Professional Documents
Culture Documents
CONCEPT OF INSURANCE
i) Life Insurance
As is evident from the name, this industry deals with insurance of
human life and saving for long time. As per requirements of various
segments of market, Different types of policies have been devised. Life
Insurance Corporation of India – a sector undertaking has the monopoly in
this sector since nationalization of industry.
ii) General Insurance
General Insurance meets the demand of all types of non-life
insurance. This has been classified as Fire, Marine and miscellaneous
including Vehicle Insurance.
LIFE INSURANCE
With such 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 per cent annually. Together with
banking services, it adds about 7 per cent to the country’s GDP .In spite of
all this growth the statistics of the penetration of the insurance in the country
is very poor. Nearly 80% of Indian populations are without Life insurance
cover and the Health insurance. This is an indicator that growth potential for
the insurance sector is immense in India. It was due to this immense growth
that the regulations were introduced in the insurance sector and in
continuation “Malhotra Committee” was constituted by the government in
1993 to examine the various aspects of the industry. The key element of the
reform process was Participation of overseas insurance companies with 26%
capital. Creating a more efficient and 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 sea changes .The
competition LIC started facing from these companies were threatening to the
existence of LIC.since the liberalization of the industry the insurance
industry has never looked back and today stand as the 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.
Meaning
Definitions
A financial planner once said this about the life insurance buying habits of
Indians: They don’t buy life insurance it’s sold to them. Unfortunate, it is
true. Individual awareness and understanding of life insurance products is
extremely low, and many among the insured don’t even know whether the
life insurance policy they own meets their insurance needs, and in larger
context, their personal finance needs.
Life insurance is chiefly a risk management tool, meant to offer financial
protection to your dependents in the unfortunate event of your death. If you
are adequately insured, your life insurance should enable to your dependents
{spouse, children, and parents} to maintain their current life style and pursue
their goals---till such time as they are in a position to set up an attractive
income stream by themselves. That’s the basic purpose of life insurance. But
in India, as the most other developing markets, life insurance has come to
represent more than just risk cover. The best selling insurance products in
the market double as investment options and offer attractive tax breaks.
CHARACTERISTICS:
Sharing of risk
Cooperative device
Evaluation of risk
Payment on happening of a special event
The amount of payment depends on the nature of losses incurred.
The success of insurance business depends upon the large number of
people against similar risk.
Insurance is a plan, which spreads the risks and losses of few people
among a large number of people.
FUNCTION OF INSURANCE
Primary functions
uncertainty to certainty.
Secondary Functions
Life Insurance has come a long way from the earlier days when it was
originally conceived as a risk-covering medium for short periods of time,
covering temporary risk situations, such as sea voyages. As Life Insurance
became more established, it was realized what was useful tool it was for a
number of situations, including…
Regular Savings
Providing for one’s family and one self, as a medium to long term exercise
(through a series of regular payment of premiums) this has become more
relevant in recent times as people financial independence for their family.
Investment
Put simply, the building up of savings while safeguarding it from ravages of
inflation. Unlike regular saving products, investment products are
traditionally regular investments, where the individual makes a one off
payment.
Retirement
Provision for later years becomes increasingly necessary, especially in a
changing cultural and social environment. One can buy a suitable insurance
policy, which will provide periodical payments in one’s old age.
Product innovation
Customers are now looking at insurance as complete financial solution
offering stable returns coupled with total protection. There is a need to
constantly innovate in terms of product development to meet ever-changing
consumer needs. Understanding the customer better will enable an Insurance
company to design appropriate products, determining price correctly and to
increase profitability. In this context Management Guru Peter Drucker has
rightly said, “Markets are changing from Cost lead pricing to Price lead
costing.”
Distribution Network
While companies have been successful in product innovation, most of them
are still grappling with right mix of Distribution Channels for:
a) Capturing maximum market share to build brand equity.
b) Building strong and Effective Customer relationships.
c) Cost effective customer service.
This calls for Selection of right type of distribution channel mix along with
prudent and efficient FOS (Fleet on Street) Management.
1. Distribution Network
While the traditional channel of tied up advisors or agents would be the chief
distribution channel, HDFC Standard Life should innovate and find new
methods of delivering the products to consumers. Corporate agency,
brokerage, banc assurance, e-insurance, co-operative societies and
Panchayats are some of the channels, which can be tapped by the company
to reach the appropriate market segments.
2. FOS Management
The major issues to be addressed in insurance FOS management are High
Attrition, lack of Motivation and Product knowledge. Continuous training,
performance linked reward systems, and career counseling can effectively
tackle these issues.
Investment Management
The most difficult challenge would be to provide returns comparable to other
financial instruments. The problem is further aggravated by interest rates
moving south. Need of the hour for the company is to follow prudent
underwriting practices and efficiently cut down management and
administrative expenses. Insurers must follow best investment practices and
have a strong Asset management company to maximize return.
INSURANCE SECTOR IN INDIA
Structure
Regulatory Body
Investments
Mandatory Investments of LIC Life Fund in government securities to
be reduced from 75% to 50%.
GIC and its subsidiaries are not to hold more than 5% in any company
(There current holdings to be brought down to this level over a period
of time).
Customer Service
BEFORE LIBERALISATION
Life Insurance in pre-independence India had been under the control of
private enterprises. There were 245 insurance companies in India by the
years 1956. In 1956 the government of India decided to nationalize all life
insurance business in India. As a first step, the life Insurance (Emergency
Provisions) ordinance was promulgated on the 18th January 1956. This
ordinance vested in the government the management and control of all life
insurance companies in India, both Indian and foreign. Under the life
Insurance corporation Act,1956, the Life insurance corporation (LIC) of
India was et up on 1st September that the government of India took over life
Insurance business in its own hands. It’s the largest government owned
organization in the world, operating life Insurance business.
CAUSES OF NATIONALIZATION
The main causes underlying the nationalization process of insurance
business in India are:
1. One of the important reasons, which prompted the government to
nationalize insurance business, is the failure of a large number of
companies during the decade preceding nationalization.
2. Many companies frittered away their resources overlooking the
interests of the policyholders.
3. Some companies were charged with embezzlement and defalcation of
funds.
4. Many individuals who controlled the insurance business utilized the
funds of the companies under their management in other ventures
disregarding the loss of the industry and the policyholders.
The nationalization of life insurance aims at widening and deepening all
possible channels of public savings. It is an important step towards
mobilizing these savings more effectively to finance the national plans.
Nationalized insurance is designed to bring to the door of even the humblest
citizen, wherever he may be, the benefits of this social service to ensure
complete of the funds collected by way of premiums and to utilize profitably
such funds for nation-building activities.
OBJECTIVES BEHIND NATIONALIZATION
1. Security to policy Holders
2. Channelize the funds
3. Greater Return to policy holders
4. To prevent misuse of funds.
5. To spread Insurance Business
Life Insurance in its present form came to India from the United Kingdom
with the establishment of a British firm, Oriental Life Insurance Company in
Calcutta, in 1818, followed by Bombay Life Assurance Company, in 1823.
the Indian Life Assurance Companies Act, 1912, was the first statutory
measure to regulate life insurance business. In 1935, earlier legislation was
consolidated and amended by the Insurance Act, 1938, with comprehensive
provisions aimed at exercising effective control over the activities of
insurers. The main concern was to protect the interests of the insuring
public. The Act was amended in 1950 resulting in far-reaching changes in
the insurance sector. By 1956, 154 Indian and 16 foreign insurers and 75
provident societies were carrying on Life insurance business in the country.
In January 1956, in keeping with the then prevailing political and
economical philosophy of socialism, 245 Indian and foreign insurers and
provident societies operating in India were taken over by the Central
Government by an Act. The LIC, with a capital of Rs 5 cr was set up in
September that year.
Growth of LIC
Since 1956, LIC has worked resolutely towards spreading life insurance, and
in the process has built a wide network across the length and breadth of the
country, consisting of 2,048 branches, 100 divisional offices, 7 zonal offices
and a corporate office. The number of new policies sold each year grew from
14.62 lakhs in 1961 to 1.45 cr in 1999, of which 54.70% are rural. The rural
share in 1961 was 36.53%. Similarly, the annual premium income rose from
Rs 88.65 cr in 1957 to Rs 22,805.80 cr in 1999. The life fund of the
corporation also grew from Rs 410 cr to Rs 2,89,895.52 cr in 2003.
Today there are 14 insurance players in India. Out of these 13 players are
private and one is public.
First life insurance company (LIC) set by Indian government in 1956. This is
public company.
2. Yr: 2000-2001: (From 2nd April '2000 to 31st December'2001)
CHAPTER-II
PROFILE OF ICICI
PRUDENTIAL
PROFILE OF ICICI PRUDENTIAL LIFE INSURANCE
ICICI Prudential was the first life insurer in India to receive a National
Insurer Financial Strength rating of AAA (Ind) from Fitch ratings. As ICICI
grow its distribution, product range and customer base, continue to tirelessly
uphold its commitment to deliver world-class financial solutions to
customers all over India.
ICICI Bank is India's second largest bank and largest private sector bank
with over 50 years presence in financial services and with assets of over Rs
3446.58 bn (USD 79 billion) as on March 31, 2007. The 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 specialised
subsidiaries in the areas of investment banking, life and non-life insurance,
private equity and asset management. ICICI Bank is a leading player in the
retail banking market and services its large customer base through a network
of over 950 branches and extension counters, 3300 ATMs, call centers and
internet banking to ensure that customers have access to its services at all
times.
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 20 million customers, policyholder and unit
holders and manages over £251 billion of funds worldwide (as of 31
December 2006). In Asia, Prudential is the leading European life insurance
company with life operations in China, Hong Kong, India, Indonesia, Japan,
Korea, Malaysia, the Philippines, Singapore, Taiwan, Thailand, Vietnam.
Prudential is the second largest retail fund manager for Asian sourced assets
ex-Japan as at June 2006. Its fund management business has expanded into a
total of ten markets : China, Hong Kong, India, Japan, Korea, Malaysia,
Singapore, Taiwan, Vietnam and United Arab Emirates.
FACT SHEET OF ICICI PRUDENTIAL
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 Insurance
Regulatory Development Authority (IRDA).
ICICI Prudential's capital stands at Rs. 20.60 billion with ICICI Bank and
Prudential plc holding 74% and 26% stake respectively. As of March 31,
2007, the company garnered Rs. 4,843 crore of weighted retail + group new
business premiums and wrote over 1.96 million retail policies. The company
has assets held to the tune of over Rs. 15,000 crore.
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 (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 six years, ICICI Prudential has retained its position as the No. 1
private life insurer in the country, with a wide range of flexible products that
meet the needs of the Indian customer at every step in life.
Distribution
ICICI Prudential has one of the largest distribution networks amongst
private life insurers in India. As of March 31, 2007 the company has over
580 offices across the country and over 234,000 advisors.
The company has over 22 bancassurnace partners, having tie-ups with ICICI
Bank, Federal Bank, South Indian Bank, Bank of India, Lord Krishna Bank,
Idukki District Co-operative Bank, Jalgaon Peoples Co-operative Bank,
Shamrao Vithal Co-op Bank, Ernakulam Bank, 9 Bank of India sponsored
Regional Rural Banks (RRBs), Sangli Urban Co-operative Bank, Baramati
Co-operative Bank, Ballia Kshetriya Gramin Bank, The Haryana State Co-
operative Bank.
PRODUCTS OF ICICI PRUDENTIAL
Protection Solutions
• LifeGuard is a protection plan, which offers life cover at low cost. It
is available in 3 options - level term assurance, level term assurance
with return of premium & single premium.
• HomeAssure is a mortgage reducing term assurance plan designed
specifically to help customers cover their home loans in a simple and
cost-effective manner.
Child Plans
Education insurance under the SmartKid brand provides guaranteed
educational benefits to a child along withlife insurance cover for the parent
who purchases the policy. The policy is designed to provide money at
important milestones in the child's life. SmartKid plans are also available in
unit-linked form - both single premium and regular premium.
Retirement Solutions
• ForeverLife is a traditional retirement product that offers guaranteed
returns for the first 4 years and then declares bonuses annually.
• LifeTime 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.
• LifeLink Super Pension is a single premium unit linked pension
plan.
• Immediate Annuity is a single premium annuity product that
guarantees income for life at the time of retirement. It offers the
benefit of 5 payout options.
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 policyholder 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.
• Diabetes Care: Diabetes Care is a unique critical illness product
specially developed for individuals with Type 2 diabetes and pre-
diabetes. It makes payments on diagnosis on any of 6 diabetes related
critical illnesses, and also offers a coordinated care approach to
managing the condition. Diabetes Care Plus also offers life cover.
• Hospital Care: is a fixed benefit plan covering various stages of
treatment – hospitalisation, ICU, procedures & recuperating
allowance. It covers a range of medical conditions (900 surgeries) and
has a long term guaranteed coverage upto 20 years.
Superbrand 2003-04
Organisation with Innovative HR Practices
Asia-Pacific H R Congress Awards for HR Excellence
Silver Effie for Effectiveness of the ‘Retire from Work not life’
advertising campaign
Effies 2003
RECOGNITIONS:
HDFC Ltd. Founded in 1977 has provided financial assistance to 1.5 million
homes. Asset base: about Rs 15,000 crore. Financial strength: “AAA” rating
by CRISIL and ICRA.
HDFC has 18000 crores of assets and Standard life as $119 billion of assets.
So they can be comfortably considered as safe as insurers. They entered into
life insurance with four policies.
HDFC and Standard Life first came together for a possible joint venture, to
enter the Life Insurance market, in January 1995. It was clear from the outset
that both companies shared similar values and beliefs and a strong
relationship quickly formed. In October 1995 the companies signed a 3-year
joint venture agreement.
Around this time Standard Life purchased a 5% stake in HDFC, further
strengthening the relationship. The next three years were filled with
uncertainty, due to changes in government and ongoing delays in getting the
IRDA (Insurance Regulatory and Development authority) Act passed in
parliament. Despite this both companies remained firmly committed to the
venture.
In October 1998, the joint venture agreement was renewed and additional
resource made available. Around this time Standard Life purchased 2% of
Infrastructure Development Finance Company Ltd. (IDFC). Standard Life
also started to use the services of the HDFC Treasury department to advise
them upon their investments in India.
Towards the end of 1999, the opening of the market looked very promising
and both companies agreed the time was right to move the operation to the
next level. Therefore, in January 2000 an expert team from the UK joined a
hand picked team from HDFC to form the core project team, based in
Mumbai.
Around this time Standard Life purchased a further 5% stake in HDFC and a
5% stake in HDFC Bank.In a further development Standard Life agreed to
participate in the Asset Management Company promoted by HDFC to enter
the mutual fund market. The Mutual Fund was launched on 20th July 2000.
Incorporation of HDFC Standard Life Insurance Company Limited:
The company was incorporated on 14th August 2000 under the name of
HDFC Standard Life Insurance Company Limited.
Its ambition from as far back as October 1995, was to be the first private
company to re-enter the life insurance market in India. On the 23rd of
October 2000, this ambition was realized when HDFC Standard Life was the
only life company to be granted a certificate of registration.
HDFC are the main shareholders in HDFC Standard Life, with 81.4%, while
Standard Life owns 18.6%. Given Standard Life's existing investment in the
HDFC Group, this is the maximum investment allowed under current
regulations.
HDFC and Standard Life have a long and close relationship built upon
shared values and trust. The ambition of HDFC Standard Life is to mirror
the success of the parent companies and be the yardstick by which all other
insurance companies in India are measured.
The Mission:
HSLIC aim to be the top new life insurance company in the market.
This does not just mean being the largest or the most productive company in
the market; rather it is a combination of several things like-
• Customer service of the highest order
• Value for money for customers
• Professionalism in carrying out business
• Innovative products to cater to different needs of different customers
• Use of technology to improve service standards
• Increasing market share
Products Available:
PLAN BENEFITS
Savings Plans
Endowment Assurance Plan Life Insurance with Savings
Life Insurance & Savings with choice of
Unit Linked Endowment Plan investment funds
Children’s Plan Financial Security for your child
Money Back Plan Life Insurance with Savings
Investment Plans
Single Premium Whole Of Life
Investment with Life Insurance
Plan
Protection Plans
Term Assurance Plan Life Insurance at an affordable price
Loan Cover Term Assurance Plan Life Insurance customized for home loans
Retirement Plans
Personal Pension Plan Savings for retirement
Retirement Savings with a choice of
Unit Linked Pension Plan investment funds
Riders Available:
Investment Related
Choice of Funds 6 Funds - Flexi Growth II , Flexi 6 Funds - Growth Fund, Equity
Balanced II , Maximiser II, Managed Fund, Balanced
Balancer II, Protector II, Managed Fund, Defensive
Preserver Managed Fund, Secure
Managed Fund, Liquid Fund
Top-ups Not Allowed currently Allowed subject to basic
premiums being paid upto date
& Top-up amount being within
25% of basic regular premiums
paid till date of Top-up. Min
Top-up amount - Rs. 5000
Premium
Allocation Charges
10,000 - 1,99,999: 60%, 2,00,000 -
10,000 - 19,999: 20%, 20,000 -
4,99,999: 40%, 5,00,000 - 9,99,999:
49,999: 19%, 50,000 & above:
30%, 10,00,000 - 19,99,999: 20%,
18%
Year 1 20,00,000+: 10%
1% for all premium bands from 2nd
Year 2 - 5 5% for all premium bands year onwards
Rs. 100 for subsequent switch Rs. 100 for subsequent switch over 24
Switching Charge over 4 switches in a policy year switches in a policy year
Partial Withdrawal Rs. 250 per part w/d over & above 6
Charge No charge free part w/d's
Miscellaneous
Charge None Rs. 250 for Policy revival
Life Time Super Pension Vs. HDFC Unit Linked Pension Plus
Year 2 9% for all premium bands 1% for all premium bands from
2nd year onwards
Year 3 - 10 1% for all premium bands
Year 11 onwards Nil
Fund Management Charges
Pension Flexi Growth II / Pension 0.80% across all funds
Maximiser II - 1.50%,
Pension Flexi Balanced II / Pension
Balancer II - 1.00%,
Pension Protector II & Pension
Preserver - 0.75%
Policy Administration Rs. 40 per month. Additional Policy Rs. 20 per month
Charge admin charge of Rs. 40 if premiums
not paid in the first 5 policy years
Top-up Charge N.A 2.50% of Top-up amount in the
first year. 1% from 2nd year
onwards
Switching Charge Rs. 100 for subsequent switch over Rs. 100 for subsequent switch
4 switches in a policy year over 24 switches in a policy year
Research problem is the one which requires a researcher to find out the best
solution for the given problem that is to find out the course of action, the
action the objectives can be obtained optimally in the context of a given
environment.
Techniques
The problem definition can be said to be the quite essential part of the
research process; as it determine precisely, what the managerial problem is
and the type of information that the research can generate to help the
problem before conducting the fieldwork. It is better to decide upon the
method/technique of data collection. Generally, there are two technique of
data collection are:
Data Collection
The objectives of the project are such that both primary and secondary data
is required to achieve them. So both primary and secondary data was used
for the project. The mode of collecting primary data is questionnaire mode
and sources of secondary data are various magazines, books, newspapers, &
websites etc.
1. Primary Data
The primary data was collected to make the comparison between the
products offered by ICICI Prudential and HDFC Standard Life Insurance.
The primary data was collected by means of questionnaire and analysis was
done on the basis of response received from the customers. The
questionnaire has been designed in such a manner that the consumer’s
satisfaction level can be measured and consumer can enter his responses
easily.
2. Secondary Data
The purpose of collecting secondary data was to achieve the objective of
studying the recent trends and developments taking place in Life Insurance.
Sample Plan
Sample size: - Keeping in mind all the constraints 100 working people local
residents of Jalandhar city were selected.
1. Limited scope
The survey was conducted in Jalandhar thus the respondents belonged to
only this region of the country. This could have brought bias into the study.
3. Ambiguous replies
Some of the respondents gave ambiguous replies for certain questions or
omitted the responses to some of them. The interpretation of such responses
becomes difficult and could generate wrong results.
0%
Yes
No
100%
Interpretation :
From the above chart it is clear that all the respondents are aware of Life
46%
54%
ICICI HDFC
Interpretation :
From the above graph it is clear that out of 100 respondents, 88 respondents
are aware of ICICI Prudential Life Insurance and 75 respondents are aware
of HDFC Standard Life Insurance. So, we can say that ICICI Prudential has
a good name and fame in the market as compare to HDFC Standard Life
Insurance.
3 :- Which companies policy had you opted from the following :
Companies %age
ICICI Prudential Life Insurance 59%
HDFC Standard Life Insurance. 41%
41%
59%
ICICI HDFC
Interpretation :
From the above graph it is clear that majority of the respondents i.e. 59%
opted for ICICI Prudential and 41% respondents prefer to have HDFC
16%
84%
Yes No
Interpretation :
From the above graph it is clear that majority of the respondents are satisfied
with the services offered by ICICI Prudential Company i.e. 84%. Only 16%
respondents are dissatisfied with the services offered by ICICI Prudential
Company.
Q5. From where did you heard about ICICI Prudential ?
11%
39%
22%
28%
Interpretation :
• 39% of the respondents have heard about ICICI Prudential through
Electronic Media i.e. Computers, Internet, Television etc
• 28% of the respondents have heard about ICICI through Print Media i.e.
Newspapers, Magazines, Journals etc.
• 22% have heard about it from their agents and remaining 11% have heard
about ICICI through others sources.
6. What was the motive behind purchasing the policy?
Response No. of Respondents %age of Respondents
Risk Coverage 5 5%
Saving 29 29%
Investment 14 14%
Taxation 52 52%
5%
29%
52%
14%
Interpretation :
• Majority of the respondent (52%) says that the most important reason
in mind while taking the life insurance policy is tax benefit as there
life insurance policy is exempted from tax.
• People who believe in capital gains propose to go for investment in
insurance that made 14%
• 5% respondents invest in life insurance policy. So as to set adequate
risk coverage.
7. Are you aware of the following insurance plans?
Response No. of Respondents %age of Respondents
Single Premium 1 1%
Money Back 25 25%
Endowment 20 20%
Children 20 20%
Pension 24 24%
ULIP 1 1%
All 9 9%
9% 1%
1%
25%
24%
20%
20%
Interpretation :
• Majority of the respondent i.e.25% are aware about the money back
plan.
• 24% of the respondent is aware about the pension plan.
• 20% of the respondent is aware about the Endowment policy.
• 20% of the respondent is aware about the children policy.
• Only 9% of the respondents know about all the plans.
8. What according to you are the motives of buying Life Insurance
Policy?
17%
8%
14% 61%
Interpretation
As the above figure showed that most of the respondents buy insurance
policy for the purpose of saving tax. 44% respondents are in favor of this.
24% respondents gave preference to secure investment, 20% and 12% are
with life cover and liquidity respectively.
9. If you are not taking any insurance policy, please tell us the reasons
why?
12%
40%
28%
20%
Interpretation
As the evident shows that as most as 40% of the total respondents don’t
understand the working of the insurance system and nearly 28% of the
respondents don’t see any benefit with the system, 20% and 12% of the
respondents don’t want insurance and could not afford respectively.
CUSTOMER PROFILE
42%
58%
Interpretation :
• Majority of the respondents covered were businesspersons i.e. 58%.
• Service class formed 42% of the total respondents.
• The business class didn’t respond as strongly as service class, as the
service class wanted to save their taxes through insurance, where as the
business people were of the view that their CA’s are capable enough to
provide better alternatives than insurances for the same purpose.
11. How much of your income do you invest annually?
Response No. of Respondents %age of Respondents
1000-5000 20 20%
6000-10000 30 30%
10000 and above 50 50%
20%
50%
30%
Interpretation :
• 20% respondents say that they invest between Rs. 1000 to Rs.
5000 out of their annual income.
• 30% respondents say that they invest more than Rs. 6000 to 10000
out of their annual income.
• 50% respondents say that they invest up to Rs. 10000 out of their
annual income.
CHAPTER-VII
FINDINGS &
SUGGESTIONS
FINDINGS OF THE STUDY
From the above study, it is clear that all the respondents are aware of Life
opted for ICICI Prudential and 41% respondents prefer to have HDFC
Standard Life Insurance policy.
Majority of the respondents are satisfied with the services offered by
mind while taking the life insurance policy is tax benefit as there life
insurance policy is exempted from tax.
Majority of the respondents are aware of Money Back, Endowment,
don’t understand the working of the insurance system and nearly 28% of
the respondents don’t see any benefit with the system, 20% and 12% of
the respondents don’t want insurance and could not afford respectively.
Majority of the respondents covered were businesspersons i.e. 58%.
Service class formed 42% of the total respondents. The business class
didn’t respond as strongly as service class, as the service class wanted to
save their taxes through insurance, where as the business people were of
the view that their CA’s are capable enough to provide better alternatives
than insurances for the same purpose.
RECOMMENDATIONS
1. ICICI should cover uneducated people, as they are not aware of the
advantages of the policies for tax savings.
2. ICICI should cover rural areas, as they are also the segment of
population not aware of the advantages of policies.
3. ICICI must conduct seminars and presentations at all kinds of
places whether cities or towns and focus should be on people who
have large network of references.
4. Moreover presentations should be conducted at places where more
and more people are available such as educational institutes,
society clubs, hospitals etc.
5. The agent should be provided with more and more incentives so
that they can keep further some assistants who can help them to
fetch more policies side by side what agents themselves fetch out.
6. ICICI should do efforts to promote the brand name and create
awareness through channels such as advertisements.
7. Measures to build faith among people about ICICI Life Insurance
must be taken on accounts of its reliability, credibility,
responsibility, sincerity and the long lasting establishment.
8. Since all the riders attached with any of its products is along with a
slight increment in the premium rates, as such a few cost free
riders should be designed to attract more customers.
9. ICICI should put up ATM’s in different areas so that premium can
be collected across the country.
10. The agent should not only be provided with training at the time of
selection but they should also be given refresher training
periodically. It increases their professionalism and make them
more competitive. Every year the agents should be given the
training for at least one week.
11. The agent should be given sufficient traveling allowance so as to
compensate the expenditures made by them to meet customers
from one place to another.
12. ICICI should cover various risks in one policy with same premium.
13. ICICI should deal with the customer’s complaints. The company
should avoid legal proceedings by setting the claims out of the
courts.
14. Investment plans suitable to the female population (female child)
should be brought in the market with minimum premium and
additional benefits.
CONCLUSION
C H A P T E R - V I I
CHAPTER-VIII
CONCLUSION
CONCLUSION
At the end I would like to conclude that ICICI is the no. 1 private life
insurance company in India and HDFC is giving tough competition to ICICI
Prudential.
Opening up the sector will certainly mean new products, better packaging
and improved customer service. Both new and existing players will have to
explore new distribution and marketing channels. Potential buyers for most
of this insurance lie in the middle class. New insurers must segment the
market carefully to arrive at appropriate products and pricing. Recognizing
the potential, in the past three years, the nationalized insurers have already
begun to target niches like pensions, women or children.
BIBLIOGRAPHY
BIBLIOGRAPHY
Books
Web sites
• www.iciciprulife.com
• www.bimaonline.com
ANNEXURE
QUESTIONNAIRE
9. If you are not taking any insurance policy, please tell us the reasons
why?
We could not afford
We don’t see any benefit with the system
We don’t want insurance
We don’t understand how system works
BACKGROUND DATA
1. Name _________________________________________
6. Income:
1000-5000
6000-10000
7. Address __________________________________________
__________________________________________
__________________________________________