101.

Date: Place: D.RAMANKUMAR Branch Manager

CONTENTS
CHAPTER NO.
1

TITLE
INTRODUCTION
1. INDUSTRY PROFILE

PAGE NO. 1 - 23

2. COMPANY PROFILE 3. PRODUCT /SERVICE PROFILE

2 3

REVIEW OF LITERATURE RESEARCH METHODOLOGY

1.STATEMENT OF THE PROBLEM 2.OBJECTIVE OF THE STUDY 3. SIGNIFICANCE OF THE STUDY

24 25-40

FINDINGS AND RECOMMENDATION BIBLIOGRAPHY ANNEXURE

41-42 43

LIST OF TABLES S.NO

1. 2. 3. 4. 5. 6.

TITLE
Table showing Age group of respondents Table showing Qualification of respondents Table showing Benefits of choosing the product Table showing Disadvantages in insurance plans Table showing Investment avenues Chi - Square Test

PAGE NO. 18 20 22 24 26 28

LIST OF FIGURES S.NO

1. 2. 3. 4. 5.

TITLE
Age group of respondents Qualification of respondents Benefits of choosing the product Disadvantages in insurance plans Investment avenues

PAGE NO. 19 21 23 25 29

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 the government in 1993 to examine the various aspects of the industry constituted Malhotra Committee. 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 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 concept known 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. This relationship 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. An insurance contract or policy will set out in detail the exact circumstances under which a benefit payment will be made and the amount of the premiums.

Classification of insurance The insurance industry in India can broadly be classified in two parts. They are. 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 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 postnationalization general insurance business. CONCEPTUAL BACKGROUND 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 Customer value: The ratio between the customerss 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.

1. INDUSTRY PROFILE 1.1 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 360degree turn witnessed over a period of almost two centuries. 1.2 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 newfound 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. 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 wast 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. PREMIUM UNDERWRITTEN BY LIFE INSURERS The life insurance industry recorded a premium income of Rs.82854.80 crore during the financial year 2005-06 as against Rs.66653.75 crore in the previous financial year, recording a growth of 24.31 per cent. The contribution of first year premium, single premium and renewal premium to the total premium was Rs.15881.33 crore (19.16 per cent); Rs.10336.30 crore (12.47 per cent); and Rs.56637.16 crore (68.36 percent), respectively. In the year2000-01, when the industry was opened up to the private players, the life insurance premium was Rs.34, 898.48 crore which constituted of Rs. 6996.95 crore of first year premium, Rs. 25191.07 crore of renewal premium and Rs. 2740.45 crore of single premium. Post opening up, single premium had declined from Rs.9, 194.07 crore in the year 2001-02 to Rs.5674.14 crore in 2002-03 with the withdrawal of the guaranteed return policies. Though it went up marginally in 2003-04 to Rs.5936.50 crore (4.62 per cent growth) 2004-05, however, witnessed a significant shift with the single premium income rising to Rs. 10336.30 crore showing 74.11 per cent growth over 2003-04.

(Rs. lakh) Insurer 2004-05 First year premium including Single premium 1734761.74 (6.34) 244070.58 (152.74) 1978832.32 (14.68) Renewal Premium 4618580.96 (19.47) Private Sector Total 67962.05 (343.12) 4686543.01 (20.75) Total Premium LIC 6353342.70 (15.63) Private Sector 312032.63 (178.83) Total 6665375.33 (18.91) 7512728.98 (18.25) 772750.82 (147.65) 8285479.80 (24.31) 2005-06

LIC* Private Sector Total

2065306.36 (19.05) 556457.34 (127.99) 2621763.70 (32.49)

LIC

5447422.62 (17.95) 216293.48 (218.26) 5663716.10 (20.85)

1.3 Brief Review of Scenario Insurance 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. 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 to 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. 1.4 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. 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

2. COMPANY 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 massmarket 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 Bancasurance 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 continues 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 has one of the largest distribution networks amongst private life insurers in India, having commenced operations in 132 cities and towns in India, stretching from Bhuj in the west to Guwahati in the east, and Jammu in the north to Trivandrum in the south. The company has 9 bank partnerships for distribution, having agreements with ICICI Bank, Bank of India, Federal Bank, South Indian Bank, Lord Krishna Bank, and some co-operative banks, as well as over 200 corporate agents and brokers, it has also tied up with NGOs, MFIs and corporate for the distribution of rural policies. ICICI Prudential has recruited and trained more than 72,000 insurance advisors to interface with and advise customers. Further, it leverages its state-of-the-art IT infrastructure to provide superior quality of service to customers.

PRUDENTIAL plc, Established in London in 1848, through its business in the UK and Europe, the US and Asia, provides retail financial services products and services to more than 16 million customers, policy holder and unit holders world wide. As of December 31, 2005, the company had over US$ 400 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 23 life and mutual fund operations in twelve countries China, Hong Kong, India, Indonesia, Japan, Korea, Malaysia, the Philippines, Singapore, Taiwan, Thailand and Vietnam. Promotion: ICICI Prudential is a case study in how advertising and marketing can play a vital role in re-shaping an industry. It has demonstrated how an industry where the customer was nothing more than a policy number has changed to one where customer preference rules the roost. Brand-building in a complex category like life insurance is an uphill and multi-faceted task. At the time of launching operations, the communications task was to build credibility, so as to give the customer the confidence that it was a company that could be trusted to invest funds with. The aim was to encourage people to view insurance not as a compulsory tax saving instrument, but as a means to lead a worry-free, secure life and in the

process, create the differentiator for brand ICICI Prudential. The brand proposition for all the campaigns was reflected in the line: Suraksha: Zindagi ke har kadam par. The campaign featured a significant competitive advantage, the sound financial backing and credentials of ICICI Prudential, and showcased products from different segments. The advertising idea was encapsulated in the symbol of protection the Sindoor. This campaign contributed extensively to raising brand awareness and creating a distinctive identity for the company. The Company recently tied up with the Forbes Six Sigma rated Dabbawalla organization in Mumbai for a direct marketing exercise. In a Unique effort to create awareness about a tax saving product, the company attached a creative of a bitten apple to Mumbais ubiquitous lunchboxes. It worked wonderfully with Mumbais office-goers and one that translated into substantial business for the company. 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 a powerful proposition; one, which ICICI Prudential, is taking into the market place. CUSTOMER SERVICE AND OPERATIONS The Operations department oils the work processes between the customer and the company to ensure consistent and quality service to the customer. To streamline the operations, the Operations department interfaces betweenthe

clients and the agents, the branches and the underwriters, and manages work. The Vision at Customer Service is to deliver World Class Service at every opportunity. Units such as the 9 to 9 contact centres, Outbound Call Centre, Customer Care and Query Resolution Unit are all committed to providing effective solutions to over lakhs of customers across the country. Information Technology The Information Technology function at ICICI Prudential is committed to enable business through the use of technology. It is segmented into 4 groups to enable highest levels of delivery to the customers: Life Asia Solutions Group that provides flexibility in designing better product offerings to endusers, the Solutions Group- Web that provides real-time information to customers and is responsible for customer relationship management, IT Architecture & Corporate Solutions Group is in charge of developing and maintaining a blueprint for the IT architecture for the enterprise as a whole. This team works as an in house R&D Solution Group, exploring new technological initiatives and also caters to information needs of corporate functions in the organization. IT Infrastructure group is responsible for providing hardware, software, and network services to the whole organization. This group runs the 'Digital Nervous System' of the Enterprise at the highest levels of efficiency and provide robust, scalable and highly available platform for deployment of business application.

Marketing The Marketing function at ICICI Pru covers an array of activities - brand and media management, channel support, direct marketing and corporate communications. The Brand and Communications team is in charge of advertising, consumer research, media planning & buying and Public Relations; that helps develop and nurture ICICI Prudential's corporate identity while effectively communicating its varied product offerings to the customer. Channel marketing provides support to the sales force by streamlining the design and development of collaterals and sales tools across distribution channels. The Direct marketing team was set up to generate high quality leads for profitable business. The team achieves this through target database acquisition and communicating customized product information through e-mailers, telemarketing and innovative direct mailers. Finance Finance function in ICICI Prudential is committed to create an infrastructure that is aligned to shareholder expectations. Finance basically comprises of four functions. . Corporate Planning and MIS provide feedback on business strategies. This includes driving the budgeting process, providing strategic inputs for decision-making and management reporting and analysis. The Accounts function includes preparation and maintenance of financial records, funds management, and expense processing and treasury operations. Compliance ensures that every action is within the regulatory framework. This includes reviewing compliance requirements and supporting the ethical framework of ICICI Pru life. Internal audit provides assurance to the management over the organizations' control framework and include process.

Human Resource The people strategy of ICICI Prudential is To build a committed team with a culture of innovation, learning and growth. The Human Resource Function at ICICI Prudential drives the people strategy of the business. With its initial focus on operational excellence to deliver benefits and services to staff members, HR is now committed to building capability through state of the art processes. A robust performance management system, compensation system and a segmented training architecture enable it to deliver value to the organization. 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 are 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.

2.4 PRODUCT/SERVICES PROFILE 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 ensures 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. 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. Policyholders are required to pay a one-time premium based on a target sum

assured. At maturity, the policyholder 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 policyholder. 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 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, customercentric 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. 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 offers 4 fund options Preserver, Protector, Balancer and Maxi miser. Lifeline Super is a single premium Unit Linked Insurance Plan, which combines life insurance cover with the opportunity to stay, invested Premier Life is a limited premium-paying plan that offers customers life insurance cover till age of 75. Invest Shield Life is a Unit Linked plan that provides capital guarantee on the invested premiums and declared bonus interest. Invest Shield Cash is a Unit Linked plan that provides capital guarantee on the invested premiums and declares bonus interest along with flexible liquidity options. Invest Shield Gold is 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 covers at very low cost. It is available in 3 options level term assurance with return of premium and single premium. Home Assure is a mortgage reducing term assurance plan designed specifically to help customers cover their home loans in a simple and cost-effective manner. Child Plans Smart Kid 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. Smart Kid plans are also available in unit-linked form both single premium and regular premium. Retirement Solutions Forever Life is a retirement product targeted at individuals in there thirties. Secure Plus Pension is a flexible pension plan that allows one. Market-linked retirement products Lifetime Pension II is a regular premium market-linked pension plan. Lifeline Pension II is single premium market linked pension plan. Invest Shield 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 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 the beneficiary 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. 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. Accident Benefit: This rider option pays the sum assured under the rider on death due to accident.

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 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 Smart Kid, Secure Plus, and Cash Plus

REVIEW OF LITERATURE
To get better understanding of research study it is needless to say that one has to concentrate on the empirical evidence. So a careful study has been made by the researcher to review the various studies, which have been conducted earlier in this regard. Given below are the brief reviews of related researcher work. In the 2001 M. Mohamed Ibrahim conducted survey on market strategy of insurance policy in Trichy. Random Sampling selected hundred Respondents and Questionnaire were Administered to them. The study shows that Businessmen are in the top for using insurance. They are highly interested to invest in finance plan. These are the findings of the study. In the year 2003 R. Kumar conducted the survey of insurance companies in Chennai. The sample size is two hundred respondents data collected is of primary questionnaire method. The findings were that the advertisement given by the company is not adequate for researching all the potential customers. Respondents were not satisfied with of private company. The Business people are using the insurance. In the year 2005, J. Fayasudeen conducted study on customer satisfaction of insurance service in Chennai city. 50 respondents were selected by random sampling and questionnaires were administered to them. The study shows that 70% of respondents using insurance. Majority of the respondents are satisfied with overall performance of the service provider.

RESEARCH METHODOLOGY

STATEMENT OF THE PROBLEM To study the awareness of insurance sector and in particular the Awareness of ICICI Prudential Life Insurance Co. among the people of Tiruvarur District

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 life insurance 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 expect from life insurance. 6. To understand Consumer buying behavior 7. To come out with conclusion and suggestions based on the analysis .

TABLE NO: 1 AGE OF THE RESPONDENTS:

PARTICTULARS Less than 25 25 35 35 45 Above 45 TOTAL

NO.OF.RESPOND ENT 11 40 20 29 100

PERCENTAGE 11% 40% 20% 29% 100%

ANALYSIS: From the survey it was found that amongst 100 respondents 11% of the respondents are less than 25 years old. 40% of the respondents are between 25 and 35 years of age. 20% of the respondents are between 35 and 45 years of age. 29% of the respondents are more than 45 years of age.

GRAPH NO: 1 AGE OF THE RESPONDENTS

TABLE NO: 2 QUALIFICATION OF THE RESPONDENTS: PARTICUALR Graduate Post Graduate Diploma Other discipline TOTAL
NO.OF.RESPONDENT

PERCENTAGE 52% 29% 8% 11% 100%

52 29 8 11 100

ANALYSIS: From the survey it was found that amongst 100 respondents 52% of the respondents were graduate 29% of the respondents were postgraduate 8% of the respondents were diploma 11% of the respondents were other discipline

GRAPH NO: 2 QUALIFICATION OF THE RESPONDENTS:

TABLE NO: 3
BENEFITS OF CHOOSING THE PARTICULAR PRODUCTS

PARTICULARS Risk coverage Additional benefit Maturity date Sum Assured TOTAL

NO.OF.RESPONDENT 60 20 12 8 100

PERCENTAGE 60% 20% 12% 8% 100%

ANALYSIS 60% of the respondents are choosing for risk coverage. 20%of the respondents are choosing for additional benefits. 12%of the respondents are choosing for maturity date. 8%of the respondents are choosing for sum assured.

GRAPH NO: 3 BENEFITS OF CHOOSING PARTICULAR PRODUCTS:

TABLE NO: 4
DISADVANTAGES IN INSURANCE PLANS

PARTICUALRS Liquidity Lapsation Unable to decide premium High risk coverage Fixed Term TOTAL

NO.OF.RESPONDENT 35 20 19 14 12 100

PERCENTAGE 35% 20% 19% 14% 12% 100%

ANALYSIS: From the survey it was found that amongst 100 respondents 35% of the respondents say that disadvantages in insurance plan are liquidity. 20% of the respondents say that disadvantages in insurance plan are lapsation. 19% of the respondents say that disadvantages in insurance plan is unable decide premium. 14% of the respondents say that disadvantages in insurance plan are high-risk coverage at high premium. 12% of the respondents say that disadvantages in insurance plan is fixed term

GRAPH NO: 4 DISADVANTAGES IN INSURANCE PLANS

TABLE NO: 5
INVESTMENT AVENUES

PARTICUALRS Recurring Deposit Equity Fund Balanced Fund Mutual Fund Debt Fund Cash Fund TOTAL

NO.OF.RESPONDENT 40 25 10 11 5 9 100

PERCENTAGE 40% 25% 10% 11% 5% 9% 100%

ANALYSIS: From the survey it was found amongst 100 respondents 40% of respondents say that they want to invest in R.D 25% of respondents say that they want to invest in equity 10% of respondents say that they want to invest in balanced fund 11% of respondents say that they want to invest in mutual fund 5% of respondents say that they want to invest in debt market 9% of respondents say that they want to invest in cash

GRAPH NO: 5 INVESTMENT AVENUES:

CHI-SQUARE TEST

Aim: This test aims to find out whether there is any difference between occupation and income of respondents for using life insurance. Sample: Sample size = 100 Hypothesis: Ho: There is no significance difference between occupation and income of respondents for using life insurance. H1: There is a significance difference between occupation and income of respondents for using life insurance.

TABLE OCCUPATION / INCOME

Up to 1 lakh

1 lakh -3 lakh

3 lakhs -5 lakhs

5 lakhs &above

TOTAL

Business man Professionals Job holders Others TOTAL

11 6 11 5 33

13 8 19 3 43

8 3 7 2 20

2 1 0 1 4

34 18 37 11 100

CONTENGENCY TABLE: Observed frequency 10 13 8 2 6 8 3 1 11 19 7 0 5 3 2 1 TOTAL CALCULATION: Degree of freedom 5% level of significant (c-1)(r-1) =(4-1)(4-1) Degree of freedom = 9 Calculated value = 14.4445 Table value = 16.919 Expected frequency 11.2 14.7 6.8 1.4 5.94 7.74 3.6 0.72 12.21 15.91 7.4 1.48 3.63 4.73 2.2 0.44 (O-E)2 1.44 2.89 1.44 0.36 3.60 0.0676 0.36 0.0784 1.4641 9.5481 0.16 2.1904 1.8769 2.9929 0.04 0.3136 (O-E)2/E 0.1285 0.1965 0.2117 0.2571 0.6060 8.7338 0.1 0.1088 0.1199 0.6001 0.0216 1.48 0.5170 0.6327 0.0181 0.7127 14.4445

INTERPRETATION: Since calculated is greater than table.

Hence null hypothesis rejected so there is significance difference between occupation and income of respondents. Chi-square table 2: PARTICULARS Upto 1 lakh Graduates 17 Post-Graduate 10 Diploma 2 Other disciplines 4 TOTAL 33 1lakh3lakh 24 12 4 3 43 3lakh5lakh 9 7 2 2 20 5lakh&above TOTAL 2 0 0 2 4 52 29 8 11 100

Contingency table: O 17 24 9 2 10 12 7 0 2 4 2 0 4 3 2 2 TOTAL

E
17.16 22.36 10.40

2.08 9.57
12.47 5.80 1.16 2.64 3.44 1.60 0.32 3.63 4.73 2.2 0.44

(O-E)2 0.0256 2.6896 1.9600 6.4000 0.1849 0.2209 1.4400 1.3456 0.4096 0.3136 0.1600 0.1024 0.1369 2.9929 0.0400 2.4336

(O-E)2/E 1.4918 0.1202 0.1884 3.0769 0.0193 0.0183 0.2482 1.1600 0.1551 0.0911 0.1000 0.3200 0.0377 0.6327 0.0181 5.5309 13.2085

CALCULATION: Level of Significance 5%=0.05 Degree of Freedom= (c-1) (r-1) = (4-1) (4-1) =9 Calculated Value = 13.2085 Table Value = 16.919

INTREPRETATION: Since calculated value is lesser than the table value, Null hypothesis is accepted. Therefore there is no significant relationship between qualification and salary.

FINDINGS

FINDINGS: 1. On an analyse and evaluation of the data collected from the respondents the following findings were found. 2. Total 100 respondents have been approached out of which 40% of the respondents are between 25 to 35 years. 3. About 52% of the respondents are graduates. 4. About 37% of the respondents are jobholders. 5. About 43% of the respondents have an average annual income
RECOMMENDATIONS TO COMPANY:

Since ICICI Prudential Life Insurance co. ltd is the largest in terms of FDI invested, in terms of work force, in terms of market share, in terms of no. Of customers. All these positive stand of the company place at the number one position. On second aspect whatever amount of money ICICI Prudential save, can be used to increase the no. Of policies, which will helpful to increase the market share of the company. Since the customers think about the companies in the industry, when they invest money in the life insurance industry. So its necessary to increase the market share of the company. There are some recommendations. Open some more branches in semi urban and rural area. ICICI Prudential has almost its branches in urban area or metros. So in order to increase the no. Of customer, ICICI Prudential should increase the approach towards potential customers. For that it has to increase the branches in the semi urban cities like C, D grade cities.

And the rural marketing is the best option for ICICI Prudential to increase its base in the market Improve customer services. In order to take the advantage of being industry leader in private sector, ICICI Prudential has to improve its customer services. According to my experience in the company, a good number of customers forget to pay their premium at time so it causes a big loss to the company. ICICI Prudential has already collaborated with the ICICI bank for its Banc assurance facility and then can include another feature in it. ICICI bank can offer a bank account with the life insurance policy in which an ATM card will be provided. This card will have all the information regarding the policy as like future premium payment dates, payment made, money value of the policy at that date, value of the unit linked plan and all other information what the customer want. This will help the customer to pay premium on time and save their losses. This will be mutually helpful for both sister companies, ICICI bank will get new account and ICICI prudential will be able to more efficient services to their customers

BIBLIOGRAPHY PHILIP KOTLER, Marketing management. Published by prentice, Hall of Indian

private Ltd., Tenth edition-2002. KOTHARI. C.R Research methodology, Published by V.S.Lobri for Whishwa prakash Eighth Edition -2004. GUPTA.S.C. and INDIRU GUPTA, Business statistics, publishing house, sixth Edition - 2006. Marketing Management by Philip Kotler, Pearson Education 2nd Ed Consumer Behavior by Leon G.Schiffman, Prentice-Hall India 8th Ed. IRDA Journal ICICI Prudential Company magazines Newspaper and Business magazines WEBSITES www.iciciprulife.com www.google.co.in/indian insurance industry www.irdaindia.org

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A study on consumer behaviour and customer satisfaction at icici prudential life insurance service in Tiruvarur District.
QUESTIONNAIRE 1. Name 2. Address 3. Age a. Less than 25 b. 25 35 4. Qualification a. Graduate b. Postgraduate 5.occupation a. Business b. Professional c. Jobholder d. Other c. Diploma d. Other discipline c. 35-45 d. 45 and above _________________________________ _________________________________ _________________________________ _________________________________

6. What is your average annual income? a. Up to 1 lakh b. 1 lakh to 3 lakhs 7. Your family size a. Below 5 members b. 5 10 members c. Above 10 members c. 3 lakhs to 5 lakhs d. 5 lakhs and more

8. According to you life insurance is, a. A taxes saving plan b. A saving scheme with good return c. A financial security for the family d. Risk coverage e. All the above

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9.Have you taken any life insurance product of ICICI Prudential Life insurance? YES NO Which are in these? a. Unit gains plan b. Invest gain plans c. Whole life plan If yes d. Children plan e. Pension plan f. Others __________________

10. Are you aware of the benefits in your policy? Yes No If yes what are they? a. Sum assured c. Additional benefits b. Maturity date d. Risk coverage 11. According to you what are the disadvantages in an insurance plan? a. Lapsation b. Liquidity c. Fixed term d. Unable to decide your premium e. Unable to decide the sum assured f. High risk coverage at high premiums g. Other disadvantages 12. In which of the following would you like to invest? a. Equity fund b. Debt fund c. Balanced fund d. Cash fund e. Mutual fund f. Recurring deposits 13. Any suggestion for ICICI Prudential Life Insurance ______________________________________________________ ______________________________________________________ Thank you for sparing your valuable time